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HomeMy WebLinkAbout2013 07-22 City Council Meeting PacketAGENDA MAPLEWOOD CITY COUNCIL 7:00 P.M. Monday, July 22, 2013 City Hall, Council Chambers Meeting No. 13-13 A. CALL TO ORDER B. PLEDGE OF ALLEGIANCE 1. Acknowledgement of Maplewood Residents Serving the Country. C. ROLL CALL Mayor’s Address on Protocol: “Welcome to the meeting of the Maplewood City Council. It is our desire to keep all discussions civil as we work through difficult issues tonight. If you are here for a Public Hearing or to address the City Council, please familiarize yourself with the Policies and Procedures and Rules of Civility, which are located near the entrance. Before addressing the council, sign in with the City Clerk. At the podium please state your name and address clearly for the record. All comments/questions shall be posed to the Mayor and Council. The Mayor will then direct staff, as appropriate, to answer questions or respond to comments.” D. APPROVAL OF AGENDA E. APPROVAL OF MINUTES 1. Approval of July 8, 2013 City Council Workshop Minutes 2. Approval of July 8, 2013 City Council Meeting Minutes F. APPOINTMENTS AND PRESENTATIONS 1. Promotion Ceremony for Officer Brian Bierdeman to Sergeant – No Report 2. Review of Legislative Session by Maplewood Representatives Fischer, Lillie and Ward and Senators Wiger and Kent G. CONSENT AGENDA – Items on the Consent Agenda are considered routine and non- controversial and are approved by one motion of the council. If a councilmember requests additional information or wants to make a comment regarding an item, the vote should be held until the questions or comments are made then the single vote should be taken. If a councilmember objects to an item it should be removed and acted upon as a separate item. 1. Approval Of Claims 2. Conditional Use Permit Review, All Metro Glass, 1357 Cope Avenue 3. Conditional Use Permit Review, South Metro Human Services Mental Health Care Facility, 1111 Viking Drive 4. Conditional Use Permit Review, St. Paul’s Priory Planned Unit Development, Benet Road and Monastery Way 5. Approval of Grant Agreement Between the Ramsey Washington Metro Watershed District and the City of Maplewood, July 2011 Storm Response, City Project 11-19 6. Approval of Purchase of Office Furniture for Investigations Division, Police Department Expansion Project Phase 2 H. PUBLIC HEARINGS 1. Public Hearing to Modify Development Program and Establish TIF District No. 1-12 for Research and Development Facility on 3M Campus a. Public Hearing Called for After 7:00 pm 1. Planning Commission and HEDC Recommendations b. Resolution Approving the Modification to the Development Program for Development District No. 1 and Establishing Tax Increment Financing District No. 1-12 and Approving a Tax Increment Financing Plan c. Resolution Approving Tax Increment Financing Development Agreement with 3M Companies d. Resolution Approving an Inter-fund Loan Agreement 2. Public Hearing on Capital Improvement Plan for 2014-2018 and the Issuance of Capital Improvement Bonds a. Public Hearing b. Resolution Approving 2014-2018 Capital Improvement Plan and the Issuance of Capital Improvement Bonds (3 votes required) I. UNFINISHED BUSINESS 1. Authorization to Implement Capital Project to Construct Fire Station 1 on 3M Campus J. NEW BUSINESS 1. Approval of Resolution for a Conditional Use Permit, Our City/Our Neighborhood Church at 1812 North St. Paul Road 2. Approval of Resolution for a Conditional Use Permit and Design Review, Maplewood Auto Mall, a Used Auto Sales Business at 2529 White Bear Avenue 3. Request of the City Council to Call a Special Meeting to Canvass the Results of the August 13, 2013 Municipal Primary Election K. AWARD OF BIDS 1. East Metro Public Safety Training Center, City Project 09-09, Bid Package 5, a. Approval of Resolution Receiving Bids and Rejecting All Bids for Burn Building and Burn Tower b. Approval of Resolution Authorizing Re-Advertisement for Bids L. VISITOR PRESENTATIONS M. ADMINISTRATIVE PRESENTATIONS 1. Notice of Cancellation of the September 2, 2013 Council Manager Workshop 2. Council Calendar Update: a. Police Department Open House – July 27th b. National Night Out – August 6th N. COUNCIL PRESENTATIONS O. ADJOURNMENT Sign language interpreters for hearing impaired persons are available for public hearings upon request. The request for this must be made at least 96 hours in advance. Please call the City Clerk’s Office at 651.249.2001 to make arrangements. Assisted Listening Devices are also available. Please check with the City Clerk for availability. RULES OF CIVILITY FOR OUR COMMUNITY Following are some rules of civility the City of Maplewood expects of everyone appearing at Council 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: Show respect for each other, actively listen to one another, keep emotions in check and use respectful language. Item E1 July 8, 2013 City Council Workshop Minutes 1 MINUTES MAPLEWOOD CITY COUNCIL MANAGER WORKSHOP 5:00 P.M. Monday, July 8, 2013 Council Chambers, City Hall A. CALL TO ORDER A meeting of the City Council was held in the City Hall Council Chambers and was called to order at 5:02 p.m. by Mayor Rossbach. B. ROLL CALL Will Rossbach, Mayor Present Robert Cardinal, Councilmember Present Rebecca Cave, Councilmember Present Kathleen Juenemann, Councilmember Present Marvin Koppen, Councilmember Present C. APPROVAL OF AGENDA Councilmember Cave moved to approve the agenda as submitted. Seconded by Mayor Rossbach Ayes – All The motion passed. D. UNFINISHED BUSINESS None E. NEW BUSINESS 1. Discussion on Reappointment Process for Commissioners City Manager Ahl gave the staff report and answered questions of the council. 2. Major Project Planning Updates: a. Police Department Expansion b. East Metro Public Safety Facility IT Director Fowlds gave the staff report on the Police Department Expansion and answered questions of the council. Public Works Director Thompson gave the staff report on the East Metro Public Safety Facility. Fire Chief Lukin gave additional input on the East Metro Public Safety Facility. Ron Leaf, Architect from SEH addressed and answered questions of the council. 3. Fire Station Planning Report: a. Fire Department Staffing Approach b. Fire Station Number 1 on 3M Campus Planning c. Future Station Upgrades d. Funding Proposal Fire Chief Lukin gave the staff report and answered questions of the council. City Manager Ahl gave additional information on the Fire Station Planning Report. F. ADJOURNMENT Mayor Rossbach adjourned the meeting at 6:45 p.m. Packet Page Number 1 of 275 Item E2 July 8, 2013 City Council Meeting Minutes 1 MINUTES MAPLEWOOD CITY COUNCIL 7:00 p.m., Monday, July 8, 2013 Council Chambers, City Hall Meeting No. 12-13 A. CALL TO ORDER A meeting of the City Council was held in the City Hall Council Chambers and was called to order at 7:02 p.m. by Mayor Rossbach. Joe Fox from the Ramsey County Fair was present and addressed the council to give a brief summary on the 100th Anniversary of the Ramsey County Fair scheduled for July 10-14, 2013. B. PLEDGE OF ALLEGIANCE C. ROLL CALL Will Rossbach, Mayor Present Robert Cardinal, Councilmember Present Rebecca Cave, Councilmember Present Kathleen Juenemann, Councilmember Present Marvin Koppen, Councilmember Present D. APPROVAL OF AGENDA N1 National Night Out N2 Cable Survey N3 Business Meeting July 11th at the Maplewood Community Center N4 Solar Energy Report Councilmember Juenemann moved to approve the agenda as amended. Seconded by Councilmember Koppen Ayes – All The motion passed. E. APPROVAL OF MINUTES 1. Approval of June 24, 2013 City Council Meeting Minutes Councilmember Juenemann moved to approve the June 24, 2013 City Council Meeting Minutes as submitted. Seconded by Councilmember Koppen Ayes – All The motion passed. F. APPOINTMENTS AND PRESENTATIONS None Packet Page Number 2 of 275 Item E2 July 8, 2013 City Council Meeting Minutes 2 G. CONSENT AGENDA Councilmember Koppen moved to approve agenda items G1-G3. Seconded by Councilmember Juenemann Ayes – All The motion passed. 1. Approval of Claims Councilmember Koppen moved to approve the Approval of Claims. ACCOUNTS PAYABLE: $ 2,129,831.35 Checks # 90152 thru # 90185 dated 06/19/13 thru 06/25/13 $ 303,436.77 Disbursements via debits to checking account dated 06/17/13 thru 06/21/13 $ 2,433,268.12 Total Accounts Payable PAYROLL $ 510,097.21 Payroll Checks and Direct Deposits dated 06/21/13 $ 763.00 Payroll Deduction check # 9989396 thru # 9989397 dated 06/21/13 $ 510,860.21 Total Payroll $ 2,944,128.33 GRAND TOTAL Seconded by Councilmember Juenemann Ayes – All The motion passed. 2. Approval of Resolution Certifying Election Judges for the August 13, 2013 Primary Municipal Election Councilmember Koppen moved to approve the Resolution Certifying Election Judges for the August 13, 2013 Primary Municipal Election. RESOLUTION 13-7-941 RESOLUTION ACCEPTING ELECTION JUDGES RESOLVED, that the City Council of Maplewood, Minnesota, accepts the following list of Election Judges for the 2013 Primary Election to be held on Tuesday, August 13, 2013. Ahrens, Fran Aikens, Meridith Allen, Jim Anderson, Nancy Anderson, Suzanne Ansari, Ahsan Arnold, Ajla Bartelt, Joan Bedor, David Packet Page Number 3 of 275 Item E2 July 8, 2013 City Council Meeting Minutes 3 Beggs, Regan Behr, Jeanette Belland, Jaime Berry, Robert (Bud) Bierbaum, Al Bjorklund, Diane Bolden, Donita Booher, Michele Bortz, Albert Bortz, Jeanne Brandon, Richard Brandon, Virginia Bryan, Betty Bunkowske, Bernice Carle, Jeanette Carson, Fannie Carson, Helen Casserly, Debra Combe, Edward Connelly, Thomas Conover, Florence Cude, Carol Cude, Larry Danielson, Nate D'Arcio, India DeBernardi, Nancy Desai, Kalpana DeZelar, Phil Dickson, Helen Jean Dittli, Albin Droeger, Diane Duellman, Audrey Dunham, Bob Eickhoff, Carolyn Evans, Carol Ewald, Jeanne Fitzgerald, Delores Fowler, Cynthia Franzen, Nick Freer, Mary Jo Fuller, Mary Katherine Gaboury, Shirley Galligher, Patricia Garvey, Terrence Gebauer, Victor Gerten, John Gierzak, Sister Clarice Golaski, Diane Gravink, Barb Gudknecht, Jamie Gustafson, Dianne Guthrie, Rosie Haddad, Joyce Hafner, Michael Hahn, Sandra Hahn, Vonna Hanson, Joan Harder, Mary Hart, Barbara Herber, Darlene Hervig, Cindy Hinnenkamp, Gary Hulet, Jeanette Hulet, Robert Huth, Patricia Huth, Raymond Inhofer, Mary Claire Jagoe, Carole Jahn, David Jensen, Robert Johannessen, Judith Johansen, Kathleen Johnson, Warren Jones, Shirley Julich, Robert Kapfer, Deb Karner, Ann Kipka, Judy Kirchoff, Harold Knauss, Carol Knutson, Lois Kramer, Dennis Kreger, Jason Kwapick, Jackie Lackner, Marvella Lampe, Charlotte Larson, Michelle Lauren, Lorraine Layer, Stephanie Layer, Tom Leiter, Barbara Leonard, Claudette Liptak, Marianne Lockwood, Jackie Loipersbeck, Darlene Loipersbeck, Jules Mahowald, Valerie Mahre, Jeri Mammenga II, Donald Manthey, John Maskrey, Thomas McCann, John McCarthy, Peggy McCauley, Judy Mechelke, Mary Lou Meister-Westermann, Jean Millette, James Moreno, Marlene Muenchow, Mike Myster, Thomas Nelson, Clare Nelson, Percy Newcomb, Mary Nichol, Jane Nichols, Miranda Nissen, Helen Norberg, Ann Noyes, Douglas O'Brien, D. William (Bill) Olson, Anita Olson, Lois Olson, Norman Parent, Dian Pedersen, Bernard Peper, Marilyn Petrie, Linda Posch, Roger Putz, Shelly Putz, Steve Rawn, Stephanie Renslow, Rita Rodriguez, Vincent Rudeen, Elaine Sagert, Chris Sandberg, Janet Sands, Warren Sauer, Elmer Sauer, Kathleen Sauro, Janet Sawyer, Sharon Scharnott, Thomas Schluender, Cynthia Schmidt, William Schneider, Mary Ann Schramel, Betty Schramel, Jim Schultz, Louise Seitz, James Seyfer, Deborah Shores, Teresa Skaar, Delaney Skaar, Steven Skaar, Susan Spangler, Bob Packet Page Number 4 of 275 Item E2 July 8, 2013 City Council Meeting Minutes 4 Stafki, Tim Steenberg, Judith Steenberg, Richard Storm, Mary Strack, Joan Taylor, Lori Thomforde, Faith Tourville, Michael Trippler, Dale Tschida, Micki Urbanski, Carolyn Urbanski, Holly Urbanski, William Vanek, Mary Vereide, Jim Warren, Karen Wasmundt, Gayle Wolfgram, Dorothy Yorkovich, Cindy Young, Linda Zian, Helen Zipko, Leroy Seconded by Councilmember Juenemann Ayes – All The motion passed. 3. Approval to Extend Publishing Agreement with Nystrom Printing for the Maplewood Monthly Councilmember Koppen moved to approve to Extend the Printing and Publishing Agreement with Nystrom Publishing Company until the end of 2013. Seconded by Councilmember Juenemann Ayes – All The motion passed. H. PUBLIC HEARING None I. UNFINISHED BUSINESS None J. NEW BUSINESS 1. Approval of Resolution for the Conditional Use Permit Revision for a Planned Unit Development and Design Review for Proposed Harmony Learning Center Greenhouse, 1961 County Road C East Senior Planner Ekstrand gave the staff report and answered questions of the council. Brian Schlottman from Century College addressed and answered questions of the council. Councilmember Koppen moved to approve: A. Adopt the resolution amending the conditional use permit for a planned unit development for the Harmony Learning Center, located at 1695 County Road C East, to allow the construction of a greenhouse. This resolution deletes the 1985 PUD approval for senior housing, which was never built, and incorporates the more recent CUP approval for the T- Mobile cell phone tower (deletions are crossed out and additions are underlined.) Now, therefore, be it resolved by the Maplewood City Council that a conditional use permit be granted for the Harmony School site planned unit development, including the following variances: Packet Page Number 5 of 275 Item E2 July 8, 2013 City Council Meeting Minutes 5 1. Allow 79 parking spaces for the 52-unit senior’s residence, rather than the 104 required by code. 2. Allow 26 enclosed parking spaces rather than the 52 enclosed spaces required by the code. Approval of the conditional use permit and variances is subject to: 1. If council determines that there is insufficient on-site parking for the 52-unit seniors residence, within one year of 95% occupancy, additional parking may be required. 2. Maplewood and North St. Paul shall have continued use of the athletic facilities in the northeast portion of the site until that part of the site develops, provided the use of these facilities do not interfere with the applicant’s use of the property. 3. The 52-unit seniors residence shall not be converted shall to non-seniors housing without revision of the planned unit development. For purposes of this permit, senior’s housing is defined as a residence occupied by persons in their retirement years with a significant number of one-person households. 4. The auditorium attached to the 52-unit senior’s residence shall only be used by the residents of that building. Public assembly unrelated to senior use would be prohibited without a revision of this permit. 5. The commercial portion of the development shall be limited to the uses allowed in the BC(M), business commercial (modified) zoning district. 6. The eight parking spaces (marked “future”) located south of the driveway to the garage for the 64-structure shall be constructed. 7. The proposed 575 square foot units in the 52-unit residence (October 8, 1985 plans) shall be increased in area to at least 580 square feet of habitable floor area. 8. Move the 64-unit residence to the west to comply with the required minimum setback of 50 feet. 9. Adherence to the site plan dated October 8, 1985, except as required in these conditions, unless a change is approved by the community design review board. 1. All construction shall follow the site plans approved by the city. The community development staff may approve minor changes. 2. The proposed construction must be substantially started within one year of council approval of the permit shall become null and void. The council may extend this deadline for one year. 3. The city council shall review this permit in one year. 4. This conditional use permit is conditioned upon T-Mobile allowing the co-location of other provider’s telecommunications equipment on the proposed tower. T-Mobile shall submit a letter to staff allowing co-location before a building permit can be issued. Packet Page Number 6 of 275 Item E2 July 8, 2013 City Council Meeting Minutes 6 5. If any required landscaping for the T-Mobile tower dies, plantings must be replaced pursuant to the city policy and standards. 6. The school district shall provide a site plan with their building permit submittal that verifies that the proposed greenhouse would be placed no closer than 75 feet to the wetland to the north. For the purposes of defining the edge of the wetland, that shall be considered to be the edge of the cat tails. 7. This approval acknowledges that the school district’s educational activities are permitted by this permit. Any new construction or exterior improvements are subject to compliance with the design-review requirements in the city code, and perhaps, may require amendment of this conditional use permit. B. Approve the design plans date-stamped May 21, 2013 for the greenhouse at Harmony Learning Center, 1695 County Road C East, subject to the following conditions: 1. The applicant shall comply with all requirements of the building official and assistant fire chief. 2. The applicant shall submit plans detailing any grading or footing work for review prior to commencing with the greenhouse construction to the city engineer. The applicant shall comply with any requirements generated by the review or grading and erosion control permit. 3. The applicant shall provide a site plan with their building permit submittal that verifies that the proposed greenhouse would be placed no closer than 75 feet to the wetland to the north. For the purposes of defining the edge of the wetland, that shall be considered to be the edge of the cat tails. RESOLUTION 13-7-942 CONDITIONAL USE PERMIT REVISION RESOLUTION WHEREAS, Independent School District 622, applied for a conditional use permit to amend the planned unit development for the Harmony Learning Center, to install a 21-foot by 36-foot greenhouse. WHEREAS, this permit applies to 1961 County Road C East. The legal description is: That part of the Southwest ¼ of Section 2, Township 29, Range 22, Ramsey County. More particularly described as: Beginning at the intersection of White Bear Avenue and the South link of Said Southwest 1/4; thence northerly on said center line 420.55 feet; thence east parallel with said South line 311 feet; thence northerly parallel with said center line 140 feet; thence north 107.07 feet, thence east 391.55 feet to a point 658.95 feet north of said South line; thence to said South line at a point 200 feet west of said ¼ corner; then West to the point of beginning. WHEREAS, the history of this conditional use permit is as follows: 1. On June 18, 2013, the planning commission held a public hearing. The city staff published a notice in the paper and sent notices to the surrounding property owners. The planning commission gave persons at the hearing a chance to speak and present written statements. The commission also considered reports and recommendations of the city staff. The planning commission recommended that this CUP amendment be approved. Packet Page Number 7 of 275 Item E2 July 8, 2013 City Council Meeting Minutes 7 2. On July 8, 2013, the city council discussed the proposed conditional use permit amendment. They considered reports and recommendations from the planning commission and city staff. NOW, THEREFORE, BE IT RESOLVED that the city council approved the above- described conditional use permit revision, because: 1. The use would be located, designed, maintained, constructed and operated to be in conformity with the city's comprehensive plan and code of ordinances. 2. The use would not change the existing or planned character of the surrounding area. 3. The use would not depreciate property values. 4. The use would not involve any activity, process, materials, equipment or methods of operation that would be dangerous, hazardous, detrimental, disturbing or cause a nuisance to any person or property, because of excessive noise, glare, smoke, dust, odor, fumes, water or air pollution, drainage, water run-off, vibration, general unsightliness, electrical interference or other nuisances. 5. The use would generate only minimal vehicular traffic on local streets and would not create traffic congestion or unsafe access on existing or proposed streets. 6. The use would be served by adequate public facilities and services, including streets, police and fire protection, drainage structures, water and sewer systems, schools and parks. 7. The use would not create excessive additional costs for public facilities or services. 8. The use would maximize the preservation of and incorporate the site's natural and scenic features into the development design. 9. The use would cause minimal adverse environmental effects. Approval is subject to the following conditions: 1. All construction shall follow the site plans approved by the city. The community development staff may approve minor changes. 2. The proposed construction must be substantially started within one year of council approval of the permit shall become null and void. The council may extend this deadline for one year. 3. The city council shall review this permit in one year. 4. This conditional use permit is conditioned upon T-Mobile allowing the co-location of other provider’s telecommunications equipment on the proposed tower. T-Mobile shall submit a letter to staff allowing co-location before a building permit can be issued. 5. If any required landscaping for the T-Mobile tower dies, plantings must be replaced pursuant to the city policy and standards. Packet Page Number 8 of 275 Item E2 July 8, 2013 City Council Meeting Minutes 8 6. The school district shall provide a site plan with their building permit submittal that verifies that the proposed greenhouse would be placed no closer than 75 feet to the wetland to the north. For the purposes of defining the edge of the wetland, that shall be considered to be the edge of the cat tails. 7. This approval acknowledges that the school district’s educational activities are permitted by this permit. Any new construction or exterior improvements are subject to compliance with the design-review requirements in the city code, and perhaps, may require amendment of this conditional use permit. The Maplewood City Council approved this resolution on July 8, 2013. Seconded by Mayor Rossbach Ayes – All The motion passed. 2. Approval of Plans for a Building Addition and Parking Waiver for Maplewood Town Center, 1885 County Road D East Senior Planner Ekstrand gave the staff report and answered questions of the council. Daniel Pollastrini from Pope Architects addressed and answered questions of the council. Councilmember Koppen moved to approve the plans date-stamped June 4, 2013, for the proposed addition to the east side of the Maplewood Town Center shopping center, located at 1845 County Road D East. This approval includes a parking waiver to allow 87 fewer parking spaces than the city code requires. Approval of the parking waiver is because: the proposed parking reduction only amounts to 14 percent, which is a minor reduction, and because the Maplewood Town Center shopping center has functioned with a reduced amount of parking in the past and has never experienced a difficulty in providing adequate parking for patrons. Approval of the proposed addition is subject to the applicant complying with the following conditions: 1. Repeating this review in two years if the city has not issued a building permit for this project. 2. Comply with the requirements of the city’s engineering department and building official and assistant fire chief as stated in this report. 3. Before getting a building permit, the applicant shall provide a design plan for the proposed trash enclosure. The design of this enclosure shall match the materials and color of the building. 4. The community design review board shall approve major changes to these plans. Minor changes may be approved by staff. 5. Replace any trees that are removed on a one-to-one basis. Replacement trees must be at least two inches in caliper. The applicant should replace any trees that they remove somewhere on the property and submit a replacement plan to staff prior to obtaining a building permit. 6. Provide a cash escrow or an irrevocable letter of credit for all required exterior improvements. The amount shall be 150 percent of the cost of the work. Packet Page Number 9 of 275 Item E2 July 8, 2013 City Council Meeting Minutes 9 Seconded by Councilmember Juenemann Ayes – All The motion passed. 3. Authorization to Begin Design Services for Fire Station Number 1 on 3M Campus City Manager Ahl gave the staff report. Councilmember Juenemann moved to approve the City Manager enter into an agreement with Kimley-Horn, Inc. for engineering and architectural services up to $50,000 for final design services for a new fire station on 3M property with funding from the General Fund. Seconded by Councilmember Koppen Ayes – All The motion passed. K. AWARD OF BIDS None L. VISITOR PRESENTATION 1. Mark Bradley, Maplewood Resident M. ADMINISTRATIVE PRESENTATIONS 1. Council Meeting Calendar Report City Manager Ahl gave a report on upcoming council manager workshop and council meeting topics. 2. Report on July 4th Event – No Report Citizen Services Director Guilfoile gave a report on the July 4th event estimating that the event was well attended and within budget. Guilfoile extended thanks to all of the employees that assisted with the event. . N. COUNCIL PRESENTATIONS 1. National Night Out Councilmember Juenemann reminded residents that National Night Out is scheduled for Tuesday, August 6th. Acting Chief Kvam provided additional information. 2. Cable Survey Councilmember Cardinal gave a report on the results of the Ramsey-Washington County Cable Commission Survey. 3. Business Meeting Councilmember Cardinal informed residents that a breakfast business meeting will be held on Thursday, July 11th at 7:30-9:00 a.m. at the Maplewood Community Center. The topic of the Packet Page Number 10 of 275 Item E2 July 8, 2013 City Council Meeting Minutes 10 meeting will be on the master plan for the vision of city parks, trails and preserves for the next 20 years. 4. Solar Energy Report Councilmember Cardinal requested a report from staff on the energy savings with the Solar Energy Panels that are located on campus. O. ADJOURNMENT Mayor Rossbach adjourned the meeting at 7:54 p.m. Packet Page Number 11 of 275 Agenda Item F2 Agenda Report TO: City Council FROM: Charles Ahl, City Manager DATE: July 16, 2013 SUBJECT: Review of Legislative Session by Maplewood Representatives Fischer, Lillie, Ward and Senator Wiger INTRODUCTION/SUMMARY This item is informational and intended to provide the Council a presentation and discussion with our state representatives and senators regarding the recently concluded legislative session. No action is required. Invited Legislators: 1. Representative Peter Fischer 2. Representative Leon Lillie 3. Representative Joan Ward 4. Senator Chuck Wiger 5. Senator Susan Kent Note: these five legislators were instrumental in supporting and providing leadership on the 3M TIF Legislation that was approved during the 2013 Session. We have invited these legislators to remain for the TIF Hearing on 3M that follows on the agenda. RECOMMENDATION No action required. Packet Page Number 12 of 275 S:\FINANCE\APPROVAL OF CLAIMS\2013\AprClms - 6-28 and 7-5 and 7-12.xlsx AGENDA NO.G-1 TO:City Council FROM:Finance Manager RE:APPROVAL OF CLAIMS DATE: 774,291.22$ Checks # 90186 thru # 90241 dated 06/27/13 thru 07/02/13 440,693.58$ Disbursements via debits to checking account dated 06/24/13 thru 06/28/13 2,388,181.56$ Checks # 90242 thru #90280 dated 07/09/13 thru 07/15/13 188,767.80$ Disbursements via debits to checking account dated 07/01/13 thru 07/05/13 214,335.23$ Checks # 90281 thru # 90325 dated 07/11/13 thru 07/16/13 602,930.58$ Disbursements via debits to checking account dated 07/08/13 thru 07/12/13 4,609,199.97$ Total Accounts Payable 588,035.45$ Payroll Checks and Direct Deposits dated 07/05/13 763.00$ Payroll Deduction check # 9989424 thru # 9989425 dated 07/05/13 588,798.45$ Total Payroll 5,197,998.42$ GRAND TOTAL as attachments Attached is a detailed listing of these claims. Please call me at 651-249-2902 if you have any questions on the attached listing. This will allow me to check the supporting documentation on file if necessary. PAYROLL AGENDA REPORT July 22, 2013 Attached is a listing of paid bills for informational purposes. The City Manager has reviewed the bills and authorized payment in accordance with City Council approved policies. ACCOUNTS PAYABLE: Packet Page Number 13 of 275 Check Description Amount 90186 02464 FUNDS FOR ATMS 10,000.00 90187 00111 PATROL HOURS 6/3 - 6/16 1,400.00 90188 01936 REIMB FOR MILEAGE & INTERNET 93.48 90189 04508 UMPIRE FEES APRIL, MAY, & PART JUNE 7,738.00 90190 00223 RETIREMENT PLAQUE - FRASER 240.00 90191 02149 MARKETING & ADVERTISING - JUNE 4,000.00 90192 05028 CITY HALL SOLAR SYSTEM LEASE-JUNE 397.00 05028 MCC SOLAR SYSTEM LEASE - JUNE 369.00 90193 00519 REPAIR OF BULLDOG NOZZLE 820.05 90194 04917 PROJ 04-21 GLADSTONE I FINAL PMT 68,402.93 90195 04316 AUTO PAWN SYSTEM - MAY 788.40 90196 01085 MONTHLY PREMIUM - JULY 3,035.60 90197 01202 RECREATION BROCHURE & POSTAGE 11,598.00 90198 01337 FLEET SUPPORT FEES - JUNE 414.96 90199 01409 PROJ 09-09 CONSULTANT SERVICES 35,720.71 01409 PROJ 09-08 CONSULTANT SERVICES 7,117.52 01409 PROJ 04-21 CONSULTANT SERVICES 397.59 90200 01574 PROJ 10-14 WESTERN HILLS FINAL PMT 17,112.89 90201 01190 ELECTRIC & GAS UTILITY 21,775.50 90202 05026 TENNIS INSTRUCTION SESSION I 539.00 90203 00120 POOL CHEMICALS MCC 975.77 90204 04047 BANQUET ROOM/THEATER SRVS 2/8-5/16 962.00 90205 01974 REFUND FOR TRANS MEDIC 801276119 1,466.48 90206 00230 RED BALL DIAMOND ROCK FOR PARKS 691.98 90207 05215 2ND HALF SOCCER INSTRUCTION 600.00 90208 04311 REIMB FOR MEALS 6/17 - 6/19 35.32 90209 05181 POLICE DEPT EXPANSION PROJ 16,530.00 90210 04529 REMOTE CAR SYS RE-INSTALL 312.50 90211 05232 ESCROW RELEASE 1987 CO RD D EAST 5,027.95 90212 04064 SECURITY OFFICER FOR MCC JUNE 29 262.50 90213 00569 REIMB FOR MEALS 4/21 - 4/26 40.04 90214 03988 REIMB FOR TUITION & BOOKS 3/31-6/9 772.01 90215 00644 MONTHLY PREMIUM - JULY 12,377.50 90216 05014 FINAL PMT SOUND/LIGHTING JULY 4TH 1,150.00 90217 03841 REPAIR OF SENTINEL RADIO ALARM 282.84 90218 03756 COURT ORDERED ATTORNEY FEES 2,191.25 90219 04310 MEMBERSHIP FEES 70.00 90220 00942 JANITORIAL SERVICES - JUNE 6,578.16 00942 SEWER BACKUP 1133 CO RD B E 336.66 90221 03818 MONTHLY PREMIUM - JULY 155,592.20 90222 03886 NOTARY COMMISSION APPLICATIONS 360.00 90223 01126 MONTHLY PREMIUM - JULY 480.00 90224 00001 REIMB D WHITSON TURF RESTORATION 400.00 90225 00001 REFUND D COOK SOFTBALL 69.00 90226 00001 REIMB S YANG TURF RESTORATION 48.08 90227 00001 REFUND E COLLINS MEDICA BENEFIT 20.00 90228 05112 REIMB FOR MEALS 6/17 - 6/19 36.39 90229 04054 DJ FOR CARVER & MCC DANCE 400.00 90230 01418 SUPPLIES FOR TEEN DANCE & DAYCAMP 297.51 01418 VENDING MACHINE SUPPLIES 208.84 01418 CONCESSIONS 207.82 01418 ITEMS FOR RESALE 29.94 01418 SUPPLIES FOR CONFERENCE ROOMS 6.30 90231 03879 EMS FEES - JULY 738.67 90232 00006 REFUND F IVORY MEDICA BENEFIT 20.00 07/02/2013 SAM'S CLUB DIRECT 07/02/2013 SANSIO 07/02/2013 SILVER SNEAKERS 07/02/2013 SAM'S CLUB DIRECT 07/02/2013 SAM'S CLUB DIRECT 07/02/2013 SAM'S CLUB DIRECT 07/02/2013 JAMES RYAN PARKER 07/02/2013 STEVEN REED 07/02/2013 SAM'S CLUB DIRECT 07/02/2013 ONE TIME VENDOR 07/02/2013 ONE TIME VENDOR 07/02/2013 ONE TIME VENDOR 07/02/2013 MN SECRETARY OF STATE 07/02/2013 NCPERS MINNESOTA 07/02/2013 ONE TIME VENDOR 07/02/2013 MARSDEN BLDG MAINTENANCE CO 07/02/2013 MARSDEN BLDG MAINTENANCE CO 07/02/2013 MEDICA 07/02/2013 KARAS TECHNICAL SERVICES 07/02/2013 DIANA LONGRIE 07/02/2013 M C F O A 07/02/2013 JODI HALWEG 07/02/2013 HEALTHPARTNERS 07/02/2013 ICABOD PRODUCTIONS LLC 07/02/2013 FENDLER PATTERSON CONSTRUCTION 07/02/2013 DEREK FRITZE 07/02/2013 CLARENCE GERVAIS 07/02/2013 JOSEPH DEMULLING 07/02/2013 DERAU CONSTRUCTION 07/02/2013 ELSAG NORTH AMERICA 07/02/2013 BLUE CROSS REFUNDS 07/02/2013 BRYAN ROCK PRODUCTS, INC. 07/02/2013 CORESTRONG FITNESS LLC 07/02/2013 ADVANTAGE SPORTS LLC 07/02/2013 AQUA LOGIC INC 07/02/2013 ASHLAND PRODUCTIONS 07/02/2013 S E H 07/02/2013 T A SCHIFSKY & SONS, INC 07/02/2013 XCEL ENERGY 07/02/2013 RAMSEY COUNTY-PROP REC & REV 07/02/2013 S E H 07/02/2013 S E H 07/02/2013 CITY OF MINNEAPOLIS RECEIVABLES 07/02/2013 MN LIFE INSURANCE 07/02/2013 NYSTROM PUBLISHING CO INC 07/02/2013 ENERGY ALTERNATIVES SOLAR, LLC 07/02/2013 FLEXIBLE PIPE TOOL CO. 07/02/2013 LUNDA CONSTRUCTION CO. 07/02/2013 BRODIN STUDIOS, INC. 07/02/2013 HEIDI CAREY 07/02/2013 ENERGY ALTERNATIVES SOLAR, LLC 07/02/2013 ANIMAL CONTROL SERVICES 07/02/2013 CHAD BERGO 07/02/2013 BETWEEN THE LINES Check Register City of Maplewood 06/27/2013 Date Vendor 06/27/2013 US BANK Packet Page Number 14 of 275 90233 01565 PARTS & REPAIR ON STREET SWEEPER 1,602.91 90234 04814 REIMB FOR MEALS 6/17 - 6/19 34.67 90235 04104 MCC EQUIP UPGRADE APPLICATION #1 217,567.50 04104 MCC EQUIP UPGRADE APPLICATION #2 108,783.75 04104 UPGRADE/REPLACE AHU#2 CITY HALL 32,940.00 90236 01649 JACKHAMMER RENTAL FOR BOBCAT 701.25 90237 01669 FORFEITED VEHILCE & OTHER TOWING 737.45 90238 05231 REFUND FOR TRANS MEDIC 1,926.51 90239 04357 BIOMEDICAL FEES 765.00 90240 03682 INFLATABLES FOR JULY 4TH 6,009.80 90241 05013 MAINT ON PW MECHANICAL EQUIP 973.04 05013 MAINT ON CH MECHANICAL EQUIP 711.00 774,291.22 56 Checks in this report. 07/02/2013 USA INFLATABLES 07/02/2013 YALE MECHANICAL LLC 07/02/2013 YALE MECHANICAL LLC 07/02/2013 TWIN CITIES TRANSPORT & 07/02/2013 UNITED HEALTH CARE SRVS., INC. 07/02/2013 UNIVERSAL HOSPITAL SRVS, INC. 07/02/2013 TRANE U.S. INC. 07/02/2013 TRANE U.S. INC. 07/02/2013 TRI-STATE BOBCAT, INC. 07/02/2013 SWEEPER SERVICES 07/02/2013 BRIAN TAUZELL 07/02/2013 TRANE U.S. INC. Packet Page Number 15 of 275 Settlement Date Payee Description Amount 6/24/2013 MN State Treasurer Drivers License/Deputy Registrar 56,344.29 6/24/2013 U.S. Treasurer Federal Payroll Tax 98,552.87 6/24/2013 P.E.R.A.P.E.R.A.86,846.38 6/25/2013 MN State Treasurer Drivers License/Deputy Registrar 45,918.33 6/25/2013 MidAmerica - ING HRA Flex plan 14,302.70 6/25/2013 Labor Unions Union Dues 3,536.97 6/25/2013 MN State Treasurer State Payroll Tax 19,922.70 6/26/2013 MN State Treasurer Drivers License/Deputy Registrar 39,385.52 6/27/2013 MN State Treasurer Drivers License/Deputy Registrar 48,057.43 6/27/2013 US Bank Bank fees 107.82 6/28/2013 MN State Treasurer Drivers License/Deputy Registrar 25,529.18 6/28/2013 MN Dept of Natural Resources DNR electronic licenses 986.00 6/28/2013 Optum Health DCRP & Flex plan payments 1,203.39 440,693.58 CITY OF MAPLEWOOD Disbursements via Debits to Checking account Packet Page Number 16 of 275 Check Description Amount 90242 05114 PROJ 12-13 PROF SRVS 4/27 - 5/24 6,008.54 90243 00526 PROJ 09-08 HWY 36/ENGLISH PMT#5 2,261,270.52 90244 00687 TRIMMING & REMOVAL BRANCES/TREES 2,605.02 00687 REMOVAL OF OAK TREE PD BUILDOUT 480.94 00687 TREE TRIMMING 2324 MAPLE/2137 BEAM 213.75 90245 02728 PROJ 09-08 PROF SRVS TRHU 5/31 17,444.92 02728 PROJ 04-21 PROF SRVS THRU 05/31 2,381.02 02728 PROJ 08-13 PROF SRVS THRU 5/31 1,185.87 02728 PROF SRVS THRU 5/31 810.90 90246 04265 ZUMBA INSTRUCTION TUE EVE JUNE 193.00 90247 01337 PROJ 11-14 PLANTS FOR RAINGARDENS 1,118.98 01337 PLANTS FOR MCC 1,038.83 01337 MULCH FOR RAIN GARDENS 480.94 01337 PROJ 11-14 PLANTS FOR RAINGARDENS 363.38 90248 01574 BITUMINOUS PURCHASES~2,657.92 90249 01190 ELECTRIC UTILITY 15,884.72 01190 ELECTRIC & GAS UTILITY 323.47 01190 ELECTRIC UTILITY 144.92 01190 ELECTRIC UTILITY 52.01 90250 01798 CONTRACT GASOLINE - JUNE 17,847.22 90251 05230 SHOW SETTLEMENT MCC JUNE 29 1,220.00 90252 03780 REPAIR/SERVICE ON SQUAD RADARS 912.63 03780 REPAIR/SERVICE ON SQUAD RADARS 226.11 03780 REPAIR/SERVICE ON SQUAD RADARS 166.80 90253 04848 MONTHLY PREMIUM - JULY 259.27 90254 00163 TIRES FOR FIRE TRUCK UNIT #438 3,205.63 90255 00420 VEHICLE CLEANING & DETAILING 128.24 90256 00472 CONSULTING FEES 6/17 - 6/28 1,250.00 90257 00479 MANHOLE RINGS & MORTAR 1,217.31 90258 02929 LTC MONTHLY PREMIUM - JULY 366.84 90259 05032 PRINTING SERVICES 5,132.92 90260 05030 EQUIP LEASE - MCC - PMT#12 4,344.07 90261 05192 REIMB FOR MILEAGE 4/4 - 5/8 50.29 05192 REIMB FOR MILEAGE 5/10 - 5/17 42.38 90262 04286 SHOW SETTLEMENT MCC JUNE 27 1,092.00 90263 02215 SECURITY OFFICER MCC JUNE 29 262.50 90264 03886 NOTARY COMMISSION APPLICATION 120.00 90265 00001 CHARITABLE GAMBLING ST JEROME SCHOOL 620.00 90266 00001 REFUND E-PUFF INVESTIGATION FEE 135.00 90267 00001 REFUND M YANTO MEMBERSHIP 115.65 90268 00001 REFUND B FYKSEN JUST GO SPORTS 42.00 90269 00001 REFUND S NICHOLS HP BENEFIT 40.00 90270 01338 NOTARY PUBLIC COUNTY FEE 20.00 90271 01359 VEHICLE WASHES - MAY 124.00 90272 02001 PHONE SERVICE - JUNE 1,436.20 90273 05225 PROJ 11-19 PIPE FOR OVERFLOW PROJ 1,634.33 90274 01417 CHARITABLE GAMBLING 1,399.00 90275 04074 ADJ TAI CHI INSTRUCTION 5/22 - 07/24 9.00 90276 00198 WATER UTILITY 1,486.50 90277 01836 PROJ 10-14 WATER HYDRANTS/MAINS 8,198.91 01836 PROJ 10-14 WATER HYDRANTS/MAINS 2,245.27 01836 PROJ 10-14 WATER HYDRANTS/MAINS 2,209.99 90278 01550 ELECTRICAL INSPECTIONS - JUNE 3,850.60 90279 00529 LTD PLAN 4043120-2 - JULY 3,090.49 00529 STD PLAN 4043120-1 - JULY 2,395.76 90280 03738 ATTORNEY SRVS FEES/RENT - AUG 6,625.0007/15/2013 CHARLES E. BETHEL 2,388,181.56 39 Checks in this report. 07/09/2013 SUMMIT INSPECTIONS 07/09/2013 UNION SECURITY INSURANCE CO 07/09/2013 UNION SECURITY INSURANCE CO 07/09/2013 ST PAUL, CITY OF 07/09/2013 ST PAUL, CITY OF 07/09/2013 ST PAUL, CITY OF 07/09/2013 SALVATION ARMY 07/09/2013 ELAINE SCHRADE 07/09/2013 ST PAUL REGIONAL WATER SRVS 07/09/2013 REGAL AUTO WASH BILLING 07/09/2013 CITY OF ROSEVILLE 07/09/2013 ROYAL CONCRETE PIPE, INC. 07/09/2013 ONE TIME VENDOR 07/09/2013 ONE TIME VENDOR 07/09/2013 RAMSEY COUNTY-VITAL RECORDS 07/09/2013 ONE TIME VENDOR 07/09/2013 ONE TIME VENDOR 07/09/2013 ONE TIME VENDOR 07/09/2013 LORIE LINE MUSIC, INC. 07/09/2013 JASON MARINO 07/09/2013 MN SECRETARY OF STATE 07/09/2013 KANSAS STATE BANK OF MANHATTAN 07/09/2013 CAITLIN KELLEY 07/09/2013 CAITLIN KELLEY 07/09/2013 EULL'S MANUFACTURING CO., INC. 07/09/2013 GLTC PREMIUM PAYMENTS 07/09/2013 IMAGING PATH 07/09/2013 BAUER BUILT 07/09/2013 DOWNTOWNER DETAIL CENTER 07/09/2013 MICHAEL A ERICSON 07/09/2013 ACCURATE RADAR SPECIALTIES 07/09/2013 ACCURATE RADAR SPECIALTIES 07/09/2013 AVESIS 07/09/2013 YOCUM OIL CO. 07/09/2013 A HARD DAY'S NIGHT A BEATLES TRIBUTE 07/09/2013 ACCURATE RADAR SPECIALTIES 07/09/2013 XCEL ENERGY 07/09/2013 XCEL ENERGY 07/09/2013 XCEL ENERGY 07/09/2013 RAMSEY COUNTY-PROP REC & REV 07/09/2013 T A SCHIFSKY & SONS, INC 07/09/2013 XCEL ENERGY 07/09/2013 RAMSEY COUNTY-PROP REC & REV 07/09/2013 RAMSEY COUNTY-PROP REC & REV 07/09/2013 RAMSEY COUNTY-PROP REC & REV 07/09/2013 KIMLEY-HORN & ASSOCIATES INC 07/09/2013 KIMLEY-HORN & ASSOCIATES INC 07/09/2013 MARIA PIRELA 07/09/2013 HUGO'S TREE CARE INC 07/09/2013 KIMLEY-HORN & ASSOCIATES INC 07/09/2013 KIMLEY-HORN & ASSOCIATES INC 07/09/2013 FOREST LAKE CONTRACTING INC 07/09/2013 HUGO'S TREE CARE INC 07/09/2013 HUGO'S TREE CARE INC Check Register City of Maplewood 07/08/2013 Date Vendor 07/09/2013 BOLTON & MENK, INC. Packet Page Number 17 of 275 Settlement Date Payee Description Amount 7/1/2013 MN State Treasurer Drivers License/Deputy Registrar 32,290.64 7/1/2013 US Bank Merchant Services Credit Card Billing fee 2,478.59 7/2/2013 MN State Treasurer Drivers License/Deputy Registrar 35,241.70 7/3/2013 MN State Treasurer Drivers License/Deputy Registrar 38,355.72 7/5/2013 MN State Treasurer Drivers License/Deputy Registrar 38,102.92 7/5/2013 US Bank VISA One Card*Purchasing card items 38,705.73 7/5/2013 ICMA (Vantagepointe)Deferred Compensation 3,592.50 188,767.80 *Detailed listing of VISA purchases is attached. CITY OF MAPLEWOOD Disbursements via Debits to Checking account Packet Page Number 18 of 275 Transaction Date Posting Date Merchant Name Transaction Amount Name 06/17/2013 06/18/2013 FINANCE AND COMMERCE INC $249.00 R CHARLES AHL 06/27/2013 06/28/2013 LA POLICE GEAR INC $161.45 MARK ALDRIDGE 06/24/2013 06/26/2013 GOVERNMENT FINANCE OFFIC $505.00 GAYLE BAUMAN 06/17/2013 06/19/2013 ST PAUL STAMP WORKS INC $71.88 REGAN BEGGS 06/24/2013 06/26/2013 THINGS REMEMBERED 0956 $118.91 REGAN BEGGS 06/25/2013 06/27/2013 ASPEN MILLS INC.$61.45 MARKESE BENJAMIN 06/25/2013 06/26/2013 DISPLAYS2GOCOM $43.15 CHRISTINE BERNARDY 06/24/2013 06/25/2013 CUB FOODS #1599 $7.98 NEIL BRENEMAN 06/24/2013 06/26/2013 HUDSON HOUSE GRAND HOTEL $378.00 NEIL BRENEMAN 06/18/2013 06/19/2013 FIRST SHRED $144.50 SARAH BURLINGAME 06/18/2013 06/19/2013 US CAVALRY $242.35 JOHN CARNES 06/21/2013 06/24/2013 PATCH SUPPLY INC $22.00 JOHN CARNES 06/14/2013 06/17/2013 NFPA NATL FIRE PROTECT $49.45 NICHOLAS CARVER 06/26/2013 06/27/2013 ACT*10KLAKES $120.00 NICHOLAS CARVER 06/14/2013 06/17/2013 HENRIKSEN ACE HARDWARE ($3.21)SCOTT CHRISTENSON 06/14/2013 06/17/2013 HENRIKSEN ACE HARDWARE $10.02 SCOTT CHRISTENSON 06/17/2013 06/18/2013 HEJNY RENTAL INC $23.18 SCOTT CHRISTENSON 06/19/2013 06/20/2013 ELECTRIC MOTOR REPAIR $590.38 SCOTT CHRISTENSON 06/19/2013 06/20/2013 KELE INC $564.93 SCOTT CHRISTENSON 06/19/2013 06/21/2013 THE HOME DEPOT 2801 $30.73 SCOTT CHRISTENSON 06/21/2013 06/24/2013 BATTERIES PLUS #31 $83.54 SCOTT CHRISTENSON 06/25/2013 06/27/2013 THE HOME DEPOT 2801 $62.19 SCOTT CHRISTENSON 06/26/2013 06/28/2013 THE HOME DEPOT 2801 $179.72 SCOTT CHRISTENSON 06/25/2013 06/27/2013 PROVANTAGE LLC $31.05 KERRY CROTTY 06/16/2013 06/17/2013 FRATTALLONES WOODBURY AC $32.13 CHARLES DEAVER 06/18/2013 06/19/2013 FRATTALLONES WOODBURY AC $10.49 CHARLES DEAVER 06/13/2013 06/17/2013 CEMSTONE-EAGAN $255.39 THOMAS DEBILZAN 06/19/2013 06/21/2013 KEEPRS INC 2 $21.50 JOSEPH DEMULLING 06/24/2013 06/26/2013 UNIFORMS UNLIMITED INC.$18.70 JOSEPH DEMULLING 06/26/2013 06/27/2013 WRIGHTLEATHERWORKS $74.98 JOSEPH DEMULLING 06/14/2013 06/17/2013 UNIFORMS UNLIMITED INC.$102.00 RICHARD DOBLAR 06/14/2013 06/17/2013 UNIFORMS UNLIMITED INC.$15.49 RICHARD DOBLAR 06/18/2013 06/19/2013 DRIVERS LICENSE GUIDE $118.70 RICHARD DOBLAR 06/19/2013 06/20/2013 CUB FOODS #1599 $3.24 RICHARD DOBLAR 06/25/2013 06/26/2013 TARGET 00022293 $10.16 RICHARD DOBLAR 06/26/2013 06/27/2013 NOODLES & CO 330 $11.45 RICHARD DOBLAR 06/14/2013 06/17/2013 THE HOME DEPOT 2801 $19.30 TOM DOUGLASS 06/17/2013 06/18/2013 NORTHWESTERN POWER EQUIPM $624.35 TOM DOUGLASS 06/17/2013 06/19/2013 WW GRAINGER $18.42 TOM DOUGLASS 06/18/2013 06/19/2013 BATTERIES PLUS #31 $49.17 TOM DOUGLASS 06/18/2013 06/20/2013 THE HOME DEPOT 2801 $8.00 TOM DOUGLASS 06/20/2013 06/24/2013 THE HOME DEPOT 2801 $11.02 TOM DOUGLASS 06/25/2013 06/26/2013 HENRIKSEN ACE HARDWARE $3.20 TOM DOUGLASS 06/20/2013 06/24/2013 THE HOME DEPOT 2801 $24.60 JOHN DUCHARME 06/14/2013 06/17/2013 CINTAS 470 $90.27 LARRY FARR 06/21/2013 06/24/2013 GOODIN COMPANY ($375.47)LARRY FARR 06/21/2013 06/24/2013 TARGET 00024067 $20.66 LARRY FARR 06/21/2013 06/24/2013 TIERNEY BROTHERS INC $612.42 LARRY FARR 06/21/2013 06/24/2013 ELECTRO WATCHMAN INC $4,074.00 LARRY FARR 06/24/2013 06/26/2013 BREDEMUS HARDWARE CO INC $225.08 LARRY FARR 06/25/2013 06/26/2013 DISPLAYS2GOCOM $261.60 LARRY FARR 06/25/2013 06/26/2013 THE TRANE COMPANY $470.00 LARRY FARR 06/26/2013 06/28/2013 MUSKA ELECTRIC CO.$267.00 LARRY FARR 06/27/2013 06/28/2013 CINTAS 470 $90.27 LARRY FARR 06/19/2013 06/21/2013 EUREKA RECYCLING $300.00 SHANN FINWALL 06/24/2013 06/26/2013 THE HOME DEPOT 2801 $2.75 SHANN FINWALL 06/14/2013 06/17/2013 FASTSIGNS OF MAPLEWOOD $233.02 MYCHAL FOWLDS 06/15/2013 06/17/2013 WW GRAINGER $392.30 MYCHAL FOWLDS 06/21/2013 06/21/2013 COMCAST CABLE COMM $54.00 MYCHAL FOWLDS 06/21/2013 06/24/2013 BATTERIES PLUS #31 $64.71 MYCHAL FOWLDS Packet Page Number 19 of 275 06/21/2013 06/24/2013 OFFICE MAX $52.35 MYCHAL FOWLDS 06/18/2013 06/19/2013 SYM*SECURE SITE SSL $1,118.00 NICK FRANZEN 06/25/2013 06/27/2013 MICROSOFT TECH SUPPORT $259.00 NICK FRANZEN 06/27/2013 06/28/2013 BESTBUY.COM 00009944 $160.68 NICK FRANZEN 06/27/2013 06/28/2013 IDU*INSIGHT PUBLIC SEC $61.39 NICK FRANZEN 06/24/2013 06/25/2013 DAVIS LOCK & SAFE $43.28 CLARENCE GERVAIS 06/26/2013 06/27/2013 BECKER FIRE & SAFETY SERV $58.83 CLARENCE GERVAIS 06/13/2013 06/17/2013 OFFICE DEPOT #1090 $137.31 JEAN GLASS 06/22/2013 06/24/2013 OFFICE DEPOT #1090 $9.46 JEAN GLASS 06/24/2013 06/26/2013 OFFICE DEPOT #1090 $58.61 JEAN GLASS 06/25/2013 06/26/2013 SQ *KINNICKINNIC NATIVES $194.65 JAN GREW HAYMAN 06/27/2013 06/28/2013 RAINBOW FOODS 00088617 $72.89 KAREN GUILFOILE 06/20/2013 06/24/2013 THE HOME DEPOT 2801 $64.02 MARK HAAG 06/15/2013 06/17/2013 AMERICAN RED CROSS $894.15 RON HORWATH 06/20/2013 06/24/2013 THE HOME DEPOT 2801 $3.19 RON HORWATH 06/20/2013 06/24/2013 THE HOME DEPOT 2801 $13.11 RON HORWATH 06/20/2013 06/24/2013 THE HOME DEPOT 2801 $21.39 RON HORWATH 06/19/2013 06/21/2013 ON SITE SANITATION INC $299.35 ANN HUTCHINSON 06/26/2013 06/27/2013 FOREST PRODUCTS SUPPLY $200.00 ANN HUTCHINSON 06/27/2013 06/28/2013 BLUE RIBBON BAIT & TACKLE $11.22 ANN HUTCHINSON 06/24/2013 06/24/2013 AMAZON.COM $192.44 DAVID JAHN 06/19/2013 06/21/2013 OFFICE DEPOT #1090 $55.69 LOIS KNUTSON 06/20/2013 06/20/2013 COMCAST CABLE COMM $166.53 DUWAYNE KONEWKO 06/26/2013 06/27/2013 DELTA AIR 0062334846015 $419.80 DUWAYNE KONEWKO 06/17/2013 06/19/2013 UNIFORMS UNLIMITED INC.$89.98 NICHOLAS KREKELER 06/24/2013 06/26/2013 STREICHER'S MPLS $278.31 NICHOLAS KREKELER 06/20/2013 06/21/2013 JAKE'S CITY GRILLE - M $44.75 DAVID KVAM 06/14/2013 06/17/2013 EMERGENCY AUTOMOTIVE $87.50 STEVE LUKIN 06/19/2013 06/20/2013 SARPINOS PIZZERIA $121.36 STEVE LUKIN 06/20/2013 06/21/2013 OVERHEAD DOOR COMP $368.45 STEVE LUKIN 06/20/2013 06/21/2013 REPUBLIC SERVICES TRASH $138.36 STEVE LUKIN 06/26/2013 06/28/2013 ASPEN MILLS INC.$48.95 STEVE LUKIN 06/26/2013 06/28/2013 ASPEN MILLS INC.$15.00 STEVE LUKIN 06/26/2013 06/28/2013 ASPEN MILLS INC.$124.85 STEVE LUKIN 06/26/2013 06/28/2013 ASPEN MILLS INC.$48.95 STEVE LUKIN 06/27/2013 06/28/2013 EMERGENCY APPARATUS MAINT $1,710.52 STEVE LUKIN 06/20/2013 06/24/2013 STREICHER'S MO $34.25 JASON MARINO 06/15/2013 06/17/2013 CUB FOODS, INC.$13.92 JERROLD MARTIN 06/13/2013 06/17/2013 UNIFORMS UNLIMITED INC.$127.59 ALESIA METRY 06/14/2013 06/17/2013 CVS PHARMACY #1751 Q03 $16.38 MICHAEL MONDOR 06/17/2013 06/19/2013 BOUND TREE MEDICAL LLC $8.90 MICHAEL MONDOR 06/17/2013 06/19/2013 BOUND TREE MEDICAL LLC $99.50 MICHAEL MONDOR 06/17/2013 06/19/2013 BOUND TREE MEDICAL LLC $631.85 MICHAEL MONDOR 06/18/2013 06/20/2013 OFFICE MAX $59.95 MICHAEL MONDOR 06/19/2013 06/21/2013 VIDACARE CORPORATION $1,048.47 MICHAEL MONDOR 06/20/2013 06/21/2013 ANCOM COMMUNICATIONS INC $232.94 MICHAEL MONDOR 06/20/2013 06/21/2013 WALGREENS #11421 $339.98 MICHAEL MONDOR 06/20/2013 06/21/2013 INDUSTRIAL ENGRAVING INC $88.00 MICHAEL MONDOR 06/20/2013 06/24/2013 BOUND TREE MEDICAL LLC $92.00 MICHAEL MONDOR 06/24/2013 06/26/2013 BOUND TREE MEDICAL LLC $12.39 MICHAEL MONDOR 06/24/2013 06/26/2013 BOUND TREE MEDICAL LLC $463.07 MICHAEL MONDOR 06/24/2013 06/26/2013 OFFICE MAX $29.86 MICHAEL MONDOR 06/27/2013 06/28/2013 EMERGENCY AUTOMOTIVE $66.75 MICHAEL MONDOR 06/22/2013 06/24/2013 SPRINT STORE #226 $38.55 BRYAN NAGEL 06/19/2013 06/20/2013 KNOWLAN'S MARKET #2 $5.99 MICHAEL NYE 06/20/2013 06/21/2013 ADVENTURE RV CENTER $160.60 MICHAEL NYE 06/20/2013 06/24/2013 OFFICE DEPOT #1090 $90.51 MARY KAY PALANK 06/22/2013 06/24/2013 UPS*1Z4T6W290390025819 $12.16 MARY KAY PALANK 06/22/2013 06/24/2013 HOLIDAY STNSTORE 3836 $23.56 ROBERT PETERSON 06/18/2013 06/20/2013 SIRCHIE FINGER PRINT LABO $499.18 PHILIP F POWELL 06/19/2013 06/19/2013 TAB PRODUCTSJETER SYS $182.28 PHILIP F POWELL Packet Page Number 20 of 275 06/19/2013 06/20/2013 COOPER SAFETY SHOP DIRECT $187.43 PHILIP F POWELL 06/25/2013 06/26/2013 METROLINE INCS $358.95 PHILIP F POWELL 06/17/2013 06/18/2013 KATH FUEL OFFICE $547.49 STEVEN PRIEM 06/17/2013 06/19/2013 FRONTIER INC $189.28 STEVEN PRIEM 06/18/2013 06/19/2013 BOYER TRUCK PARTS $81.61 STEVEN PRIEM 06/18/2013 06/19/2013 AUTO PLUS NO ST PAUL 392 $392.83 STEVEN PRIEM 06/18/2013 06/19/2013 AUTO PLUS NO ST PAUL 392 $102.04 STEVEN PRIEM 06/18/2013 06/19/2013 AN FORD WHITE BEAR LAK $96.10 STEVEN PRIEM 06/18/2013 06/21/2013 COMO LUBE & SUPPLIES $88.38 STEVEN PRIEM 06/19/2013 06/20/2013 PIONEER RIM & WHEEL $856.54 STEVEN PRIEM 06/19/2013 06/20/2013 POLAR CHEVROLET MAZDA $63.47 STEVEN PRIEM 06/19/2013 06/20/2013 POLAR CHEVROLET MAZDA $84.93 STEVEN PRIEM 06/19/2013 06/21/2013 WHEELCO BRAKE &SUPPLY $184.21 STEVEN PRIEM 06/20/2013 06/21/2013 AUTO PLUS NO ST PAUL 392 $237.87 STEVEN PRIEM 06/24/2013 06/25/2013 AUTO PLUS NO ST PAUL 392 $35.73 STEVEN PRIEM 06/24/2013 06/26/2013 FLEETPRIDE 570 $133.97 STEVEN PRIEM 06/26/2013 06/27/2013 BATTERIES PLUS #31 $64.22 STEVEN PRIEM 06/26/2013 06/27/2013 AUTO PLUS NO ST PAUL 392 $15.22 STEVEN PRIEM 06/26/2013 06/28/2013 WHEELCO BRAKE &SUPPLY ($184.21)STEVEN PRIEM 06/26/2013 06/28/2013 FLEETPRIDE 570 ($2.00)STEVEN PRIEM 06/26/2013 06/28/2013 WHEELCO BRAKE &SUPPLY $235.48 STEVEN PRIEM 06/26/2013 06/28/2013 MILLS FLEET FARM #2,700 $20.83 STEVEN PRIEM 06/27/2013 06/28/2013 AUTO PLUS NO ST PAUL 392 $4.49 STEVEN PRIEM 06/27/2013 06/28/2013 AN FORD WHITE BEAR LAK $465.99 STEVEN PRIEM 06/15/2013 06/17/2013 THE HOME DEPOT 2801 $23.50 KELLY PRINS 06/16/2013 06/21/2013 WALLY'S UPHOLS80110026 $315.53 KELLY PRINS 06/24/2013 06/26/2013 CVS PHARMACY #1751 Q03 $19.22 KELLY PRINS 06/26/2013 06/27/2013 DALCO ENTERPRISES, INC $226.40 KELLY PRINS 06/26/2013 06/27/2013 AMERAPRODUCTS INC $53.50 KELLY PRINS 06/26/2013 06/27/2013 UPBEAT $813.15 KELLY PRINS 06/26/2013 06/28/2013 AMERICAN TIME $149.30 KELLY PRINS 06/25/2013 06/26/2013 NOVACARE REHB/HEALT $200.00 TERRIE RAMEAUX 06/26/2013 06/27/2013 HILLYARD INC MINNEAPOLIS $1,076.87 MICHAEL REILLY 06/20/2013 06/24/2013 ORIENTAL TRADING CO $3.99 LORI RESENDIZ 06/21/2013 06/24/2013 ORIENTAL TRADING CO $36.50 LORI RESENDIZ 06/17/2013 06/18/2013 AMAZON.COM $21.26 AUDRA ROBBINS 06/18/2013 06/20/2013 MICHAELS #2744 $55.31 AUDRA ROBBINS 06/20/2013 06/24/2013 STARS & STRIKES ENTERT $841.05 AUDRA ROBBINS 06/24/2013 06/25/2013 WALMART.COM 8009666546 $81.06 AUDRA ROBBINS 06/25/2013 06/27/2013 SKY ZONE - OAKDALE $100.00 AUDRA ROBBINS 06/27/2013 06/28/2013 HOLIDAY INN ELK RIVER $490.56 AUDRA ROBBINS 06/13/2013 06/18/2013 VISTAPR*VISTAPRINT.COM ($133.30)DEB SCHMIDT 06/15/2013 06/17/2013 ON SITE SANITATION INC $841.15 DEB SCHMIDT 06/19/2013 06/20/2013 LILLIE SUBURBAN NEWSPAPE $108.00 DEB SCHMIDT 06/19/2013 06/20/2013 FINANCE AND COMMERCE INC $114.10 DEB SCHMIDT 06/25/2013 06/27/2013 CVS PHARMACY #1751 Q03 $8.23 DEB SCHMIDT 06/26/2013 06/27/2013 LILLIE SUBURBAN NEWSPAPE $84.00 DEB SCHMIDT 06/27/2013 06/28/2013 BANNERS.COM $53.58 DEB SCHMIDT 06/21/2013 06/24/2013 ON SITE SANITATION INC $5.95 SCOTT SCHULTZ 06/26/2013 06/28/2013 ON SITE SANITATION INC $1,106.25 SCOTT SCHULTZ 06/17/2013 06/18/2013 USPS 26834500133401316 $138.00 CAITLIN SHERRILL 06/17/2013 06/19/2013 ONCE UPON A CHILD - MAPLE $24.85 CAITLIN SHERRILL 06/19/2013 06/20/2013 TWIN CITY CLEANERS $181.95 CAITLIN SHERRILL 06/19/2013 06/20/2013 USPS 26834500133401316 $46.00 CAITLIN SHERRILL 06/19/2013 06/21/2013 ONCE UPON A CHILD - MAPLE $24.56 CAITLIN SHERRILL 06/24/2013 06/25/2013 TARGET 00011858 $2.77 CAITLIN SHERRILL 06/24/2013 06/25/2013 TARGET 00011858 $9.44 CAITLIN SHERRILL 06/25/2013 06/26/2013 PAYPAL *LADYALANNA1 $54.95 CAITLIN SHERRILL 06/26/2013 06/26/2013 MY PUBLISHER, INC.$12.84 CAITLIN SHERRILL 06/17/2013 06/19/2013 KEEPRS INC 2 $340.27 JOSEPH STEINER 06/17/2013 06/19/2013 METRO SALES INC $726.75 JOANNE SVENDSEN Packet Page Number 21 of 275 06/25/2013 06/27/2013 GRUBERS POWER EQUIPMENT $85.59 RONALD SVENDSEN 06/19/2013 06/20/2013 HD SOD $695.66 JAMES TAYLOR 06/19/2013 06/20/2013 HD SOD $202.47 JAMES TAYLOR 06/21/2013 06/24/2013 UNIFORMS UNLIMITED INC.$36.32 PAUL THEISEN 06/17/2013 06/19/2013 UNIFORMS UNLIMITED INC.$18.50 PAUL THIENES 06/18/2013 06/19/2013 NAT ASSN TOWN WATCH $756.00 PAUL THIENES 06/18/2013 06/19/2013 NAT ASSN TOWN WATCH $35.00 PAUL THIENES 06/18/2013 06/19/2013 NAT ASSN TOWN WATCH ($35.00)PAUL THIENES 06/21/2013 06/24/2013 OFFICE DEPOT #1090 $26.18 KAREN WACHAL 06/21/2013 06/24/2013 OFFICE DEPOT #1090 $14.72 KAREN WACHAL 06/21/2013 06/24/2013 STREICHER'S MPLS $13.87 JAY WENZEL 06/21/2013 06/24/2013 GANDER MOUNTAIN $169.99 JAY WENZEL 06/21/2013 06/24/2013 TOM S TAILORS $18.00 JAY WENZEL 06/21/2013 06/24/2013 OFFICE MAX $22.98 TAMMY YOUNG 06/14/2013 06/17/2013 GREEN STUFF OUTDOOR SE $62.61 SUSAN ZWIEG 06/20/2013 06/21/2013 ANCOM TECHNICAL CENTER IN $12.00 SUSAN ZWIEG 06/27/2013 06/28/2013 FEDEXOFFICE 00006171 $66.95 SUSAN ZWIEG $38,705.73 Packet Page Number 22 of 275 CHECK #CHECK DATE EMPLOYE E NAME 07/05/13 ABEL, CLINT 2,932.08 07/05/13 ALDRIDGE, MARK 3,298.23 07/05/13 SVENDSEN, JOANNE 2,131.82 07/05/13 THOMFORDE, FAITH 1,601.79 07/05/13 PALANK, MARY 1,932.80 07/05/13 POWELL, PHILIP 2,970.49 07/05/13 CORCORAN, THERESA 1,944.19 07/05/13 KVAM, DAVID 4,687.84 07/05/13 VITT, SANDRA 1,119.73 07/05/13 WEAVER, KRISTINE 2,388.99 07/05/13 RICHTER, CHARLENE 1,164.43 07/05/13 SCHOENECKER, LEIGH 1,671.39 07/05/13 MOY, PAMELA 1,636.19 07/05/13 OSTER, ANDREA 1,935.11 07/05/13 LARSON, MICHELLE 1,869.23 07/05/13 MECHELKE, SHERRIE 1,180.32 07/05/13 SCHMIDT, DEBORAH 3,066.11 07/05/13 SPANGLER, EDNA 1,707.05 07/05/13 BEGGS, REGAN 1,550.11 07/05/13 GUILFOILE, KAREN 4,609.10 07/05/13 SINDT, ANDREA 2,218.60 07/05/13 ARNOLD, AJLA 1,649.23 07/05/13 KELSEY, CONNIE 2,626.68 07/05/13 RUEB, JOSEPH 2,801.01 07/05/13 DEBILZAN, JUDY 1,372.40 07/05/13 JACKSON, MARY 2,156.11 07/05/13 BAUMAN, GAYLE 4,756.48 07/05/13 ANDERSON, CAROLE 1,264.53 07/05/13 METRY, THOMAS 720.00 07/05/13 RAMEAUX, THERESE 3,239.85 07/05/13 FARR, LARRY 3,255.27 07/05/13 JAHN, DAVID 1,887.91 07/05/13 KANTRUD, HUGH 184.62 07/05/13 CHRISTENSON, SCOTT 2,177.15 07/05/13 ANTONEN, JAMES 13,332.04 07/05/13 BURLINGAME, SARAH 2,178.90 07/05/13 VALLE, EDWARD 252.50 07/05/13 AHL, R. CHARLES 5,495.72 07/05/13 ROSSBACH, WILLIAM 494.44 07/05/13 CAVE, REBECCA 435.16 07/05/13 JUENEMANN, KATHLEEN 435.16 CITY OF MAPLEWOOD EMPLOYEE GROSS EARNINGS REPORT FOR THE CURRENT PAY PERIOD AMOUNT 07/05/13 CARDINAL, ROBERT 435.16 07/05/13 KOPPEN, MARVIN 435.16 Packet Page Number 23 of 275 07/05/13 BOURQUIN, RON 913.92 07/05/13 CAPISTRANT, JACOB 553.86 07/05/13 BASSETT, BRENT 391.68 07/05/13 BAUMAN, ANDREW 2,943.20 07/05/13 ANDERSON, BRIAN 553.86 07/05/13 BAHL, DAVID 653.31 07/05/13 WENZEL, JAY 3,115.24 07/05/13 XIONG, KAO 2,918.46 07/05/13 THIENES, PAUL 4,291.05 07/05/13 TRAN, JOSEPH 3,080.97 07/05/13 TAUZELL, BRIAN 3,280.27 07/05/13 THEISEN, PAUL 3,080.97 07/05/13 SYPNIEWSKI, WILLIAM 3,268.00 07/05/13 SZCZEPANSKI, THOMAS 56,730.10 07/05/13 SHORTREED, MICHAEL 4,141.66 07/05/13 STEINER, JOSEPH 3,148.65 07/05/13 REZNY, BRADLEY 4,208.90 07/05/13 RHUDE, MATTHEW 2,918.46 07/05/13 OLSON, JULIE 3,005.47 07/05/13 PARKER, JAMES 2,488.41 07/05/13 METRY, ALESIA 3,194.61 07/05/13 NYE, MICHAEL 3,383.34 07/05/13 MARTIN, JERROLD 3,373.64 07/05/13 MCCARTY, GLEN 3,135.14 07/05/13 LYNCH, KATHERINE 2,759.26 07/05/13 MARINO, JASON 2,999.12 07/05/13 LANGNER, TODD 3,021.58 07/05/13 LU, JOHNNIE 2,991.93 07/05/13 KROLL, BRETT 2,999.12 07/05/13 LANGNER, SCOTT 3,135.14 07/05/13 KONG, TOMMY 2,978.03 07/05/13 KREKELER, NICHOLAS 910.80 07/05/13 JOHNSON, KEVIN 4,211.28 07/05/13 KALKA, THOMAS 954.09 07/05/13 HER, PHENG 2,911.72 07/05/13 HIEBERT, STEVEN 3,326.18 07/05/13 GABRIEL, ANTHONY 3,294.89 07/05/13 HAWKINSON JR, TIMOTHY 2,885.40 07/05/13 FORSYTHE, MARCUS 2,579.82 07/05/13 FRITZE, DEREK 3,522.97 07/05/13 DUGAS, MICHAEL 5,160.08 07/05/13 ERICKSON, VIRGINIA 3,222.23 07/05/13 DEMULLING, JOSEPH 3,188.31 07/05/13 DOBLAR, RICHARD 4,054.83 07/05/13 CARNES, JOHN 2,217.56 07/05/13 CROTTY, KERRY 3,647.20 07/05/13 BIERDEMAN, BRIAN 3,624.79 07/05/13 BUSACK, DANIEL 3,758.70 07/05/13 BELDE, STANLEY 3,060.44 07/05/13 BENJAMIN, MARKESE 2,977.71 07/05/13 BAKKE, LONN 3,238.92 07/05/13 BARTZ, PAUL 3,758.92 Packet Page Number 24 of 275 07/05/13 GERVAIS-JR, CLARENCE 4,035.01 07/05/13 LUKIN, STEVEN 4,674.56 07/05/13 SVENDSEN, RONALD 3,105.08 07/05/13 WHITE, JOEL 220.32 07/05/13 SEDLACEK, JEFFREY 3,004.44 07/05/13 STREFF, MICHAEL 2,861.40 07/05/13 RIEKEN, NICHOLAS 501.84 07/05/13 RODRIGUEZ, ROBERTO 146.88 07/05/13 RANK, NATHAN 660.96 07/05/13 RICE, CHRISTOPHER 642.60 07/05/13 POWERS, KENNETH 266.22 07/05/13 RAINEY, JAMES 1,153.62 07/05/13 PETERSON, MARK 496.23 07/05/13 PETERSON, ROBERT 3,251.98 07/05/13 PACHECO, ALPHONSE 725.22 07/05/13 PARROW, JOSHUA 783.36 07/05/13 OLSON, JAMES 2,721.23 07/05/13 OPHEIM, JOHN 178.50 07/05/13 NOVAK, JEROME 3,390.80 07/05/13 NOWICKI, PAUL 223.38 07/05/13 NEILY, STEVEN 278.46 07/05/13 NIELSEN, KENNETH 589.05 07/05/13 MONSON, PETER 33.66 07/05/13 MORGAN, JEFFERY 265.21 07/05/13 MILLER, NICHOLAS 471.24 07/05/13 MONDOR, MICHAEL 3,465.90 07/05/13 LOCHEN, MICHAEL 652.80 07/05/13 MILLER, LADD 1,081.71 07/05/13 KUBAT, ERIC 2,879.17 07/05/13 LINDER, TIMOTHY 2,680.62 07/05/13 KERSKA, JOSEPH 826.20 07/05/13 KONDER, RONALD 486.54 07/05/13 KARRAS, JAMIE 605.88 07/05/13 KELLOGG, JOHNATHAN 156.06 07/05/13 JUREK, GREGORY 2,305.08 07/05/13 KANE, ROBERT 749.70 07/05/13 JANSEN, CHAD 159.12 07/05/13 JONES, JONATHAN 293.76 07/05/13 HAWTHORNE, ROCHELLE 2,414.70 07/05/13 HUTCHINSON, JAMES 828.24 07/05/13 HALE, JOSEPH 485.52 07/05/13 HALWEG, JODI 3,049.37 07/05/13 EVERSON, PAUL 3,231.88 07/05/13 FASULO, WALTER 464.14 07/05/13 DAWSON, RICHARD 3,318.92 07/05/13 EATON, PAUL 514.08 07/05/13 CRUMMY, CHARLES 287.64 07/05/13 DABRUZZI, THOMAS 2,234.45 07/05/13 COREY, ROBERT 593.64 07/05/13 CRAWFORD - JR, RAYMON 870.57 07/05/13 CAPISTRANT, JOHN 799.68 07/05/13 CONCHA, DANIEL 397.80 Packet Page Number 25 of 275 07/05/13 BRASH, JASON 2,544.99 07/05/13 CARVER, NICHOLAS 3,284.18 07/05/13 FINWALL, SHANN 3,455.67 07/05/13 MARTIN, MICHAEL 2,799.39 07/05/13 YOUNG, TAMELA 2,084.19 07/05/13 EKSTRAND, THOMAS 3,867.33 07/05/13 KROLL, LISA 1,928.19 07/05/13 THOMPSON, DEBRA 772.20 07/05/13 WACHAL, KAREN 927.30 07/05/13 GAYNOR, VIRGINIA 3,284.18 07/05/13 SANDERS, MARA 177.60 07/05/13 SOUTTER, CHRISTINE 233.75 07/05/13 HAYMAN, JANET 1,241.23 07/05/13 HUTCHINSON, ANN 2,682.02 07/05/13 DEAVER, CHARLES 459.02 07/05/13 GERNES, CAROLE 501.50 07/05/13 RANWEILER, GABRIEL 729.75 07/05/13 BIESANZ, OAKLEY 1,642.08 07/05/13 NORDQUIST, RICHARD 2,178.49 07/05/13 PURVES, JUSTIN 1,564.19 07/05/13 HINNENKAMP, GARY 2,645.12 07/05/13 NAUGHTON, JOHN 2,176.19 07/05/13 HAMRE, MILES 1,630.44 07/05/13 HAYS, TAMARA 1,636.19 07/05/13 BUTTWEILER, TYLER 880.00 07/05/13 GUNDERSON, THOMAS 845.25 07/05/13 JANASZAK, MEGHAN 1,593.79 07/05/13 KONEWKO, DUWAYNE 4,667.89 07/05/13 THOMPSON, MICHAEL 4,686.93 07/05/13 ZIEMAN, SCOTT 1,155.00 07/05/13 LINDBLOM, RANDAL 3,746.97 07/05/13 LOVE, STEVEN 3,629.47 07/05/13 JAROSCH, JONATHAN 2,966.60 07/05/13 KREGER, JASON 3,552.30 07/05/13 ENGSTROM, ANDREW 2,862.43 07/05/13 HANSON, TODD 550.00 07/05/13 BURLINGAME, NATHAN 2,150.40 07/05/13 DUCHARME, JOHN 2,776.80 07/05/13 RUNNING, ROBERT 2,520.27 07/05/13 TEVLIN, TODD 3,071.14 07/05/13 OSWALD, ERICK 3,290.66 07/05/13 RUIZ, RICARDO 1,646.19 07/05/13 MEISSNER, BRENT 2,525.23 07/05/13 NAGEL, BRYAN 3,595.60 07/05/13 EDGE, DOUGLAS 3,337.27 07/05/13 JONES, DONALD 2,176.19 07/05/13 BUCKLEY, BRENT 2,888.42 07/05/13 DEBILZAN, THOMAS 2,176.19 07/05/13 KNUTSON, LOIS 2,084.19 07/05/13 BRINK, TROY 3,388.19 07/05/13 ZWIEG, SUSAN 1,728.41 07/05/13 CORTESI, LUANNE 1,415.56 Packet Page Number 26 of 275 07/05/13 ERICKSON-CLARK, CAROL 37.12 07/05/13 ERICSON, RACHEL 93.00 07/05/13 DUNN, RYAN 1,073.39 07/05/13 EHLE, DANIEL 260.26 07/05/13 CRANDALL, KRISTA 556.50 07/05/13 DEMPSEY, BETH 31.56 07/05/13 BUCKLEY, BRITTANY 682.25 07/05/13 BUTLER, ANGELA 117.00 07/05/13 BESTER, MICHAEL 69.00 07/05/13 BRUSOE, AMY 651.97 07/05/13 BAETZOLD, SETH 117.50 07/05/13 BAUDE, SARAH 50.88 07/05/13 ANDERSON, ALYSSA 226.63 07/05/13 ANDERSON, JOSHUA 485.00 07/05/13 ZIELINSKI, JUDY 30.80 07/05/13 AICHELE, MEGAN 258.38 07/05/13 VANG, TIM 372.00 07/05/13 VUE, LOR PAO 264.68 07/05/13 MUSKAT, JULIE 205.00 07/05/13 PELOQUIN, PENNYE 661.93 07/05/13 KELLEY, CAITLIN 871.75 07/05/13 KULHANEK-DIONNE, ANN 438.50 07/05/13 HOFMEISTER, MARY 1,139.06 07/05/13 HOFMEISTER, TIMOTHY 454.52 07/05/13 GLASS, JEAN 2,151.73 07/05/13 HER, PETER 40.50 07/05/13 CRAWFORD - JR, RAYMON 497.81 07/05/13 EVANS, CHRISTINE 1,430.28 07/05/13 AKEY, SHELLEY 173.13 07/05/13 BERNARDY, CHRISTINE 2,479.65 07/05/13 SCHULTZ, SCOTT 3,384.95 07/05/13 WILBER, JEFFREY 1,627.84 07/05/13 HAAG, MARK 2,585.91 07/05/13 ORE, JORDAN 1,757.05 07/05/13 VUKICH, CANDACE 34.00 07/05/13 ADAMS, DAVID 2,005.01 07/05/13 SHERWOOD, CHRISTIAN 649.00 07/05/13 TAYLOR, JAMES 2,912.48 07/05/13 ROBBINS, AUDRA 3,209.84 07/05/13 ROBBINS, CAMDEN 465.50 07/05/13 MALLET, AMANDA 740.00 07/05/13 PROHOFSKY, SARAH 112.00 07/05/13 LARSON, KATELYN 504.00 07/05/13 LARSON, TRISTA 639.00 07/05/13 BRENEMAN, NEIL 2,296.28 07/05/13 COLE, BENJAMIN 384.00 07/05/13 BERGER, STEPHANIE 296.88 07/05/13 BJORK, BRANDON 1,120.00 07/05/13 WELLENS, MOLLY 1,835.55 07/05/13 ACEITUNO, FELIPE 35.00 07/05/13 FISHER, DAVID 4,230.77 07/05/13 SWAN, DAVID 2,802.59 Packet Page Number 27 of 275 07/05/13 DYER, KATELYN 76.50 07/05/13 MAIDMENT, COLIN 184.88 07/05/13 CRAWFORD, SHAWN 480.00 07/05/13 DOUGLASS, TOM 2,102.43 07/05/13 LANGER, KAYLYN 91.38 07/05/13 BORCHERT, JONATHAN 212.50 07/05/13 BOSLEY, CAROL 94.50 07/05/13 HITE, ANDREA 297.00 07/05/13 WEINHAGEN, SHELBY 136.00 07/05/13 YUNKER, JOSEPH 64.00 07/05/13 TUPY, MARCUS 71.25 07/05/13 WARNER, CAROLYN 158.40 07/05/13 TRUE, ANDREW 582.24 07/05/13 TUPY, HEIDE 68.70 07/05/13 THORWICK, MEGAN 36.75 07/05/13 TREPANIER, TODD 201.25 07/05/13 SYME, ABBEY 101.88 07/05/13 SYME, LAUREN 111.74 07/05/13 SMITH, CASEY 373.48 07/05/13 SMITLEY, SHARON 330.25 07/05/13 SCHUNEMAN, GREGORY 448.45 07/05/13 SMITH, ANN 123.30 07/05/13 ROLLERSON, TERRANCE 15.00 07/05/13 SCHREIER, ROSEMARIE 301.25 07/05/13 RESENDIZ, LORI 2,402.01 07/05/13 RICHTER, DANIEL 113.40 07/05/13 POVLITZKI, MARINA 19.00 07/05/13 PROESCH, ANDY 1,147.05 07/05/13 NITZ, CARA 154.00 07/05/13 NORTHOUSE, KATHERINE 385.40 07/05/13 NADEAU, KELLY 42.75 07/05/13 NADEAU, TAYLOR 317.96 07/05/13 LAMSON, ELIANA 27.00 07/05/13 MCCOMAS, LEAH 168.00 07/05/13 LAMEYER, BRENT 181.25 07/05/13 LAMEYER, ZACHARY 464.56 07/05/13 KOHLER, ROCHELLE 74.00 07/05/13 KOZDROJ, GABRIELLA 50.00 07/05/13 JOHNSON, BARBARA 305.60 07/05/13 JOYER, ANTHONY 66.60 07/05/13 HOLMBERG, LADONNA 506.01 07/05/13 HORWATH, RONALD 2,772.88 07/05/13 HASSAN, KIANA 202.25 07/05/13 HEINRICH, SHEILA 366.02 07/05/13 GRAY, MEGAN 636.95 07/05/13 GRUENHAGEN, LINDA 222.25 07/05/13 GADOW, VERONIKA 510.54 07/05/13 GIEL, NICOLE 52.94 07/05/13 FOX, KELLY 60.00 07/05/13 FRAMPTON, SAMANTHA 400.75 07/05/13 FLORES, LUIS 44.00 07/05/13 FONTAINE, KIM 634.63 Packet Page Number 28 of 275 9989413 9989414 9989415 9989416 9989417 9989418 9989419 9989420 9989421 9989422 9989423 07/05/13 STEFFEN, MICHAEL 102.00 588,035.45 07/05/13 RANGEL, SAMANTHA 94.00 07/05/13 CUSICK, JESSICA 318.75 07/05/13 SMITH, JEROME 91.00 07/05/13 WALES, ABIGAIL 274.33 07/05/13 SCOTT, HALEY 110.90 07/05/13 SKUNES, KELLY 729.38 07/05/13 SCHREIER, ABIGAIL 340.86 07/05/13 SCHREIER, ZACHARY 255.00 07/05/13 CHRISTOPHER, KYLE 336.00 07/05/13 O'BRIEN, ELIZABETH 93.00 07/05/13 FOWLDS, MYCHAL 4,072.29 07/05/13 FRANZEN, NICHOLAS 2,789.40 07/05/13 WOEHRLE, MATTHEW 2,399.09 07/05/13 BERGO, CHAD 2,741.49 07/05/13 AICHELE, CRAIG 2,231.39 07/05/13 PRIEM, STEVEN 2,448.89 07/05/13 COUNTRYMAN, BRENDA 1,280.00 07/05/13 SWANSON, CHRIS 1,548.99 07/05/13 SPEARS, SHYTIANA 261.38 07/05/13 THOMPSON, BENJAMIN 348.50 07/05/13 REILLY, MICHAEL 1,962.59 07/05/13 SINDT, DARIEN 212.50 07/05/13 MALONEY, SHAUNA 349.25 07/05/13 PRINS, KELLY 1,871.89 Packet Page Number 29 of 275 Check Description Amount 90281 02464 FUNDS FOR ATMS 10,000.00 90282 00111 PATROL HOURS 6/17 - 6/30 1,382.50 90283 00223 RETIREMENT PLAQUE - BOHL 280.00 90284 05028 CITY HALL SOLAR SYSTEM LEASE-JULY 397.00 05028 MCC SOLAR SYSTEM LEASE - JULY 369.00 90285 01202 MAPLEWOOD MONTHLY - JULY 7,454.41 90286 01819 LOCAL PHONE SERVICE 05/15 - 06/14 721.96 90287 01337 911 DISPATCH SERVICES - JUNE 28,851.06 01337 FLEET SUPPORT FEE - JUNE 458.64 90288 01409 ENGINEERING FEES PD EXPANSION PROJ 8,992.55 01409 ENGINEERING FEES PD EXPANSION PROJ 6,646.77 90289 03178 INSTRUCTION FOR DAYCAMP 230.00 90290 02274 SPRINT SRVS 05/15 - 06/14 5,439.68 90291 01574 BITUMINOUS PURCHASES~817.39 01574 RECYCLED BASE - TEMP ROAD AT PD 791.99 90292 04192 EMS BILLING - JUNE 3,272.86 90293 01974 REFUND FOR TRANS MEDIC 278.06 90294 03486 BLACK DIRT FOR TOM KELLY FIELD 192.38 90295 03310 SMARTNET RENEWAL/NETWORK EQUIP 9,051.78 90296 00279 CONCRETE FOR 3003 MEYER CT 654.08 90297 05203 INSTRUCTION OF LINE DANCE 241.80 90298 00412 BOOKS FOR MANAGEMENT CLASS 89.71 90299 05207 APPLICANT BACKGROUND CHECKS 50.11 90300 01401 DAY CAMP BUS FEE - HOIDAY INN MPLS 290.00 01401 DAY CAMP BUS FEE - STARS & STRIKES 227.50 01401 DAY CAMP BUS FEE - PUMP IT UP 165.00 90301 04337 TRASH PUMP RENTAL-ROSELAWN POND 996.08 90302 03906 CONCRETE WORK AT 1902 10,203.00 90303 00671 FIELDMARK WHITE TOTE FOR FIELDS 1,469.53 90304 03597 REIMB FOR MILEAGE 5/23 - 7/8 13.84 90305 00827 CLAIM DEDUCTIBLE C0009643 5,552.89 90306 02336 FITNESS CONSULTANT SRVS 2ND QTR 1,100.00 90307 05222 PUBLIC SAFETY ASSESSMENT FOR PD 1,300.00 90308 03910 REPAIR HEATING CIRCULATION PUMP 5,279.37 90309 04193 FORFEITED VEHICLE STORAGE - MAY 2,400.00 90310 00993 SCANNING OF HOUSE FILES - CYCLE 10 4,803.37 00993 SCANNING OF HOUSE FILES - CYCLE 7 4,792.23 00993 SCANNING OF HOUSE FILES - CYCLE 9 4,788.75 00993 SCANNING OF HOUSE FILES - CYCLE 8 4,528.84 90311 04966 SPECIAL ORDER PAINT FOR NEW TRUCK 544.00 90312 00001 REFUND J HOLLMAN - CAMP 370.00 90313 00001 REFUND J HARRIS - CAMP 185.00 90314 00001 REFUND S MORGAN - CAMP 185.00 90315 00001 REFUND B FYKSEN - KARATE 63.00 90316 04276 INSTRUCTION ART CLASSES 3/28-5/2 816.00 04276 INSTRUCTION ART CLASSES 1/17-2/21 624.00 04276 INSTRUCTION ART CLASSES 3/30-5/4 576.00 04276 INSTRUCTION ART CLASSES 1/19-2/23 288.00 90317 01359 VEHICLE WASHES - JUNE 102.00 90318 00198 WATER UTILITY 80.88 90319 04154 TRAINING ON LINE 7/1/13 - 6/30/14 4,845.00 90320 01597 SCREENER RENTAL 3,078.00 90321 04104 MCC EQUIP UPGRADE APPLICATION #3 65,270.25 90322 01649 CHAINSAW/CHAPS/CHAIN & PARTS 1,163.87 90323 04357 EQUIP REPAIR & UPDATE 175.50 90324 02464 PAYING AGENT FEES 425.00 90325 04381 FOOD FOR POLICE K9'S 969.60 07/16/2013 US BANK 07/16/2013 ZEUS AND COMPANY - NORTH 214,335.23 45 Checks in this report. 07/16/2013 TRANE U.S. INC. 07/16/2013 TRI-STATE BOBCAT, INC. 07/16/2013 UNIVERSAL HOSPITAL SRVS, INC. 07/16/2013 ST PAUL REGIONAL WATER SRVS 07/16/2013 TARGET SOLUTIONS 07/16/2013 THECO INC. 07/16/2013 PARTNERS IN EDUCATION INC 07/16/2013 PARTNERS IN EDUCATION INC 07/16/2013 REGAL AUTO WASH BILLING 07/16/2013 ONE TIME VENDOR 07/16/2013 PARTNERS IN EDUCATION INC 07/16/2013 PARTNERS IN EDUCATION INC 07/16/2013 ONE TIME VENDOR 07/16/2013 ONE TIME VENDOR 07/16/2013 ONE TIME VENDOR 07/16/2013 MID-AMERICA BUSINESS SYSTEMS 07/16/2013 MID-AMERICA BUSINESS SYSTEMS 07/16/2013 MIDWAY FORD 07/16/2013 MIDAMERICA AUCTIONS, INC. 07/16/2013 MID-AMERICA BUSINESS SYSTEMS 07/16/2013 MID-AMERICA BUSINESS SYSTEMS 07/16/2013 M A TAYLOR INC 07/16/2013 MARTIN-MCALLISTER 07/16/2013 METRO MECH CONTRACTORS, INC. 07/16/2013 HIRSHFIELD'S 07/16/2013 MARY JO HOFMEISTER 07/16/2013 L M C I T 07/16/2013 FIRST STUDENT INC 07/16/2013 GARY CARLSON EQUIPMENT 07/16/2013 GOODMANSON CONSTRUCTION, INC. 07/16/2013 EQUIFAX INFORMATION SERVICES 07/16/2013 FIRST STUDENT INC 07/16/2013 FIRST STUDENT INC 07/16/2013 CEMSTONE PRODUCTS CO. 07/16/2013 DANCE & ENTERTAINMENT, LLC 07/16/2013 DONALD SALVERDA & ASSOCIATES 07/16/2013 BLUE CROSS REFUNDS 07/16/2013 BUBERL BLACK DIRT INC 07/16/2013 CDW GOVERNMENT INC 07/16/2013 T A SCHIFSKY & SONS, INC 07/16/2013 T A SCHIFSKY & SONS, INC 07/16/2013 TRANS-MEDIC 07/16/2013 S E H 07/16/2013 SCIENCE EXPLORERS, INC. 07/16/2013 SPRINT 07/16/2013 RAMSEY COUNTY-PROP REC & REV 07/16/2013 RAMSEY COUNTY-PROP REC & REV 07/16/2013 S E H 07/16/2013 ENERGY ALTERNATIVES SOLAR, LLC 07/16/2013 NYSTROM PUBLISHING CO INC 07/16/2013 PAETEC 07/16/2013 ANIMAL CONTROL SERVICES 07/16/2013 BRODIN STUDIOS, INC. 07/16/2013 ENERGY ALTERNATIVES SOLAR, LLC Check Register City of Maplewood 07/12/2013 Date Vendor 07/11/2013 US BANK Packet Page Number 30 of 275 Settlement Date Payee Description Amount 7/8/2013 MN State Treasurer Drivers License/Deputy Registrar 55,612.60 7/8/2013 MN Dept of Natural Resources DNR electronic licenses 2,320.95 7/8/2013 U.S. Treasurer Federal Payroll Tax 107,236.40 7/8/2013 P.E.R.A.P.E.R.A.88,477.76 7/8/2013 ICMA (Vantagepointe)Deferred Compensation 29,569.50 7/8/2013 ING - State Plan Deferred Compensation 128,875.22 7/9/2013 MN State Treasurer Drivers License/Deputy Registrar 26,729.61 7/9/2013 MidAmerica - ING HRA Flex plan 15,714.18 7/9/2013 Labor Unions Union Dues 1,875.70 7/9/2013 MN State Treasurer State Payroll Tax 21,557.17 7/10/2013 MN State Treasurer Drivers License/Deputy Registrar 45,913.30 7/11/2013 MN State Treasurer Drivers License/Deputy Registrar 33,041.89 7/12/2013 MN State Treasurer Drivers License/Deputy Registrar 40,270.13 7/12/2013 MN Dept of Natural Resources DNR electronic licenses 1,779.00 7/12/2013 Optum Health DCRP & Flex plan payments 3,957.17 602,930.58 CITY OF MAPLEWOOD Disbursements via Debits to Checking account Packet Page Number 31 of 275 MEMORANDUM TO: Charles Ahl, City Manager FROM: Michael Martin, AICP, Planner David Fisher, Interim Community Development Director SUBJECT: Conditional Use Permit Review, All Metro Glass LOCATION: 1357 Cope Avenue DATE: July 16, 2013 INTRODUCTION The conditional use permit (CUP) for All Metro Glass at 1357 Cope Avenue is due for its annual review. The CUP allows for a window and door fabrication/installation business. In addition to the CUP, the city council at its meeting on July 25, 2011 approved a parking reduction for this site and design and landscaping plans. BACKGROUND On July 25, 2011, the city council approved a conditional use permit, a parking reduction of 66 spaces and design and landscaping plans. On July 23, 2012, the city council reviewed the CUP and agreed to review it again in one year Code Requirement Section 44-1100(a) of the zoning code states that CUPs shall be reviewed by the city council within one year of approval. At the one-year review, the council may specify an indefinite term for a subsequent review or a specific term not to exceed five years. DISCUSSION All Metro Glass has completed all construction and landscaping. There is a decorative screening wall still to be completed. Mike McGrath, vice president of operations, stated to city staff that the wall will be complete in six weeks. Staff has not heard any neighborhood complaints or concerns. Staff recommends reviewing this permit again in one year to ensure the landscaping has survived and all other conditions of approval continue to be met. RECOMMENDATION Review the conditional use permit All Metro Glass in one year. p:sec10/All Metro Glass CUP Review_072213 Attachments: 1. Location/Zoning Map 2. Land Use Plan Map 3. Site/Landscaping Plan 4. City Council Minutes, July 25, 2011 5. CUP Resolution Agenda Item G2 Packet Page Number 32 of 275 Packet Page Number 109 of 206Packet Page Number 33 of 275 Packet Page Number 110 of 206Packet Page Number 34 of 275 Packet Page Number 111 of 206Packet Page Number 35 of 275 Attachment 4 MINUTES MAPLEWOOD CITY COUNCIL 7:00 p.m., Monday, July 25, 2011 Council Chambers, City Hall Meeting No. 14-11 J. NEW BUSINESS 2. Approval of Conditional Use Permit Revision, Parking Reduction Waiver and Design Review Former Corner Kick Soccer Center, 1357 Cope Avenue Senior Planner Ekstrand gave the report. Planning Commissioner Al Bierbaum spoke. Matt Ledvina from the Community Design Review Board addressed the council. Mike McGrath, owner of the building located at 1357 Cope Avenue addressed the council. Councilmember Nephew moved to approve the Conditional Use Permit Revision, Parking Reduction Waiver and Design Review Former Corner Kick Soccer Center, 1357 Cope Avenue with the following condition added. The uses of the building shall be restricted to those that would generate the amount of parking that is available on the site. Seconded by Councilmember Llanas Ayes – All The motion passed. Packet Page Number 36 of 275 Attachment 5 CONDITIONAL USE PERMIT REVISION RESOLUTION WHEREAS, Mike McGrath requested a revision to the conditional use permit for the former Corner Kick Soccer Center to make exterior building and site renovations because the proposed building improvements are taking place within 350 feet of residential property. WHEREAS, Section 44-637(b) of the city ordinances requires a conditional use permit for any building or exterior use in the M-1 zoning district if it is within 350 feet of a residential district. WHEREAS, this permit applies to the property at 1357 Cope Avenue legally described as: 10-29-22-32-00-14 IN SECTION 10, TOWNSHIP 29, RANGE 22, EXCEPT WEST 398 FT; THE PARTS OF HWY 36 & WEST RAILROAD R/W (Bruce Vento Trail) OF THE NW ¼ OF SW 14 (SUBJECT TO ROAD) WHEREAS, the history of this conditional use permit revision is as follows: 1. On July 5, 2011, the planning commission held a public hearing. The city staff published a notice in the paper and sent notices to the surrounding property owners. The planning commission gave persons at the hearing a chance to speak and present written statements. The commission also considered reports and recommendations of the city staff. The planning commission recommended that the city council approve the conditional use permit revision. 2. On July 25, 2011 the city council discussed the proposed conditional use permit revision. They considered reports and recommendations from the planning commission and city staff. NOW, THEREFORE, BE IT RESOLVED that the city council approves the above-described conditional use permit revision for the following reasons: 1. The use would be located, designed, maintained, constructed and operated to be in conformity with the City’s Comprehensive Plan and Code of Ordinances. 2. The use would not change the existing or planned character of the surrounding area. 3. The use would not depreciate property values. 4. The use would not involve any activity, process, materials, equipment or methods of operation that would be dangerous, hazardous, detrimental, disturbing or cause a nuisance to any person or property, because of excessive noise, glare, smoke, dust, odor, fumes, water or air pollution, drainage, water run-off, vibration, general unsightliness, electrical interference or other nuisances. 5. The use would not exceed the design standards of any affected street. 6. The use would be served by adequate public facilities and services, including streets, police and fire protection, drainage structures, water and sewer systems, schools and parks. 7. The use would not create excessive additional costs for public facilities or services. 8. The use would maximize the preservation of and incorporate the site’s natural and scenic features into the development design. Packet Page Number 37 of 275 9. The use would cause no more than minimal adverse environmental effects. Approval is subject to the following conditions: 1. All construction shall follow the plans date-stamped May 17, 2011. The city council shall review any major changes proposed. Staff may approve minor changes. 2. The city council shall review this permit in one year. 3. The applicant shall comply with all conditions of the city engineer, building official and fire marshal. 4. The applicant shall revise the landscaping plan for staff approval to provide for a visual buffer along the frontage of the property between the two driveways to block headlights from shining into neighboring properties. This buffer shall be at least three to four feet tall. 5. Site lights and noise shall be controlled to follow the requirements of the city ordinance. 6. This permit includes a parking waiver for the applicant to provide 60 parking spaces with the potential for 23 additional future spaces. If further spaces are needed, the applicant shall restripe the parking lot to provide at least 15 additional spaces at the ends of the proposed parking rows. The Maplewood City Council adopted this resolution on July 25, 2011. Packet Page Number 38 of 275 MEMORANDUM TO: Charles Ahl, City Manager FROM: Michael Martin, AICP, Planner Dave Fisher, Interim Community Development Director SUBJECT: Conditional Use Permit Review, South Metro Human Services Mental Health Care Facility LOCATION: 1111 Viking Drive DATE: July 16, 2013 INTRODUCTION The conditional use permit (CUP) for South Metro Human Services at 1111 Viking Drive is due for its annual review. The CUP allows South Metro Human Services to operate the Community Foundations program, a mental health care facility with temporary housing for 16 patients, at the former Ethan Allen furniture store. The city ordinance required a CUP for the housing portion of this proposal. The counseling, clinic and office uses are allowed by ordinance. BACKGROUND On July 25, 2011, the city council approved a conditional use permit, a parking reduction of 21 spaces and design and landscaping plans. On July 23, 2012, the city council reviewed the CUP and agreed to review it again in one year. Code Requirement Section 44-1100(a) of the zoning code states that CUPs shall be reviewed by the city council within one year of approval. At the one-year review, the council may specify an indefinite term for a subsequent review or a specific term not to exceed five years. DISCUSSION South Metro Human Services has completed all of its renovation work and has occupied the building. Staff is not aware of any neighborhood complaints or concerns at this point. During staff’s inspection of the site it found two trash containers in the driveway. The July 25, 2011 design approval for this project contained the following condition: “As required by ordinance, if outdoor trash storage is used in the future, the applicant must provide a screening enclosure to keep the dumpster in. The location and design plans shall be subject to staff approval.” Staff will work with the applicant to ensure a trash enclosure is built and it is recommended the council review this permit again in one year. RECOMMENDATION Review the conditional use permit for South Metro Human Services again in one year. p:sec9\South Metro CUP Review_072213 Attachments: 1. Location/Zoning Map 2. Land Use Plan Map 3. Site Plan 4. City Council Minutes, July 25, 2011 Agenda Item G3 Packet Page Number 39 of 275 Packet Page Number 138 of 206Packet Page Number 40 of 275 Packet Page Number 139 of 206Packet Page Number 41 of 275 Packet Page Number 140 of 206Packet Page Number 42 of 275 Attachment 4 MINUTES MAPLEWOOD CITY COUNCIL 7:00 p.m., Monday, July 25, 2011 Council Chambers, City Hall Meeting No. 14-11 J. NEW BUSINESS 3. Approval of Conditional Use Permit, Design Review and Parking Reduction Authorization for South Metro Human Services Mental Health Care Facility, 1111 Viking Drive Senior Planner Ekstrand gave the report. Planning Commissioner Al Bierbaum spoke. Matt Senior Planner Ekstrand gave the staff report. Matt Ledvina from the Community Design Review Board addressed the council. Planning Commissioner Al Bierbaum spoke. The following people spoke: 1. Ken Frigstad, Maplewood 2. John Wycoff, Maplewood 3. Bob Zick, North St. Paul 4. Don Huot, Maplewood 5. Terry Schneider, Conditional Use Permit Applicant 6. Dick Seppala, Maplewood 7. Ken Frigstad, Maplewood – second appearance Councilmember Llanas moved to approve the Conditional Use Permit, Design Review and Parking Reduction Authorization for South Metro Human Services Mental Health Care Facility, 1111 Viking Drive as amended. RESOLUTION 11-7-602A CONDITIONAL USE PERMIT WHEREAS, South Metro Human Services has applied for a conditional use permit to operate the Community Foundations program, a mental health care facility with temporary housing for 16 patients. WHEREAS, Section 44-1092(3) of the city ordinances requires a conditional use permit for residential programs in zoning districts where they are not specifically prohibited. WHEREAS, this permit applies to the property located at 1111 Viking Drive. The legal description is: The North 55 rods of the West 32 rods of the Southeast ¼ of Section 9, Township 29, Range 22, except portions taken by the State of Minnesota for highway purposes. Above property is subject to a cartway over and across North 16 feet, more or less, thereof. WHEREAS, the history of this conditional use permit is as follows: Packet Page Number 43 of 275 Attachment 4 1. On July 5, 2011, the planning commission held a public hearing. The city staff published a notice in the paper and sent notices to the surrounding property owners. The planning commission gave everyone at the hearing a chance to speak and present written statements. The planning commission also considered the report and recommendation of city staff. The planning commission recommended that the city council approve this permit. 2. On July 25, 2011, the city council considered reports and recommendations of the city staff and planning commission. NOW, THEREFORE, BE IT RESOLVED that the city council approved the above- described conditional use permit, because: 1. The use would be located, designed, maintained, constructed and operated to be in conformity with the City's Comprehensive Plan and this Code. 2. The use would not change the existing or planned character of the surrounding area. 3. The use would not depreciate property values. 4. The use would not involve any activity, process, materials, equipment or methods of operation that would be dangerous, hazardous, detrimental, disturbing or cause a nuisance to any person or property, because of excessive noise, glare, smoke, dust, odor, fumes, water or air pollution, drainage, water run-off, vibration, general unsightliness, electrical interference or other nuisances. 5. The use would not exceed the design standards of any affected street. 6. The use would be served by adequate public facilities and services, including streets, police and fire protection, drainage structures, water and sewer systems, schools and parks. 7. The use would not create excessive additional costs for public facilities or services. 8. The use would maximize the preservation of and incorporate the site's natural and scenic features into the development design. 9. The use would cause no more than minimal adverse environmental effects. Approval is subject to the following conditions: 1. All construction shall follow the site plan approved by the city. Staff may approve minor changes. 2. The proposed use must be substantially started within one year of council approval or the permit shall become null and void. The council may extend this deadline for one year. 3. The city council shall review this permit in one year. 4. Before the applicant obtains a building permit, they shall sign an agreement with the city agreeing to pay an annual assessment of $1,000 per year for ten years to defray the cost of police calls to the facility. Packet Page Number 44 of 275 Attachment 4 5. Additional housing units cannot be added without a revision of this permit. 6. The applicant shall provide on-site staffing 24 hours a day and 365 days a year, this is to ensure the health and safety of the residents in accordance with Minnesota Statute Section 245A.11. 7. This conditional use permit is granted based on the pertinent requirements of federal and state laws, which are Minnesota Statute Section 245A.11 and the requirements of the FHA, the FHAA and the ADA (the Fair Housing Act, the Fair Housing Act Amendment of 1988 and the American’s with Disabilities Act) which all have requirements about accommodations for people with disabilities in various ways. The Maplewood City Council approved this resolution on July 25, 2011. Seconded by Councilmember Nephew Ayes – All The motion passed. Packet Page Number 45 of 275 MEMORANDUM TO: Charles Ahl, City Manager FROM: Michael Martin, AICP, Planner David Fisher, Interim Community Development Director SUBJECT: St. Paul’s Priory Planned Unit Development Review DATE: July 16, 2013 INTRODUCTION The conditional use permit (CUP) for the St. Paul’s Monastery planned unit development (PUD) at 2675 Larpenteur Avenue East is due for its annual review. The PUD allowed the development of the monastery property with the following uses: • A 40-unit senior-housing apartment building to be operated by CommonBond Communities. • A 50-unit town house development also to be built and operated by CommonBond. • A conversion of the monastery to a family-violence shelter by the Tubman Family Alliance. • A new monastery on the north end of the property. BACKGROUND May 14, 2007: The city council approved this PUD and the preliminary plat for Century Trails Commons, the town house complex. Refer to the attached city council minutes. February 12, 2008: The community design review board (CDRB) approved the design plans for the new monastery. April 14, 2008: The city council approved the final plat for Century Trails Commons. April 22, 2008: The CDRB approved the design plans for the Century Trails Commons town homes. July 27, 2009: The city council approved the design plans and a revision to the PUD allowing unit sizes that are less than the required 580-square-foot minimum as stated in the zoning ordinance for the CommonBond Communities senior housing apartment building. July 12, 2010: The city council approved revised landscape plans. On July 26, 2010, the city council reviewed the CUP and agreed to review it again in one year. On July 25, 2011, the city council reviewed the CUP and agreed to review it again in one year. On July 23, 2012, the city council reviewed the CUP and agreed to review it again in one year. On May 13, 2013, the city council approved a CUP revision to allow the Tubman Family Alliance to utilize the two upper floors in order to expand the shelter housing and services. Agenda Item G4 Packet Page Number 46 of 275 Code Requirement Section 44-1100(a) of the zoning code states that CUPs shall be reviewed by the city council within one year of approval. At the one-year review, the council may specify an indefinite term for a subsequent review or a specific term not to exceed five years. DISCUSSION The monastery, 50-unit Trails Edge Town Homes and 40-unit Century Trails Senior Housing Apartments are complete. The Tubman Family Alliance received council approval earlier this year to expand its shelter and services into the upper two floors of its buildings. Staff is not aware of any neighborhood complaints or concerns. The city council should review this permit in one year to check on the progress of the remaining elements of this PUD. RECOMMENDATION Review the conditional use permit for the St. Paul’s Monastery PUD in one year. p:sec13-29\Priory\priory pud annual rev_072213 Attachments: 1. Location Map 2. May 14, 2007 City Council Minutes 3. July 27, 2009 City Council Minutes 4. May 13, 2013 City Council Minutes 5. Site Plan Packet Page Number 47 of 275 Location / Zoning Map2675 Larpenteur Ave ESt Paul's Monastery ´Attachment 1 page #2SITEHill-MurrayHigh School St Paul's Monastery Packet Page Number 48 of 275 MINUTES MAPLEWOOD CITY COUNCIL 7:00 p.m., Monday, May 14, 2007 Council Chambers, City Hall Meeting No. 07-09 2. St. Paul’s Monastery Redevelopment (Century and Larpenteur Avenues) Public Comment on this matter was taken at a Special City Council Meeting on May 7, 2007. Public Comment is now closed. Discussion is limited to City Council questions for City Staff. a. Application for Conditional Use Permit for Planned Unit Development b. Preliminary Plat for Century Trails Commons Senior Planner Ekstrand presented the report and responded to questions from the council. Ellen Higgins, in charge of development for Common Bond Communities, addressed the council regarding the proposed affordable housing. Mayor Longrie thanked Ms. Higgins for her suggestion that a transportation task force be created to work toward increasing public transportation to this site. Mayor Longrie stated her support for increasing transportation on the site and creating a task force to look at these issues. Councilmember Hjelle That part of the South ½ of the Southeast Quarter of Section 13, Township 29, Range 22, Ramsey County, Minnesota lying east and north of a line described as beginning at a point on the south line of said Southeast Quarter of Section 13 985 feet west of the southeast corner of said Southeast Quarter of Section 13; thence 78 degrees 40 minutes to the right proceeding in a north-northwesterly direction for 620 feet to a point of curve; thence to the left on a curve having a radius of 100 feet a distance of 157.08 feet to a point of tangent; thence 90 degrees to the right, at right angles to the tangent to said curve at said point of moved to adopt the following resolution approving a conditional use permit for a planned unit development for the Sisters of St. Benedict of St. Paul’s Monastery. CONDITIONAL USE PERMIT RESOLUTION 07-05-071 WHEREAS, the Sisters of St. Benedict of St. Paul’s Monastery applied for a conditional use permit for a planned unit development to develop their 31.04-acre site with a 50 -unit town house development; a 40-unit seniors housing apartment building; to convert the existing monastery building as a multi-use family-violence shelter with 37 housing units, offices and support facilities and to build a future monastery building on the north end of their property. WHEREAS, Section 44-1092(3) of the city ordinances requires a conditional use permit for institutions of any educational, philanthropic and charitable nature. WHEREAS, this permit applies to the property located at 2675 Larpenteur Avenue. The legal description is: Packet Page Number 49 of 275 tangent, a distance of 450 feet; thence 90 degrees to the left a distance of 200 feet; thence 90 degrees to the right a distance of 225 feet, more or less, to the north line of said South ½ of the Southeast Quarter of Section 13. Except that part of the Southeast Quarter of said Southeast Quarter of Section 13 which lies northeasterly of a line parallel with and distant 100 feet southwesterly of a line described as beginning at a point on the east line of said Section 13, distant 1324.13 feet north of the southeast corner thereof; thence run westerly at an angle of 90 degrees with said east section line for 186.63 feet; thence deflect to the right on a 10 degree curve, delta angle 29 degrees 20 minutes, for 293.33 feet; thence on tangent to said curve for 100 feet and there terminating; together with all that part of the above described tract, adjoining and southerly of the above described strip, which lies easterly of a line run parallel with and distant 60 feet westerly of the following described line: Beginning at the point of intersection of the above described line with the east line of said Section 13; thence run southerly along the east line of said Section 13 for 540 feet and there terminating; also together with a triangular piece adjoining and southerly of the first above described strip and westerly of the last described strip, which lies northeasterly of the following described line: From a point on the last described line, distant 150 feet southerly of its point of beginning, run westerly at right angles to said line for 60 feet to the point of beginning of the line to be described; thence run northwesterly to a point on the southerly boundary of the first above described strip, distant 100 feet westerly of its intersection with a line run parallel with and distant 33 westerly of the east line of said Section 13. Which lies easterly, northerly and easterly of a line described as commencing at said southeast corner of the Southeast Quarter of Section 13; thence westerly, along said south line of the Southeast Quarter of Section 13, a distance of 832.02 feet to the point of beginning of the line to be described; thence deflecting to the right 78 degrees 40 minutes 00 seconds a distance of 750.06 feet; thence deflecting to the left 90 degrees 00 minutes 00 seconds a distance of 204.00 feet; thence deflecting to the right 90 degrees 00 minutes 00 seconds a distance of 638.98 feet to said north line of the south half of the Southeast Quarter of Section 13 and said line there terminating. WHEREAS, the history of this conditional use permit is as follows: 1. On March 20, 2007, the planning commission held a public hearing. The city staff published a notice in the paper and sent notices to the surrounding property owners. The planning commission gave everyone at the hearing a chance to speak and present written statements. The planning commission also considered the reports and recommendation of city staff. The planning commission recommended that the city council approve this permit. 2. On May 7, 2007, the city council considered reports and recommendations of the city staff and planning commission. NOW, THEREFORE, BE IT RESOLVED that the city council approve the above-described conditional use permit, because: Packet Page Number 50 of 275 1. The use would be located, designed, maintained, constructed and operated to be in conformity with the City's Comprehensive Plan and Code of Ordinances. 2. The use would not change the existing or planned character of the surrounding area. 3. The use would not depreciate property values. 4. The use would not involve any activity, process, materials, equipment or methods of operation that would be dangerous, hazardous, detrimental, disturbing or cause a nuisance to any person or property, because of excessive noise, glare, smoke, dust, odor, fumes, water or air pollution, drainage, water run-off, vibration, general unsightliness, electrical interference or other nuisances. 5. The use would generate only minimal vehicular traffic on local streets and would not create traffic congestion or unsafe access on existing or proposed streets. 6. The use would be served by adequate public facilities and services, including streets, police and fire protection, drainage structures, water and sewer systems, schools and parks. 7. The use would not create excessive additional costs for public facilities or services. 8. The use would maximize the preservation of and incorporate the site's natural and scenic features into the development design. 9. The use would cause minimal adverse environmental effects. Packet Page Number 51 of 275 Approval is subject to the following conditions: 1. This planned unit development shall follow the concept plans date-stamped January 11, 2007. These plans are considered concept plans because the applicant must submit design plans to the city for approval for the proposed apartments, town houses, future monastery; shelter and any other future use. Staff may approve minor changes. 2. This planned unit development does not give any approvals for Lot 1, Block 1 since this site has not been proposed for any future development and its future use is unknown. The development of this site would require a revision of this planned unit development and must comply with all city development requirements. 3. The proposed construction must be substantially started within one year of council approval or the permit shall become null and void. 4. The city council shall review this permit in one year. 5. The property owner shall be required to dedicate right of way for a roadway to be studied by the City Engineer during the next three to five year period. The final location of the roadway shall be studied by the City Engineer and reported with a recommendation to the city council. The final need for the roadway has not been determined but will likely be necessary if additional development occurs on this property in excess of that currently being proposed or at higher density levels than approved; and also if property sold includes a major expansion of uses that generate significant additional traffic to be generated at Hill-Murray. 6. The applicant must obtain all necessary and required permits from the Minnesota Department of Transportation, Ramsey County and the Ramsey-Washington Metro Watershed District. 7. The applicant must provide a right-turn lane on Century Avenue into the site, subject to MnDOT’s approval. 8. The applicant shall comply with all requirements of the engineering reports by Erin Laberee and Michael Thompson dated February 22, 2007 and by R. Charles Ahl dated April 19, 2007. 9. The applicant shall install sidewalks wherever possible along Larpenteur Avenue. 10. Staff may approve minor changes to the plans. Seconded by Councilmember Rossbach A friendly amendment was added to the motion requiring the following conditions be included in the resolution: 11. Establish a neighborhood committee of no less than nine members whose membership composite shall be one representative from Hill-Murray administration or trustees, one day care parent from Maple Tree Day Care, one parent whose child Packet Page Number 52 of 275 attends Hill-Murray, three neighborhood citizens who signed the petition included in the council packet and three neighborhood citizens who are from the yellow cards received by the city. The committee’s purpose shall be to facilitate communication, develop neighborhood solutions to neighborhood concerns, and provide feedback to all parties subject to the planned unit development. The committee shall report periodically to the council and disband when no longer needed. 12. Establish a transportation task force of neighbors and parties to the planned unit development to work on public transportation service and options for the site, to work in coordination with the neighborhood committee. 13. The proposed project shall be reviewed by the Community Design Review Board and all requirements of that board shall be followed. 14. Include two playground areas within the planned unit development as discussed at the hearing that were to be added to the plans. 15. Develop a security plan in partnership with all of the parties subject to the planned unit development and the neighborhood committee. 16. Monastery Way and Bennett Road shall be public roads and the cost of city sewer, storm water, public street infrastructure and city water shall be borne by the developer. 17. The applicant shall install sidewalks along applicant’s property on Larpenteur Avenue and internal streets. The council voted as follows: Ayes-all The Maplewood City Council approved this resolution on May 14, 2007. Councilmember Hjelle 5. The property owner shall be required to dedicate right-of -way for a roadway to be studied by the City Engineer during the next three to five year period. The final location of the roadway shall be studied by the City Engineer and reported with a moved approval of a preliminary plat for Century Trails Commons located at 2675 Larpenteur Avenue. Approval is subject to: 1. Redesigning the public street right-of-way within the site to be 60 feet wide. 2. Complying with the applicable requirements of the engineering reports by Erin Laberee and Michael Thompson dated February 22, 2007 and by R. Charles Ahl dated April 19, 2007. 3. Street lights shall be installed if required by the city engineer, subject to his approval. 4. The applicant shall dedicate any additional right-of-way if required by Ramsey County and the Minnesota Department of Transportation. Packet Page Number 53 of 275 recommendation to the city council. The final need for the roadway has not been determined but will likely be necessary if additional development occurs on this property in excess of that currently being proposed or at higher density levels than approved; and also if property sold includes a major expansion of uses that generate significant additional traffic to be generated at Hill-Murray. Seconded by Councilmember Rossbach Ayes-all Packet Page Number 54 of 275 MINUTES MAPLEWOOD CITY COUNCIL 6:30 p.m., Monday, July 27, 2009 Council Chambers, City Hall Meeting No. 15-09 (THIS ITEM WAS HEARD OUT OF ORDER PER THE COUNCIL MOTION) L6. Planned Unit Development Revision For Century Trails Apartments By CommonBond Communities a. Senior Planner, Tom Ekstrand gave the report and answered questions of the council. Mayor Longrie asked if anyone wanted to address the council to come forward. 1. JudyWordock, Housing Development Manager, CommonBond Communities. 2. Paul Holmes, Architect with Pope Architects. 3. Gary Pearson, Planning Commission member gave the planning commission report. 4. Carolyn Peterson, 1801 Gervais Avenue, Maplewood. Councilmember Nephew moved to approve the Planned Unit Development Revision For Century Trails Apartments By CommonBond Communities. To also include recommendations from the Planning Commission and Community Design Review Board. RESOLUTION 09-07-225 CONDITIONAL USE PERMIT REVISION RESOLUTION WHEREAS, CommonBond Communities applied for a revision of the conditional use permit for a planned unit development (PUD) for the St. Paul’s Monastery development plan. This PUD included a 40-unit senior housing apartment building as part of the development project. WHEREAS, CommonBond Communities has requested approval to build apartment units that have unit size reductions ranging from 550 square feet to 575 square feet of gross floor area with a maximum of 540 square feet or net habitable area which is less than the required 580 square foot minimum area stipulated by city ordinance. WHEREAS, Section 44-1093(b) of the city ordinances states that the city council may grant deviations from the city ordinance as part of a PUD. WHEREAS, this permit applies to the property located at the southwest corner of Benet Road and Century Avenue. The legal description is: Lot 1, Block 2, CENTURY TRAILS COMMONS WHEREAS, the history of this conditional use permit revision is as follows: 1. On July 7, 2009, the planning commission held a public hearing. The city staff published a notice in the paper and sent notices to the surrounding property owners. The planning commission gave everyone at the hearing a chance to speak and present written statements. The planning commission also considered the reports and recommendation of city staff. The planning commission recommended that the city council approve this permit. 2. On July 27, 2009, the city council considered reports and recommendations of the city staff and planning commission. Packet Page Number 55 of 275 NOW, THEREFORE, BE IT RESOLVED that the city council passed the above-described conditional use permit, because: 1. The use would be located, designed, maintained, constructed and operated to be in conformity with the City's Comprehensive Plan and Code of Ordinances. 1. The use would not change the existing or planned character of the surrounding area. 3. The use would not depreciate property values. 4. The use would not involve any activity, process, materials, equipment or methods of operation that would be dangerous, hazardous, detrimental, disturbing or cause a nuisance to any person or property, because of excessive noise, glare, smoke, dust, odor, fumes, water or air pollution, drainage, water run-off, vibration, general unsightliness, electrical interference or other nuisances. 5. The use would generate only minimal vehicular traffic on local streets and would not create traffic congestion or unsafe access on existing or proposed streets. Seconded by Councilmember Rossbach. Ayes – All The motion passed. Packet Page Number 56 of 275 Attachment 4 MINUTES MAPLEWOOD CITY COUNCIL 7:00 p.m., Monday, May 13, 2013 Council Chambers, City Hall Meeting No. 09-13 J. NEW BUSINESS 3. Conditional Use Permit Revision for the Tubman Center East Planned Unit Development, 1725 Monastery Way (Simple Majority Vote Required to Approve) Senior Planner Ekstrand gave the staff report. Councilmember Juenemann moved to approve the Resolution, with revisions to number six as requested by the applicant, amending the Conditional Use Permit the St. Paul’s Priory planned unit development which allowed the Tubman Family Shelter facility in the former monastery building located at 1725 Monastery Way. RESOLUTION 13-5-913 PLANNED UNIT DEVELOPMENT REVISION RESOLUTION WHEREAS, the Harriet Tubman Center East has applied to revised the conditional use permit for a planned unit development that included the development of the former 31-acre St. Paul’s Priory site. This development included a 50-unit town house development; a 40-unit seniors housing apartment building; the conversion of the former monastery into a multi-use family-violence shelter for Tubman and a future monastery building on the north end of their property. WHEREAS, the Harriet Tubman Center East is requesting amendment of this permit to expand their services and shelter housing. The shelter housing will expand to occupy the upper two floors of the building. The expanded services and programming will include the following uses: temporary shelter housing, legal services, counseling services, youth and family services, community training and education, child care, creative art studios and administrative offices. In addition to those, Tubman would add therapeutic and community gardens, a bus shelter for the community and Tubman clients, a community health clinic which will work in collaboration with Tubman counseling services, and renew the existing commercial kitchen to provide meals to Tubman residents and other facility users as well as partner with a community college and others to provide training in basic food preparation. WHEREAS, Section 44-1092(3) of the city ordinances requires a conditional use permit for institutions of any educational, philanthropic and charitable nature. WHEREAS, this permit applies to the property located at 1725 Monastery Way. The legal description is: Lot 2, Block 1, St. Paul’s Monastery Packet Page Number 57 of 275 Attachment 4 WHEREAS, the history of this conditional use permit revision is as follows: 1. On May 7, 2013, the planning commission held a public hearing. The city staff published a notice in the paper and sent notices to the surrounding property owners. The planning commission gave everyone at the hearing a chance to speak and present written statements. The planning commission also considered the reports and recommendation of city staff. The planning commission recommended that the city council approve this permit. 2. On May 13, 2013, the city council considered reports and recommendations of the city staff and planning commission. NOW, THEREFORE, BE IT RESOLVED that the city council approve the above- described conditional use permit revision, because: 1. The use would be located, designed, maintained, constructed and operated to be in conformity with the City's Comprehensive Plan and Code of Ordinances. 2. The use would not change the existing or planned character of the surrounding area. 3. The use would not depreciate property values. 4. The use would not involve any activity, process, materials, equipment or methods of operation that would be dangerous, hazardous, detrimental, disturbing or cause a nuisance to any person or property, because of excessive noise, glare, smoke, dust, odor, fumes, water or air pollution, drainage, water run-off, vibration, general unsightliness, electrical interference or other nuisances. 5. The use would generate only minimal vehicular traffic on local streets and would not create traffic congestion or unsafe access on existing or proposed streets. 6. The use would be served by adequate public facilities and services, including streets, police and fire protection, drainage structures, water and sewer systems, schools and parks. 7. The use would not create excessive additional costs for public facilities or services. 8. The use would maximize the preservation of and incorporate the site's natural and scenic features into the development design. 9. The use would cause minimal adverse environmental effects. Approval is subject to the following conditions: 1. This planned unit development shall follow the concept plans date-stamped January 11, 2007 and the subsequent, specific design approvals for new town homes, apartments and monastery approved by the community design review board. Staff may approve minor changes. Packet Page Number 58 of 275 Attachment 4 2. This planned unit development does not give any approvals for Lot 1, Block 1 since this site has not been proposed for any future development and its future use is unknown. The development of this site would require a revision of this planned unit development and must comply with all city development requirements. 3. This permit revision allows the Tubman Center East to expand their shelter housing to the remaining two upper floors in the building. This permit also permits the applicant’s support activities such as: a legal center, offices, counseling services group rooms, child care, playground, classrooms, community gathering spaces, space for collaborative community partnerships, community gardens, bus shelters and expanded use of the commercial kitchen for residents and other facility users and collaborative community groups. 4. The applicant shall work with city staff to on the placement and possible screening of future community gardens. 5. The applicant shall work with city staff on the appearance and location of bus shelters. These bus shelters may require the review and approval of the community design review board. 6. The applicant shall work to inform, educate, and encourage their residents and staff to park in Tubman parking lots and abide by all Maplewood parking regulations. City staff will monitor this and if parking issues continue the City Council may consider requiring the property owner increase on-site parking to meet the needs of facility users. The Maplewood City Council approved this resolution on May 13, 2013. Seconded by Councilmember Koppen Ayes – All The motion passed. Packet Page Number 59 of 275 Packet Page Number 60 of 275 AGENDA REPORT TO: Chuck Ahl, City Manager FROM: Michael Thompson, Public Works Director /City Engineer Steven Love, Assistant City Engineer SUBJECT: Approval of Grant Agreement between the Ramsey Washington Metro Watershed District and the City of Maplewood, July 2011 Storm Response, City Project 11-19 DATE: July 9, 2013 INTRODUCTION The City Council will consider approval of two grant agreements with the Ramsey Washington Metro Watershed District (RWMWD) to receive grant funds for flood remediation work as part of the July 2011 Storm Response, City Project 11-19. BACKGROUND On March 25, 2013 the Council approved a budget adjustment for investigation and remediation efforts of localized flooding issues associated with the July 2011 storm event. As part of the March 25th Agenda report Area #20, 2482 Adele Street and Area #21, 522 Marnie were identified as recommended projects for construction in 2013. Plans have been completed for the proposed remediation work for each of these properties. The following is a summary of the estimated construction costs for each project:  Area #20 - 2482 Adele Street o Total Construction Cost = $26,808  Includes 20% Construction Contingency  Does Not Include Engineering and Construction Management  Area #21 – 522 Marnie Street o Total Construction Cost = $27,628  Includes 20% Construction Contingency  Does Not Include Engineering and Construction Management DISCUSSION The City applied for cost-share grants through RWMWD to help offset the construction cost of the proposed projects. For Area #20 – 2482 Adele Street the RWMWD Board of Managers approved a 100% cost share for construction costs up to $26,808. For Area #21 – 522 Marnie Street the RWMWD Board of Managers approved a 75% cost share for construction costs up to $20,721. To receive the funds an agreement (attached) between RWMWD and the City is required for each project. A request for proposal (RFP) will be sent out to contractors for each of the projects. BUDGET The total estimated construction cost for the two proposed flood remediation projects is $54,436. These costs were planned to be paid for from the July 2011 Storm Response, City Project 11-19, project budget. On July 3, 2013 the RWMWD Board of Managers approved a not to exceed total of $47,529 Agenda Item G5 Packet Page Number 61 of 275 towards the proposed flood remediation construction costs of Area #20 and Area #21. When the projects are complete and actual quantities have been tabulated and approved, the City will submit its requests for reimbursement for the actual cost of the improvements. The remaining project costs will be paid with funds from the July 2011 Storm Response, City Project 11-19, project budget. RECOMMENDATION It is recommended that the City Council authorize the Mayor and City Manager to enter into the attached agreements with the Ramsey Washington Metro Watershed District to receive cost-share grant funds for flood remediation work as part of the July 2011 Storm Response, City Project 11-19. Attachments: 1. Area 20 – 2482 Adele Street Agreement 2. Area 21 – 522 Marnie Street Agreement Agenda Item G5 Packet Page Number 62 of 275 July 8, 2013 Steve Love City of Maplewood 2482 Adele St Maplewood MN 55109 Paige Ahlborg, Permit Coordinator 2482 Adele St; 13-25 BMP Dear Mr. Love, On 7/3/2013 the Board of Managers of the Ramsey-Washington Metro Watershed District reviewed your application for the above-described project. A motion was duly made, seconded, and passed to approve this project conditioned upon execution of the cost share agreement. The project was approved for funding up to $26,808.00 cost share maximum. Enclosed is a copy of the agreement. The agreement must be signed prior to commencing any work on the project. A final financial report and receipts shall be submitted by 7/3/2014 to be eligible for funds. Please let me know if you have any other questions on your project and call to schedule a site visit when your project is set to begin. (651) 792-7964 Sincerely, Paige Ahlborg To: From: Re: Agenda Item G5 Attachment 1 Packet Page Number 63 of 275 THIS AGREEMENT is made the 08 day of July, 2013, by and between the Ramsey-Washington Metro Watershed District, (hereinafter “District”) and City of Maplewood for 2482 Adele St (hereinafter "Landowner"). 13-25 BMP 1. BACKGROUND 1.1 The District has included in its annual budget funds to cost-share with approved Landowners to implement best management practices within the watershed district. 1.2 The District funding is limited to 100% of the cost of materials and labor actually incurred by the Landowners for the project as approved by the District, up to a maximum contribution of $26,808.00 commercial/governmental Landowner. 1.3 Landowner has applied to the District for funds to help pay for the cost of materials or labor fofor Raingarden(1) (hereinafter "Project") as described in the BMP Incentive Program Application attached herein as Exhibit A. 1.4 The District is willing to fund the Project described in Exhibit A in accordance with the terms of this Agreement. 2. SERVICES 2.1 Ladowner will complete the Project described in Exhibit A in accordance with the terms, scope, schedule, and budget set forth therein. The Landowners do hereby covenant that they are the owners and are lawfully seized and possessed of the real estate above-described. 2.2 Landowner shall maintain the Project for a period of twenty (20) years per commerical/government Landowner from the date of this document. The agreement shall run with the land and extend to and bind the heirs, representatives, successors and/or assigns of the party hereto respectively. 3. REIMBURSEMENT 3.1 Expenses incurred by Landowner in Exhibit A will be reimbursed by the District up to 100% of the total cost of materials or labor actually incurred by Landowner up to a maximum amount of $26,808.00 per commercial/governmental property. Upon incurring the costs identified in Exhibit A, the Landowner shall provide a list of all reimbursable expenses incurred and receipts or copies of receipts therefore, to the District. 3.2 The District will reimburse the identified reimbursable expenses in accordance with Section 3.1 within 60 days of receipt of the required financial and performance information and receipts. 3.3 The District will not be liable or responsible for payment for services or reimbursement for expenses other than those specified as reimbursable expenses in accordance with Section 3.1. 3.4 Following the completion of the project described in Exhibit A, Landowner shall submit a final financial report to the District listing the final expenses for the activity, along with copies of receipts. GENERAL TERMS 4.1 This Agreement shall remain in effect unless canceled by mutual agreement or in accordance with Section 4.2. This Agreement shall expire if the Project is not completed pursuant to the schedule in Exhibit A and the financial information required by Sections 3.1 and 3.4 is not received within one year after approval. 4.2 If weather or other conditions beyond the control of the Landowner do not permit the completion of this Project within one year after approval, this Agreement may be amended, by mutual written consent of the parties, to reschedule the Project and funding. 4.3 Landowner must obtain all permits required in conjunction with the Project, including but not limited to City and Department of Natural Resources approval, prior to starting the Project. 4.4 Landowner agrees to allow the District access to the Project area for evaluation and promotion of the Project. The Landowner agrees to make the site available as a demonstration site to the general public at the reasonable request of the District. 4.5 Landowner will act in all respects as an independent contractor under this Agreement and will be solely responsible for performance of services required hereunder as well as the means and manner of performance thereof. The District will not be an employer, partner, or co-venturer with Landowner for any purpose. Nothing herein authorizes Landowner to act as an agent or representative of the District for any purpose whatsoever. 4.6 Landowner shall indemnify, defend and hold the District and its agents, employees, officers and contractors, harmless from all claims made by Landowner and/or third parties for damage or loss sustained or costs incurred, including but not limited to District staff, engineering and attorneys fees, in connection with INCENTIVE PROGRAM AGREEMENT Agenda Item G5 Attachment 1 Packet Page Number 64 of 275 or arising out of the issuance of and/or acceptance and payment by the District of funds pursuant to this cost-share, construction of the project, or this agreement. 4.7 The District shall have no obligation to the Landowner, specifically, the District shall not need to restore the land to its original condition upon expiration or termination of this Agreement. RAMSEY-WASHINGTON METRO WATERSHED DISTRICT _________________________________ District Administrator Date _____________________________ 2665 Noel Drive Little Canada, MN 55117 LANDOWNERS _____________________________________ Print Name ____________________________ _____________________________________ Print Name ____________________________ _____________________________________ Print Name ____________________________ Date _________________________________ Property Address _____________________________________ _____________________________________ Agenda Item G5 Attachment 1 Packet Page Number 65 of 275 July 8, 2013 Steve Love City of Maplewood 522 Marnie St Maplewood MN 55109 Paige Ahlborg, Permit Coordinator Vista Hills Park; 13-24 BMP Dear Mr. Love, On July 3, 2013 the Board of Managers of the Ramsey-Washington Metro Watershed District reviewed your application for the above-described project. A motion was duly made, seconded, and passed to approve this project conditioned upon execution of the cost share agreement. The project was approved for funding up to $20,721.00 cost share maximum. Enclosed is a copy of the agreement. The agreement must be signed prior to commencing any work on the project. A final financial report and receipts shall be submitted by to be eligible for funds. Please let me know if you have any other questions on your project and call to schedule a site visit when your project is set to begin. (651) 792-7964 Sincerely, Paige Ahlborg To: From: Re: Agenda Item G5 Attachment 2 Packet Page Number 66 of 275 THIS AGREEMENT is made the 08 day of July, 2013, by and between the Ramsey-Washington Metro Watershed District, (hereinafter “District”) and City of Maplewood for Vista Hills Park (hereinafter "Landowner"). 13-24 BMP 1. BACKGROUND 1.1 The District has included in its annual budget funds to cost-share with approved Landowners to implement best management practices within the watershed district. 1.2 The District funding is limited to 75% of the cost of materials and labor actually incurred by the Landowners for the project as approved by the District, up to a maximum contribution of $20,721.00 per commercial/governmental Landowner. 1.3 Landowner has applied to the District for funds to help pay for the cost of materials or labor fofor Raingarden(3) (hereinafter "Project") as described in the BMP Incentive Program Application attached herein as Exhibit A. 1.4 The District is willing to fund the Project described in Exhibit A in accordance with the terms of this Agreement. 2. SERVICES 2.1 Ladowner will complete the Project described in Exhibit A in accordance with the terms, scope, schedule, and budget set forth therein. The Landowners do hereby covenant that they are the owners and are lawfully seized and possessed of the real estate above-described. 2.2 Landowner shall maintain the Project for a period of twenty (20) years per commerical/government Landowner from the date of this document. The agreement shall run with the land and extend to and bind the heirs, representatives, successors and/or assigns of the party hereto respectively. 3. REIMBURSEMENT 3.1 Expenses incurred by Landowner in Exhibit A will be reimbursed by the District up to 75% of the total cost of materials or labor actually incurred by Landowner up to a maximum amount of $20,721.00 per commercial/governmental property. Upon incurring the costs identified in Exhibit A, the Landowner shall provide a list of all reimbursable expenses incurred and receipts or copies of receipts therefore, to the District. 3.2 The District will reimburse the identified reimbursable expenses in accordance with Section 3.1 within 60 days of receipt of the required financial and performance information and receipts. 3.3 The District will not be liable or responsible for payment for services or reimbursement for expenses other than those specified as reimbursable expenses in accordance with Section 3.1. 3.4 Following the completion of the project described in Exhibit A, Landowner shall submit a final financial report to the District listing the final expenses for the activity, along with copies of receipts. GENERAL TERMS 4.1 This Agreement shall remain in effect unless canceled by mutual agreement or in accordance with Section 4.2. This Agreement shall expire if the Project is not completed pursuant to the schedule in Exhibit A and the financial information required by Sections 3.1 and 3.4 is not received within one year after approval. 4.2 If weather or other conditions beyond the control of the Landowner do not permit the completion of this Project within one year after approval, this Agreement may be amended, by mutual written consent of the parties, to reschedule the Project and funding. 4.3 Landowner must obtain all permits required in conjunction with the Project, including but not limited to City and Department of Natural Resources approval, prior to starting the Project. 4.4 Landowner agrees to allow the District access to the Project area for evaluation and promotion of the Project. The Landowner agrees to make the site available as a demonstration site to the general public at the reasonable request of the District. 4.5 Landowner will act in all respects as an independent contractor under this Agreement and will be solely responsible for performance of services required hereunder as well as the means and manner of performance thereof. The District will not be an employer, partner, or co-venturer with Landowner for any purpose. Nothing herein authorizes Landowner to act as an agent or representative of the District for any purpose whatsoever. 4.6 Landowner shall indemnify, defend and hold the District and its agents, employees, officers and contractors, harmless from all claims made by Landowner and/or third parties for damage or loss sustained or costs incurred, including but not limited to District staff, engineering and attorneys fees, in connection with INCENTIVE PROGRAM AGREEMENT Agenda Item G5 Attachment 2 Packet Page Number 67 of 275 or arising out of the issuance of and/or acceptance and payment by the District of funds pursuant to this cost-share, construction of the project, or this agreement. 4.7 The District shall have no obligation to the Landowner, specifically, the District shall not need to restore the land to its original condition upon expiration or termination of this Agreement. RAMSEY-WASHINGTON METRO WATERSHED DISTRICT _________________________________ District Administrator Date _____________________________ 2665 Noel Drive Little Canada, MN 55117 LANDOWNERS _____________________________________ Print Name ____________________________ _____________________________________ Print Name ____________________________ _____________________________________ Print Name ____________________________ Date _________________________________ Property Address _____________________________________ _____________________________________ Agenda Item G5 Attachment 2 Packet Page Number 68 of 275 Agenda Item G6 Attachments 1. CFS requisition Phase 2 AGENDA REPORT TO: City Manager, Chuck Ahl FROM: IT Director, Mychal Fowlds SUBJECT: Approval of Office Furniture for Investigations Division, Police Department Expansion Project, Phase 2 DATE: July 16, 2013 Introduction The City Council approved funding for Phase 2 of the Police Department Expansion Project in the amount of $650,000 on March 11, 2013. The majority of the construction project was put out for bid and was awarded to Weber, Inc. on April 29, 2013. Certain items were not part of the bid package. As they arise staff will present them to Council for approval. Background Phase 1 of the Police Department Expansion Project predominately involves moving Community Development and Parks and Recreation from City Hall to 1902 County Road B East. Phase 2 then involves moving the Investigations division of the Police Department in to the space vacated by Community Development. In doing so staff has needs for the items shown below. These items were considered to be outside the scope of the construction bid but are certainly part of the Police Department Expansion Project. 1. Commercial Furniture Systems (CFS) – Office furniture purchases and installation for Phase 2 utilizing US Communities pricing not to exceed $39,500. Budget Impact The item listed above has been planned for and will be funded from the $650,000 that the City Council previously allocated for the Police Department Expansion Project – Phase 2. Recommendation It is recommended that approval be given to proceed with the Police Department Expansion Project item listed above. Action Required Submit to City Council for review and approval. Packet Page Number 69 of 275 Mail Purchase Order?Yes No Fax Purchase Order?Yes No Requested by: Fax # (If needed)Signed Date Purchase Order No. (Assigned by Finance Dept.)City Mgr. or his/her designee Approval: FUND ACTIVTY ACCOUNT Signed Date Approved by City Council:Date Finance Department Approval: TOTAL Signed Date FOR ACCOUNTING USE ONLY: S:\FINANCE\Forms\AP-Requisition Names of Bidders If low bidder is not recommended or only a single bid has been obtained, include a full explanation of reasons. Freight Subtotal Quantity Description Unit Price $ 1830 County Road B East Maplewood, MN 55109 4301 Highway 7 Commercial Furniture Services St. Louis Park, MN 55416 $ 1 See attached quote CFS is a member of US Communities. US Communities is an approved collective purchasing option per our City Check one City of Maplewood Amount $ Unit Price Amount 39,257.52$ 36,732.18 36,732.18 2,525.34$ purchasing guide. Therefore staff is required to provide only one quote. 36,732.18$ Deliver to PROGRAM Name and address of recommended bidder VENDOR NUMBER Sales Tax @ .06875 Total AMOUNT REQUISITION CITY OF MAPLEWOOD, MINNESOTA (This is NOT a Purchase Order) Packet Page Number 70 of 275 Packet Page Number 71 of 275 Packet Page Number 72 of 275 Packet Page Number 73 of 275 Packet Page Number 74 of 275 Packet Page Number 75 of 275 Packet Page Number 76 of 275 Packet Page Number 77 of 275 Packet Page Number 78 of 275 Packet Page Number 79 of 275 Packet Page Number 80 of 275 Packet Page Number 81 of 275 Packet Page Number 82 of 275 Packet Page Number 83 of 275 Packet Page Number 84 of 275 Packet Page Number 85 of 275 Packet Page Number 86 of 275 Packet Page Number 87 of 275 Agenda Item H1 AGENDA REPORT TO: Mayor and City Council FROM: Charles Ahl, City Manager Gayle Bauman, Finance Director SUBJECT: 7:00 pm: Public Hearing to Modify Development Program and Establish TIF District No. 1-12 for Research and Development Facility on 3M Campus a. Public Hearing called for after 7:00 pm a. Planning Commission and HEDC Recommendations b. Resolution Approving the Modification to the Development Program for Development District No. 1 and Establishing Tax Increment Financing District No. 1-12 and approving a Tax Increment Financing Plan c. Resolution Approving Tax Increment Financing Development Agreement with 3M Companies d. Resolution Approving an Inter-fund Loan Agreement DATE: July 15, 2013 INTRODUCTION/BACKGROUND The 3M Company is proposing to construct a 400,000-square foot Research and Development Laboratory on their campus in Maplewood. The estimated cost for the R&D Facility provided by 3M is estimated at $156 million and is proposed to be constructed over the next 2 years. The proposed facility is expected to house over 700 employees. It has been testified by 3M Officials that those 700 employees, plus support personnel, will remain on the Maplewood campus, rather than be re-located to others states or elsewhere in the 3M international properties. This job retention, plus the potential for continued upgrades and expansion on the Maplewood campus are the basis for considering tax increment financing support for this project. This testimony from 3M indicates that “but-for” this financial support, 3M will not be constructing this facility. Approval of the district is based upon that premise. 3M has requested Tax Increment Financing for the purpose of reinvestment in their campus and retention of these research positions in Maplewood/Minnesota. In addition, with this investment, 3M is agreeing to additional upgrades to other facilities on their campus of at least $50 million prior to December 2021. The original plan was for the tax increment plan to use a portion of the increased taxes from the new R&D Facility to support the bond payments for a new Maplewood Fire Station to be constructed on the property immediately to the north of this new R&D Laboratory. That part of the legislation was not approved by the legislature; however, provisions in the current Development Agreement allow the City to capture up to 20% of future revenue to fund City initiated TIF eligible expenditures within the 3M campus and adjacent right of way. The expenditures funded by the 20% City capture include site work and utility expenditures of approximately $1,250,000 related to the development of the property to be donated by 3M that eventually will be used to construct the Fire Station. Packet Page Number 88 of 275 3M TIF PLAN PUBLIC HEARING PAGE TWO 3M TIF Plan Agreement Earlier this spring, the Council met to review the various issues with the TIF plan negotiations. The staff and 3M staff have reached agreement that is favorable to the City. The 3M position is that they need to upgrade their facilities to retain and attract the scientists and technical employees that will serve the company for the next 15-20 years. They have indicated that many of their current staff are nearing retirement and as they compete for the “brightest and best”, they want their Maplewood campus to reflect an attractive and state of the art facility and campus. The TIF will help make that a possibility. Attached is a draft TIF Plan and TIF Development Agreement with 3M prepared by Mary Ippel from Briggs and Morgan, and Tom Denaway from Springsted Incorporated, which summarizes the values to be considered for capture in the district. Following are a list of the items finalized within these agreements: 1. Number of years for the District varies from current law at 9 years to up to 26 years if new legislation is adopted. a. Agreement: a 26-year term is necessary to capture the full impacts of the parcel and provide the needed funding. 2. Impact of fiscal disparities to be collected from within the district or outside the district. a. Agreement: a resolution of funding for the fire station was critical to identifying an answer to this critical question, and because the legislature has denied our request, it was a difficult discussion for the City. Finance Director Bauman estimates that adding the fiscal disparities contribution from outside the district, as agreed with 3M, may have a potential impact on the tax rate equivalent to a levy increase of approximately $85,000 per year in future years, probably beginning in 2016 or 2017. Given that 3M has agreed to donate land valued at $825,000, as well as pay all fees, agreement to provide the fiscal disparities from outside the district is a reasonable expense to incur. 3. Private costs for 3M versus City costs a. 3M has agreed to 80% of the increment generated on a pay-as-you-go [no bonding] basis, after originally requesting a 90% level. b. This provides Maplewood with 20% of the increment to be TIF eligible expenses, including site development costs of approximately $1.250 million for the property to be used for the fire station site 4. Collection of full City fees. a. 3M originally requested waiver of fees on this project, but has agreed to pay all reasonable City fees for the project, including $285,000 for Park Availability charge. b. The total fees could approach $1.0 million for building review and utility permit fees. Collection of these fees will be used to partially finance the fire station. Commission Review Both the Planning Commission on July 16, 2013 and the Housing and Economic Development Commission on June 12, 2013 recommended approval of this TIF Plan. Representatives from each Commission will be present to provide the Council with their recommendations. Packet Page Number 89 of 275 3M TIF PLAN PUBLIC HEARING PAGE THREE Inter-fund Loan Agreement It is proposed that the attached resolution be approved to allow automatic interfund loans for a proposed tax increment district within Development District No. 1 and to provide the terms and conditions for repayment. Development District No. 1 would encompass any potential 3M financing. DISCUSSION State law requires that interfund loans be approved in advance along with the terms and conditions for repayment. It is city policy to automatically make interfund loans when a fund has a temporary cash deficit. These resolutions are a requirement by state law for TIF Districts. FINANCIAL IMPACT This will allow for the reimbursement of costs financed from City funds prior to the collection of tax increments. Recommended Action It is recommended that the City Council adopt three separate attached resolutions as follows: a. Resolution Approving the Modification to the Development Program for Development District No. 1 and Establishing Tax Increment Financing District No. 1-12 and approving a Tax Increment Financing Plan b. Resolution Approving Tax Increment Financing Development Agreement with 3M Companies c. Resolution Approving an Inter-fund Loan Agreement Attachments: 1. Resolutions (3) 2. Springsted Memo on TIF Plan 3. Draft Tax Increment Financing Plan 4. Draft TIF Development Agreement with 3M Companies Packet Page Number 90 of 275 5550642v1 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF MAPLEWOOD, MINNESOTA HELD: July 22, 2013 Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of Maplewood, Ramsey County, Minnesota, was duly called and held on the 22nd day of July, 2013, at 7:00 p.m. The following members of the Council were present: and the following were absent: Member __________ introduced the following resolution and moved its adoption: RESOLUTION APPROVING THE MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1-12 THEREIN AND APPROVING A TAX INCREMENT FINANCING PLAN THEREFOR WHEREAS: A. It has been proposed that the City of Maplewood, Minnesota (the "City") modify the Development Program for Development District No. 1 (the "Development District") and establish Tax Increment Financing District No. 1-12 ("TIF District No. 1-12") therein and approve and accept the proposed Tax Increment Financing Plan therefor all pursuant to and in accordance with Minnesota Laws, 2013, Chapter 143, Article 9, Section 21 (the "Special Law"), and Minnesota Statutes, Sections 469.124 through 469.134, both inclusive, as amended and Minnesota Statutes, Sections 469.174 through 469.1794, both inclusive, as amended (the "Act"); and B. Under the Special Law the City has the authority to establish tax increment financing districts within the 3M Renovation and Retention Project Area consisting of Parcel 362922240002 (the "Project Area"); and C. The Development District and TIF District No. 1-12 are within the Project Area. D. It has been proposed by the 3M Company to construct a 400,000 square foot research and development facility within TIF District No. 1-12 (the "Project"); and E. The City Council has investigated the facts and has caused to be prepared a modification to the Development Program for the Development District (the "Development Program Modification"), and has caused to be prepared a proposed tax increment financing plan for TIF District No. 1-12 (the "TIF Plan"); and Agenda Item H1 Attachment 1 Packet Page Number 91 of 275 5550642v1 2 F. The City has performed all actions required by law to be performed prior to the approval of the Development Program Modification and TIF Plan, including, but not limited to, notification of Ramsey County and School District No. 622 having taxing jurisdiction over the property to be included in TIF District No. 1-12 and the holding of a public hearing upon published and mailed notice as required by law; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Maplewood as follows: 1. Development Program Modification. The Development Program Modification, for the Development District, a copy of which is on file in the office of the City Manager, is adopted as the development program for the Development District. 2. TIF Plan. The TIF Plan is adopted as the tax increment financing plan for TIF District No. 1-12, and the City Council makes the following findings: (a) As provided by the Special Law, the requirements for qualifying TIF District No. 1-12 as a redevelopment district as defined in Minnesota Statutes, Section 469.174, Subdivision 10, do not apply. (b) In addition, pursuant to Minnesota Statutes Section 469.176, Subdivision 4c(d), the City finds that the Project will retain jobs in the state and that the construction of the Project would not have commenced without the tax increment financing assistance to be provided pursuant to the TIF Plan. (c) The proposed development in the opinion of the City Council, would not occur solely through private investment within the reasonably foreseeable future. The reasons supporting this finding are that: (i) Private investment will not finance these development activities due to the high cost of site improvements and infrastructure costs. The City, without tax increment assistance, would not have the resources to undertake the necessary site improvements. It is necessary to finance these development activities through the use of tax increment financing so that other development by private enterprise will occur within the Development District. (ii) A comparative analysis of estimated market values both with and without establishment of TIF District No. 1-12 and the use of tax increments has been performed as described above. Such analysis is found in Exhibit VI of the TIF Plan, 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 TIF District No. 1-12 and the use of tax increments. (d) In the opinion of the City Council, 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 Agenda Item H1 Attachment 1 Packet Page Number 92 of 275 5550642v1 3 after subtracting the present value of the projected tax increments for the maximum duration of TIF District No. 1-12 permitted by the TIF Plan. The reasons supporting this finding are that: (i) The estimated amount by which the market value of the site will increase without the use of tax increment financing is $0, plus a small amount attributable to appreciation in land value; (ii) The estimated increase in the market value that will result from the development to be assisted with tax increment financing is $24,720,000; and (iii) The present value of the projected tax increments for the maximum duration of the district permitted by the tax increment financing plan is $11,794,711. (e) The TIF Plan for TIF District No. 1-12 conforms to the general plan for development or redevelopment of the City of Maplewood as a whole. The reasons for supporting this finding are that: (i) TIF District No. 1-12 is properly zoned; and (ii) The Planning Commission of the City has determined that the proposed TIF Plan conforms to the general plan for the development and redevelopment of the City as a whole ; and (iii) The TIF Plan will generally compliment and serve to implement policies adopted by the City. (f) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City of Maplewood as a whole, for the development or redevelopment of the Project Area by private enterprise. The reasons supporting this finding are that: The development activities are necessary so that development and redevelopment by private enterprise can occur within the Project Area. 3. Public Purpose. The adoption of the Development Program Modification and TIF Plan conform in all respects to the requirements of the Act and will help fulfill a need to redevelop an area of the State which is already built up to provide employment opportunities and to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. 4. Certification. The Auditor of Ramsey County is requested to certify the original net tax capacity of TIF District No. 1-12 as described in TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased in accordance with the Act; and the City Manager is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within TIF District No. 1-12 for which building permits have been issued during the 18 months immediately preceding the adoption of this Resolution. Agenda Item H1 Attachment 1 Packet Page Number 93 of 275 5550642v1 4 5. Filing. The City Manager is further authorized and directed to file a copy of the Development Program Modification and TIF Plan for TIF District No. 1-12 with the Commissioner of Revenue and the Office of the State Auditor. The motion for the adoption of the foregoing resolution was duly seconded by member _________ and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Agenda Item H1 Attachment 1 Packet Page Number 94 of 275 5550642v1 5 STATE OF MINNESOTA RAMSEY COUNTY CITY OF MAPLEWOOD I, the undersigned, being the duly qualified and acting Manager of the City of Maplewood, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to the modification to the Development Program for Development District No. 1 and the establishment of Tax Increment Financing District No. 1-12 therein in the City. WITNESS my hand this 22nd day of July, 2013. ________________________________ City Manager Agenda Item H1 Attachment 1 Packet Page Number 95 of 275 5563959v1 EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF MAPLEWOOD, MINNESOTA HELD: July 22, 2013 Pursuant to due call and notice thereof, a meeting of the City Council of the City of Maplewood, Ramsey County, Minnesota, was duly called and held at the City Hall in said City on Monday, the 22nd day of July, 2013, at 7:00 o'clock p.m. The following members were present: and the following were absent: Member ____________________ introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING EXECUTION OF A TAX INCREMENT FINANCING DEVELOPMENT AGREEMENT A. WHEREAS, 3M Company (the "Developer") has requested the City of Maplewood, Minnesota (the "City") to assist with the financing of certain costs incurred in connection with the construction of a 400,000 square foot research and development facility in the City by the Developer (the "Project"). B. WHEREAS, the Developer and the City have determined to enter into a Tax Increment Financing Development Agreement providing for the City's tax increment financing assistance for the Project (the "Development Agreement"). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Maplewood, Minnesota, as follows: 1. The City Council hereby approves the Development Agreement in substantially the form submitted, and the Mayor and City Manager are hereby authorized and directed to execute the Development Agreement on behalf of the City. 2. The approval hereby given to the Development Agreement includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the City officials authorized by this resolution to execute the Development Agreement. The execution of the Development Agreement by the appropriate officer or officers of the City shall be conclusive evidence of the approval of the Development Agreement in accordance with the terms hereof. Agenda Item H1 Attachment 1 Packet Page Number 96 of 275 5563959v1 2 The motion for adoption of the foregoing resolution was duly seconded by member _________________ and, after full discussion thereof, and upon a vote being taken thereof, the following voted in favor thereof: and the following voted against same: Adopted this 22nd day of July, 2013. _________________________ Mayor Attest: ________________________ City Manager Agenda Item H1 Attachment 1 Packet Page Number 97 of 275 5563959v1 3 STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF MAPLEWOOD I, the undersigned, being the duly qualified and acting Manager of the City of Maplewood, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the City Council of the City held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to a Resolution Authorizing Execution of a Tax Increment Financing Development Agreement. WITNESS my hand as such Manager of the City Council of the City of Maplewood, Minnesota this _____ day of July, 2013. _____________________________ City Manager Agenda Item H1 Attachment 1 Packet Page Number 98 of 275 4983374v1 RESOLUTION NO. ____ RESOLUTION APPROVING THE TERMS OF UP TO A $4,918,342 INTERFUND LOAN IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 1-12 BE IT RESOLVED by the City Council (the "Council") of the City of Maplewood, Minnesota (the "City"), as follows: Section 1. Background. (a) The City proposes to establish a Tax Increment Financing District No. 1-12 (the "TIF District") within Development District No. 1, and proposes to adopt a tax increment financing plan for the TIF District (the "TIF Plan"). (b) The City has determined to pay for certain costs identified in the TIF Plan consisting of land/building acquisition, public utilities, site improvements/preparation, other eligible improvements, and administrative costs (the "Qualified Costs") incurred in connection with the establishment of the TIF District and development/redevelopment of land within the TIF District, which costs will be financed on a temporary basis from City funds available for such purposes. (c) Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan money from the City's general fund or any other fund from which such advances may be legally made, in order to finance the Qualified Costs. (d) The City intends to reimburse itself for the payment of the Qualified Costs, plus interest thereon, from tax increments derived from the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan"). Section 2. Terms of Interfund Loan. (a) The City hereby authorizes the advance of up to $4,918,342 from the City's General Fund or so much thereof as may be paid as Qualified Costs. The City shall reimburse itself for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. (b) Principal and interest on the Interfund Loan shall be paid semi-annually on each February 1 and August 1 (each a "Payment Date") commencing with the Payment Date on which the City has Available Tax Increment (defined below), or on any other dates determined by the City Manager, through the last receipt of tax increment from the TIF District. Agenda Item H1 Attachment 1 Packet Page Number 99 of 275 4983374v1 2 (c) Payments on the Interfund Loan are payable solely from "Available Tax Increments" which shall mean, on each Payment Date, all of the tax increment available after other obligations have been paid, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the City by Ramsey County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1799. Payments on the Interfund Loan are subordinate to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. (d) The principal sum and all accrued interest payable under the Interfund Loan are pre-payable in whole or in part at any time by the City without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. (e) The Interfund Loan is evidence of an internal borrowing by the City in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. The Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on the Interfund Loan or other costs incident hereto. The City shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. (f) The City may amend the terms of the Interfund Loan at any time by resolution of the City Council, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon the date of its approval. Adopted this 22nd day of July, 2013. __________________________________________ Mayor ATTEST: City M anager Agenda Item H1 Attachment 1 Packet Page Number 100 of 275 MEMORANDUM TO: Charles Ahl, City Manager FROM: Terri Heaton, Vice-President Tom Denaway, Analyst DATE: July 17, 2013 SUBJECT: Overview of Proposed 3M TIF District Introduction The City and 3M have been working on the adoption of special legislation granting the City the authority to create a 3M Renovation and Retention Project Area. The special legislation was recently adopted by the Legislature and signed into law by the Governor. Now that the special legislation has been adopted the City and 3M have begun the process of creating a TIF District to assist with the development of the company’s new Research and Development (R&D) facility. A TIF plan for the new District is currently being drafted, along with a draft development agreement. The purpose of this memorandum is to outline the special legislation, detail the terms of the current R&D TIF District, and outline the revenue projections for the District. Special Legislation The City and 3M worked together to receive special legislation from the State to create one or more TIF Districts within the 3M Renovation and Retention Project Area. The boundaries of the Project Area are the current 3M campus parcel and adjoining right of way. TIF Districts created within this project area will be 25-year redevelopment TIF Districts, which will be exempt from the standard blight finding as provided by the legislation. The legislation provides the authority to create one or more TIF Districts within the project area until December 31, 2018. The legislation requires that 100% of the tax increment generated by the new TIF Districts be spent within the boundaries of the Project Area. As a result of the legislation not requiring a finding of blight, the legislation exempts the Districts from the requirement that 90% of TIF revenues be used for the remediation of costs leading to the finding of blight. Additionally, the legislation granted an extension of the 5-year rule to a period of 10-years, allowing the City to enter into new obligations within the TIF Districts for a period of 10-years following certification of the Districts. Springsted Incorporated 380 Jackson Street, Suite 300 Saint Paul, MN 55101-2887 Tel: 651-223-3000 Fax: 651-223-3002 www.springsted.com Agenda Item H1 Attachment 2 Packet Page Number 101 of 275 City of Maplewood July 17, 2013 Page 2 The current 3M campus, and the corresponding Project Area, consists of a single parcel number 362922240002. In order to avoid freezing the entire 3M campus as the base value of a TIF District, any new TIF District generated within the project area will consist of new parcels subdivided from the current single campus parcel. This will allow the main 3M campus to remain outside of a TIF District and for its value to fluctuate based on current market conditions. TIF District 1-12 3M Research and Development Project – Development Agreement Terms Now that the special legislation has been approved by the Legislature, the City is in the process of creating TIF District 1-12 to assist 3M with the development of the new R&D Lab Facility. A proposed TIF Plan and Development Agreement have been prepared and are enclosed for Council review. Outlined below are the points on which the Development Agreement has been negotiated regards to the terms of the proposed TIF District 1-12: Capture of TIF Revenue from Fiscal Disparity: When a TIF District is created an election can be made by the City to capture the incremental value growth generated by the Fiscal Disparity portion of the tax capacity of a parcel. The City can elect to capture this portion of tax capacity as TIF, and make the contribution to the Fiscal Disparity pool from outside of the TIF District. The election to make the contribution from outside of the TIF District results in greater TIF revenue, and potentially has a modest impact on the general taxable market value on which the general fund levy is spread. Conversely, the City may elect to make the contribution from inside of the TIF District, which results in lower TIF revenue with no potential impact on the levy. During the life of a TIF District the City has the ability to change the election one time, and only in circumstances where the election is going from outside of the District to inside the District. The proposed Development Agreement allows for the contribution to be made outside of the District, on the contingency that 3M continue to invest in its campus. If by December 31, 2021, the company has not obtained one or more building permits with a total minimum cost of not less than $50,000,000 (not including the R&D Building and routine maintenance), the City will change the fiscal disparity election to be made from within the TIF District. This term in the draft Agreement ties the generation of additional TIF revenue from the Fiscal Disparity portion to additional investment in the campus by the company. City Pooling Percentage: The proposed Agreement allows for the City to capture 20% of the tax increment generated for either eligible expenditures within the project area, or administrative purposes. The City intends to use a portion of this revenue to fund approximately $1.0M of City initiated TIF eligible site work and infrastructure improvements on property located within the Project Area. Additional TIF eligible improvements may be funded in the future from captured TIF funds as they are available. The net present value of the future revenue stream is $2,379,619. Pay-As-You-Go Note: The draft Agreement contemplates the City entering issuing a pay-as-you-go note to the company in a principal amount of $9,568,000. The note will be repaid over the life of the District at an annual non- compounding interest rate of 5%; the note will be repaid solely by 80% of the Tax Increment generated by the District. The principal amount of the note is based on the TIF revenue projections outlined below. Agenda Item H1 Attachment 2 Packet Page Number 102 of 275 City of Maplewood July 17, 2013 Page 3 Development Fees: While not detailed in the proposed Tax Increment Financing Development Agreement, the City has also negotiated with the company that all building and planning permit fees will be paid for the facility, including a park dedication fee of $285,000. TIF District 1-12 Development Assumptions The assumptions outlined below were used in the creation of the TIF revenue projections for the proposed TIF District 1-12. The revenue assumptions are based on development terms outlined above and base assumptions regarding timing and value provided by the company. R&D Building Build-Out: Value Constructed 2013: $6,000,000 Value Constructed 2014: $6,000,000 Value Constructed 2015: $12,720,000 Total Value Constructed: $24,720,000 Inflation: These revenue projections are a based on a 2% inflation assumption. Base Value: The proposed R&D facility is to be developed on a parcel that is currently undefined, as it is in the process of being subdivided out of the single campus parcel. As a result the base value of the R&D parcel is unknown, and therefore the revenue projections are based on the market value generated by the R&D building only and the revenue projections are not assuming a base frozen value. The increment is projected based only on the capture of the increased market value resulting from the proposed vertical construction. For estimation purposes we have assumed a pro-rata share of the existing campus market value will be applied to the newly created parcel. The base value of the parcel is estimated at $8,155,288. Fiscal Disparity Sharing Factor: Fiscal Disparity Contribution will be made from outside of the TIF District, resulting in greater TIF revenue. TIF Eligible Tax Rate Pay 2013: City: 48.659% County: 65.240% School District: 32.552% Miscellaneous: 11.520% Total Tax Rate: 157.972% City Admin and Pooling Percentage: - We have assumed a total City retainage of 20% for pooling and administrative purposes. Agenda Item H1 Attachment 2 Packet Page Number 103 of 275 City of Maplewood July 17, 2013 Page 4 TIF 1-12 Pay-As-You-Go Note Amount and City Funding Capacity We have estimated the maximum funding capacity of the City retaining 20% of the increment for the full 26-year term of the TIF district based on a net present value interest rate of 5%. Additionally, we have calculated a pay-as-you-go note report illustrating the potential principal amount and repayment schedule of a pay-go note to 3M. This note is based on 80% of the annual increment being available during the 26- year term of the District; with first receipt projected for Pay2015 and final receipt projected for Pay2040. The interest on the note is to be accrued at a non-compounding annual rate of 5%. . Scenario 26-Year Term Projected Built-Out: R&D Building Only Fiscal Disparity Contrib. From Outside District Percentage of Revenues available for City 20% Gross revenue of City Retainage $4,918,342 NPV of City Retainage (5% Interest) $2,379,619 3M Percentage 80% Gross revenue of 3M retainage $19,673,354 Pay-Go Principal Amount (5% Interest Rate) $9,568,000 Agenda Item H1 Attachment 2 Packet Page Number 104 of 275 City of Maplewood July 17, 2013 Page 5 City of Maplewood, MinnesotaTax Increment Financing (Redevelopment) District No. 1-12Proposed 3M Redevelopment ProjectR&D Facility Less: Less: Retained Times:Less:TotalAnnualAnnual Incremental Total Original Fiscal Captured Tax Annual State Aud. Subtotal City PoolingNetPeriod Market Net Tax Net Tax Disp. @ Net Tax Capacity Gross Tax Deduction Net Tax RetainageRevenueEnding Value Capacity Capacity 0.0000% Capacity Rate Increment 0.360% Increment20.00% 80%(1) (2) (3) (4) (5) (6) (7) (10) (11) (12) (13)(14)12/31/15 6,000,000 283,106 163,106 0 120,000 157.971% 189,565 682 188,883 37,777151,10612/31/16 12,120,000 405,506 163,106 0 242,400 157.971% 382,922 1,379 381,543 76,309305,23412/31/17 25,082,400 664,754 163,106 0 501,648 157.971% 792,458 2,853 789,605 157,921631,68412/31/18 25,584,048 674,787 163,106 0 511,681 157.971% 808,308 2,910 805,398 161,080644,31812/31/19 26,095,729 685,020 163,106 0 521,915 157.971% 824,474 2,968 821,506 164,301657,20512/31/20 26,617,644 695,459 163,106 0 532,353 157.971% 840,963 3,027 837,936 167,587670,34912/31/21 27,149,996 706,106 163,106 0 543,000 157.971% 857,782 3,088 854,694 170,939683,75512/31/22 27,692,996 716,966 163,106 0 553,860 157.971% 874,938 3,150 871,788 174,358697,43012/31/23 28,246,856 728,043 163,106 0 564,937 157.971% 892,437 3,213 889,224 177,845711,37912/31/24 28,811,793 739,342 163,106 0 576,236 157.971% 910,286 3,277 907,009 181,402725,60712/31/25 29,388,029 750,866 163,106 0 587,761 157.971% 928,491 3,343 925,148 185,030740,11812/31/26 29,975,790 762,622 163,106 0 599,516 157.971% 947,061 3,409 943,652 188,730754,92212/31/27 30,575,306 774,612 163,106 0 611,506 157.971% 966,002 3,478 962,524 192,505770,01912/31/28 31,186,812 786,842 163,106 0 623,736 157.971% 985,322 3,547 981,775 196,355785,42012/31/29 31,810,548 799,317 163,106 0 636,211 157.971% 1,005,029 3,618 1,001,411 200,282801,12912/31/30 32,446,759 812,041 163,106 0 648,935 157.971% 1,025,129 3,690 1,021,439 204,288817,15112/31/31 33,095,694 825,020 163,106 0 661,914 157.971% 1,045,632 3,764 1,041,868 208,374833,49412/31/32 33,757,608 838,258 163,106 0 675,152 157.971% 1,066,545 3,840 1,062,705 212,541850,16412/31/33 34,432,760 851,761 163,106 0 688,655 157.971% 1,087,876 3,916 1,083,960 216,792867,16812/31/34 35,121,415 865,534 163,106 0 702,428 157.971% 1,109,633 3,995 1,105,638 221,128884,51012/31/35 35,823,844 879,583 163,106 0 716,477 157.971% 1,131,826 4,075 1,127,751 225,550902,20112/31/36 36,540,321 893,912 163,106 0 730,806 157.971% 1,154,462 4,156 1,150,306 230,061920,24512/31/37 37,271,127 908,528 163,106 0 745,423 157.971% 1,177,551 4,239 1,173,312 234,662938,65012/31/38 38,016,550 923,437 163,106 0 760,331 157.971% 1,201,102 4,324 1,196,778 239,356957,42212/31/39 38,776,880 938,643 163,106 0 775,538 157.971% 1,225,125 4,410 1,220,715 244,143976,57212/31/40 39,552,418 954,154 163,106 0 791,048 157.971% 1,249,627 4,499 1,245,128 249,026996,102$24,680,546 $88,850 $24,591,696 $4,918,342$19,673,354NPV: $2,379,619Agenda Item H1 Attachment 2Packet Page Number 105 of 275 City of Maplewood July 17, 2013 Page 6 City of Maplewood, Minnesota Tax Increment Financing (Redevelopment) District No. Proposed 3M Redevelopment Project R&D Only - Full Term - FD Outside - 80% Captured Note Date:06/30/13 Note Rate:5.00% Amount:$9,568,000 Cumulative Unpaid Semi-Annual Loan Interest Accrued Net Balance Date Principal Interest P & I Due Interest Revenue Outstanding (1)(2)(3)(4)(5)(6)(7)(8) 9,568,000.00 08/01/13 0.00 0.00 0.00 41,195.56 41,195.56 0.00 9,568,000.00 02/01/14 0.00 0.00 0.00 280,395.56 280,395.56 0.00 9,568,000.00 08/01/14 0.00 0.00 0.00 519,595.56 519,595.56 0.00 9,568,000.00 02/01/15 0.00 0.00 0.00 758,795.56 758,795.56 0.00 9,568,000.00 08/01/15 0.00 75,553.00 75,553.00 997,995.56 922,442.56 75,553.00 9,568,000.00 02/01/16 0.00 75,553.00 75,553.00 1,161,642.56 1,086,089.56 75,553.00 9,568,000.00 08/01/16 0.00 152,617.00 152,617.00 1,325,289.56 1,172,672.56 152,617.00 9,568,000.00 02/01/17 0.00 152,617.00 152,617.00 1,411,872.56 1,259,255.56 152,617.00 9,568,000.00 08/01/17 0.00 315,842.00 315,842.00 1,498,455.56 1,182,613.56 315,842.00 9,568,000.00 02/01/18 0.00 315,842.00 315,842.00 1,421,813.56 1,105,971.56 315,842.00 9,568,000.00 08/01/18 0.00 322,159.00 322,159.00 1,345,171.56 1,023,012.56 322,159.00 9,568,000.00 02/01/19 0.00 322,159.00 322,159.00 1,262,212.56 940,053.56 322,159.00 9,568,000.00 08/01/19 0.00 328,602.50 328,602.50 1,179,253.56 850,651.06 328,602.50 9,568,000.00 02/01/20 0.00 328,602.50 328,602.50 1,089,851.06 761,248.56 328,602.50 9,568,000.00 08/01/20 0.00 335,174.50 335,174.50 1,000,448.56 665,274.06 335,174.50 9,568,000.00 02/01/21 0.00 335,174.50 335,174.50 904,474.06 569,299.56 335,174.50 9,568,000.00 08/01/21 0.00 341,877.50 341,877.50 808,499.56 466,622.06 341,877.50 9,568,000.00 02/01/22 0.00 341,877.50 341,877.50 705,822.06 363,944.56 341,877.50 9,568,000.00 08/01/22 0.00 348,715.00 348,715.00 603,144.56 254,429.56 348,715.00 9,568,000.00 02/01/23 0.00 348,715.00 348,715.00 493,629.56 144,914.56 348,715.00 9,568,000.00 08/01/23 0.00 355,689.50 355,689.50 384,114.56 28,425.06 355,689.50 9,568,000.00 02/01/24 88,064.44 267,625.06 355,689.50 267,625.06 0.00 355,689.50 9,479,935.56 08/01/24 125,805.11 236,998.39 362,803.50 236,998.39 0.00 362,803.50 9,354,130.45 02/01/25 128,950.24 233,853.26 362,803.50 233,853.26 0.00 362,803.50 9,225,180.21 08/01/25 139,429.49 230,629.51 370,059.00 230,629.51 0.00 370,059.00 9,085,750.72 02/01/26 142,915.23 227,143.77 370,059.00 227,143.77 0.00 370,059.00 8,942,835.49 08/01/26 153,890.11 223,570.89 377,461.00 223,570.89 0.00 377,461.00 8,788,945.38 02/01/27 157,737.37 219,723.63 377,461.00 219,723.63 0.00 377,461.00 8,631,208.01 08/01/27 169,229.30 215,780.20 385,009.50 215,780.20 0.00 385,009.50 8,461,978.71 02/01/28 173,460.03 211,549.47 385,009.50 211,549.47 0.00 385,009.50 8,288,518.68 08/01/28 185,497.03 207,212.97 392,710.00 207,212.97 0.00 392,710.00 8,103,021.65 02/01/29 190,134.46 202,575.54 392,710.00 202,575.54 0.00 392,710.00 7,912,887.19 08/01/29 202,742.32 197,822.18 400,564.50 197,822.18 0.00 400,564.50 7,710,144.87 02/01/30 207,810.88 192,753.62 400,564.50 192,753.62 0.00 400,564.50 7,502,333.99 08/01/30 221,017.15 187,558.35 408,575.50 187,558.35 0.00 408,575.50 7,281,316.84 02/01/31 226,542.58 182,032.92 408,575.50 182,032.92 0.00 408,575.50 7,054,774.26 08/01/31 240,377.64 176,369.36 416,747.00 176,369.36 0.00 416,747.00 6,814,396.62 02/01/32 246,387.08 170,359.92 416,747.00 170,359.92 0.00 416,747.00 6,568,009.54 08/01/32 260,881.76 164,200.24 425,082.00 164,200.24 0.00 425,082.00 6,307,127.78 02/01/33 267,403.81 157,678.19 425,082.00 157,678.19 0.00 425,082.00 6,039,723.97 08/01/33 282,590.90 150,993.10 433,584.00 150,993.10 0.00 433,584.00 5,757,133.07 02/01/34 289,655.67 143,928.33 433,584.00 143,928.33 0.00 433,584.00 5,467,477.40 08/01/34 305,568.06 136,686.94 442,255.00 136,686.94 0.00 442,255.00 5,161,909.34 02/01/35 313,207.27 129,047.73 442,255.00 129,047.73 0.00 442,255.00 4,848,702.07 08/01/35 329,882.95 121,217.55 451,100.50 121,217.55 0.00 451,100.50 4,518,819.12 02/01/36 338,130.02 112,970.48 451,100.50 112,970.48 0.00 451,100.50 4,180,689.10 08/01/36 355,605.27 104,517.23 460,122.50 104,517.23 0.00 460,122.50 3,825,083.83 02/01/37 364,495.40 95,627.10 460,122.50 95,627.10 0.00 460,122.50 3,460,588.43 08/01/37 382,810.29 86,514.71 469,325.00 86,514.71 0.00 469,325.00 3,077,778.14 02/01/38 392,380.55 76,944.45 469,325.00 76,944.45 0.00 469,325.00 2,685,397.59 08/01/38 411,576.06 67,134.94 478,711.00 67,134.94 0.00 478,711.00 2,273,821.53 02/01/39 421,865.46 56,845.54 478,711.00 56,845.54 0.00 478,711.00 1,851,956.07 08/01/39 441,987.10 46,298.90 488,286.00 46,298.90 0.00 488,286.00 1,409,968.97 02/01/40 453,036.78 35,249.22 488,286.00 35,249.22 0.00 488,286.00 956,932.19 08/01/40 474,127.70 23,923.30 498,051.00 23,923.30 0.00 498,051.00 482,804.49 02/01/41 482,804.49 12,070.11 494,874.60 12,070.11 0.00 494,874.60 0.00 $9,568,000 $10,102,177.60 $19,670,177.60 $24,499,080.36 $14,396,902.76 $19,670,177.60 Surplus Tax Increment 3,176.40 Total Net Revenue $19,673,354.00 Projected Pay-As-You-Go Note Report Agenda Item H1 Attachment 2 Packet Page Number 106 of 275 Maplewood, Minnesota Draft Tax Increment Financing Plan for Tax Increment Financing (Redevelopment) District No. 1-12 Within Development District No. 1 (3M Research and Development Project) Dated: July 16, 2013 Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street, Suite 300 St. Paul, MN 55101-2887 (651) 223-3000 WWW.SPRINGSTED.COM Agenda Item H1 Attachment 3 Packet Page Number 107 of 275 TABLE OF CONTENTS Section Page(s) A. Definitions .............................................................................................................................................................. 1 B. Statutory Authorization .......................................................................................................................................... 1 C. Statement of Need and Public Purpose ................................................................................................................ 1 D. Statement of Objectives ........................................................................................................................................ 1 E. 3M Renovation and Retention Project Area .......................................................................................................... 1 F. Designation of Tax Increment Financing District as a Redevelopment District ..................................................... 2 G. Duration of the TIF District .................................................................................................................................... 2 H. Property to be Included in the TIF District ............................................................................................................. 2 I. Property to be Acquired in the TIF District ............................................................................................................ 2 J. Specific Development Expected to Occur Within the TIF District .......................................................................... 3 K. Findings and Need for Tax Increment Financing .................................................................................................. 3 L. Estimated Public Costs ......................................................................................................................................... 4 M. Estimated Sources of Revenue ............................................................................................................................. 5 N. Estimated Amount of Bonded Indebtedness ......................................................................................................... 5 O. Original Net Tax Capacity ..................................................................................................................................... 5 P. Original Local Tax Rate ......................................................................................................................................... 6 Q. Projected Retained Captured Net Tax Capacity and Projected Tax Increment .................................................... 6 R. Use of Tax Increment ............................................................................................................................................ 7 S. Excess Tax Increment ........................................................................................................................................... 7 T. Tax Increment Pooling and the Five Year Rule ..................................................................................................... 8 U. Limitation on Administrative Expenses.................................................................................................................. 8 V. Limitation on Property Not Subject to Improvements - Four Year Rule ................................................................ 9 W. Estimated Impact on Other Taxing Jurisdictions ................................................................................................... 9 X. Prior Planned Improvements ............................................................................................................................... 10 Y. Development Agreements ................................................................................................................................... 10 Z. Assessment Agreements .................................................................................................................................... 10 AA. Modifications of the Tax Increment Financing Plan............................................................................................. 10 AB. Administration of the Tax Increment Financing Plan ........................................................................................... 11 AC. Filing TIF Plan, Financial Reporting and Disclosure Requirements.................................................................... 11 Map of the Tax Increment Financing District within Development District No. 1..................................... EXHIBIT I Map of the Tax Increment Financing District within 3M Renovation and Retention Project Area .......... EXHIBIT II Assumptions Report .............................................................................................................................. EXHIBIT III Projected Tax Increment Report ...........................................................................................................EXHIBIT IV Estimated Impact on Other Taxing Jurisdictions Report ........................................................................EXHIBIT V Market Value Analysis Report ...............................................................................................................EXHIBIT VI Pay-As-You-Go Note Report ................................................................................................................EXHIBIT VII Agenda Item H1 Attachment 3 Packet Page Number 108 of 275 City of Maplewood, Minnesota SPRINGSTED Page 1 Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "City" means the City of Maplewood, Minnesota; also referred to as a "Municipality". "City Council" means the City Council of the City; also referred to as the ‘Governing Body”. "County" means Ramsey County, Minnesota. "Development District" means Development District No. 1 in the City, which is described in the corresponding Development Program. "Development District Area" means the geographic area of the Development District. "Development Program" means the Development Program for the Development District. “Project Area” means the 3M Renovation and Retention Project Area consisting of parcel 36.29.22.24.0002. "School District" means Independent School District No. 622, Minnesota. “Special Law” means Minnesota Laws, 2013, Chapter 143, Article 9, Section 21. "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1794, as amended, both inclusive. "TIF District" means Tax Increment Financing (Redevelopment) District No. 1-12. "TIF Plan" means the tax increment financing plan for the TIF District (this document). Section B Statutory Authorization See Section 1.3 of the Development Program for the Development District. Section C Statement of Need and Public Purpose See Section 1.4 of the Development Program for the Development District. Section D Statement of Objectives See Section 1.5 of the Development Program for the Development District. Section E 3M Renovation and Retention Project Area Under the Special Law the City of Maplewood may create one or more tax increment districts within the Project Area. With the adoption of this TIF District, the City elects to create a new tax increment district on a newly platted parcel comprising a portion of the Project Area. Agenda Item H1 Attachment 3 Packet Page Number 109 of 275 City of Maplewood, Minnesota SPRINGSTED Page 2 Section F Designation of Tax Increment Financing District as a Redevelopment District As provided by the Special Law the requirements for qualifying redevelopment tax increment districts under Minnesota Statutes, Section 469.174, Subdivision 10, do not apply to the parcel, which is deemed eligible for inclusion in a redevelopment tax increment district. The proposed TIF District is eligible as a redevelopment district by virtue of being located on a newly platte d parcel within the boundaries of the Project Area as defined in Section E. Under the Special Law the 90 percent rule under Minnesota Statutes, Section 469.176, Subdivision 4j, does not apply to the Project Area. Section G Duration of the TIF District Redevelopment districts may remain in existence 25 years from the date of receipt of the first tax increment. The City anticipates that the TIF District will remain in existence the maximum duration allowed by law (projected to be though the year 2040). Modification of this plan (see Section AA) shall not extend these limitations. All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the City. Pursuant to MN Statutes, Section 469.175, Subdivision 1(b), the City elects to delay receipt of first increment until 2015. Section H Property to be Included in the TIF District The TIF District is an approximate 28.54-acre area of land located within the Project Area. A map showing the location of the TIF District within the Project Area is shown in Exhibit II. The boundaries and area encompassed by the TIF District are described below: Parcel Number Legal Description 36.29.22.24.0002* **The west 650.00 feet of the Southwest Quarter of the Northwest Quarter and the north 985.00 feet of the east 395.00 feet of the west 1045.00 feet of the Southwest Quarter of the Northwest Quarter all in Section 36, Township 29 North, Range 22 West, Ramsey County, Minnesota. The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above. *The parcel to be located in the TIF District is being replatted. The Parcel Number is representative of the parcel prior to the replatting. **The legal description provided for the TIF District is representative of the TIF District parcel following the replatting of the property. Section I Property to be Acquired in the TIF District The City may acquire and sell any or all of the property located within the TIF District; however, the City does not anticipate acquiring any such property at this time. Agenda Item H1 Attachment 3 Packet Page Number 110 of 275 City of Maplewood, Minnesota SPRINGSTED Page 3 Section J Specific Development Expected to Occur Within the TIF District The proposed project includes the development of a 400,000 square foot research and development facility (the “R&D Facility”) within the Project Area. The development will also include corresponding site work, infrastructure, and parking improvements associated with R&D Facility. The City anticipates using tax increment to reimburse 3M for a portion of the TIF eligible project costs occurred in the development of the R&D Facility. Included in the projected eligible costs to be reimbursed are costs associated with demolition of existing buildings, relocation of employees within buildings, site work, footings & foundations, private utility improvements, and other eligible improvements associated with the facility. Additionally, the City anticipates using tax increment to finance public improvements and site work on property located within the Project Area, along with related administrative expenses. Construction of the R&D Facility is expected to begin in 2013, and be completed by 2015. The R&D Facility is projected to be 100% assessed and on the tax rolls as of January 2, 2016 for taxes payable in 2017. At the time this document was prepared there were no signed construction contacts with regards to the above described development. Under the Special Law the expenditures outside district rule under Minnesota Statutes, section 469.1763, subdivision 2, does not apply; and tax increments can only be spent within the Project Area. Therefore costs eligible for TIF reimbursement may be incurred outside of the TIF District, but must be within the boundaries of the Project Area. Section K Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings: (1) The TIF District qualifies as a redevelopment district; See Section F of this document for the reasons and facts supporting this finding. (2) 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 and the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the TIF Plan. Factual basis: Proposed development not expected to occur: The development includes the construction of the R&D Facility. A key component to the development is the reimbursement of eligible expenses through tax increments. The company has indicated they would not undertake the proposed development without the financial assistance. Without the assistance the City has no reason to expect that significant reinvestment in the campus would occur without assistance similar to that provided in this plan. Therefore the City has no reason to believe the development would occur but-for the use of tax increment assistance. To summarize the basis for the City’s findings regarding alternative market value, in accordance with Minnesota Statutes, Section 469.175, Subd. 3(d), the City makes the following determinations: Agenda Item H1 Attachment 3 Packet Page Number 111 of 275 City of Maplewood, Minnesota SPRINGSTED Page 4 a. The City's estimate of the amount by which the market value of the site will increase without the use of tax increment financing is anywhere from $0 (except for a small amount for annual appreciation of land value) b. If the proposed development to be assisted with tax increment occurs in the District, the total increase in market value would be approximately $24,720,000, including the value of the building (See Exhibit II). Prior to the inclusion of a 2% market value inflator starting in 2014. 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 $11,794,711 (See Exhibit V) 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 $12,925,289 (the amount in clause b less the amount in clause c) without tax increment assistance. (3) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for development of the Project Area by private enterprise. Factual basis: The anticipated development of the project site is to include the construction of the R&D Facility. The Development will result in the retention of up to 700 high-paying jobs within the City. The development clearly meets the economic development goals of the City. (4) The TIF Plan conforms to general plans for development of the City as a whole. Factual basis: The City Planning Commission has determined that the development proposed in the TIF Plan conforms to the City comprehensive plan. (5) The City does not elect the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, Subdivision 3(b); therefore subdivision 3(a) shall apply which indicates the original net tax capacity and the current net tax capacity shall be determined before the application of the fiscal disparity provisions (see method (a) in Section P). Section L Estimated Public Costs The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax increments of the TIF District. Private TIF eligible improvements, including demolition, relocation, site improvements/preparation costs, related infrastructure and other eligible improvements $9,568,000 Bond/Note Interest Payments 10,102,178 Public site work/infrastructure costs and Administrative expenses 4,921,518 Other Expenditures 0 Total $24,591,696 The City reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost is not increased. The City reserves the right to spend available tax increment outside of the TIF District boundaries but within the Project Area. Agenda Item H1 Attachment 3 Packet Page Number 112 of 275 City of Maplewood, Minnesota SPRINGSTED Page 5 Section M Estimated Sources of Revenue Tax Increment revenue $24,591,696 Interest on invested funds 0 Bond proceeds 0 Loan proceeds 0 Grants 0 Other 0 Total $24,591,696 The City anticipates using future tax increments for reimbursement of public costs incurred from Section L. As increments are collected from the TIF District in future years, these tax increments will be reserved by the City as reimbursement for public costs incurred (primarily site work/infrastructure costs), either through internal funding or general obligation or revenue debt. The City also anticipates providing financial assistance to the proposed development through the use of pay-as-you-go financing. With pay-as-you-go financing, as tax increments are collected from the TIF District in future years, a portion of these tax increments will be distributed to the company as reimbursement for eligible costs incurred related to the development of the R&D Facility. The City reserves the right to finance any or all public costs of the TIF District using pay-as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The City also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section N Estimated Amount of Bonded Indebtedness The City may consider issuing tax increment bonds to finance all or a portion of the estimated public costs, and reserves the right to issue such bonds in an amount not to exceed $18,836,373 ($14,489,518 + 30% contingency). Section O Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. The parcel to be located within the TIF District is an approximately 28.54 acre area of land which is currently part of a larger 411 acre parcel. As a result the Estimated Market Value for the land within the TIF District as of January 2, 2013 for taxes payable in 2014, is not yet known. However, for purposes of the revenue projections in this TIF Plan, the City has assumed a pro-rata share of the land market value of the 411 acre parcel will be applied to the newly created parcel within the TIF District. Therefore the assumed original net tax capacity of the TIF District is $163,106. This assumes the property remains classified commercial/industrial. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements; or (4) changes in property classification rates. Agenda Item H1 Attachment 3 Packet Page Number 113 of 275 City of Maplewood, Minnesota SPRINGSTED Page 6 Section P Original Local Tax Rate The County Auditor shall also certify the original local tax rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of (a) the sum of the current local tax rates at that time or (b) the original local tax rate of the TIF District. At the time this document was prepared, the sum of the local tax rates that apply to property in the TIF District, for taxes levied in 2013 and payable in 2014, was not yet available. When this total becomes available, the County Auditor shall certify this amount as the original tax capacity rate of the TIF District. For purposes of estimating the tax increment generated by the TIF District, the sum of the local tax rates for taxes levied in 2012 and payable in 2013, is 157.971% as shown below. 2012/2013 Taxing Jurisdiction Local Tax Rate City of Maplewood 48.659% Ramsey County 65.240% ISD # 622 32.520% Other 11.520% Total 157.971% Section Q Projected Retained Captured Net Tax Capacity and Projected Tax Increment The City anticipates that development will be initiated in 2013, creating a total tax capacity for the TIF District No. 1- 12 of $283,106 as of January 2, 2014. The captured tax capacity as of that date is estimated to be $120,000 and the first-year of tax increment is estimated to be $189,565 payable in 2015. The first full year of increment is projected to be in $792,458 in taxes payable 2017. A complete schedule of estimated tax increment from the TIF District is shown in Exhibit IV. The estimates shown in this TIF Plan assume that commercial class rates remain at 1.5% for the first $150,000 of estimated market value and 2.0% of the market value above $150,000. The projections also assume a 2% annual increase in market values. Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. For communities affected by the fiscal disparity provisions of Minnesota Statutes, Chapter 473F and Chapter 276A, the original net tax capacity of the TIF District shall be determined before the application of fiscal disparity. In subsequent years, the current net tax capacity shall either (a) be determined before the application of fiscal disparity or (b) exclude the product of any fiscal disparity increase in the TIF District (since the original net tax capacity was certified) times the appropriate fiscal disparity ratio. The method the City elects shall remain the same for the life of the TIF District, except that a single change may be made at any time from method (a) to method (b) above. »The City elects method (a), or M.S. Section 469.177, Subdivision 3(a). The County Auditor shall certify to the City the amount of captured net tax capacity each year. The City may choose to retain any or all of this amount. It is the City's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Agenda Item H1 Attachment 3 Packet Page Number 114 of 275 City of Maplewood, Minnesota SPRINGSTED Page 7 Exhibit III gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit IV which shows the projected tax increment generated over the anticipated life of the TIF District. Section R Use of Tax Increment Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit IV shows the projected deduction for this purpose over the anticipated life of the TIF District. The City has determined that it will use 100% of the remaining tax increment generated by the TIF District for any of the following purposes: (1) pay for the estimated public costs of the TIF District (see Section K) and County administrative costs associated with the TIF District (see Section T); (2) pay principal and interest on tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the County Board under M.S. Section 469.175, Subdivision 1a; or (5) return excess tax increments to the County Auditor for redistribution to the City, County and School District. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless both county boards involved waive this requirement. Tax increments shall not be used to circumvent levy limitations applicable to the City. Tax increment shall not be used to finance the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the State or federal government, or for a commons area used as a public park, or a facility used for social, recreational, or conference purposes. This prohibition does not apply to the construction or renovation of a parking structure or of a privately owned facility for conference purposes. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at less than the cost of acquisition or fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. Section S Excess Tax Increment In any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the City shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; Agenda Item H1 Attachment 3 Packet Page Number 115 of 275 City of Maplewood, Minnesota SPRINGSTED Page 8 (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds; or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. Section T Tax Increment Pooling and the Ten Year Rule Under the Special Law the expenditures outside district rule under Minnesota Statutes, Section 469.1763 subdivision 2, does not apply; the five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is extended to ten years; and expenditures must only be made within the Project Area. Up to 10% of the tax increments may be spent on costs for eligible administrative expenses. Tax increments are considered to have been spent within the TIF District or project area if such amounts are: (1) actually paid to a third party for activities performed within the TIF District within ten years after certification of the district; (2) used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the ten-year period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund. (3) used to make payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which were entered into within ten years after certification of the district; or (4) used to reimburse a party for payment of eligible costs (including interest) incurred within ten years from certification of the district. Beginning with the eleventh year following certification of the TIF District, at least 90% of the tax increments must be used to pay outstanding bonds or make contractual payments obligated within the first ten years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the TIF District must be decertified. Section U Limitation on Administrative Expenses Administrative expenses are defined as all costs of the City other than: (1) amounts paid for the purchase of land; (2) amounts paid for materials and services, including architectural and engineering services directly connected with the physical development of the real property in the project; (3) relocation benefits paid to, or services provided for, persons residing or businesses located in the project; (4) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to section 469.178; or Agenda Item H1 Attachment 3 Packet Page Number 116 of 275 City of Maplewood, Minnesota SPRINGSTED Page 9 (5) amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clause (1) to (3). Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants, planning or economic development consultants, and actual costs incurred by the County in administering the TIF District. Tax increments may be used to pay administrative expenses of the TIF District up to the lesser of (a) 10% of the total tax increment expenditures authorized by the TIF Plan or (b) 10% of the total tax increments received by the TIF District. Section V Limitation on Property Not Subject to Improvements - One Year Rule Under the Special Law if after one year from the date of certification of the original net tax capacity of the tax increment district, no demolition, rehabilitation, or renovation of property has been commenced on a parcel located within the TIF District, no additional tax increment may be taken from that parcel, and the original net tax capacity of the parcel shall be excluded from the original net tax capacity of the TIF District. If 3M subsequently commences demolition, rehabilitation, or renovation, the City shall certify to the County Auditor that the activity has commenced, and the county auditor shall certify the net tax capacity thereof as most recently certified by the Commissioner of Revenue and add it to the original net tax capacity of the TIF District. The City must submit to the County Auditor evidence that the required activity has taken place for each parcel in the TIF District. Section W Estimated Impact on Other Taxing Jurisdictions Exhibit V shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The City believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes, Section 469.175, Subdivision 2, are listed below. 1. The total amount of tax increment that will be generated over the life of the TIF District is estimated to be $24,680,546. 2. To the extent the project in the TIF District generates any public cost impacts on City-provided services such as police and fire protection, public infrastructure, and the impact of any general obligation tax increment bonds attributable to the TIF District upon the ability to issue other debt for general fund purposes, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion captured by the TIF District. 3. The amount of tax increments over the life of the TIF 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 estimated to be $5,085,751. 4. The amount of tax increments over the life of the TIF 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 estimated to be $10,192,750. 5. No additional information has been requested by the County or School District that would enable it to determine additional costs that will accrue to it due to the development proposed for the district. Agenda Item H1 Attachment 3 Packet Page Number 117 of 275 City of Maplewood, Minnesota SPRINGSTED Page 10 Section X Prior Planned Improvements The City shall accompany its request for certification to the County Auditor (or notice of district enlargement), with a listing of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. Section Y Development Agreements If within a project containing a redevelopment district, more than 25% of the acreage of the property to be acquired by the City is purchased with tax increment bonds proceeds (to which tax increment from the property is pledged), then prior to such acquisition, the City must enter into an agreement for the development of the property. Such agreement must provide recourse for the City should the development not be completed. The City anticipates entering into an agreement for development, but does not anticipate acquiring property located within the TIF District. Section Z Assessment Agreements The City may, upon entering into a development agreement, also enter into an assessment agreement with the developer, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The assessment agreement shall be presented to the County or City Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land, and so long as the minimum market value contained in the assessment agreement appears to be an accurate estimate, shall certify the assessment agreement as reasonable. The assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is located. Any modification or premature termination of this agreement must first be approved by the City, County and School District. The City does not anticipate entering into an assessment agreement, however it reserves the right to enter into an assessment agreement for individual projects. Section AA Modifications of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Development District or the TIF District; a determination to capitalize interest on the debt if that determination was not part of the original TIF Plan, increase in the portion of the captured net tax capacity to be retained by the City; increase in the total estimated public costs; or designation of property to be acquired by the City shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: (1) the only modification is elimination of parcels from the TIF District; and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity, or the City agrees that the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. Agenda Item H1 Attachment 3 Packet Page Number 118 of 275 City of Maplewood, Minnesota SPRINGSTED Page 11 The City must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section AB Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the City shall submit a copy of such plan to the Minnesota Department of Revenue and the Office of the State Auditor. The City shall also request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, t he City shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. The City shall also send the County Assessor any assessment agreement establishing the minimum market value of land and improvements in the TIF District, and shall request that the County Assessor review and certify this assessment agreement as reasonable. The County shall distribute to the City the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained captured net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation of property values, or changes in property classification rates or formulas. In administering and implementing the TIF Plan, the following actions should occur on an annual basis: (1) prior to July 1, the City shall notify the County Assessor of any new development that has occurred in the TIF District during the past year to insure that the new value will be recorded in a timely manner. (2) if the County Auditor receives the request for certification of a new TIF District, or for modification of an existing TIF District, before July 1, the request shall be recognized in determining local tax rates for the current and subsequent levy years. Requests received on or after July 1 shall be used to determine local tax rates in subsequent years. (3) each year the County Auditor shall certify the amount of the original net tax capacity of the TIF District. The amount certified shall reflect any changes that occur as a result of the following: (a) the value of property that changes from tax-exempt to taxable shall be added to the original net tax capacity of the TIF District. The reverse shall also apply; (b) the original net tax capacity may be modified by any approved enlargement or reduction of the TIF District; (c) if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes, then the resulting increase or decrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District. The County Auditor shall notify the City of all changes made to the original net tax capacity of the TIF District. Section AC Filing TIF Plan, Financial Reporting and Disclosure Requirements The City will file the TIF Plan, and any subsequent amendments thereto, with the Commissioner of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes, Section 469.175, subdivision 4A. The City will comply with all reporting requirements for the TIF District under Minnesota Statutes, Section 469.175, subdivisions 5 and 6. Agenda Item H1 Attachment 3 Packet Page Number 119 of 275 Exhibit II SPRINGSTED Page 12 MAP OF TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 1-12 Within Development District No. 1 Agenda Item H1 Attachment 3 Packet Page Number 120 of 275 Exhibit II SPRINGSTED Page 13 MAP OF TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 1-12 Within 3M Renovation and Retention Project Area Agenda Item H1 Attachment 3 Packet Page Number 121 of 275 Exhibit III SPRINGSTED Page 14 Assumptions Report City of Maplewood, Minnesota Tax Increment Financing (Redevelopment) District No. 1-12 Proposed 3M Redevelopment Project R&D Facility Type of Tax Increment Financing District Redevelopment Maximum Duration of TIF District 25 years from 1st increment Projected Certification Request Date 07/23/13 Decertification Date 12/31/40 (26 Years of Increment) 2012/2013 Base Estimated Market Value $8,155,288 Original Net Tax Capacity $163,106 Assessment/Collection Year 2012/2013 2013/2014 2014/2015 2015/2016 Base Estimated Market Value $8,155,288 $8,155,288 $8,155,288 $8,155,288 Estimated Increase in Value - New Construction 0 0 6,000,000 12,120,000 Total Estimated Market Value 8,155,288 8,155,288 14,155,288 20,275,288 Total Net Tax Capacity $163,106 $163,106 $283,106 $405,506 City of Maplewood 48.659% Ramsey County 65.240% ISD #622 32.552% Other 11.520% Local Tax Capacity Rate 157.971%2012/2013 Fiscal Disparities Contribution From TIF District 0.0000% Administrative & Pooling Retainage Percent 20.00% Bonds Note (Pay-As-You-Go) Bonds Dated NA Note Dated 06/30/13 Bond Rate NA Note Rate 5.00% Bond Amount NA Note Amount $9,568,000 Present Value Date & Rate 12/01/13 5.00%PV Amount $9,518,467 Notes Projections assume no future changes to classification rates and current tax rates remain constant, and a 2% market value inflator. Projections are based on EMV growth of $24.72M. Constructed between 2013-2015. Agenda Item H1 Attachment 3 Packet Page Number 122 of 275 Exhibit IV SPRINGSTED Page 15 Projected Tax Increment Report City of Maplewood, Minnesota Tax Increment Financing (Redevelopment) District No. 1-12 Proposed 3M Redevelopment Project R&D Facility Less: Less: Retained Times:Less:Total Annual Annual Incremental Total Original Fiscal Captured Tax Annual State Aud. Subtotal City Pooling Net Period Market Net Tax Net Tax Disp. @ Net Tax Capacity Gross Tax Deduction Net Tax Retainage Revenue Ending Value Capacity Capacity 0.0000% Capacity Rate Increment 0.360% Increment 20.00%80% (1) (2) (3) (4) (5) (6) (7) (10) (11) (12) (13)(14) 12/31/15 6,000,000 283,106 163,106 0 120,000 157.971% 189,565 682 188,883 37,777 151,106 12/31/16 12,120,000 405,506 163,106 0 242,400 157.971% 382,922 1,379 381,543 76,309 305,234 12/31/17 25,082,400 664,754 163,106 0 501,648 157.971% 792,458 2,853 789,605 157,921 631,684 12/31/18 25,584,048 674,787 163,106 0 511,681 157.971% 808,308 2,910 805,398 161,080 644,318 12/31/19 26,095,729 685,020 163,106 0 521,915 157.971% 824,474 2,968 821,506 164,301 657,205 12/31/20 26,617,644 695,459 163,106 0 532,353 157.971% 840,963 3,027 837,936 167,587 670,349 12/31/21 27,149,996 706,106 163,106 0 543,000 157.971% 857,782 3,088 854,694 170,939 683,755 12/31/22 27,692,996 716,966 163,106 0 553,860 157.971% 874,938 3,150 871,788 174,358 697,430 12/31/23 28,246,856 728,043 163,106 0 564,937 157.971% 892,437 3,213 889,224 177,845 711,379 12/31/24 28,811,793 739,342 163,106 0 576,236 157.971% 910,286 3,277 907,009 181,402 725,607 12/31/25 29,388,029 750,866 163,106 0 587,761 157.971% 928,491 3,343 925,148 185,030 740,118 12/31/26 29,975,790 762,622 163,106 0 599,516 157.971% 947,061 3,409 943,652 188,730 754,922 12/31/27 30,575,306 774,612 163,106 0 611,506 157.971% 966,002 3,478 962,524 192,505 770,019 12/31/28 31,186,812 786,842 163,106 0 623,736 157.971% 985,322 3,547 981,775 196,355 785,420 12/31/29 31,810,548 799,317 163,106 0 636,211 157.971% 1,005,029 3,618 1,001,411 200,282 801,129 12/31/30 32,446,759 812,041 163,106 0 648,935 157.971% 1,025,129 3,690 1,021,439 204,288 817,151 12/31/31 33,095,694 825,020 163,106 0 661,914 157.971% 1,045,632 3,764 1,041,868 208,374 833,494 12/31/32 33,757,608 838,258 163,106 0 675,152 157.971% 1,066,545 3,840 1,062,705 212,541 850,164 12/31/33 34,432,760 851,761 163,106 0 688,655 157.971% 1,087,876 3,916 1,083,960 216,792 867,168 12/31/34 35,121,415 865,534 163,106 0 702,428 157.971% 1,109,633 3,995 1,105,638 221,128 884,510 12/31/35 35,823,844 879,583 163,106 0 716,477 157.971% 1,131,826 4,075 1,127,751 225,550 902,201 12/31/36 36,540,321 893,912 163,106 0 730,806 157.971% 1,154,462 4,156 1,150,306 230,061 920,245 12/31/37 37,271,127 908,528 163,106 0 745,423 157.971% 1,177,551 4,239 1,173,312 234,662 938,650 12/31/38 38,016,550 923,437 163,106 0 760,331 157.971% 1,201,102 4,324 1,196,778 239,356 957,422 12/31/39 38,776,880 938,643 163,106 0 775,538 157.971% 1,225,125 4,410 1,220,715 244,143 976,572 12/31/40 39,552,418 954,154 163,106 0 791,048 157.971% 1,249,627 4,499 1,245,128 249,026 996,102 $24,680,546 $88,850 $24,591,696 $4,918,342 $19,673,354 NPV: $2,379,619 Agenda Item H1 Attachment 3 Packet Page Number 123 of 275 Exhibit V SPRINGSTED Page 16 Estimated Impact on Other Taxing Jurisdictions Report City of Maplewood, Minnesota Tax Increment Financing (Redevelopment) District No. 1-12 Proposed 3M Redevelopment Project R&D Facility Without Project or TIF District With Project and TIF District Final Projected Hypothetical 2012/2013 2012/2013 Retained New Hypothetical Hypothetical Tax Generated Taxable 2012/2013 Taxable Captured Taxable Adjusted Decrease In by Retained Taxing Net Tax Local Net Tax Net Tax Net Tax Local Local Captured Jurisdiction Capacity (1) Tax Rate Capacity (1) + Capacity = Capacity Tax Rate (*) Tax Rate (*) N.T.C. (*) City of Maplewood 31,936,556 48.659% 31,936,556 $791,048 32,727,604 47.483% 1.176% 375,613 Ramsey County 367,782,031 65.240% 367,782,031 791,048 368,573,079 65.100% 0.140% 514,972 ISD #622 62,433,416 32.552% 62,433,416 791,048 63,224,464 32.145% 0.407% 254,280 Other (2)--- 11.520% --- 791,048 --- 11.520% --- --- Totals 157.971%156.248% 1.723% * Statement 1: If the projected Retained Captured Net Tax Capacity of the TIF District was hypothetically available to each of the taxing jurisdictions above, the result would be a lower local tax rate (see Hypothetical Adjusted Tax Rate above) which would produce the same amount of taxes for each taxing jurisdiction. In such a case, the total local tax rate would decrease by 1.723% (see Hypothetical Decrease in Local Tax Rate above). The hypothetical tax that the Retained Captured Net Tax Capacity of the TIF District would generate is also shown above. Statement 2: Since the projected Retained Captured Net Tax Capacity of the TIF District is not available to the taxing jurisdictions, then there is no impact on taxes levied or local tax rates. (1) Taxable net tax capacity = total net tax capacity - captured TIF - fiscal disparity contribution, if applicable. (2) The impact on these taxing jurisdictions is negligible since they represent only 7.29% of the total tax rate. Agenda Item H1 Attachment 3 Packet Page Number 124 of 275 Exhibit VI SPRINGSTED Market Value Analysis Report City of Maplewood, Minnesota Tax Increment Financing (Redevelopment) District No. 1-12 Proposed 3M Redevelopment Project R&D Facility Assumptions Present Value Date 06/30/13 P.V. Rate - Gross T.I.5.00% Increase in EMV With TIF District $24,720,000 Less: P.V of Gross Tax Increment 11,794,711 Subtotal $12,925,289 Less: Increase in EMV Without TIF 0 Difference $12,925,289 Annual Present Gross Tax Value @ Year Increment 5.00% 1 2015 189,565 169,834 2 2016 382,922 326,728 3 2017 792,458 643,966 4 2018 808,308 625,568 5 2019 824,474 607,694 6 2020 840,963 590,331 7 2021 857,782 573,464 8 2022 874,938 557,080 9 2023 892,437 541,163 10 2024 910,286 525,702 11 2025 928,491 510,681 12 2026 947,061 496,090 13 2027 966,002 481,916 14 2028 985,322 468,147 15 2029 1,005,029 454,772 16 2030 1,025,129 441,778 17 2031 1,045,632 429,156 18 2032 1,066,545 416,895 19 2033 1,087,876 404,983 20 2034 1,109,633 393,412 21 2035 1,131,826 382,172 22 2036 1,154,462 371,253 23 2037 1,177,551 360,645 24 2038 1,201,102 350,341 25 2039 1,225,125 340,332 26 2040 1,249,627 330,608 $24,680,546 $11,794,711 Agenda Item H1 Attachment 3 Packet Page Number 125 of 275 Exhibit VII SPRINGSTED City of Maplewood, Minnesota Tax Increment Financing (Redevelopment) District No. 1-12 Proposed 3M Redevelopment Project R&D Facility Note Date: 06/30/13 Note Rate:5.00% Amount: $9,568,000 Cumulative Unpaid Semi-Annual Loan Interest Accrued Net Balance Date Principal Interest P & I Due Interest Revenue Outstanding (1)(2)(3)(4)(5)(6)(7)(8) 9,568,000.00 08/01/13 0.00 0.00 0.00 41,195.56 41,195.56 0.00 9,568,000.00 02/01/14 0.00 0.00 0.00 280,395.56 280,395.56 0.00 9,568,000.00 08/01/14 0.00 0.00 0.00 519,595.56 519,595.56 0.00 9,568,000.00 02/01/15 0.00 0.00 0.00 758,795.56 758,795.56 0.00 9,568,000.00 08/01/15 0.00 75,553.00 75,553.00 997,995.56 922,442.56 75,553.00 9,568,000.00 02/01/16 0.00 75,553.00 75,553.00 1,161,642.56 1,086,089.56 75,553.00 9,568,000.00 08/01/16 0.00 152,617.00 152,617.00 1,325,289.56 1,172,672.56 152,617.00 9,568,000.00 02/01/17 0.00 152,617.00 152,617.00 1,411,872.56 1,259,255.56 152,617.00 9,568,000.00 08/01/17 0.00 315,842.00 315,842.00 1,498,455.56 1,182,613.56 315,842.00 9,568,000.00 02/01/18 0.00 315,842.00 315,842.00 1,421,813.56 1,105,971.56 315,842.00 9,568,000.00 08/01/18 0.00 322,159.00 322,159.00 1,345,171.56 1,023,012.56 322,159.00 9,568,000.00 02/01/19 0.00 322,159.00 322,159.00 1,262,212.56 940,053.56 322,159.00 9,568,000.00 08/01/19 0.00 328,602.50 328,602.50 1,179,253.56 850,651.06 328,602.50 9,568,000.00 02/01/20 0.00 328,602.50 328,602.50 1,089,851.06 761,248.56 328,602.50 9,568,000.00 08/01/20 0.00 335,174.50 335,174.50 1,000,448.56 665,274.06 335,174.50 9,568,000.00 02/01/21 0.00 335,174.50 335,174.50 904,474.06 569,299.56 335,174.50 9,568,000.00 08/01/21 0.00 341,877.50 341,877.50 808,499.56 466,622.06 341,877.50 9,568,000.00 02/01/22 0.00 341,877.50 341,877.50 705,822.06 363,944.56 341,877.50 9,568,000.00 08/01/22 0.00 348,715.00 348,715.00 603,144.56 254,429.56 348,715.00 9,568,000.00 02/01/23 0.00 348,715.00 348,715.00 493,629.56 144,914.56 348,715.00 9,568,000.00 08/01/23 0.00 355,689.50 355,689.50 384,114.56 28,425.06 355,689.50 9,568,000.00 02/01/24 88,064.44 267,625.06 355,689.50 267,625.06 0.00 355,689.50 9,479,935.56 08/01/24 125,805.11 236,998.39 362,803.50 236,998.39 0.00 362,803.50 9,354,130.45 02/01/25 128,950.24 233,853.26 362,803.50 233,853.26 0.00 362,803.50 9,225,180.21 08/01/25 139,429.49 230,629.51 370,059.00 230,629.51 0.00 370,059.00 9,085,750.72 02/01/26 142,915.23 227,143.77 370,059.00 227,143.77 0.00 370,059.00 8,942,835.49 08/01/26 153,890.11 223,570.89 377,461.00 223,570.89 0.00 377,461.00 8,788,945.38 02/01/27 157,737.37 219,723.63 377,461.00 219,723.63 0.00 377,461.00 8,631,208.01 08/01/27 169,229.30 215,780.20 385,009.50 215,780.20 0.00 385,009.50 8,461,978.71 02/01/28 173,460.03 211,549.47 385,009.50 211,549.47 0.00 385,009.50 8,288,518.68 08/01/28 185,497.03 207,212.97 392,710.00 207,212.97 0.00 392,710.00 8,103,021.65 02/01/29 190,134.46 202,575.54 392,710.00 202,575.54 0.00 392,710.00 7,912,887.19 08/01/29 202,742.32 197,822.18 400,564.50 197,822.18 0.00 400,564.50 7,710,144.87 02/01/30 207,810.88 192,753.62 400,564.50 192,753.62 0.00 400,564.50 7,502,333.99 08/01/30 221,017.15 187,558.35 408,575.50 187,558.35 0.00 408,575.50 7,281,316.84 02/01/31 226,542.58 182,032.92 408,575.50 182,032.92 0.00 408,575.50 7,054,774.26 08/01/31 240,377.64 176,369.36 416,747.00 176,369.36 0.00 416,747.00 6,814,396.62 02/01/32 246,387.08 170,359.92 416,747.00 170,359.92 0.00 416,747.00 6,568,009.54 08/01/32 260,881.76 164,200.24 425,082.00 164,200.24 0.00 425,082.00 6,307,127.78 02/01/33 267,403.81 157,678.19 425,082.00 157,678.19 0.00 425,082.00 6,039,723.97 08/01/33 282,590.90 150,993.10 433,584.00 150,993.10 0.00 433,584.00 5,757,133.07 02/01/34 289,655.67 143,928.33 433,584.00 143,928.33 0.00 433,584.00 5,467,477.40 08/01/34 305,568.06 136,686.94 442,255.00 136,686.94 0.00 442,255.00 5,161,909.34 02/01/35 313,207.27 129,047.73 442,255.00 129,047.73 0.00 442,255.00 4,848,702.07 08/01/35 329,882.95 121,217.55 451,100.50 121,217.55 0.00 451,100.50 4,518,819.12 02/01/36 338,130.02 112,970.48 451,100.50 112,970.48 0.00 451,100.50 4,180,689.10 08/01/36 355,605.27 104,517.23 460,122.50 104,517.23 0.00 460,122.50 3,825,083.83 02/01/37 364,495.40 95,627.10 460,122.50 95,627.10 0.00 460,122.50 3,460,588.43 08/01/37 382,810.29 86,514.71 469,325.00 86,514.71 0.00 469,325.00 3,077,778.14 02/01/38 392,380.55 76,944.45 469,325.00 76,944.45 0.00 469,325.00 2,685,397.59 08/01/38 411,576.06 67,134.94 478,711.00 67,134.94 0.00 478,711.00 2,273,821.53 02/01/39 421,865.46 56,845.54 478,711.00 56,845.54 0.00 478,711.00 1,851,956.07 08/01/39 441,987.10 46,298.90 488,286.00 46,298.90 0.00 488,286.00 1,409,968.97 02/01/40 453,036.78 35,249.22 488,286.00 35,249.22 0.00 488,286.00 956,932.19 08/01/40 474,127.70 23,923.30 498,051.00 23,923.30 0.00 498,051.00 482,804.49 02/01/41 482,804.49 12,070.11 494,874.60 12,070.11 0.00 494,874.60 0.00 $9,568,000 $10,102,177.60 $19,670,177.60 $24,499,080.36 $14,396,902.76 $19,670,177.60 Surplus Tax Increment 3,176.40 Total Net Revenue $19,673,354.00 Projected Pay-As-You-Go Note Report Agenda Item H1 Attachment 3 Packet Page Number 126 of 275 5536499v1 MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 CITY OF MAPLEWOOD, MINNESOTA Draft: July 22, 2013 This document was drafted by: BRIGGS AND MORGAN, Professional Association 2200 West First National Bank Building 332 Minnesota Street St. Paul, Minnesota 55101 Financial Information Springsted Incorporated provided by: 380 Jackson Street, Suite 300 St. Paul, Minnesota 55101 Agenda Item H1 Attachment 4 Packet Page Number 127 of 275 TABLE OF CONTENTS Page i SECTION I DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 ................................................................................................................ 3 1.1. Definitions.............................................................................................................. 3 1.2. Statement of Public Purpose .................................................................................. 4 1.3. Statutory Authority ................................................................................................ 5 1.4. Statement of Need .................................................................................................. 6 1.5. Statement of Objectives ......................................................................................... 6 1.6. Boundaries of Development District ..................................................................... 7 1.7. Development Activities ......................................................................................... 7 1.8. Payment of Project Cost ......................................................................................... 9 1.9. Environmental Controls ......................................................................................... 9 1.10. Park and Open Space to be Created ....................................................................... 9 1.11. Proposed Reuse of Property ................................................................................. 10 1.12. Administration and Maintenance of Development District ................................. 10 1.13. Rehabilitation ....................................................................................................... 10 1.14. Relocation ............................................................................................................ 10 1.15. Parcels To Be Acquired In Whole or In Part Within the Development District.................................................................................................................. 10 1.16. Amendments ........................................................................................................ 11 1.17. Development Activity in the Development District for which Contracts Have Been Signed ................................................................................................ 11 1.18. Other Specific Development Expected to Occur Within The Development District.................................................................................................................. 12 Exhibit A Boundaries of Development District No. 1 .................................................. A-1 Agenda Item H1 Attachment 4 Packet Page Number 128 of 275 5536499v1 MUNICIPAL ACTION TAKEN Based upon the statutory authority described in the Modified Development Program attached hereto, the public purpose findings by the City Council and for the purpose of fulfilling the City's development objectives as set forth in the Modified Development Program, the City Council has created, established and designated Development District No. 1 pursuant to and in accordance with the requirements of Minnesota Statutes, Section 469.126. The following municipal action was taken in connection therewith: October 28, 1985: The Program for Development District No. 1 was adopted by the City Council. June 23, 1986: The Program for Development District No. 1 was modified by modifying the Project Costs. September 28, 1987: The Program for Development District No. 1 was modified by enlargement of the geographic Project Area and increased Project Costs. January 11, 1988: The Program for Development District No. 1 was modified by modifying the Project Costs. May 8, 1989: The Program for Development District No. 1 was modified by modifying the Project Costs. October 9, 1989: The Program for Development District No. 1 was modified by modifying the Project Costs. April 23, 1990: The Program for Development District No. 1 was modified by modifying the Project Costs. December 23, 1991: The Program for Development District No. 1 was modified by modifying the Project Costs. February 10, 1992: The Program for Development District No. 1 was modified by modifying the Project Costs. May 24, 1993: The Program for Development District No. 1 was modified by modifying the Project Costs. May 8, 1995: The Program for Development District No. 1 was modified by modifying the Project Costs. June 28, 1999: The Program for Development District No. 1 was modified by enlargement of the geographic Project Area and increased Project Costs. August 13, 2001: The Program for Development District No. 1 was modified by increased Project Costs. Agenda Item H1 Attachment 4 Packet Page Number 129 of 275 5536499v1 2 May 12, 2003: The Program for Development District No. 1 was modified by increased Project Costs. June 23, 2003: The Program for Development District No. 1 was modified by increased Project Costs and the Tax Increment Financing Plan for Housing District No. 1-8 within Development District No. 1 was adopted. August 25, 2008: The Program for Development District No. 1 was modified by increased Project Costs and the Tax Increment Financing Plan for Housing District No. 1-9 within Development District No. 1 was adopted. August 9, 2010: The program for Development District No. 1 was modified by increased Project Costs and the Tax Increment Financing Plan for Housing District No. 1-10 within Development District No. 1 was adopted. April 25, 2011: The program for Development District No. 1 was modified by increased Project Costs and the Tax Increment Financing Plan for Economic Development District No. 1-11 within Development District No. 1 was adopted. July 22, 2013: The program for Development District No. 1 was modified by increased Project Costs and the Tax Increment Financing Plan for Redevelopment District No. 1-12 within Development District No. 1 was adopted. Agenda Item H1 Attachment 4 Packet Page Number 130 of 275 5536499v1 3 SECTION I DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 1.1. Definitions. The terms defined below have, for purposes of this Development Program, the meanings herein specified, unless the context specifically requires otherwise: "City" means the City of Maplewood, a municipal corporation and political subdivision of the State of Minnesota. The City has a Statutory City Plan A form of government. "Comprehensive Plan" means the City's Comprehensive Plan submitted to the Metropolitan Council pursuant to Minnesota Statutes, 473.173, which contains the objectives, policies, standards and programs to guide public and private land use, development, redevelopment and preservation for all lands and water within the City. "Council" means the City Council of the City, also referred to as the governing body. (See "Governing Body" below.) "County" means the County of Ramsey, Minnesota. "Development District Act" means the statutory provisions of Minnesota Statutes, Sections 469.124 through 469.134, as amended and supplemented. "Development District" means Development District No. 1 in the City, which is created and established hereto pursuant to and in accordance with the Development District Act, and is geographically described in Exhibit A. "Development Program" means this Development Program for Development District No. 1, initially adopted by the Council on October 28, 1985 and modified on June 23, 1986, September 28, 1987, January 11, 1988, May 8, 1989, October 9, 1989, April 23, 1990, December 23, 1991, February 10, 1992, May 24, 1993, May 8, 1995, June 28, 1999, August 13, 2001, May 12, 2003, June 23, 2003, August 25, 2008, August 9, 2010, April 25, 2011, and July 22, 2013. As defined in Minnesota Statutes, Section 469.125, Subd. 3, a development program is a statement of objectives of the City for improvement of a development district which contains a complete statement as to the public facilities to be constructed within the district, the open space to be created, the environmental controls to be applied, the proposed reuse of private property and the proposed operations of the district after the capital improvements within the district have been completed. "Economic Development District" means a type of tax increment financing district which consists of any project, or portions of a project, not meeting the requirements found in the definition of redevelopment district, renewal and renovation district, soils condition district, mined underground space development district, or housing district, but which the City finds to be in the public interest because: Agenda Item H1 Attachment 4 Packet Page Number 131 of 275 5536499v1 4 (a) It will discourage commerce, industry or manufacturing from moving their operations to another municipality; or (b) It will result in increased employment in the state; or (c) It will result in preservation and enhancement of the tax base of the state. "Governing Body" means the duly elected City Council as defined in Minnesota Statutes, Section 469.125, Subd. 8. "Housing District" means a type of tax increment financing district which consists of a project, or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income, as defined in chapter 462A, Title II of the National Housing Act of 1937, as amended, Title V of the Housing Act of 1949, as amended, any other similar present or future federal, state, or municipal legislation, or the regulations promulgated under any of those acts, as defined in Minnesota Statutes, Section 469.174, subd. 11. "Municipal Industrial Development Act" means the statutory provisions of Minnesota Statutes, Sections 469.152 through 469.165, as amended. "Municipality" means any city, however organized as defined in Minnesota Statutes, Section 469.125, Subd. 2. "3M Renovation and Retention Project Area" means the land identified as Parcel 362922240002. "State" means the State of Minnesota. "Tax Increment Bonds" means any general obligation or revenue tax increment bonds issued and to be issued by the City to finance the project costs associated with Development District No. 1 as stated in the Development Program and in the Tax Increment Financing Plan for the Tax Increment Financing Districts within Development District No. 1. The term "Tax Increment Bonds" shall also include any obligations issued to refund the Tax Increment Bonds. "Tax Increment Financing District" means any tax increment financing district presently established or to be established in the future in Development District No. 1. "Tax Increment Financing Act" means the statutory provisions of Minnesota Statutes, Sections 469.174 through 469.1794, inclusive, as amended. "Tax Increment Financing Plan" means the respective Tax Increment Financing Plan for each Tax Increment Financing District located within the Development District. 1.2. Statement of Public Purpose. The Council (the "Council") in and for the City of Maplewood, Minnesota (the "City") has determined that there is a need for housing, development and redevelopment within the corporate limits of the City to provide employment opportunities, to enhance development opportunities for the private sector, to improve the tax base and to improve the general economy of the City, the County of Ramsey and the State of Agenda Item H1 Attachment 4 Packet Page Number 132 of 275 5536499v1 5 Minnesota. It is found that there are certain parcels of property within the Development District which are potentially more useful, productive and valuable than is being realized under existing conditions, is less productive because of the lack of proper utilization, and, therefore, are not contributing to the tax base of the City to their full potential. In addition, it is hereby found that there is a need for public improvements to encourage development. Therefore, the City has determined to exercise its authority to develop a program for improving the Development District of the City to provide impetus for private development, to maintain and increase employment, to utilize existing potential and to provide other facilities as are outlined in the Development Program adopted by the City. The Council has also determined that the proposed developments would not occur solely through private investment in the foreseeable future; that the tax increment financing plans proposed herein are consistent with the Development Program; and that the tax increment financing plans will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the development or redevelopment of the Development District by private enterprise. The Council finds that the welfare of the City as well as the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce to carry out its stated public purpose objectives. 1.3. Statutory Authority. The Development District Act, authorizes the City, upon certain public purpose findings by the Council, to establish and designate development districts within the City and to establish, develop and administer development programs in regard thereto, all for the purpose of creating funding for the financing of necessary activities and improvements within the City. In accordance with the purposes set forth in Section 469.124 of the Development District Act, the Council hereby establishes Development District No. 1, as described in Exhibit A, for the purposes of enhancing the environment in which existing businesses are located, thus helping to secure their continued existence and potential additional development within the City, and promoting new and ongoing development in Development District No. 1, both of which will provide employment opportunities, improve the tax base of the City and contribute positively to the economy of the State. The Tax Increment Financing Act, provides the procedure for the establishment of tax increment districts for the use of tax increment financing authorized by the Development District Act for the funding of qualified public activities and improvements. Within the Development District, the City has established ten housing districts as the types of tax increment financing district described in Section 469.174, Subd. 11 for Housing District No. 1-1, Housing District No. 1-2, Housing District No. 1-3, Housing District No. 1-4, Housing District No. 1-5, Housing District No. 1-6, Housing District No. 1-7, Housing District No. 1-8, Housing District No. 1-9, and Housing District No. 1-10. The City has established six economic development districts as the types of tax increment financing district described in Section 469.174, Subd. 12 for Economic Development District No. 1-1, Economic Development Agenda Item H1 Attachment 4 Packet Page Number 133 of 275 5536499v1 6 District No. 1-2, Economic Development District No. 1-3, Economic Development District No. 1-4, Economic Development District No. 1-5, and Economic Development District No. 1-11, and a redevelopment district as permitted under Minnesota Laws, 2013, Chapter 143, Article 9, Section 21. 1.4. Statement of Need. The Development District is established by the City of Maplewood for the purpose of promoting the redevelopment of existing commercial areas and the development of new business opportunities within the community. The City has found that the area within the Development District has not realized its greatest development potential due to a variety of factors. Included in the development barriers identified by the City are: inadequate public improvements, improper land use and utilization, and lack of investment. The City has found that the creation of the Development District and the utilization of tax increment financing is needed to remove these barriers and to promote development of the community. 1.5. Statement of Objectives. The Council determines that it is necessary, desirable and in the public interest to establish the Development District in the City, pursuant to the authority of the Development District Act. The Council finds that the creation of the Development District is necessary to give the City the ability to meet certain public purpose objectives that would not be otherwise obtainable in the foreseeable future without intervention by the City in the normal development process. The City intends to satisfy the following objectives through the implementation of the Development Program: (a) To provide safe, decent, sanitary housing for all residents of the city and in particular low and moderate income residents. (b) To provide an adequate housing supply for all residents at a cost they can afford. (c) To provide housing choices for low and moderate income residents who find housing opportunities are not available to them because of economic conditions. (d) To provide project activities which will assist in making possible the construction of a planned apartment for low and moderate income residents, as well, as improving health, welfare and convenience of citizens residing in the Development District. (e) Provide for the financing and construction of public improvements, including recreational and community center facilities, in the Development District, necessary for the orderly and beneficial development of the Development District and adjacent areas of the City and the provision of adequate City services to the City residents. (f) Promote and secure the prompt development of certain property in the Development District, which property is not now in productive use or in its highest and best use, in a manner consistent with the City's Comprehensive Plan and with a minimum adverse impact on the environment, and thereby promote and secure the development of other land in the City. Agenda Item H1 Attachment 4 Packet Page Number 134 of 275 5536499v1 7 (g) Promote and secure additional employment opportunities within the Development District and the City for residents of the City and the surrounding area, thereby improving living standards, reducing unemployment and the loss of skilled and unskilled labor and other human resources in the City. (h) Secure the increase of property subject to taxation by the City, Independent School Districts Nos. 622, 623 and 624, Northwest Metropolitan Intermediate District No. 916, Ramsey County, and other taxing jurisdictions in order to better enable such entities to pay for governmental services and programs required to be provided by them. (i) Promote the concentration of new desirable residential, commercial, office, restaurant, and other appropriate development in the Development District so as to maintain the area in a manner compatible with its accessibility and prominence in the City. (j) Encourage local business expansion, improvement and development, whenever possible. (k) Create a desirable and unique character within the Development District through quality land use alternatives and design quality in new and remodeled buildings. (l) Encourage and provide maximum opportunity for private redevelopment of existing areas and structures which are compatible with the Development Program. 1.6. Boundaries of Development District. The area within the Development District is set forth in Exhibit A. 1.7. Development Activities. Development activities within the Development District must be financially feasible, marketable and be compatible with long range development strategies of the City. The following recommendations represent the options that satisfy community development objectives for the Development District while taking advantage of opportunities which are currently available. The City will perform all project activities pursuant to the statute and in doing so, anticipates that the following may, but are not required to be undertaken: (a) The making of studies, planning, and informal activities relating to the Development Program. (b) The implementation and administration of the Development Program. (c) The construction or reconstruction of streets, sidewalks, utilities, and other public improvements including but not limited to: (1) the construction of street, water and sewer improvements on Southlawn Drive from Beam Avenue to County Road D; (2) the construction of street, water and sewer improvements on McKnight Road from Highway 36 to Conway Avenue; Agenda Item H1 Attachment 4 Packet Page Number 135 of 275 5536499v1 8 (3) the construction of a water tower on Stillwater Road east of Sterling; (4) the construction of water main on Hudson place; (5) the installation of traffic lights at Hazelwood Avenue and Southlawn Avenue on Beam Avenue. (6) acquisition of land and improvement of Hazelwood Park located at County Road C east of Hazelwood Avenue; (7) improvement of Playcrest Park located at Lydia Avenue and McKnight Road; (8) acquisition, expansion and improvement of Harvest Park located at Hazelwood Avenue south of County Road C and North of Highway 36; (9) the construction of water, street, sanitary sewer and storm sewer improvements within an area North of Beam Avenue, South of the Northern City limit, East of Highway 61 and West of White Bear Avenue; (10) acquisition of the abandoned Burlington Northern railroad right of way running from Larpenteur Street to Highway 694; (11) acquisition of the land that the Cottages of Maplewood will be developed on and the payment of certain site improvements for the Cottages of Maplewood project; (12) acquisition and betterment of a city recreational and community center facility; (13) improvement of Sherwood Park located at Hazelwood and Cope Avenues; (14) improvement of Afton Heights Park, Geranium Park, Gethsemane Park, Gladstone Park, Goodrich Park, Hillside Park, Lion's Park, Maplecrest Park, Maplewood Heights Park, Nature Center, Robinhood Park, Sherwood Park and Timber Park; (15) construction of a municipal storage building to house park equipment; (16) construction of public alleys east of White Bear Avenue from Woodlyn Avenue to County Road D and a public alley southwest of the southwest corner of Beam Avenue and White Bear Avenue; (17) construction of traffic improvements on White Bear Avenue from Interstate Highway 694 to Beam Avenue; and (18) bike path along McKnight Road (County State Aid Highway 68) from a point 788.17 feet north of the Southwest Corner of Section 36, Township 29N, Range 22W to a point 37.00 feet south of the West Quarter Corner of Section 36 Township 29N, Range 22W. Agenda Item H1 Attachment 4 Packet Page Number 136 of 275 5536499v1 9 (19) the construction of an approximately 400,000 square foot research and development facility and outdoor parking of approximately 725 spaces within the 3M Renovation and Retention Project Area consisting of parcel 362922240002; (d) The acquisition of property consistent with the objectives of the Development Program. (e) The preparation of property for use including demolition of structures, clearance of sites, placement of fill, and installation of utilities. (f) The resale of property to developers. (g) The provision of relocation assistance to businesses and homeowners as may be required by this Development Program. (h) The issuance of Tax Increment Bonds to finance project costs of the Development Program or to evidence the City's obligation to reimburse developers for all or part of the project costs of the Development Program incurred or to be incurred by it pursuant to a Development Agreement. (i) The use of tax increments derived from a Tax Increment Financing District within the Development District to pay debt service on Tax Increment Bonds or otherwise pay the project cost of the Development Program. 1.8. Payment of Project Cost. It is anticipated that the project cost of the Development Program will be paid primarily from the tax increments to be derived from the Development District, either directly or indirectly by payment of project eligible expenses, by reimbursement of developers for items of project cost paid directly by developers, or by some combination of these methods. The City reserves the right to utilize special assessments, general property taxes, utility revenues, and other sources of revenue which the City may apply to pay the project cost. The City intends to pool tax increments from all Tax Increment Financing Districts to finance the project cost of the Development Program within the Development District. 1.9. Environmental Controls. The proposed Tax Increment Financing Districts within the Development District do not present significant environmental concerns. All municipal actions, public improvements and private development shall be carried out in a manner consistent with existing environmental standards. 1.10. Park and Open Space to be Created. Park and open space within the Development District No. 1 will be created in accordance with the zoning and platting ordinances of the City. The City may undertake the following park improvements: (a) the acquisition of land and improvement of Hazelwood Park located at County Road C east of Hazelwood Avenue; (b) the improvement of Playcrest Park located at Lydia Avenue and McKnight Road; Agenda Item H1 Attachment 4 Packet Page Number 137 of 275 5536499v1 10 (c) the acquisition, expansion and improvement of Harvest Park located at Hazelwood Avenue south of County Road C and North of Highway 36; (d) the improvement of Sherwood Park located at Hazelwood and Cope Avenues; (e) the improvement of Afton Heights Park, Geranium Park, Gethsemane Park, Gladstone Park, Goodrich Park, Hillside Park, Lions Park, Maplecrest Park, Maplewood Heights, Nature Center, Robinhood Park, Sherwood Park, Timber Park; (f) the acquisition and improvement of park land adjacent to Housing District No. 1-9, the acquisition and improvement of the park land will not involve the use of tax increment revenues. 1.11. Proposed Reuse of Property. The Development Program does not contemplate the acquisition of private property until such time as a private developer presents an economically feasible program for the reuse of that property. Proposals, in order to be considered, must be within the framework of the above cited goals and objectives, and must clearly demonstrate feasibility as a public program. Prior to formal consideration of the acquisition of any property, the City Council will require a binding contract, performance bond and/or other evidence or guarantees that a supporting tax increment or other funds will be available to repay the project cost associated with the proposed acquisition. It shall be the intent of the City to negotiate the acquisition of property whenever necessary. Appropriate restrictions regarding the reuse and redevelopment of property shall be incorporated into any land sale contract to which the City is a part. 1.12. Administration and Maintenance of Development District. Maintenance and operation of the public improvements will be the responsibility of the City Manager who shall serve as administrator of the Development District. The administrator will administer the Development District pursuant to the provisions of Section 469.131 of the Development District Act; provided, however, that such powers may only be exercised at the direction of the Council. No action taken by the administrator pursuant to the abovementioned powers shall be effective without authorization by the Council. 1.13. Rehabilitation. Owners of properties within the Development District will be encouraged to rehabilitate their properties to conform with the applicable state and local codes and ordinances, as well as any design standards. Owners of properties who purchase property within the Development District from the City may be required to rehabilitate their properties as condition of sale of land. The City will provide such rehabilitation assistance as may be available from federal, state or local sources. 1.14. Relocation. No person will be displaced and have to be relocated as a result of the Development Program. The City accepts its responsibility for providing for relocation pursuant to Section 469.133 of the Development District Act. 1.15. Parcels To Be Acquired In Whole or In Part Within the Development District. The City intends to acquire all or part of the land within Housing District No. 1-3 to facilitate the Agenda Item H1 Attachment 4 Packet Page Number 138 of 275 5536499v1 11 construction of the Cottages of Maplewood housing project. The City intends to reimburse the developer for the cost of the land within Housing District Nos. 1-4, 1-5 and 1-6 to facilitate the construction of the Carefree Cottages of Maplewood housing project (Phase I, Phase II and Phase III). The City intends to reimburse the developer for the cost of the land within Housing District No. 1-7 to facilitate the construction of the Van Dyke Village project. The City intends to reimburse the developer for the cost of the land within Housing District No. 1-8 to facilitate the construction of the Sibley Cove project. The City intends to reimburse the developer for the cost of the land within Housing District No. 1-9 to facilitate the construction of the Gethsemane Senior Housing project. The City intends to reimburse the developer for the cost of land within Housing District No. 1-10 to facilitate the construction of the Shores of Maplewood project. The City intends to finance public improvements related to redevelopment of the Maplewood Mall within Economic Development District No. 1-11. 1.16. Amendments. The City reserves the right to alter and amend the Development Program and the tax increment financing plans, subject to the provisions of state law regulating such action. The City specifically reserves the right to change the size of the Development District and the Tax Increment Financing Districts, the project cost of the Development Program and the amount of Tax Increment Bonds to be issued to finance such cost by following the procedures specified in Minnesota Statutes, Section 469.175, Subd. 4. 1.17. Development Activity in the Development District for which Contracts Have Been Signed. (a) Zantigo Restaurant on County Road was developed by Zantigo Mexican Restaurants, Inc. on County Road D, West of White Bear Avenue. The contractor was William Kranz Construction and the cost of the project was $260,000. (b) Maple Ridge Square Shopping Center was developed by Curt Johnson and Joe Weis - Weis Builders, Inc. at the intersection of Gervais Avenue and White Bear Avenue. The contractor was Weis Builders and the cost of the project was $2,318,383. (c) Maple Ridge Apartments was developed by Podawiltz Development Company on County Road D, west of White Bear Avenue. The contractor was Avon Lumber Company, Inc. and the cost of the project was $2,800,000. (d) Maple Ridge Estate Apartments was developed by Maple Ridge Development Corporation at the intersection of Stillwater Road and Stillwater Avenue. The contractor was Steve Haight Construction and the cost of the project was $3,999,000. (e) An addition to Maplewood Mall is being developed by CPI. The contractor is Kraus Anderson and the cost of the project is $2,075,000. (f) A Main Street Store at Maplewood Mall is being developed by Federated Department Stores. The contractor is Sheehy Construction and the cost of the project is $2,000,000. (g) The expansion of St. John's Northeast Hospital on Beam Avenue. Agenda Item H1 Attachment 4 Packet Page Number 139 of 275 5536499v1 12 (h) The development of a 60 unit senior citizen housing complex (known as the Cottages of Maplewood). (i) The development of the Crossings Mall to be located adjacent to Maplewood Mall. (j) The development of the Carefree Cottages of Maplewood senior citizen housing project. (k) The acquisition of property located at 2146 White Bear Avenue, commonly referred to as the Taystee Bread Store in an amount anticipated to be $500,000 or the development of the Community Park in the amount of $500,000. (l) The development of the Schroeder Milk project. (m) A development agreement with respect to the construction of an approximately 20 unit townhome-style housing facility in the City (the Van Dyke Village project) consisting of 8 one-story, two-bedroom and 12 two-story, three-bedroom units. (n) A development agreement with respect to the construction of an approximately 80 unit rental housing facility in the City (the Sibley Cove project) consisting of two- and three-bedroom units and related amenities. (o) A development agreement with respect to the construction of an approximately 111 unit senior housing facility in the City (the Gethsemane project). (p) A development agreement with respect to the construction of an approximately 162 unit senior housing facility in the City (the Shores of Maplewood project). (q) The City intends to enter into a development agreement with 3M Company with respect to the construction of an approximately 400,000 square foot research and development facility and outdoor parking of approximately 725 within the 3M Renovation and Retention Project Area (the 3M Research and Development Project). 1.18. Other Specific Development Expected to Occur Within The Development District. It is anticipated that development will occur within the Development District as described in Section 1.17. Additional development may occur in the Development District in the future; however, no contracts have been entered into at this time with respect to such development. The nature and timing of further development cannot accurately be predicted at this time. Agenda Item H1 Attachment 4 Packet Page Number 140 of 275 5536499v1 A-1 Exhibit A Boundaries of Development District No. 1 Consists of the entire corporate boundaries of the City of Maplewood. Agenda Item H1 Attachment 4 Packet Page Number 141 of 275 5550642v1 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF MAPLEWOOD, MINNESOTA HELD: July 22, 2013 Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of Maplewood, Ramsey County, Minnesota, was duly called and held on the 22nd day of July, 2013, at 7:00 p.m. The following members of the Council were present: and the following were absent: Member __________ introduced the following resolution and moved its adoption: RESOLUTION APPROVING THE MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1-12 THEREIN AND APPROVING A TAX INCREMENT FINANCING PLAN THEREFOR WHEREAS: A. It has been proposed that the City of Maplewood, Minnesota (the "City") modify the Development Program for Development District No. 1 (the "Development District") and establish Tax Increment Financing District No. 1-12 ("TIF District No. 1-12") therein and approve and accept the proposed Tax Increment Financing Plan therefor all pursuant to and in accordance with Minnesota Laws, 2013, Chapter 143, Article 9, Section 21 (the "Special Law"), and Minnesota Statutes, Sections 469.124 through 469.134, both inclusive, as amended and Minnesota Statutes, Sections 469.174 through 469.1794, both inclusive, as amended (the "Act"); and B. Under the Special Law the City has the authority to establish tax increment financing districts within the 3M Renovation and Retention Project Area consisting of Parcel 362922240002 (the "Project Area"); and C. The Development District and TIF District No. 1-12 are within the Project Area. D. It has been proposed by the 3M Company to construct a 400,000 square foot research and development facility within TIF District No. 1-12 (the "Project"); and E. The City Council has investigated the facts and has caused to be prepared a modification to the Development Program for the Development District (the "Development Program Modification"), and has caused to be prepared a proposed tax increment financing plan for TIF District No. 1-12 (the "TIF Plan"); and Agenda Item H1 Attachment 1 Packet Page Number 142 of 275 5550642v1 2 F. The City has performed all actions required by law to be performed prior to the approval of the Development Program Modification and TIF Plan, including, but not limited to, notification of Ramsey County and School District No. 622 having taxing jurisdiction over the property to be included in TIF District No. 1-12 and the holding of a public hearing upon published and mailed notice as required by law; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Maplewood as follows: 1. Development Program Modification. The Development Program Modification, for the Development District, a copy of which is on file in the office of the City Manager, is adopted as the development program for the Development District. 2. TIF Plan. The TIF Plan is adopted as the tax increment financing plan for TIF District No. 1-12, and the City Council makes the following findings: (a) As provided by the Special Law, the requirements for qualifying TIF District No. 1-12 as a redevelopment district as defined in Minnesota Statutes, Section 469.174, Subdivision 10, do not apply. (b) In addition, pursuant to Minnesota Statutes Section 469.176, Subdivision 4c(d), the City finds that the Project will retain jobs in the state and that the construction of the Project would not have commenced without the tax increment financing assistance to be provided pursuant to the TIF Plan. (c) The proposed development in the opinion of the City Council, would not occur solely through private investment within the reasonably foreseeable future. The reasons supporting this finding are that: (i) Private investment will not finance these development activities due to the high cost of site improvements and infrastructure costs. The City, without tax increment assistance, would not have the resources to undertake the necessary site improvements. It is necessary to finance these development activities through the use of tax increment financing so that other development by private enterprise will occur within the Development District. (ii) A comparative analysis of estimated market values both with and without establishment of TIF District No. 1-12 and the use of tax increments has been performed as described above. Such analysis is found in Exhibit VI of the TIF Plan, 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 TIF District No. 1-12 and the use of tax increments. (d) In the opinion of the City Council, 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 Agenda Item H1 Attachment 1 Packet Page Number 143 of 275 5550642v1 3 after subtracting the present value of the projected tax increments for the maximum duration of TIF District No. 1-12 permitted by the TIF Plan. The reasons supporting this finding are that: (i) The estimated amount by which the market value of the site will increase without the use of tax increment financing is $0, plus a small amount attributable to appreciation in land value; (ii) The estimated increase in the market value that will result from the development to be assisted with tax increment financing is $24,720,000; and (iii) The present value of the projected tax increments for the maximum duration of the district permitted by the tax increment financing plan is $11,794,711. (e) The TIF Plan for TIF District No. 1-12 conforms to the general plan for development or redevelopment of the City of Maplewood as a whole. The reasons for supporting this finding are that: (i) TIF District No. 1-12 is properly zoned; and (ii) The Planning Commission of the City has determined that the proposed TIF Plan conforms to the general plan for the development and redevelopment of the City as a whole ; and (iii) The TIF Plan will generally compliment and serve to implement policies adopted by the City. (f) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City of Maplewood as a whole, for the development or redevelopment of the Project Area by private enterprise. The reasons supporting this finding are that: The development activities are necessary so that development and redevelopment by private enterprise can occur within the Project Area. 3. Public Purpose. The adoption of the Development Program Modification and TIF Plan conform in all respects to the requirements of the Act and will help fulfill a need to redevelop an area of the State which is already built up to provide employment opportunities and to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. 4. Certification. The Auditor of Ramsey County is requested to certify the original net tax capacity of TIF District No. 1-12 as described in TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased in accordance with the Act; and the City Manager is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within TIF District No. 1-12 for which building permits have been issued during the 18 months immediately preceding the adoption of this Resolution. Agenda Item H1 Attachment 1 Packet Page Number 144 of 275 5550642v1 4 5. Filing. The City Manager is further authorized and directed to file a copy of the Development Program Modification and TIF Plan for TIF District No. 1-12 with the Commissioner of Revenue and the Office of the State Auditor. The motion for the adoption of the foregoing resolution was duly seconded by member _________ and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Agenda Item H1 Attachment 1 Packet Page Number 145 of 275 5550642v1 5 STATE OF MINNESOTA RAMSEY COUNTY CITY OF MAPLEWOOD I, the undersigned, being the duly qualified and acting Manager of the City of Maplewood, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to the modification to the Development Program for Development District No. 1 and the establishment of Tax Increment Financing District No. 1-12 therein in the City. WITNESS my hand this 22nd day of July, 2013. ________________________________ City Manager Agenda Item H1 Attachment 1 Packet Page Number 146 of 275 5563959v1 EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF MAPLEWOOD, MINNESOTA HELD: July 22, 2013 Pursuant to due call and notice thereof, a meeting of the City Council of the City of Maplewood, Ramsey County, Minnesota, was duly called and held at the City Hall in said City on Monday, the 22nd day of July, 2013, at 7:00 o'clock p.m. The following members were present: and the following were absent: Member ____________________ introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING EXECUTION OF A TAX INCREMENT FINANCING DEVELOPMENT AGREEMENT A. WHEREAS, 3M Company (the "Developer") has requested the City of Maplewood, Minnesota (the "City") to assist with the financing of certain costs incurred in connection with the construction of a 400,000 square foot research and development facility in the City by the Developer (the "Project"). B. WHEREAS, the Developer and the City have determined to enter into a Tax Increment Financing Development Agreement providing for the City's tax increment financing assistance for the Project (the "Development Agreement"). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Maplewood, Minnesota, as follows: 1. The City Council hereby approves the Development Agreement in substantially the form submitted, and the Mayor and City Manager are hereby authorized and directed to execute the Development Agreement on behalf of the City. 2. The approval hereby given to the Development Agreement includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the City officials authorized by this resolution to execute the Development Agreement. The execution of the Development Agreement by the appropriate officer or officers of the City shall be conclusive evidence of the approval of the Development Agreement in accordance with the terms hereof. Agenda Item H1 Attachment 1 Packet Page Number 147 of 275 5563959v1 2 The motion for adoption of the foregoing resolution was duly seconded by member _________________ and, after full discussion thereof, and upon a vote being taken thereof, the following voted in favor thereof: and the following voted against same: Adopted this 22nd day of July, 2013. _________________________ Mayor Attest: ________________________ City Manager Agenda Item H1 Attachment 1 Packet Page Number 148 of 275 5563959v1 3 STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF MAPLEWOOD I, the undersigned, being the duly qualified and acting Manager of the City of Maplewood, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the City Council of the City held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to a Resolution Authorizing Execution of a Tax Increment Financing Development Agreement. WITNESS my hand as such Manager of the City Council of the City of Maplewood, Minnesota this _____ day of July, 2013. _____________________________ City Manager Agenda Item H1 Attachment 1 Packet Page Number 149 of 275 4983374v1 RESOLUTION NO. ____ RESOLUTION APPROVING THE TERMS OF UP TO A $4,918,342 INTERFUND LOAN IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 1-12 BE IT RESOLVED by the City Council (the "Council") of the City of Maplewood, Minnesota (the "City"), as follows: Section 1. Background. (a) The City proposes to establish a Tax Increment Financing District No. 1-12 (the "TIF District") within Development District No. 1, and proposes to adopt a tax increment financing plan for the TIF District (the "TIF Plan"). (b) The City has determined to pay for certain costs identified in the TIF Plan consisting of land/building acquisition, public utilities, site improvements/preparation, other eligible improvements, and administrative costs (the "Qualified Costs") incurred in connection with the establishment of the TIF District and development/redevelopment of land within the TIF District, which costs will be financed on a temporary basis from City funds available for such purposes. (c) Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan money from the City's general fund or any other fund from which such advances may be legally made, in order to finance the Qualified Costs. (d) The City intends to reimburse itself for the payment of the Qualified Costs, plus interest thereon, from tax increments derived from the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan"). Section 2. Terms of Interfund Loan. (a) The City hereby authorizes the advance of up to $4,918,342 from the City's General Fund or so much thereof as may be paid as Qualified Costs. The City shall reimburse itself for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. (b) Principal and interest on the Interfund Loan shall be paid semi-annually on each February 1 and August 1 (each a "Payment Date") commencing with the Payment Date on which the City has Available Tax Increment (defined below), or on any other dates determined by the City Manager, through the last receipt of tax increment from the TIF District. Agenda Item H1 Attachment 1 Packet Page Number 150 of 275 4983374v1 2 (c) Payments on the Interfund Loan are payable solely from "Available Tax Increments" which shall mean, on each Payment Date, all of the tax increment available after other obligations have been paid, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the City by Ramsey County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1799. Payments on the Interfund Loan are subordinate to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. (d) The principal sum and all accrued interest payable under the Interfund Loan are pre-payable in whole or in part at any time by the City without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. (e) The Interfund Loan is evidence of an internal borrowing by the City in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. The Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on the Interfund Loan or other costs incident hereto. The City shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. (f) The City may amend the terms of the Interfund Loan at any time by resolution of the City Council, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon the date of its approval. Adopted this 22nd day of July, 2013. __________________________________________ Mayor ATTEST: City M anager Agenda Item H1 Attachment 1 Packet Page Number 151 of 275 MEMORANDUM TO: Charles Ahl, City Manager FROM: Terri Heaton, Vice-President Tom Denaway, Analyst DATE: July 17, 2013 SUBJECT: Overview of Proposed 3M TIF District Introduction The City and 3M have been working on the adoption of special legislation granting the City the authority to create a 3M Renovation and Retention Project Area. The special legislation was recently adopted by the Legislature and signed into law by the Governor. Now that the special legislation has been adopted the City and 3M have begun the process of creating a TIF District to assist with the development of the company’s new Research and Development (R&D) facility. A TIF plan for the new District is currently being drafted, along with a draft development agreement. The purpose of this memorandum is to outline the special legislation, detail the terms of the current R&D TIF District, and outline the revenue projections for the District. Special Legislation The City and 3M worked together to receive special legislation from the State to create one or more TIF Districts within the 3M Renovation and Retention Project Area. The boundaries of the Project Area are the current 3M campus parcel and adjoining right of way. TIF Districts created within this project area will be 25-year redevelopment TIF Districts, which will be exempt from the standard blight finding as provided by the legislation. The legislation provides the authority to create one or more TIF Districts within the project area until December 31, 2018. The legislation requires that 100% of the tax increment generated by the new TIF Districts be spent within the boundaries of the Project Area. As a result of the legislation not requiring a finding of blight, the legislation exempts the Districts from the requirement that 90% of TIF revenues be used for the remediation of costs leading to the finding of blight. Additionally, the legislation granted an extension of the 5-year rule to a period of 10-years, allowing the City to enter into new obligations within the TIF Districts for a period of 10-years following certification of the Districts. Springsted Incorporated 380 Jackson Street, Suite 300 Saint Paul, MN 55101-2887 Tel: 651-223-3000 Fax: 651-223-3002 www.springsted.com Agenda Item H1 Attachment 2 Packet Page Number 152 of 275 City of Maplewood July 17, 2013 Page 2 The current 3M campus, and the corresponding Project Area, consists of a single parcel number 362922240002. In order to avoid freezing the entire 3M campus as the base value of a TIF District, any new TIF District generated within the project area will consist of new parcels subdivided from the current single campus parcel. This will allow the main 3M campus to remain outside of a TIF District and for its value to fluctuate based on current market conditions. TIF District 1-12 3M Research and Development Project – Development Agreement Terms Now that the special legislation has been approved by the Legislature, the City is in the process of creating TIF District 1-12 to assist 3M with the development of the new R&D Lab Facility. A proposed TIF Plan and Development Agreement have been prepared and are enclosed for Council review. Outlined below are the points on which the Development Agreement has been negotiated regards to the terms of the proposed TIF District 1-12: Capture of TIF Revenue from Fiscal Disparity: When a TIF District is created an election can be made by the City to capture the incremental value growth generated by the Fiscal Disparity portion of the tax capacity of a parcel. The City can elect to capture this portion of tax capacity as TIF, and make the contribution to the Fiscal Disparity pool from outside of the TIF District. The election to make the contribution from outside of the TIF District results in greater TIF revenue, and potentially has a modest impact on the general taxable market value on which the general fund levy is spread. Conversely, the City may elect to make the contribution from inside of the TIF District, which results in lower TIF revenue with no potential impact on the levy. During the life of a TIF District the City has the ability to change the election one time, and only in circumstances where the election is going from outside of the District to inside the District. The proposed Development Agreement allows for the contribution to be made outside of the District, on the contingency that 3M continue to invest in its campus. If by December 31, 2021, the company has not obtained one or more building permits with a total minimum cost of not less than $50,000,000 (not including the R&D Building and routine maintenance), the City will change the fiscal disparity election to be made from within the TIF District. This term in the draft Agreement ties the generation of additional TIF revenue from the Fiscal Disparity portion to additional investment in the campus by the company. City Pooling Percentage: The proposed Agreement allows for the City to capture 20% of the tax increment generated for either eligible expenditures within the project area, or administrative purposes. The City intends to use a portion of this revenue to fund approximately $1.0M of City initiated TIF eligible site work and infrastructure improvements on property located within the Project Area. Additional TIF eligible improvements may be funded in the future from captured TIF funds as they are available. The net present value of the future revenue stream is $2,379,619. Pay-As-You-Go Note: The draft Agreement contemplates the City entering issuing a pay-as-you-go note to the company in a principal amount of $9,568,000. The note will be repaid over the life of the District at an annual non- compounding interest rate of 5%; the note will be repaid solely by 80% of the Tax Increment generated by the District. The principal amount of the note is based on the TIF revenue projections outlined below. Agenda Item H1 Attachment 2 Packet Page Number 153 of 275 City of Maplewood July 17, 2013 Page 3 Development Fees: While not detailed in the proposed Tax Increment Financing Development Agreement, the City has also negotiated with the company that all building and planning permit fees will be paid for the facility, including a park dedication fee of $285,000. TIF District 1-12 Development Assumptions The assumptions outlined below were used in the creation of the TIF revenue projections for the proposed TIF District 1-12. The revenue assumptions are based on development terms outlined above and base assumptions regarding timing and value provided by the company. R&D Building Build-Out: Value Constructed 2013: $6,000,000 Value Constructed 2014: $6,000,000 Value Constructed 2015: $12,720,000 Total Value Constructed: $24,720,000 Inflation: These revenue projections are a based on a 2% inflation assumption. Base Value: The proposed R&D facility is to be developed on a parcel that is currently undefined, as it is in the process of being subdivided out of the single campus parcel. As a result the base value of the R&D parcel is unknown, and therefore the revenue projections are based on the market value generated by the R&D building only and the revenue projections are not assuming a base frozen value. The increment is projected based only on the capture of the increased market value resulting from the proposed vertical construction. For estimation purposes we have assumed a pro-rata share of the existing campus market value will be applied to the newly created parcel. The base value of the parcel is estimated at $8,155,288. Fiscal Disparity Sharing Factor: Fiscal Disparity Contribution will be made from outside of the TIF District, resulting in greater TIF revenue. TIF Eligible Tax Rate Pay 2013: City: 48.659% County: 65.240% School District: 32.552% Miscellaneous: 11.520% Total Tax Rate: 157.972% City Admin and Pooling Percentage: - We have assumed a total City retainage of 20% for pooling and administrative purposes. Agenda Item H1 Attachment 2 Packet Page Number 154 of 275 City of Maplewood July 17, 2013 Page 4 TIF 1-12 Pay-As-You-Go Note Amount and City Funding Capacity We have estimated the maximum funding capacity of the City retaining 20% of the increment for the full 26-year term of the TIF district based on a net present value interest rate of 5%. Additionally, we have calculated a pay-as-you-go note report illustrating the potential principal amount and repayment schedule of a pay-go note to 3M. This note is based on 80% of the annual increment being available during the 26- year term of the District; with first receipt projected for Pay2015 and final receipt projected for Pay2040. The interest on the note is to be accrued at a non-compounding annual rate of 5%. . Scenario 26-Year Term Projected Built-Out: R&D Building Only Fiscal Disparity Contrib. From Outside District Percentage of Revenues available for City 20% Gross revenue of City Retainage $4,918,342 NPV of City Retainage (5% Interest) $2,379,619 3M Percentage 80% Gross revenue of 3M retainage $19,673,354 Pay-Go Principal Amount (5% Interest Rate) $9,568,000 Agenda Item H1 Attachment 2 Packet Page Number 155 of 275 City of Maplewood July 17, 2013 Page 5 City of Maplewood, MinnesotaTax Increment Financing (Redevelopment) District No. 1-12Proposed 3M Redevelopment ProjectR&D Facility Less: Less: Retained Times:Less:TotalAnnualAnnual Incremental Total Original Fiscal Captured Tax Annual State Aud. Subtotal City PoolingNetPeriod Market Net Tax Net Tax Disp. @ Net Tax Capacity Gross Tax Deduction Net Tax RetainageRevenueEnding Value Capacity Capacity 0.0000% Capacity Rate Increment 0.360% Increment20.00% 80%(1) (2) (3) (4) (5) (6) (7) (10) (11) (12) (13)(14)12/31/15 6,000,000 283,106 163,106 0 120,000 157.971% 189,565 682 188,883 37,777151,10612/31/16 12,120,000 405,506 163,106 0 242,400 157.971% 382,922 1,379 381,543 76,309305,23412/31/17 25,082,400 664,754 163,106 0 501,648 157.971% 792,458 2,853 789,605 157,921631,68412/31/18 25,584,048 674,787 163,106 0 511,681 157.971% 808,308 2,910 805,398 161,080644,31812/31/19 26,095,729 685,020 163,106 0 521,915 157.971% 824,474 2,968 821,506 164,301657,20512/31/20 26,617,644 695,459 163,106 0 532,353 157.971% 840,963 3,027 837,936 167,587670,34912/31/21 27,149,996 706,106 163,106 0 543,000 157.971% 857,782 3,088 854,694 170,939683,75512/31/22 27,692,996 716,966 163,106 0 553,860 157.971% 874,938 3,150 871,788 174,358697,43012/31/23 28,246,856 728,043 163,106 0 564,937 157.971% 892,437 3,213 889,224 177,845711,37912/31/24 28,811,793 739,342 163,106 0 576,236 157.971% 910,286 3,277 907,009 181,402725,60712/31/25 29,388,029 750,866 163,106 0 587,761 157.971% 928,491 3,343 925,148 185,030740,11812/31/26 29,975,790 762,622 163,106 0 599,516 157.971% 947,061 3,409 943,652 188,730754,92212/31/27 30,575,306 774,612 163,106 0 611,506 157.971% 966,002 3,478 962,524 192,505770,01912/31/28 31,186,812 786,842 163,106 0 623,736 157.971% 985,322 3,547 981,775 196,355785,42012/31/29 31,810,548 799,317 163,106 0 636,211 157.971% 1,005,029 3,618 1,001,411 200,282801,12912/31/30 32,446,759 812,041 163,106 0 648,935 157.971% 1,025,129 3,690 1,021,439 204,288817,15112/31/31 33,095,694 825,020 163,106 0 661,914 157.971% 1,045,632 3,764 1,041,868 208,374833,49412/31/32 33,757,608 838,258 163,106 0 675,152 157.971% 1,066,545 3,840 1,062,705 212,541850,16412/31/33 34,432,760 851,761 163,106 0 688,655 157.971% 1,087,876 3,916 1,083,960 216,792867,16812/31/34 35,121,415 865,534 163,106 0 702,428 157.971% 1,109,633 3,995 1,105,638 221,128884,51012/31/35 35,823,844 879,583 163,106 0 716,477 157.971% 1,131,826 4,075 1,127,751 225,550902,20112/31/36 36,540,321 893,912 163,106 0 730,806 157.971% 1,154,462 4,156 1,150,306 230,061920,24512/31/37 37,271,127 908,528 163,106 0 745,423 157.971% 1,177,551 4,239 1,173,312 234,662938,65012/31/38 38,016,550 923,437 163,106 0 760,331 157.971% 1,201,102 4,324 1,196,778 239,356957,42212/31/39 38,776,880 938,643 163,106 0 775,538 157.971% 1,225,125 4,410 1,220,715 244,143976,57212/31/40 39,552,418 954,154 163,106 0 791,048 157.971% 1,249,627 4,499 1,245,128 249,026996,102$24,680,546 $88,850 $24,591,696 $4,918,342$19,673,354NPV: $2,379,619Agenda Item H1 Attachment 2Packet Page Number 156 of 275 City of Maplewood July 17, 2013 Page 6 City of Maplewood, Minnesota Tax Increment Financing (Redevelopment) District No. Proposed 3M Redevelopment Project R&D Only - Full Term - FD Outside - 80% Captured Note Date:06/30/13 Note Rate:5.00% Amount:$9,568,000 Cumulative Unpaid Semi-Annual Loan Interest Accrued Net Balance Date Principal Interest P & I Due Interest Revenue Outstanding (1)(2)(3)(4)(5)(6)(7)(8) 9,568,000.00 08/01/13 0.00 0.00 0.00 41,195.56 41,195.56 0.00 9,568,000.00 02/01/14 0.00 0.00 0.00 280,395.56 280,395.56 0.00 9,568,000.00 08/01/14 0.00 0.00 0.00 519,595.56 519,595.56 0.00 9,568,000.00 02/01/15 0.00 0.00 0.00 758,795.56 758,795.56 0.00 9,568,000.00 08/01/15 0.00 75,553.00 75,553.00 997,995.56 922,442.56 75,553.00 9,568,000.00 02/01/16 0.00 75,553.00 75,553.00 1,161,642.56 1,086,089.56 75,553.00 9,568,000.00 08/01/16 0.00 152,617.00 152,617.00 1,325,289.56 1,172,672.56 152,617.00 9,568,000.00 02/01/17 0.00 152,617.00 152,617.00 1,411,872.56 1,259,255.56 152,617.00 9,568,000.00 08/01/17 0.00 315,842.00 315,842.00 1,498,455.56 1,182,613.56 315,842.00 9,568,000.00 02/01/18 0.00 315,842.00 315,842.00 1,421,813.56 1,105,971.56 315,842.00 9,568,000.00 08/01/18 0.00 322,159.00 322,159.00 1,345,171.56 1,023,012.56 322,159.00 9,568,000.00 02/01/19 0.00 322,159.00 322,159.00 1,262,212.56 940,053.56 322,159.00 9,568,000.00 08/01/19 0.00 328,602.50 328,602.50 1,179,253.56 850,651.06 328,602.50 9,568,000.00 02/01/20 0.00 328,602.50 328,602.50 1,089,851.06 761,248.56 328,602.50 9,568,000.00 08/01/20 0.00 335,174.50 335,174.50 1,000,448.56 665,274.06 335,174.50 9,568,000.00 02/01/21 0.00 335,174.50 335,174.50 904,474.06 569,299.56 335,174.50 9,568,000.00 08/01/21 0.00 341,877.50 341,877.50 808,499.56 466,622.06 341,877.50 9,568,000.00 02/01/22 0.00 341,877.50 341,877.50 705,822.06 363,944.56 341,877.50 9,568,000.00 08/01/22 0.00 348,715.00 348,715.00 603,144.56 254,429.56 348,715.00 9,568,000.00 02/01/23 0.00 348,715.00 348,715.00 493,629.56 144,914.56 348,715.00 9,568,000.00 08/01/23 0.00 355,689.50 355,689.50 384,114.56 28,425.06 355,689.50 9,568,000.00 02/01/24 88,064.44 267,625.06 355,689.50 267,625.06 0.00 355,689.50 9,479,935.56 08/01/24 125,805.11 236,998.39 362,803.50 236,998.39 0.00 362,803.50 9,354,130.45 02/01/25 128,950.24 233,853.26 362,803.50 233,853.26 0.00 362,803.50 9,225,180.21 08/01/25 139,429.49 230,629.51 370,059.00 230,629.51 0.00 370,059.00 9,085,750.72 02/01/26 142,915.23 227,143.77 370,059.00 227,143.77 0.00 370,059.00 8,942,835.49 08/01/26 153,890.11 223,570.89 377,461.00 223,570.89 0.00 377,461.00 8,788,945.38 02/01/27 157,737.37 219,723.63 377,461.00 219,723.63 0.00 377,461.00 8,631,208.01 08/01/27 169,229.30 215,780.20 385,009.50 215,780.20 0.00 385,009.50 8,461,978.71 02/01/28 173,460.03 211,549.47 385,009.50 211,549.47 0.00 385,009.50 8,288,518.68 08/01/28 185,497.03 207,212.97 392,710.00 207,212.97 0.00 392,710.00 8,103,021.65 02/01/29 190,134.46 202,575.54 392,710.00 202,575.54 0.00 392,710.00 7,912,887.19 08/01/29 202,742.32 197,822.18 400,564.50 197,822.18 0.00 400,564.50 7,710,144.87 02/01/30 207,810.88 192,753.62 400,564.50 192,753.62 0.00 400,564.50 7,502,333.99 08/01/30 221,017.15 187,558.35 408,575.50 187,558.35 0.00 408,575.50 7,281,316.84 02/01/31 226,542.58 182,032.92 408,575.50 182,032.92 0.00 408,575.50 7,054,774.26 08/01/31 240,377.64 176,369.36 416,747.00 176,369.36 0.00 416,747.00 6,814,396.62 02/01/32 246,387.08 170,359.92 416,747.00 170,359.92 0.00 416,747.00 6,568,009.54 08/01/32 260,881.76 164,200.24 425,082.00 164,200.24 0.00 425,082.00 6,307,127.78 02/01/33 267,403.81 157,678.19 425,082.00 157,678.19 0.00 425,082.00 6,039,723.97 08/01/33 282,590.90 150,993.10 433,584.00 150,993.10 0.00 433,584.00 5,757,133.07 02/01/34 289,655.67 143,928.33 433,584.00 143,928.33 0.00 433,584.00 5,467,477.40 08/01/34 305,568.06 136,686.94 442,255.00 136,686.94 0.00 442,255.00 5,161,909.34 02/01/35 313,207.27 129,047.73 442,255.00 129,047.73 0.00 442,255.00 4,848,702.07 08/01/35 329,882.95 121,217.55 451,100.50 121,217.55 0.00 451,100.50 4,518,819.12 02/01/36 338,130.02 112,970.48 451,100.50 112,970.48 0.00 451,100.50 4,180,689.10 08/01/36 355,605.27 104,517.23 460,122.50 104,517.23 0.00 460,122.50 3,825,083.83 02/01/37 364,495.40 95,627.10 460,122.50 95,627.10 0.00 460,122.50 3,460,588.43 08/01/37 382,810.29 86,514.71 469,325.00 86,514.71 0.00 469,325.00 3,077,778.14 02/01/38 392,380.55 76,944.45 469,325.00 76,944.45 0.00 469,325.00 2,685,397.59 08/01/38 411,576.06 67,134.94 478,711.00 67,134.94 0.00 478,711.00 2,273,821.53 02/01/39 421,865.46 56,845.54 478,711.00 56,845.54 0.00 478,711.00 1,851,956.07 08/01/39 441,987.10 46,298.90 488,286.00 46,298.90 0.00 488,286.00 1,409,968.97 02/01/40 453,036.78 35,249.22 488,286.00 35,249.22 0.00 488,286.00 956,932.19 08/01/40 474,127.70 23,923.30 498,051.00 23,923.30 0.00 498,051.00 482,804.49 02/01/41 482,804.49 12,070.11 494,874.60 12,070.11 0.00 494,874.60 0.00 $9,568,000 $10,102,177.60 $19,670,177.60 $24,499,080.36 $14,396,902.76 $19,670,177.60 Surplus Tax Increment 3,176.40 Total Net Revenue $19,673,354.00 Projected Pay-As-You-Go Note Report Agenda Item H1 Attachment 2 Packet Page Number 157 of 275 Maplewood, Minnesota Draft Tax Increment Financing Plan for Tax Increment Financing (Redevelopment) District No. 1-12 Within Development District No. 1 (3M Research and Development Project) Dated: July 16, 2013 Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street, Suite 300 St. Paul, MN 55101-2887 (651) 223-3000 WWW.SPRINGSTED.COM Agenda Item H1 Attachment 3 Packet Page Number 158 of 275 TABLE OF CONTENTS Section Page(s) A. Definitions .............................................................................................................................................................. 1 B. Statutory Authorization .......................................................................................................................................... 1 C. Statement of Need and Public Purpose ................................................................................................................ 1 D. Statement of Objectives ........................................................................................................................................ 1 E. 3M Renovation and Retention Project Area .......................................................................................................... 1 F. Designation of Tax Increment Financing District as a Redevelopment District ..................................................... 2 G. Duration of the TIF District .................................................................................................................................... 2 H. Property to be Included in the TIF District ............................................................................................................. 2 I. Property to be Acquired in the TIF District ............................................................................................................ 2 J. Specific Development Expected to Occur Within the TIF District .......................................................................... 3 K. Findings and Need for Tax Increment Financing .................................................................................................. 3 L. Estimated Public Costs ......................................................................................................................................... 4 M. Estimated Sources of Revenue ............................................................................................................................. 5 N. Estimated Amount of Bonded Indebtedness ......................................................................................................... 5 O. Original Net Tax Capacity ..................................................................................................................................... 5 P. Original Local Tax Rate ......................................................................................................................................... 6 Q. Projected Retained Captured Net Tax Capacity and Projected Tax Increment .................................................... 6 R. Use of Tax Increment ............................................................................................................................................ 7 S. Excess Tax Increment ........................................................................................................................................... 7 T. Tax Increment Pooling and the Five Year Rule ..................................................................................................... 8 U. Limitation on Administrative Expenses.................................................................................................................. 8 V. Limitation on Property Not Subject to Improvements - Four Year Rule ................................................................ 9 W. Estimated Impact on Other Taxing Jurisdictions ................................................................................................... 9 X. Prior Planned Improvements ............................................................................................................................... 10 Y. Development Agreements ................................................................................................................................... 10 Z. Assessment Agreements .................................................................................................................................... 10 AA. Modifications of the Tax Increment Financing Plan............................................................................................. 10 AB. Administration of the Tax Increment Financing Plan ........................................................................................... 11 AC. Filing TIF Plan, Financial Reporting and Disclosure Requirements.................................................................... 11 Map of the Tax Increment Financing District within Development District No. 1..................................... EXHIBIT I Map of the Tax Increment Financing District within 3M Renovation and Retention Project Area .......... EXHIBIT II Assumptions Report .............................................................................................................................. EXHIBIT III Projected Tax Increment Report ...........................................................................................................EXHIBIT IV Estimated Impact on Other Taxing Jurisdictions Report ........................................................................EXHIBIT V Market Value Analysis Report ...............................................................................................................EXHIBIT VI Pay-As-You-Go Note Report ................................................................................................................EXHIBIT VII Agenda Item H1 Attachment 3 Packet Page Number 159 of 275 City of Maplewood, Minnesota SPRINGSTED Page 1 Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "City" means the City of Maplewood, Minnesota; also referred to as a "Municipality". "City Council" means the City Council of the City; also referred to as the ‘Governing Body”. "County" means Ramsey County, Minnesota. "Development District" means Development District No. 1 in the City, which is described in the corresponding Development Program. "Development District Area" means the geographic area of the Development District. "Development Program" means the Development Program for the Development District. “Project Area” means the 3M Renovation and Retention Project Area consisting of parcel 36.29.22.24.0002. "School District" means Independent School District No. 622, Minnesota. “Special Law” means Minnesota Laws, 2013, Chapter 143, Article 9, Section 21. "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1794, as amended, both inclusive. "TIF District" means Tax Increment Financing (Redevelopment) District No. 1-12. "TIF Plan" means the tax increment financing plan for the TIF District (this document). Section B Statutory Authorization See Section 1.3 of the Development Program for the Development District. Section C Statement of Need and Public Purpose See Section 1.4 of the Development Program for the Development District. Section D Statement of Objectives See Section 1.5 of the Development Program for the Development District. Section E 3M Renovation and Retention Project Area Under the Special Law the City of Maplewood may create one or more tax increment districts within the Project Area. With the adoption of this TIF District, the City elects to create a new tax increment district on a newly platted parcel comprising a portion of the Project Area. Agenda Item H1 Attachment 3 Packet Page Number 160 of 275 City of Maplewood, Minnesota SPRINGSTED Page 2 Section F Designation of Tax Increment Financing District as a Redevelopment District As provided by the Special Law the requirements for qualifying redevelopment tax increment districts under Minnesota Statutes, Section 469.174, Subdivision 10, do not apply to the parcel, which is deemed eligible for inclusion in a redevelopment tax increment district. The proposed TIF District is eligible as a redevelopment district by virtue of being located on a newly platte d parcel within the boundaries of the Project Area as defined in Section E. Under the Special Law the 90 percent rule under Minnesota Statutes, Section 469.176, Subdivision 4j, does not apply to the Project Area. Section G Duration of the TIF District Redevelopment districts may remain in existence 25 years from the date of receipt of the first tax increment. The City anticipates that the TIF District will remain in existence the maximum duration allowed by law (projected to be though the year 2040). Modification of this plan (see Section AA) shall not extend these limitations. All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the City. Pursuant to MN Statutes, Section 469.175, Subdivision 1(b), the City elects to delay receipt of first increment until 2015. Section H Property to be Included in the TIF District The TIF District is an approximate 28.54-acre area of land located within the Project Area. A map showing the location of the TIF District within the Project Area is shown in Exhibit II. The boundaries and area encompassed by the TIF District are described below: Parcel Number Legal Description 36.29.22.24.0002* **The west 650.00 feet of the Southwest Quarter of the Northwest Quarter and the north 985.00 feet of the east 395.00 feet of the west 1045.00 feet of the Southwest Quarter of the Northwest Quarter all in Section 36, Township 29 North, Range 22 West, Ramsey County, Minnesota. The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above. *The parcel to be located in the TIF District is being replatted. The Parcel Number is representative of the parcel prior to the replatting. **The legal description provided for the TIF District is representative of the TIF District parcel following the replatting of the property. Section I Property to be Acquired in the TIF District The City may acquire and sell any or all of the property located within the TIF District; however, the City does not anticipate acquiring any such property at this time. Agenda Item H1 Attachment 3 Packet Page Number 161 of 275 City of Maplewood, Minnesota SPRINGSTED Page 3 Section J Specific Development Expected to Occur Within the TIF District The proposed project includes the development of a 400,000 square foot research and development facility (the “R&D Facility”) within the Project Area. The development will also include corresponding site work, infrastructure, and parking improvements associated with R&D Facility. The City anticipates using tax increment to reimburse 3M for a portion of the TIF eligible project costs occurred in the development of the R&D Facility. Included in the projected eligible costs to be reimbursed are costs associated with demolition of existing buildings, relocation of employees within buildings, site work, footings & foundations, private utility improvements, and other eligible improvements associated with the facility. Additionally, the City anticipates using tax increment to finance public improvements and site work on property located within the Project Area, along with related administrative expenses. Construction of the R&D Facility is expected to begin in 2013, and be completed by 2015. The R&D Facility is projected to be 100% assessed and on the tax rolls as of January 2, 2016 for taxes payable in 2017. At the time this document was prepared there were no signed construction contacts with regards to the above described development. Under the Special Law the expenditures outside district rule under Minnesota Statutes, section 469.1763, subdivision 2, does not apply; and tax increments can only be spent within the Project Area. Therefore costs eligible for TIF reimbursement may be incurred outside of the TIF District, but must be within the boundaries of the Project Area. Section K Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings: (1) The TIF District qualifies as a redevelopment district; See Section F of this document for the reasons and facts supporting this finding. (2) 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 and the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the TIF Plan. Factual basis: Proposed development not expected to occur: The development includes the construction of the R&D Facility. A key component to the development is the reimbursement of eligible expenses through tax increments. The company has indicated they would not undertake the proposed development without the financial assistance. Without the assistance the City has no reason to expect that significant reinvestment in the campus would occur without assistance similar to that provided in this plan. Therefore the City has no reason to believe the development would occur but-for the use of tax increment assistance. To summarize the basis for the City’s findings regarding alternative market value, in accordance with Minnesota Statutes, Section 469.175, Subd. 3(d), the City makes the following determinations: Agenda Item H1 Attachment 3 Packet Page Number 162 of 275 City of Maplewood, Minnesota SPRINGSTED Page 4 a. The City's estimate of the amount by which the market value of the site will increase without the use of tax increment financing is anywhere from $0 (except for a small amount for annual appreciation of land value) b. If the proposed development to be assisted with tax increment occurs in the District, the total increase in market value would be approximately $24,720,000, including the value of the building (See Exhibit II). Prior to the inclusion of a 2% market value inflator starting in 2014. 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 $11,794,711 (See Exhibit V) 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 $12,925,289 (the amount in clause b less the amount in clause c) without tax increment assistance. (3) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for development of the Project Area by private enterprise. Factual basis: The anticipated development of the project site is to include the construction of the R&D Facility. The Development will result in the retention of up to 700 high-paying jobs within the City. The development clearly meets the economic development goals of the City. (4) The TIF Plan conforms to general plans for development of the City as a whole. Factual basis: The City Planning Commission has determined that the development proposed in the TIF Plan conforms to the City comprehensive plan. (5) The City does not elect the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, Subdivision 3(b); therefore subdivision 3(a) shall apply which indicates the original net tax capacity and the current net tax capacity shall be determined before the application of the fiscal disparity provisions (see method (a) in Section P). Section L Estimated Public Costs The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax increments of the TIF District. Private TIF eligible improvements, including demolition, relocation, site improvements/preparation costs, related infrastructure and other eligible improvements $9,568,000 Bond/Note Interest Payments 10,102,178 Public site work/infrastructure costs and Administrative expenses 4,921,518 Other Expenditures 0 Total $24,591,696 The City reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost is not increased. The City reserves the right to spend available tax increment outside of the TIF District boundaries but within the Project Area. Agenda Item H1 Attachment 3 Packet Page Number 163 of 275 City of Maplewood, Minnesota SPRINGSTED Page 5 Section M Estimated Sources of Revenue Tax Increment revenue $24,591,696 Interest on invested funds 0 Bond proceeds 0 Loan proceeds 0 Grants 0 Other 0 Total $24,591,696 The City anticipates using future tax increments for reimbursement of public costs incurred from Section L. As increments are collected from the TIF District in future years, these tax increments will be reserved by the City as reimbursement for public costs incurred (primarily site work/infrastructure costs), either through internal funding or general obligation or revenue debt. The City also anticipates providing financial assistance to the proposed development through the use of pay-as-you-go financing. With pay-as-you-go financing, as tax increments are collected from the TIF District in future years, a portion of these tax increments will be distributed to the company as reimbursement for eligible costs incurred related to the development of the R&D Facility. The City reserves the right to finance any or all public costs of the TIF District using pay-as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The City also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section N Estimated Amount of Bonded Indebtedness The City may consider issuing tax increment bonds to finance all or a portion of the estimated public costs, and reserves the right to issue such bonds in an amount not to exceed $18,836,373 ($14,489,518 + 30% contingency). Section O Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. The parcel to be located within the TIF District is an approximately 28.54 acre area of land which is currently part of a larger 411 acre parcel. As a result the Estimated Market Value for the land within the TIF District as of January 2, 2013 for taxes payable in 2014, is not yet known. However, for purposes of the revenue projections in this TIF Plan, the City has assumed a pro-rata share of the land market value of the 411 acre parcel will be applied to the newly created parcel within the TIF District. Therefore the assumed original net tax capacity of the TIF District is $163,106. This assumes the property remains classified commercial/industrial. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements; or (4) changes in property classification rates. Agenda Item H1 Attachment 3 Packet Page Number 164 of 275 City of Maplewood, Minnesota SPRINGSTED Page 6 Section P Original Local Tax Rate The County Auditor shall also certify the original local tax rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of (a) the sum of the current local tax rates at that time or (b) the original local tax rate of the TIF District. At the time this document was prepared, the sum of the local tax rates that apply to property in the TIF District, for taxes levied in 2013 and payable in 2014, was not yet available. When this total becomes available, the County Auditor shall certify this amount as the original tax capacity rate of the TIF District. For purposes of estimating the tax increment generated by the TIF District, the sum of the local tax rates for taxes levied in 2012 and payable in 2013, is 157.971% as shown below. 2012/2013 Taxing Jurisdiction Local Tax Rate City of Maplewood 48.659% Ramsey County 65.240% ISD # 622 32.520% Other 11.520% Total 157.971% Section Q Projected Retained Captured Net Tax Capacity and Projected Tax Increment The City anticipates that development will be initiated in 2013, creating a total tax capacity for the TIF District No. 1- 12 of $283,106 as of January 2, 2014. The captured tax capacity as of that date is estimated to be $120,000 and the first-year of tax increment is estimated to be $189,565 payable in 2015. The first full year of increment is projected to be in $792,458 in taxes payable 2017. A complete schedule of estimated tax increment from the TIF District is shown in Exhibit IV. The estimates shown in this TIF Plan assume that commercial class rates remain at 1.5% for the first $150,000 of estimated market value and 2.0% of the market value above $150,000. The projections also assume a 2% annual increase in market values. Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. For communities affected by the fiscal disparity provisions of Minnesota Statutes, Chapter 473F and Chapter 276A, the original net tax capacity of the TIF District shall be determined before the application of fiscal disparity. In subsequent years, the current net tax capacity shall either (a) be determined before the application of fiscal disparity or (b) exclude the product of any fiscal disparity increase in the TIF District (since the original net tax capacity was certified) times the appropriate fiscal disparity ratio. The method the City elects shall remain the same for the life of the TIF District, except that a single change may be made at any time from method (a) to method (b) above. »The City elects method (a), or M.S. Section 469.177, Subdivision 3(a). The County Auditor shall certify to the City the amount of captured net tax capacity each year. The City may choose to retain any or all of this amount. It is the City's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Agenda Item H1 Attachment 3 Packet Page Number 165 of 275 City of Maplewood, Minnesota SPRINGSTED Page 7 Exhibit III gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit IV which shows the projected tax increment generated over the anticipated life of the TIF District. Section R Use of Tax Increment Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit IV shows the projected deduction for this purpose over the anticipated life of the TIF District. The City has determined that it will use 100% of the remaining tax increment generated by the TIF District for any of the following purposes: (1) pay for the estimated public costs of the TIF District (see Section K) and County administrative costs associated with the TIF District (see Section T); (2) pay principal and interest on tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the County Board under M.S. Section 469.175, Subdivision 1a; or (5) return excess tax increments to the County Auditor for redistribution to the City, County and School District. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless both county boards involved waive this requirement. Tax increments shall not be used to circumvent levy limitations applicable to the City. Tax increment shall not be used to finance the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the State or federal government, or for a commons area used as a public park, or a facility used for social, recreational, or conference purposes. This prohibition does not apply to the construction or renovation of a parking structure or of a privately owned facility for conference purposes. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at less than the cost of acquisition or fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. Section S Excess Tax Increment In any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the City shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; Agenda Item H1 Attachment 3 Packet Page Number 166 of 275 City of Maplewood, Minnesota SPRINGSTED Page 8 (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds; or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. Section T Tax Increment Pooling and the Ten Year Rule Under the Special Law the expenditures outside district rule under Minnesota Statutes, Section 469.1763 subdivision 2, does not apply; the five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is extended to ten years; and expenditures must only be made within the Project Area. Up to 10% of the tax increments may be spent on costs for eligible administrative expenses. Tax increments are considered to have been spent within the TIF District or project area if such amounts are: (1) actually paid to a third party for activities performed within the TIF District within ten years after certification of the district; (2) used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the ten-year period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund. (3) used to make payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which were entered into within ten years after certification of the district; or (4) used to reimburse a party for payment of eligible costs (including interest) incurred within ten years from certification of the district. Beginning with the eleventh year following certification of the TIF District, at least 90% of the tax increments must be used to pay outstanding bonds or make contractual payments obligated within the first ten years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the TIF District must be decertified. Section U Limitation on Administrative Expenses Administrative expenses are defined as all costs of the City other than: (1) amounts paid for the purchase of land; (2) amounts paid for materials and services, including architectural and engineering services directly connected with the physical development of the real property in the project; (3) relocation benefits paid to, or services provided for, persons residing or businesses located in the project; (4) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to section 469.178; or Agenda Item H1 Attachment 3 Packet Page Number 167 of 275 City of Maplewood, Minnesota SPRINGSTED Page 9 (5) amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clause (1) to (3). Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants, planning or economic development consultants, and actual costs incurred by the County in administering the TIF District. Tax increments may be used to pay administrative expenses of the TIF District up to the lesser of (a) 10% of the total tax increment expenditures authorized by the TIF Plan or (b) 10% of the total tax increments received by the TIF District. Section V Limitation on Property Not Subject to Improvements - One Year Rule Under the Special Law if after one year from the date of certification of the original net tax capacity of the tax increment district, no demolition, rehabilitation, or renovation of property has been commenced on a parcel located within the TIF District, no additional tax increment may be taken from that parcel, and the original net tax capacity of the parcel shall be excluded from the original net tax capacity of the TIF District. If 3M subsequently commences demolition, rehabilitation, or renovation, the City shall certify to the County Auditor that the activity has commenced, and the county auditor shall certify the net tax capacity thereof as most recently certified by the Commissioner of Revenue and add it to the original net tax capacity of the TIF District. The City must submit to the County Auditor evidence that the required activity has taken place for each parcel in the TIF District. Section W Estimated Impact on Other Taxing Jurisdictions Exhibit V shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The City believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes, Section 469.175, Subdivision 2, are listed below. 1. The total amount of tax increment that will be generated over the life of the TIF District is estimated to be $24,680,546. 2. To the extent the project in the TIF District generates any public cost impacts on City-provided services such as police and fire protection, public infrastructure, and the impact of any general obligation tax increment bonds attributable to the TIF District upon the ability to issue other debt for general fund purposes, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion captured by the TIF District. 3. The amount of tax increments over the life of the TIF 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 estimated to be $5,085,751. 4. The amount of tax increments over the life of the TIF 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 estimated to be $10,192,750. 5. No additional information has been requested by the County or School District that would enable it to determine additional costs that will accrue to it due to the development proposed for the district. Agenda Item H1 Attachment 3 Packet Page Number 168 of 275 City of Maplewood, Minnesota SPRINGSTED Page 10 Section X Prior Planned Improvements The City shall accompany its request for certification to the County Auditor (or notice of district enlargement), with a listing of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. Section Y Development Agreements If within a project containing a redevelopment district, more than 25% of the acreage of the property to be acquired by the City is purchased with tax increment bonds proceeds (to which tax increment from the property is pledged), then prior to such acquisition, the City must enter into an agreement for the development of the property. Such agreement must provide recourse for the City should the development not be completed. The City anticipates entering into an agreement for development, but does not anticipate acquiring property located within the TIF District. Section Z Assessment Agreements The City may, upon entering into a development agreement, also enter into an assessment agreement with the developer, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The assessment agreement shall be presented to the County or City Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land, and so long as the minimum market value contained in the assessment agreement appears to be an accurate estimate, shall certify the assessment agreement as reasonable. The assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is located. Any modification or premature termination of this agreement must first be approved by the City, County and School District. The City does not anticipate entering into an assessment agreement, however it reserves the right to enter into an assessment agreement for individual projects. Section AA Modifications of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Development District or the TIF District; a determination to capitalize interest on the debt if that determination was not part of the original TIF Plan, increase in the portion of the captured net tax capacity to be retained by the City; increase in the total estimated public costs; or designation of property to be acquired by the City shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: (1) the only modification is elimination of parcels from the TIF District; and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity, or the City agrees that the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. Agenda Item H1 Attachment 3 Packet Page Number 169 of 275 City of Maplewood, Minnesota SPRINGSTED Page 11 The City must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section AB Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the City shall submit a copy of such plan to the Minnesota Department of Revenue and the Office of the State Auditor. The City shall also request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, t he City shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. The City shall also send the County Assessor any assessment agreement establishing the minimum market value of land and improvements in the TIF District, and shall request that the County Assessor review and certify this assessment agreement as reasonable. The County shall distribute to the City the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained captured net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation of property values, or changes in property classification rates or formulas. In administering and implementing the TIF Plan, the following actions should occur on an annual basis: (1) prior to July 1, the City shall notify the County Assessor of any new development that has occurred in the TIF District during the past year to insure that the new value will be recorded in a timely manner. (2) if the County Auditor receives the request for certification of a new TIF District, or for modification of an existing TIF District, before July 1, the request shall be recognized in determining local tax rates for the current and subsequent levy years. Requests received on or after July 1 shall be used to determine local tax rates in subsequent years. (3) each year the County Auditor shall certify the amount of the original net tax capacity of the TIF District. The amount certified shall reflect any changes that occur as a result of the following: (a) the value of property that changes from tax-exempt to taxable shall be added to the original net tax capacity of the TIF District. The reverse shall also apply; (b) the original net tax capacity may be modified by any approved enlargement or reduction of the TIF District; (c) if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes, then the resulting increase or decrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District. The County Auditor shall notify the City of all changes made to the original net tax capacity of the TIF District. Section AC Filing TIF Plan, Financial Reporting and Disclosure Requirements The City will file the TIF Plan, and any subsequent amendments thereto, with the Commissioner of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes, Section 469.175, subdivision 4A. The City will comply with all reporting requirements for the TIF District under Minnesota Statutes, Section 469.175, subdivisions 5 and 6. Agenda Item H1 Attachment 3 Packet Page Number 170 of 275 Exhibit II SPRINGSTED Page 12 MAP OF TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 1-12 Within Development District No. 1 Agenda Item H1 Attachment 3 Packet Page Number 171 of 275 Exhibit II SPRINGSTED Page 13 MAP OF TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 1-12 Within 3M Renovation and Retention Project Area Agenda Item H1 Attachment 3 Packet Page Number 172 of 275 Exhibit III SPRINGSTED Page 14 Assumptions Report City of Maplewood, Minnesota Tax Increment Financing (Redevelopment) District No. 1-12 Proposed 3M Redevelopment Project R&D Facility Type of Tax Increment Financing District Redevelopment Maximum Duration of TIF District 25 years from 1st increment Projected Certification Request Date 07/23/13 Decertification Date 12/31/40 (26 Years of Increment) 2012/2013 Base Estimated Market Value $8,155,288 Original Net Tax Capacity $163,106 Assessment/Collection Year 2012/2013 2013/2014 2014/2015 2015/2016 Base Estimated Market Value $8,155,288 $8,155,288 $8,155,288 $8,155,288 Estimated Increase in Value - New Construction 0 0 6,000,000 12,120,000 Total Estimated Market Value 8,155,288 8,155,288 14,155,288 20,275,288 Total Net Tax Capacity $163,106 $163,106 $283,106 $405,506 City of Maplewood 48.659% Ramsey County 65.240% ISD #622 32.552% Other 11.520% Local Tax Capacity Rate 157.971%2012/2013 Fiscal Disparities Contribution From TIF District 0.0000% Administrative & Pooling Retainage Percent 20.00% Bonds Note (Pay-As-You-Go) Bonds Dated NA Note Dated 06/30/13 Bond Rate NA Note Rate 5.00% Bond Amount NA Note Amount $9,568,000 Present Value Date & Rate 12/01/13 5.00%PV Amount $9,518,467 Notes Projections assume no future changes to classification rates and current tax rates remain constant, and a 2% market value inflator. Projections are based on EMV growth of $24.72M. Constructed between 2013-2015. Agenda Item H1 Attachment 3 Packet Page Number 173 of 275 Exhibit IV SPRINGSTED Page 15 Projected Tax Increment Report City of Maplewood, Minnesota Tax Increment Financing (Redevelopment) District No. 1-12 Proposed 3M Redevelopment Project R&D Facility Less: Less: Retained Times:Less:Total Annual Annual Incremental Total Original Fiscal Captured Tax Annual State Aud. Subtotal City Pooling Net Period Market Net Tax Net Tax Disp. @ Net Tax Capacity Gross Tax Deduction Net Tax Retainage Revenue Ending Value Capacity Capacity 0.0000% Capacity Rate Increment 0.360% Increment 20.00%80% (1) (2) (3) (4) (5) (6) (7) (10) (11) (12) (13)(14) 12/31/15 6,000,000 283,106 163,106 0 120,000 157.971% 189,565 682 188,883 37,777 151,106 12/31/16 12,120,000 405,506 163,106 0 242,400 157.971% 382,922 1,379 381,543 76,309 305,234 12/31/17 25,082,400 664,754 163,106 0 501,648 157.971% 792,458 2,853 789,605 157,921 631,684 12/31/18 25,584,048 674,787 163,106 0 511,681 157.971% 808,308 2,910 805,398 161,080 644,318 12/31/19 26,095,729 685,020 163,106 0 521,915 157.971% 824,474 2,968 821,506 164,301 657,205 12/31/20 26,617,644 695,459 163,106 0 532,353 157.971% 840,963 3,027 837,936 167,587 670,349 12/31/21 27,149,996 706,106 163,106 0 543,000 157.971% 857,782 3,088 854,694 170,939 683,755 12/31/22 27,692,996 716,966 163,106 0 553,860 157.971% 874,938 3,150 871,788 174,358 697,430 12/31/23 28,246,856 728,043 163,106 0 564,937 157.971% 892,437 3,213 889,224 177,845 711,379 12/31/24 28,811,793 739,342 163,106 0 576,236 157.971% 910,286 3,277 907,009 181,402 725,607 12/31/25 29,388,029 750,866 163,106 0 587,761 157.971% 928,491 3,343 925,148 185,030 740,118 12/31/26 29,975,790 762,622 163,106 0 599,516 157.971% 947,061 3,409 943,652 188,730 754,922 12/31/27 30,575,306 774,612 163,106 0 611,506 157.971% 966,002 3,478 962,524 192,505 770,019 12/31/28 31,186,812 786,842 163,106 0 623,736 157.971% 985,322 3,547 981,775 196,355 785,420 12/31/29 31,810,548 799,317 163,106 0 636,211 157.971% 1,005,029 3,618 1,001,411 200,282 801,129 12/31/30 32,446,759 812,041 163,106 0 648,935 157.971% 1,025,129 3,690 1,021,439 204,288 817,151 12/31/31 33,095,694 825,020 163,106 0 661,914 157.971% 1,045,632 3,764 1,041,868 208,374 833,494 12/31/32 33,757,608 838,258 163,106 0 675,152 157.971% 1,066,545 3,840 1,062,705 212,541 850,164 12/31/33 34,432,760 851,761 163,106 0 688,655 157.971% 1,087,876 3,916 1,083,960 216,792 867,168 12/31/34 35,121,415 865,534 163,106 0 702,428 157.971% 1,109,633 3,995 1,105,638 221,128 884,510 12/31/35 35,823,844 879,583 163,106 0 716,477 157.971% 1,131,826 4,075 1,127,751 225,550 902,201 12/31/36 36,540,321 893,912 163,106 0 730,806 157.971% 1,154,462 4,156 1,150,306 230,061 920,245 12/31/37 37,271,127 908,528 163,106 0 745,423 157.971% 1,177,551 4,239 1,173,312 234,662 938,650 12/31/38 38,016,550 923,437 163,106 0 760,331 157.971% 1,201,102 4,324 1,196,778 239,356 957,422 12/31/39 38,776,880 938,643 163,106 0 775,538 157.971% 1,225,125 4,410 1,220,715 244,143 976,572 12/31/40 39,552,418 954,154 163,106 0 791,048 157.971% 1,249,627 4,499 1,245,128 249,026 996,102 $24,680,546 $88,850 $24,591,696 $4,918,342 $19,673,354 NPV: $2,379,619 Agenda Item H1 Attachment 3 Packet Page Number 174 of 275 Exhibit V SPRINGSTED Page 16 Estimated Impact on Other Taxing Jurisdictions Report City of Maplewood, Minnesota Tax Increment Financing (Redevelopment) District No. 1-12 Proposed 3M Redevelopment Project R&D Facility Without Project or TIF District With Project and TIF District Final Projected Hypothetical 2012/2013 2012/2013 Retained New Hypothetical Hypothetical Tax Generated Taxable 2012/2013 Taxable Captured Taxable Adjusted Decrease In by Retained Taxing Net Tax Local Net Tax Net Tax Net Tax Local Local Captured Jurisdiction Capacity (1) Tax Rate Capacity (1) + Capacity = Capacity Tax Rate (*) Tax Rate (*) N.T.C. (*) City of Maplewood 31,936,556 48.659% 31,936,556 $791,048 32,727,604 47.483% 1.176% 375,613 Ramsey County 367,782,031 65.240% 367,782,031 791,048 368,573,079 65.100% 0.140% 514,972 ISD #622 62,433,416 32.552% 62,433,416 791,048 63,224,464 32.145% 0.407% 254,280 Other (2)--- 11.520% --- 791,048 --- 11.520% --- --- Totals 157.971%156.248% 1.723% * Statement 1: If the projected Retained Captured Net Tax Capacity of the TIF District was hypothetically available to each of the taxing jurisdictions above, the result would be a lower local tax rate (see Hypothetical Adjusted Tax Rate above) which would produce the same amount of taxes for each taxing jurisdiction. In such a case, the total local tax rate would decrease by 1.723% (see Hypothetical Decrease in Local Tax Rate above). The hypothetical tax that the Retained Captured Net Tax Capacity of the TIF District would generate is also shown above. Statement 2: Since the projected Retained Captured Net Tax Capacity of the TIF District is not available to the taxing jurisdictions, then there is no impact on taxes levied or local tax rates. (1) Taxable net tax capacity = total net tax capacity - captured TIF - fiscal disparity contribution, if applicable. (2) The impact on these taxing jurisdictions is negligible since they represent only 7.29% of the total tax rate. Agenda Item H1 Attachment 3 Packet Page Number 175 of 275 Exhibit VI SPRINGSTED Market Value Analysis Report City of Maplewood, Minnesota Tax Increment Financing (Redevelopment) District No. 1-12 Proposed 3M Redevelopment Project R&D Facility Assumptions Present Value Date 06/30/13 P.V. Rate - Gross T.I.5.00% Increase in EMV With TIF District $24,720,000 Less: P.V of Gross Tax Increment 11,794,711 Subtotal $12,925,289 Less: Increase in EMV Without TIF 0 Difference $12,925,289 Annual Present Gross Tax Value @ Year Increment 5.00% 1 2015 189,565 169,834 2 2016 382,922 326,728 3 2017 792,458 643,966 4 2018 808,308 625,568 5 2019 824,474 607,694 6 2020 840,963 590,331 7 2021 857,782 573,464 8 2022 874,938 557,080 9 2023 892,437 541,163 10 2024 910,286 525,702 11 2025 928,491 510,681 12 2026 947,061 496,090 13 2027 966,002 481,916 14 2028 985,322 468,147 15 2029 1,005,029 454,772 16 2030 1,025,129 441,778 17 2031 1,045,632 429,156 18 2032 1,066,545 416,895 19 2033 1,087,876 404,983 20 2034 1,109,633 393,412 21 2035 1,131,826 382,172 22 2036 1,154,462 371,253 23 2037 1,177,551 360,645 24 2038 1,201,102 350,341 25 2039 1,225,125 340,332 26 2040 1,249,627 330,608 $24,680,546 $11,794,711 Agenda Item H1 Attachment 3 Packet Page Number 176 of 275 Exhibit VII SPRINGSTED City of Maplewood, Minnesota Tax Increment Financing (Redevelopment) District No. 1-12 Proposed 3M Redevelopment Project R&D Facility Note Date: 06/30/13 Note Rate:5.00% Amount: $9,568,000 Cumulative Unpaid Semi-Annual Loan Interest Accrued Net Balance Date Principal Interest P & I Due Interest Revenue Outstanding (1)(2)(3)(4)(5)(6)(7)(8) 9,568,000.00 08/01/13 0.00 0.00 0.00 41,195.56 41,195.56 0.00 9,568,000.00 02/01/14 0.00 0.00 0.00 280,395.56 280,395.56 0.00 9,568,000.00 08/01/14 0.00 0.00 0.00 519,595.56 519,595.56 0.00 9,568,000.00 02/01/15 0.00 0.00 0.00 758,795.56 758,795.56 0.00 9,568,000.00 08/01/15 0.00 75,553.00 75,553.00 997,995.56 922,442.56 75,553.00 9,568,000.00 02/01/16 0.00 75,553.00 75,553.00 1,161,642.56 1,086,089.56 75,553.00 9,568,000.00 08/01/16 0.00 152,617.00 152,617.00 1,325,289.56 1,172,672.56 152,617.00 9,568,000.00 02/01/17 0.00 152,617.00 152,617.00 1,411,872.56 1,259,255.56 152,617.00 9,568,000.00 08/01/17 0.00 315,842.00 315,842.00 1,498,455.56 1,182,613.56 315,842.00 9,568,000.00 02/01/18 0.00 315,842.00 315,842.00 1,421,813.56 1,105,971.56 315,842.00 9,568,000.00 08/01/18 0.00 322,159.00 322,159.00 1,345,171.56 1,023,012.56 322,159.00 9,568,000.00 02/01/19 0.00 322,159.00 322,159.00 1,262,212.56 940,053.56 322,159.00 9,568,000.00 08/01/19 0.00 328,602.50 328,602.50 1,179,253.56 850,651.06 328,602.50 9,568,000.00 02/01/20 0.00 328,602.50 328,602.50 1,089,851.06 761,248.56 328,602.50 9,568,000.00 08/01/20 0.00 335,174.50 335,174.50 1,000,448.56 665,274.06 335,174.50 9,568,000.00 02/01/21 0.00 335,174.50 335,174.50 904,474.06 569,299.56 335,174.50 9,568,000.00 08/01/21 0.00 341,877.50 341,877.50 808,499.56 466,622.06 341,877.50 9,568,000.00 02/01/22 0.00 341,877.50 341,877.50 705,822.06 363,944.56 341,877.50 9,568,000.00 08/01/22 0.00 348,715.00 348,715.00 603,144.56 254,429.56 348,715.00 9,568,000.00 02/01/23 0.00 348,715.00 348,715.00 493,629.56 144,914.56 348,715.00 9,568,000.00 08/01/23 0.00 355,689.50 355,689.50 384,114.56 28,425.06 355,689.50 9,568,000.00 02/01/24 88,064.44 267,625.06 355,689.50 267,625.06 0.00 355,689.50 9,479,935.56 08/01/24 125,805.11 236,998.39 362,803.50 236,998.39 0.00 362,803.50 9,354,130.45 02/01/25 128,950.24 233,853.26 362,803.50 233,853.26 0.00 362,803.50 9,225,180.21 08/01/25 139,429.49 230,629.51 370,059.00 230,629.51 0.00 370,059.00 9,085,750.72 02/01/26 142,915.23 227,143.77 370,059.00 227,143.77 0.00 370,059.00 8,942,835.49 08/01/26 153,890.11 223,570.89 377,461.00 223,570.89 0.00 377,461.00 8,788,945.38 02/01/27 157,737.37 219,723.63 377,461.00 219,723.63 0.00 377,461.00 8,631,208.01 08/01/27 169,229.30 215,780.20 385,009.50 215,780.20 0.00 385,009.50 8,461,978.71 02/01/28 173,460.03 211,549.47 385,009.50 211,549.47 0.00 385,009.50 8,288,518.68 08/01/28 185,497.03 207,212.97 392,710.00 207,212.97 0.00 392,710.00 8,103,021.65 02/01/29 190,134.46 202,575.54 392,710.00 202,575.54 0.00 392,710.00 7,912,887.19 08/01/29 202,742.32 197,822.18 400,564.50 197,822.18 0.00 400,564.50 7,710,144.87 02/01/30 207,810.88 192,753.62 400,564.50 192,753.62 0.00 400,564.50 7,502,333.99 08/01/30 221,017.15 187,558.35 408,575.50 187,558.35 0.00 408,575.50 7,281,316.84 02/01/31 226,542.58 182,032.92 408,575.50 182,032.92 0.00 408,575.50 7,054,774.26 08/01/31 240,377.64 176,369.36 416,747.00 176,369.36 0.00 416,747.00 6,814,396.62 02/01/32 246,387.08 170,359.92 416,747.00 170,359.92 0.00 416,747.00 6,568,009.54 08/01/32 260,881.76 164,200.24 425,082.00 164,200.24 0.00 425,082.00 6,307,127.78 02/01/33 267,403.81 157,678.19 425,082.00 157,678.19 0.00 425,082.00 6,039,723.97 08/01/33 282,590.90 150,993.10 433,584.00 150,993.10 0.00 433,584.00 5,757,133.07 02/01/34 289,655.67 143,928.33 433,584.00 143,928.33 0.00 433,584.00 5,467,477.40 08/01/34 305,568.06 136,686.94 442,255.00 136,686.94 0.00 442,255.00 5,161,909.34 02/01/35 313,207.27 129,047.73 442,255.00 129,047.73 0.00 442,255.00 4,848,702.07 08/01/35 329,882.95 121,217.55 451,100.50 121,217.55 0.00 451,100.50 4,518,819.12 02/01/36 338,130.02 112,970.48 451,100.50 112,970.48 0.00 451,100.50 4,180,689.10 08/01/36 355,605.27 104,517.23 460,122.50 104,517.23 0.00 460,122.50 3,825,083.83 02/01/37 364,495.40 95,627.10 460,122.50 95,627.10 0.00 460,122.50 3,460,588.43 08/01/37 382,810.29 86,514.71 469,325.00 86,514.71 0.00 469,325.00 3,077,778.14 02/01/38 392,380.55 76,944.45 469,325.00 76,944.45 0.00 469,325.00 2,685,397.59 08/01/38 411,576.06 67,134.94 478,711.00 67,134.94 0.00 478,711.00 2,273,821.53 02/01/39 421,865.46 56,845.54 478,711.00 56,845.54 0.00 478,711.00 1,851,956.07 08/01/39 441,987.10 46,298.90 488,286.00 46,298.90 0.00 488,286.00 1,409,968.97 02/01/40 453,036.78 35,249.22 488,286.00 35,249.22 0.00 488,286.00 956,932.19 08/01/40 474,127.70 23,923.30 498,051.00 23,923.30 0.00 498,051.00 482,804.49 02/01/41 482,804.49 12,070.11 494,874.60 12,070.11 0.00 494,874.60 0.00 $9,568,000 $10,102,177.60 $19,670,177.60 $24,499,080.36 $14,396,902.76 $19,670,177.60 Surplus Tax Increment 3,176.40 Total Net Revenue $19,673,354.00 Projected Pay-As-You-Go Note Report Agenda Item H1 Attachment 3 Packet Page Number 177 of 275 5536499v1 MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 CITY OF MAPLEWOOD, MINNESOTA Draft: July 22, 2013 This document was drafted by: BRIGGS AND MORGAN, Professional Association 2200 West First National Bank Building 332 Minnesota Street St. Paul, Minnesota 55101 Financial Information Springsted Incorporated provided by: 380 Jackson Street, Suite 300 St. Paul, Minnesota 55101 Agenda Item H1 Attachment 4 Packet Page Number 178 of 275 TABLE OF CONTENTS Page i SECTION I DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 ................................................................................................................ 3 1.1. Definitions.............................................................................................................. 3 1.2. Statement of Public Purpose .................................................................................. 4 1.3. Statutory Authority ................................................................................................ 5 1.4. Statement of Need .................................................................................................. 6 1.5. Statement of Objectives ......................................................................................... 6 1.6. Boundaries of Development District ..................................................................... 7 1.7. Development Activities ......................................................................................... 7 1.8. Payment of Project Cost......................................................................................... 9 1.9. Environmental Controls ......................................................................................... 9 1.10. Park and Open Space to be Created ....................................................................... 9 1.11. Proposed Reuse of Property ................................................................................. 10 1.12. Administration and Maintenance of Development District ................................. 10 1.13. Rehabilitation ....................................................................................................... 10 1.14. Relocation ............................................................................................................ 10 1.15. Parcels To Be Acquired In Whole or In Part Within the Development District.................................................................................................................. 10 1.16. Amendments ........................................................................................................ 11 1.17. Development Activity in the Development District for which Contracts Have Been Signed ................................................................................................ 11 1.18. Other Specific Development Expected to Occur Within The Development District.................................................................................................................. 12 Exhibit A Boundaries of Development District No. 1 .................................................. A-1 Agenda Item H1 Attachment 4 Packet Page Number 179 of 275 5536499v1 MUNICIPAL ACTION TAKEN Based upon the statutory authority described in the Modified Development Program attached hereto, the public purpose findings by the City Council and for the purpose of fulfilling the City's development objectives as set forth in the Modified Development Program, the City Council has created, established and designated Development District No. 1 pursuant to and in accordance with the requirements of Minnesota Statutes, Section 469.126. The following municipal action was taken in connection therewith: October 28, 1985: The Program for Development District No. 1 was adopted by the City Council. June 23, 1986: The Program for Development District No. 1 was modified by modifying the Project Costs. September 28, 1987: The Program for Development District No. 1 was modified by enlargement of the geographic Project Area and increased Project Costs. January 11, 1988: The Program for Development District No. 1 was modified by modifying the Project Costs. May 8, 1989: The Program for Development District No. 1 was modified by modifying the Project Costs. October 9, 1989: The Program for Development District No. 1 was modified by modifying the Project Costs. April 23, 1990: The Program for Development District No. 1 was modified by modifying the Project Costs. December 23, 1991: The Program for Development District No. 1 was modified by modifying the Project Costs. February 10, 1992: The Program for Development District No. 1 was modified by modifying the Project Costs. May 24, 1993: The Program for Development District No. 1 was modified by modifying the Project Costs. May 8, 1995: The Program for Development District No. 1 was modified by modifying the Project Costs. June 28, 1999: The Program for Development District No. 1 was modified by enlargement of the geographic Project Area and increased Project Costs. August 13, 2001: The Program for Development District No. 1 was modified by increased Project Costs. Agenda Item H1 Attachment 4 Packet Page Number 180 of 275 5536499v1 2 May 12, 2003: The Program for Development District No. 1 was modified by increased Project Costs. June 23, 2003: The Program for Development District No. 1 was modified by increased Project Costs and the Tax Increment Financing Plan for Housing District No. 1-8 within Development District No. 1 was adopted. August 25, 2008: The Program for Development District No. 1 was modified by increased Project Costs and the Tax Increment Financing Plan for Housing District No. 1-9 within Development District No. 1 was adopted. August 9, 2010: The program for Development District No. 1 was modified by increased Project Costs and the Tax Increment Financing Plan for Housing District No. 1-10 within Development District No. 1 was adopted. April 25, 2011: The program for Development District No. 1 was modified by increased Project Costs and the Tax Increment Financing Plan for Economic Development District No. 1- 11 within Development District No. 1 was adopted. July 22, 2013: The program for Development District No. 1 was modified by increased Project Costs and the Tax Increment Financing Plan for Redevelopment District No. 1-12 within Development District No. 1 was adopted. Agenda Item H1 Attachment 4 Packet Page Number 181 of 275 5536499v1 3 SECTION I DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 1.1. Definitions. The terms defined below have, for purposes of this Development Program, the meanings herein specified, unless the context specifically requires otherwise: "City" means the City of Maplewood, a municipal corporation and political subdivision of the State of Minnesota. The City has a Statutory City Plan A form of government. "Comprehensive Plan" means the City's Comprehensive Plan submitted to the Metropolitan Council pursuant to Minnesota Statutes, 473.173, which contains the objectives, policies, standards and programs to guide public and private land use, development, redevelopment and preservation for all lands and water within the City. "Council" means the City Council of the City, also referred to as the governing body. (See "Governing Body" below.) "County" means the County of Ramsey, Minnesota. "Development District Act" means the statutory provisions of Minnesota Statutes, Sections 469.124 through 469.134, as amended and supplemented. "Development District" means Development District No. 1 in the City, which is created and established hereto pursuant to and in accordance with the Development District Act, and is geographically described in Exhibit A. "Development Program" means this Development Program for Development District No. 1, initially adopted by the Council on October 28, 1985 and modified on June 23, 1986, September 28, 1987, January 11, 1988, May 8, 1989, October 9, 1989, April 23, 1990, December 23, 1991, February 10, 1992, May 24, 1993, May 8, 1995, June 28, 1999, August 13, 2001, May 12, 2003, June 23, 2003, August 25, 2008, August 9, 2010, April 25, 2011, and July 22, 2013. As defined in Minnesota Statutes, Section 469.125, Subd. 3, a development program is a statement of objectives of the City for improvement of a development district which contains a complete statement as to the public facilities to be constructed within the district, the open space to be created, the environmental controls to be applied, the proposed reuse of private property and the proposed operations of the district after the capital improvements within the district have been completed. "Economic Development District" means a type of tax increment financing district which consists of any project, or portions of a project, not meeting the requirements found in the definition of redevelopment district, renewal and renovation district, soils condition district, mined underground space development district, or housing district, but which the City finds to be in the public interest because: Agenda Item H1 Attachment 4 Packet Page Number 182 of 275 5536499v1 4 (a) It will discourage commerce, industry or manufacturing from moving their operations to another municipality; or (b) It will result in increased employment in the state; or (c) It will result in preservation and enhancement of the tax base of the state. "Governing Body" means the duly elected City Council as defined in Minnesota Statutes, Section 469.125, Subd. 8. "Housing District" means a type of tax increment financing district which consists of a project, or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income, as defined in chapter 462A, Title II of the National Housing Act of 1937, as amended, Title V of the Housing Act of 1949, as amended, any other similar present or future federal, state, or municipal legislation, or the regulations promulgated under any of those acts, as defined in Minnesota Statutes, Section 469.174, subd. 11. "Municipal Industrial Development Act" means the statutory provisions of Minnesota Statutes, Sections 469.152 through 469.165, as amended. "Municipality" means any city, however organized as defined in Minnesota Statutes, Section 469.125, Subd. 2. "3M Renovation and Retention Project Area" means the land identified as Parcel 362922240002. "State" means the State of Minnesota. "Tax Increment Bonds" means any general obligation or revenue tax increment bonds issued and to be issued by the City to finance the project costs associated with Development District No. 1 as stated in the Development Program and in the Tax Increment Financing Plan for the Tax Increment Financing Districts within Development District No. 1. The term "Tax Increment Bonds" shall also include any obligations issued to refund the Tax Increment Bonds. "Tax Increment Financing District" means any tax increment financing district presently established or to be established in the future in Development District No. 1. "Tax Increment Financing Act" means the statutory provisions of Minnesota Statutes, Sections 469.174 through 469.1794, inclusive, as amended. "Tax Increment Financing Plan" means the respective Tax Increment Financing Plan for each Tax Increment Financing District located within the Development District. 1.2. Statement of Public Purpose. The Council (the "Council") in and for the City of Maplewood, Minnesota (the "City") has determined that there is a need for housing, development and redevelopment within the corporate limits of the City to provide employment opportunities, to enhance development opportunities for the private sector, to improve the tax base and to improve the general economy of the City, the County of Ramsey and the State of Agenda Item H1 Attachment 4 Packet Page Number 183 of 275 5536499v1 5 Minnesota. It is found that there are certain parcels of property within the Development District which are potentially more useful, productive and valuable than is being realized under existing conditions, is less productive because of the lack of proper utilization, and, therefore, are not contributing to the tax base of the City to their full potential. In addition, it is hereby found that there is a need for public improvements to encourage development. Therefore, the City has determined to exercise its authority to develop a program for improving the Development District of the City to provide impetus for private development, to maintain and increase employment, to utilize existing potential and to provide other facilities as are outlined in the Development Program adopted by the City. The Council has also determined that the proposed developments would not occur solely through private investment in the foreseeable future; that the tax increment financing plans proposed herein are consistent with the Development Program; and that the tax increment financing plans will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the development or redevelopment of the Development District by private enterprise. The Council finds that the welfare of the City as well as the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce to carry out its stated public purpose objectives. 1.3. Statutory Authority. The Development District Act, authorizes the City, upon certain public purpose findings by the Council, to establish and designate development districts within the City and to establish, develop and administer development programs in regard thereto, all for the purpose of creating funding for the financing of necessary activities and improvements within the City. In accordance with the purposes set forth in Section 469.124 of the Development District Act, the Council hereby establishes Development District No. 1, as described in Exhibit A, for the purposes of enhancing the environment in which existing businesses are located, thus helping to secure their continued existence and potential additional development within the City, and promoting new and ongoing development in Development District No. 1, both of which will provide employment opportunities, improve the tax base of the City and contribute positively to the economy of the State. The Tax Increment Financing Act, provides the procedure for the establishment of tax increment districts for the use of tax increment financing authorized by the Development District Act for the funding of qualified public activities and improvements. Within the Development District, the City has established ten housing districts as the types of tax increment financing district described in Section 469.174, Subd. 11 for Housing District No. 1-1, Housing District No. 1-2, Housing District No. 1-3, Housing District No. 1-4, Housing District No. 1-5, Housing District No. 1-6, Housing District No. 1-7, Housing District No. 1-8, Housing District No. 1-9, and Housing District No. 1-10. The City has established six economic development districts as the types of tax increment financing district described in Section 469.174, Subd. 12 for Economic Development District No. 1-1, Economic Development Agenda Item H1 Attachment 4 Packet Page Number 184 of 275 5536499v1 6 District No. 1-2, Economic Development District No. 1-3, Economic Development District No. 1-4, Economic Development District No. 1-5, and Economic Development District No. 1-11, and a redevelopment district as permitted under Minnesota Laws, 2013, Chapter 143, Article 9, Section 21. 1.4. Statement of Need. The Development District is established by the City of Maplewood for the purpose of promoting the redevelopment of existing commercial areas and the development of new business opportunities within the community. The City has found that the area within the Development District has not realized its greatest development potential due to a variety of factors. Included in the development barriers identified by the City are: inadequate public improvements, improper land use and utilization, and lack of investment. The City has found that the creation of the Development District and the utilization of tax increment financing is needed to remove these barriers and to promote development of the community. 1.5. Statement of Objectives. The Council determines that it is necessary, desirable and in the public interest to establish the Development District in the City, pursuant to the authority of the Development District Act. The Council finds that the creation of the Development District is necessary to give the City the ability to meet certain public purpose objectives that would not be otherwise obtainable in the foreseeable future without intervention by the City in the normal development process. The City intends to satisfy the following objectives through the implementation of the Development Program: (a) To provide safe, decent, sanitary housing for all residents of the city and in particular low and moderate income residents. (b) To provide an adequate housing supply for all residents at a cost they can afford. (c) To provide housing choices for low and moderate income residents who find housing opportunities are not available to them because of economic conditions. (d) To provide project activities which will assist in making possible the construction of a planned apartment for low and moderate income residents, as well, as improving health, welfare and convenience of citizens residing in the Development District. (e) Provide for the financing and construction of public improvements, including recreational and community center facilities, in the Development District, necessary for the orderly and beneficial development of the Development District and adjacent areas of the City and the provision of adequate City services to the City residents. (f) Promote and secure the prompt development of certain property in the Development District, which property is not now in productive use or in its highest and best use, in a manner consistent with the City's Comprehensive Plan and with a minimum adverse impact on the environment, and thereby promote and secure the development of other land in the City. Agenda Item H1 Attachment 4 Packet Page Number 185 of 275 5536499v1 7 (g) Promote and secure additional employment opportunities within the Development District and the City for residents of the City and the surrounding area, thereby improving living standards, reducing unemployment and the loss of skilled and unskilled labor and other human resources in the City. (h) Secure the increase of property subject to taxation by the City, Independent School Districts Nos. 622, 623 and 624, Northwest Metropolitan Intermediate District No. 916, Ramsey County, and other taxing jurisdictions in order to better enable such entities to pay for governmental services and programs required to be provided by them. (i) Promote the concentration of new desirable residential, commercial, office, restaurant, and other appropriate development in the Development District so as to maintain the area in a manner compatible with its accessibility and prominence in the City. (j) Encourage local business expansion, improvement and development, whenever possible. (k) Create a desirable and unique character within the Development District through quality land use alternatives and design quality in new and remodeled buildings. (l) Encourage and provide maximum opportunity for private redevelopment of existing areas and structures which are compatible with the Development Program. 1.6. Boundaries of Development District. The area within the Development District is set forth in Exhibit A. 1.7. Development Activities. Development activities within the Development District must be financially feasible, marketable and be compatible with long range development strategies of the City. The following recommendations represent the options that satisfy community development objectives for the Development District while taking advantage of opportunities which are currently available. The City will perform all project activities pursuant to the statute and in doing so, anticipates that the following may, but are not required to be undertaken: (a) The making of studies, planning, and informal activities relating to the Development Program. (b) The implementation and administration of the Development Program. (c) The construction or reconstruction of streets, sidewalks, utilities, and other public improvements including but not limited to: (1) the construction of street, water and sewer improvements on Southlawn Drive from Beam Avenue to County Road D; (2) the construction of street, water and sewer improvements on McKnight Road from Highway 36 to Conway Avenue; Agenda Item H1 Attachment 4 Packet Page Number 186 of 275 5536499v1 8 (3) the construction of a water tower on Stillwater Road east of Sterling; (4) the construction of water main on Hudson place; (5) the installation of traffic lights at Hazelwood Avenue and Southlawn Avenue on Beam Avenue. (6) acquisition of land and improvement of Hazelwood Park located at County Road C east of Hazelwood Avenue; (7) improvement of Playcrest Park located at Lydia Avenue and McKnight Road; (8) acquisition, expansion and improvement of Harvest Park located at Hazelwood Avenue south of County Road C and North of Highway 36; (9) the construction of water, street, sanitary sewer and storm sewer improvements within an area North of Beam Avenue, South of the Northern City limit, East of Highway 61 and West of White Bear Avenue; (10) acquisition of the abandoned Burlington Northern railroad right of way running from Larpenteur Street to Highway 694; (11) acquisition of the land that the Cottages of Maplewood will be developed on and the payment of certain site improvements for the Cottages of Maplewood project; (12) acquisition and betterment of a city recreational and community center facility; (13) improvement of Sherwood Park located at Hazelwood and Cope Avenues; (14) improvement of Afton Heights Park, Geranium Park, Gethsemane Park, Gladstone Park, Goodrich Park, Hillside Park, Lion's Park, Maplecrest Park, Maplewood Heights Park, Nature Center, Robinhood Park, Sherwood Park and Timber Park; (15) construction of a municipal storage building to house park equipment; (16) construction of public alleys east of White Bear Avenue from Woodlyn Avenue to County Road D and a public alley southwest of the southwest corner of Beam Avenue and White Bear Avenue; (17) construction of traffic improvements on White Bear Avenue from Interstate Highway 694 to Beam Avenue; and (18) bike path along McKnight Road (County State Aid Highway 68) from a point 788.17 feet north of the Southwest Corner of Section 36, Township 29N, Range 22W to a point 37.00 feet south of the West Quarter Corner of Section 36 Township 29N, Range 22W. Agenda Item H1 Attachment 4 Packet Page Number 187 of 275 5536499v1 9 (19) the construction of an approximately 400,000 square foot research and development facility and outdoor parking of approximately 725 spaces within the 3M Renovation and Retention Project Area consisting of parcel 362922240002; (d) The acquisition of property consistent with the objectives of the Development Program. (e) The preparation of property for use including demolition of structures, clearance of sites, placement of fill, and installation of utilities. (f) The resale of property to developers. (g) The provision of relocation assistance to businesses and homeowners as may be required by this Development Program. (h) The issuance of Tax Increment Bonds to finance project costs of the Development Program or to evidence the City's obligation to reimburse developers for all or part of the project costs of the Development Program incurred or to be incurred by it pursuant to a Development Agreement. (i) The use of tax increments derived from a Tax Increment Financing District within the Development District to pay debt service on Tax Increment Bonds or otherwise pay the project cost of the Development Program. 1.8. Payment of Project Cost. It is anticipated that the project cost of the Development Program will be paid primarily from the tax increments to be derived from the Development District, either directly or indirectly by payment of project eligible expenses, by reimbursement of developers for items of project cost paid directly by developers, or by some combination of these methods. The City reserves the right to utilize special assessments, general property taxes, utility revenues, and other sources of revenue which the City may apply to pay the project cost. The City intends to pool tax increments from all Tax Increment Financing Districts to finance the project cost of the Development Program within the Development District. 1.9. Environmental Controls. The proposed Tax Increment Financing Districts within the Development District do not present significant environmental concerns. All municipal actions, public improvements and private development shall be carried out in a manner consistent with existing environmental standards. 1.10. Park and Open Space to be Created. Park and open space within the Development District No. 1 will be created in accordance with the zoning and platting ordinances of the City. The City may undertake the following park improvements: (a) the acquisition of land and improvement of Hazelwood Park located at County Road C east of Hazelwood Avenue; (b) the improvement of Playcrest Park located at Lydia Avenue and McKnight Road; Agenda Item H1 Attachment 4 Packet Page Number 188 of 275 5536499v1 10 (c) the acquisition, expansion and improvement of Harvest Park located at Hazelwood Avenue south of County Road C and North of Highway 36; (d) the improvement of Sherwood Park located at Hazelwood and Cope Avenues; (e) the improvement of Afton Heights Park, Geranium Park, Gethsemane Park, Gladstone Park, Goodrich Park, Hillside Park, Lions Park, Maplecrest Park, Maplewood Heights, Nature Center, Robinhood Park, Sherwood Park, Timber Park; (f) the acquisition and improvement of park land adjacent to Housing District No. 1-9, the acquisition and improvement of the park land will not involve the use of tax increment revenues. 1.11. Proposed Reuse of Property. The Development Program does not contemplate the acquisition of private property until such time as a private developer presents an economically feasible program for the reuse of that property. Proposals, in order to be considered, must be within the framework of the above cited goals and objectives, and must clearly demonstrate feasibility as a public program. Prior to formal consideration of the acquisition of any property, the City Council will require a binding contract, performance bond and/or other evidence or guarantees that a supporting tax increment or other funds will be available to repay the project cost associated with the proposed acquisition. It shall be the intent of the City to negotiate the acquisition of property whenever necessary. Appropriate restrictions regarding the reuse and redevelopment of property shall be incorporated into any land sale contract to which the City is a part. 1.12. Administration and Maintenance of Development District. Maintenance and operation of the public improvements will be the responsibility of the City Manager who shall serve as administrator of the Development District. The administrator will administer the Development District pursuant to the provisions of Section 469.131 of the Development District Act; provided, however, that such powers may only be exercised at the direction of the Council. No action taken by the administrator pursuant to the abovementioned powers shall be effective without authorization by the Council. 1.13. Rehabilitation. Owners of properties within the Development District will be encouraged to rehabilitate their properties to conform with the applicable state and local codes and ordinances, as well as any design standards. Owners of properties who purchase property within the Development District from the City may be required to rehabilitate their properties as condition of sale of land. The City will provide such rehabilitation assistance as may be available from federal, state or local sources. 1.14. Relocation. No person will be displaced and have to be relocated as a result of the Development Program. The City accepts its responsibility for providing for relocation pursuant to Section 469.133 of the Development District Act. 1.15. Parcels To Be Acquired In Whole or In Part Within the Development District. The City intends to acquire all or part of the land within Housing District No. 1-3 to facilitate the Agenda Item H1 Attachment 4 Packet Page Number 189 of 275 5536499v1 11 construction of the Cottages of Maplewood housing project. The City intends to reimburse the developer for the cost of the land within Housing District Nos. 1-4, 1-5 and 1-6 to facilitate the construction of the Carefree Cottages of Maplewood housing project (Phase I, Phase II and Phase III). The City intends to reimburse the developer for the cost of the land within Housing District No. 1-7 to facilitate the construction of the Van Dyke Village project. The City intends to reimburse the developer for the cost of the land within Housing District No. 1-8 to facilitate the construction of the Sibley Cove project. The City intends to reimburse the developer for the cost of the land within Housing District No. 1-9 to facilitate the construction of the Gethsemane Senior Housing project. The City intends to reimburse the developer for the cost of land within Housing District No. 1-10 to facilitate the construction of the Shores of Maplewood project. The City intends to finance public improvements related to redevelopment of the Maplewood Mall within Economic Development District No. 1-11. 1.16. Amendments. The City reserves the right to alter and amend the Development Program and the tax increment financing plans, subject to the provisions of state law regulating such action. The City specifically reserves the right to change the size of the Development District and the Tax Increment Financing Districts, the project cost of the Development Program and the amount of Tax Increment Bonds to be issued to finance such cost by following the procedures specified in Minnesota Statutes, Section 469.175, Subd. 4. 1.17. Development Activity in the Development District for which Contracts Have Been Signed. (a) Zantigo Restaurant was developed by Zantigo Mexican Restaurants, Inc. on County Road D, West of White Bear Avenue. The contractor was William Kranz Construction and the cost of the project was $260,000. (b) Maple Ridge Square Shopping Center was developed by Curt Johnson and Joe Weis - Weis Builders, Inc. at the intersection of Gervais Avenue and White Bear Avenue. The contractor was Weis Builders and the cost of the project was $2,318,383. (c) Maple Ridge Apartments was developed by Podawiltz Development Company on County Road D, west of White Bear Avenue. The contractor was Avon Lumber Company, Inc. and the cost of the project was $2,800,000. (d) Maple Ridge Estate Apartments was developed by Maple Ridge Development Corporation at the intersection of Stillwater Road and Stillwater Avenue. The contractor was Steve Haight Construction and the cost of the project was $3,999,000. (e) An addition to Maplewood Mall is being developed by CPI. The contractor is Kraus Anderson and the cost of the project is $2,075,000. (f) A Main Street Store at Maplewood Mall is being developed by Federated Department Stores. The contractor is Sheehy Construction and the cost of the project is $2,000,000. (g) The expansion of St. John's Northeast Hospital on Beam Avenue. Agenda Item H1 Attachment 4 Packet Page Number 190 of 275 5536499v1 12 (h) The development of a 60 unit senior citizen housing complex (known as the Cottages of Maplewood). (i) The development of the Crossings Mall to be located adjacent to Maplewood Mall. (j) The development of the Carefree Cottages of Maplewood senior citizen housing project. (k) The acquisition of property located at 2146 White Bear Avenue, commonly referred to as the Taystee Bread Store in an amount anticipated to be $500,000 or the development of the Community Park in the amount of $500,000. (l) The development of the Schroeder Milk project. (m) A development agreement with respect to the construction of an approximately 20 unit townhome-style housing facility in the City (the Van Dyke Village project) consisting of 8 one-story, two-bedroom and 12 two-story, three-bedroom units. (n) A development agreement with respect to the construction of an approximately 80 unit rental housing facility in the City (the Sibley Cove project) consisting of two- and three-bedroom units and related amenities. (o) A development agreement with respect to the construction of an approximately 111 unit senior housing facility in the City (the Gethsemane project). (p) A development agreement with respect to the construction of an approximately 162 unit senior housing facility in the City (the Shores of Maplewood project). (q) The City intends to enter into a development agreement with 3M Company with respect to the construction of an approximately 400,000 square foot research and development facility and outdoor parking of approximately 725 within the 3M Renovation and Retention Project Area (the 3M Research and Development Project). 1.18. Other Specific Development Expected to Occur Within The Development District. It is anticipated that development will occur within the Development District as described in Section 1.17. Additional development may occur in the Development District in the future; however, no contracts have been entered into at this time with respect to such development. The nature and timing of further development cannot accurately be predicted at this time. Agenda Item H1 Attachment 4 Packet Page Number 191 of 275 5536499v1 A-1 Exhibit A Boundaries of Development District No. 1 Consists of the entire corporate boundaries of the City of Maplewood. Agenda Item H1 Attachment 4 Packet Page Number 192 of 275 AGENDA REPORT TO: Charles Ahl, City Manager FROM: Gayle Bauman, Finance Director SUBJECT: 7:00 pm – Public Hearing on Capital Improvement Plan for 2014-2018 and the Issuance of Capital Improvement Bonds a. Public Hearing b. Resolution Approving 2014-2018 Capital Improvement Plan and the Issuance of Capital Improvement Bonds (3 votes required) DATE: July 15, 2013 for July 22, 2013 council meeting INTRODUCTION The Capital Improvement Plan is an annually prepared document that coordinates the planning, financing and timing of major equipment purchases and construction projects. It is proposed that (1) the Capital Improvement Plan be formally adopted with a commitment to follow the construction and financing schedule in the CIP for the proposed capital projects and (2) the approval to issue up to $4 million in Capital Improvement Plan Bonds for the purpose of financing capital improvements related to fire public safety facilities. The draft CIP was presented to the Commissions and comments/recommendations have been received from all the Commissions. Adopting the CIP does not commit the council to the proposed projects, nor implement the assumptions made during the preparation; however, this is the basis for the 2014 Budget as we proceed with its preparation. Similarly, adoption of the resolution approving the issuance of Capital Improvement Plan Bonds does not authorize work to proceed on any fire public safety facility, but it does give authority to utilize this financing tool. There is a fairly significant decrease in the cost of projects included in the 2014-2018 CIP compared to previous years. The proposed 2014-2018 CIP contains $46.7 million in expenditures while the 2013-2017 CIP contained $67.7 million. The two main reasons for this decrease are 1) the once-in-a-decade interchange improvement at TH36-English was included in the 2013-2017 CIP at a cost of $16.2 million and it is not included in the 2014-2018 CIP; and 2) the City’s shift in focus from an accelerated streets program to controlling our debt levels. Debt Analysis Beginning in 2007, the City made a conscious decision to take advantage of the favorable construction market and expand its street repair/reconstruction program. Some of the outcomes of this decision are: Agenda Item H2 Packet Page Number 193 of 275 • Many of the badly deteriorated streets in the City were repaired and/or improved. • Projects were completed at a lower cost than originally anticipated. • More projects could be completed because of the lower costs. • Our outstanding debt amount has increased. Two of the internal policies the City has regarding debt service fund balances and debt levies are: 1. The ratio of debt service fund levies combined with capital expenditure levies to total levies shall be targeted to maintain a level in the range of 15-25%. This policy will help to ensure that the city is always maintaining its infrastructure, either through use of debt or current funding. 2. The City’s fund balance in the Debt Service fund shall be at a minimum level of 50% of annual debt service expenditures. Because the majority of annual debt service is paid on February 1 and August 1 of each year, funds must be on hand for payment of February 1 debt service. With the expansion of the streets program, the City is currently exceeding the targeted level of 15-25% for its debt/capital levy. For 2013, the ratio of debt service fund levies combined with capital expenditure levies to total levies was 26.7%. The proposed CIP includes an increase in the debt/capital levy of $105,070 broken down as follows: FUND 2013 LEVY 2014 LEVY Debt Service 4,313,530 4,658,600 Capital Improvement Projects 180,000 180,000 Fire Truck Replacement 50,000 50,000 Park Development 30,000 30,000 Public Safety Expansion 260,000 0 Redevelopment 20,000 40,000 Economic Development Authority 89,270 89,270 TOTAL DEBT/CAPITAL LEVY 4,942,800 5,047,870 Exceeding our target in this case does not have a negative impact on the City as long as it doesn’t continue indefinitely. The City consciously made a decision to put more funding toward infrastructure and staff has been able to maintain its operations side. This was accomplished by implementing many different strategies such as: • Early retirement program • Not filling or eliminating vacant positions • No or minimal COLA increases • Deferring projects and/or purchases • Changes to health insurance By managing our street projects through the CIP process, we currently anticipate that there will be no bonding requirement for street projects in 2015 and debt service requirements will begin to decrease in 2016. This will eventually bring our debt/capital Agenda Item H2 Packet Page Number 194 of 275 levy back in line with our internal policy. The history of the debt/capital levy to total levy is as follows: 2007 2008 2009 2010 2011 2012 2013 20.2% 22.0% 20.9% 21.7% 22.6% 25.8% 26.7% Based on projections for the Debt Service funds, it appears the City will not be able to maintain a minimum level fund balance in the debt service funds of 50% of annual debt service expenditures for a few years starting around 2016, without a significant increase in the debt levy. While the debt service funds will continue to have a positive total fund balance at the end of each year, there would not be sufficient funds on hand at February 1st and August 1st to make the required debt service payment. What this means is that the debt service funds would temporarily borrow money from another fund and pay interest expense on these borrowings. This would continue for a few years until some of our bond issues are paid in full and drop off the City’s payment schedule. Though this is not an ideal situation, staff does understand that going against the policy in the short term is a better alternative than having a large levy increase to avoid the drop in fund balance. Also, new legislation was passed this session which should bring in an additional $530,000 in Local Government Aid and potentially another $75,000 - $200,000 due to the return of the sales tax exemption for cities and counties. The City would look at utilizing these funds to manage our debt levels in the short term. Based on current information, the following table shows the projected year end fund balance for the debt services funds for 2014-2018: 2014 2015 2016 2017 2018 YE Fund Balance $6,897,820 $4,672,360 $3,201,030 $2,022,020 $1,238,100 % of debt service costs 64% 46% 32% 21% 13% % of debt service costs w/ LGA funds ($530,000/yr) 69% 56% 49% 42% 42% CIP Summary A copy of the 2014-2018 Capital Improvement Plan has been distributed and can be found on the City’s website at www.ci.maplewood.mn.us. The Transmittal Letter highlights the major projects within the Plan for consideration. The document explains each of the proposed projects, as well as analyzes the impacts on the budget for the various funds, along with the tax impact necessary to implement these projects as proposed. The staff submits projects based upon goals set at the Council/Management Team retreats. The finance staff analyzes the funds available for capital projects along with the impacts of the staff proposals. A number of revisions are made in the project submittals based upon the analysis of finance, as well as management priorities to achieve the attached CIP plan. The attached table shows the changes that were made to the original requests based on the City’s financial means and meetings with the various department heads. Agenda Item H2 Packet Page Number 195 of 275 BUDGETARY CONSIDERATION As noted above, recommendations include a debt/capital levy increase of $105,070. The plan is to utilize either the new Local Government Aid or sales tax relief to offset this increase, but these items will all be reviewed during the preparation of the 2014 Budget. Adoption of the CIP as presented is recommended. INFORMATION ON CIP BOND A CIP Bond can be issued by the Council for various types of public facility improvements, such as City Halls, Fire Stations, Police Stations, or Public Works Buildings. These types of CIP Bonds can be issued without a referendum if certain conditions are followed. First, the project must be included within the Capital Improvement Plan. Second, the Council must hold a Public Hearing on the proposed improvement project. Third, following the Public Hearing, a petition may be filed within 30 days by at least 5% of the residents who voted in the previous election. If the petition is filed, then a referendum needs to be held before financing can be secured in this manner. If a petition is not filed, then the City may issue CIP Bonds. The City recently issued CIP Bonds to finance the Police Department Expansion project and previously issued CIP Bonds in 2004 for the construction of the Public Works Building Addition. If issuance of these bonds is authorized, it is proposed that up to $4 million in bonds be issued to finance any funding gaps for either the construction of a new fire station in the southern leg of the City, the rebuilding of the Hazelwood station or the rehabbing of the Gladstone station. The authority of the bond issuance remains for one year, or until a new CIP is adopted. If needed, authorization of the actual bond sale will be presented to the Council for consideration either later this year or in 2014. The action being taken tonight only authorizes the sale to occur; but does not authorize the actual sale. The maximum amount of principal and interest to become due in any year on all the outstanding capital improvement plan bonds issued under MN Statute 475.521 will not equal or exceed 0.16% of the taxable market value of property in the City. The expected debt service on all capital improvement bonds issued under MN Statute 475.521, including the proposed capital improvement bonds outlined in this CIP, is within the statutory debt limits applicable to the City. MN Statute 475.521 outlines eight criteria that must be met prior to a city issuing bonds under this authority. Under these criteria, the City has considered the following eight points: 1. Condition of the City’s infrastructure and need for the project – Four out of the five stations are over 30 years old and were built when the city was just starting to expand in its commercial and residential growth. These projects assume the construction of a new fire station in the southern leg of the City, rebuilding the Hazelwood station and rehabbing the Gladstone station. 2. Demand for the improvement – In the last 10 years, the City has taken on a new look with the addition of senior housing, more multi-family housing and is changing Agenda Item H2 Packet Page Number 196 of 275 the way we have to deliver the services in order to keep up with the increase in demand and at the same time, plan for the next 30+ years. 3. Cost of the improvement – the cost of the three fire station projects is expected to be $7,750,000 per the CIP. 4. Availability of public resources – The debt service payments on the new bonds will be levied on property tax payers within the City. Current low interest rates in the municipal bond market create a unique opportunity for the City to acquire and finance needed capital infrastructure while keeping the tax levy required to pay debt service on the general obligation CIP bonds as low as possible. 5. Level of overlapping debt – Capital Improvement Bonds currently outstanding are Series 2004D in the amount of $485,000 and Series 2013A in the amount of $3,385,000. Total estimated indirect debt related to the City as of 7-18-2013 is shown below. Indirect Debt 2012/13 Taxable Est. G.O. Debt Debt Applicable to Tax Capacity in City Taxing Unit(a) Net Tax Capacity As of 7-18-13(b) Percent Amount Ramsey County $443,648,458 $148,815,000 8.4% $12,500,460 Ramsey County Library 227,219,636 19,285,000 16.3 3,143,455 ISD #622 74,001,248 140,435,000 43.0 60,387,050 ISD #623 56,704,132 44,015,000 8.2 3,609,230 ISD #624 62,295,250 92,180,000 1.0 921,800 Metropolitan Council 2,964,890,691 17,330,000(c) 1.3 225,290 Metropolitan Transit District 2,367,824,145 327,475,000(d) 1.6 5,239,600 TOTAL $86,026,885 (a) Only those units with debt outstanding are listed here. (b) Excludes General Obligation debt supported by revenues and tax aid and anticipation certificates and includes lease revenue debt supported by taxes. (c) Excludes General Obligation debt supported by waste water revenues, 911 user fees, and housing rental payments. Includes certificates of participation. (d) Includes general obligation grant anticipation notes. 6. Cost/benefits of alternative uses of funds – There are no alternative uses for the funds, because if the project is not undertaken, capital improvement bonds will not be issued. Agenda Item H2 Packet Page Number 197 of 275 7. Operating costs of the proposed improvements – This project may involve construction of a new fire station, rebuilding of an existing fire station and rehabbing of an existing fire station so operating costs such as insurance and utilities will increase. But the project will also be incorporating updated energy efficient systems and elimination of three outdated fire stations which should result in decreased energy costs in the long run. 8. Options for shared facilities with other cities or local governments – There are no opportunities to house existing City operations in facilities owned by other local units of government. RECOMMENDATION It is recommended that the City Council conduct a Public Hearing on the 2014-2018 Capital Improvement Plan along with consideration of Issuance of Capital Improvement Plan Bonds. Three votes of approval are necessary. Following is the recommended action: a. Conduct Public Hearing after 7:00 pm b. Receive reports from representatives of HEDC, Park Commission, ENR Commission, HPC Commission and Planning Commission c. Adopt Resolution approving the Capital Improvement Plan and the Issuance of Capital Improvement Bonds Attachment(s): 1. Summary of CIP requests 2. Notice calling for public hearing 3. Resolution Agenda Item H2 Packet Page Number 198 of 275 2014 2015 2016 2017 2018 TOTAL ORIGINAL REQUEST 14,862,220 11,718,000 7,674,180 9,317,000 18,110,000 61,681,400 ADDITIONS Ambulance refurbish 110,000 110,000 PS Training Facility 1,000,000 1,000,000 1,000,000 3,000,000 Election Equipment 40,000 40,000 40,000 120,000 Beebe Road Street Improvements 100,000 1,190,000 1,290,000 MOVE/CHANGE Fire Truck (479,120) 479,120 0 Move from 2014 to 2016 Ambulance (187,280) 187,280 0 Move from 2016 to 2017 Fire Station #7 (4,000,000) 2,500,000 (1,500,000) Fire Station 3M (850,000) (850,000) Commercial Property Redevelopment (50,000) (50,000) Fish Creek Open Space (748,000) (748,000) Deer Management (25,000) (30,000) (55,000) Operating cost Gladstone Savanna (300,000) (300,000) 300,000 300,000 0 Move to later years EAB Ash Removal/Replanting (50,000) (25,000) (75,000) Operating cost MCC Building (100,000) (100,000) (100,000) (100,000) (100,000) (500,000) Levy increase of $65,000 Fleet Management (23,100) (58,900) (1,000) (29,000) 42,000 (70,000) Arkwright/Sunrise Area Streets (9,000) (9,000) Lakewood/Sterling area streets (200,000) (3,520,000) 3,720,000 0 Move from 2015 to 2016 Farrell/Ferndale area streets (200,000) (3,810,000) 4,010,000 0 Move from 2016 to 2017 Dennis/McClelland area streets (200,000) (3,970,000) 4,170,000 0 Move from 2017 to 2018 Sterling Street bridge replacement 100,000 1,190,000 (100,000) (1,190,000) 0 Move from 2018 to 2015 DECLINE (to future years) Fire Truck (509,900) (509,900) Ambulance (200,000) (200,000) PD Expansion - phase II (3,000,000) (3,000,000) Hillcrest Area Roadway Improvements (1,000,000) (1,000,000) Hillcrest Area Redevelopment (600,000) (600,000) Hillcrest Area Streetscape (1,500,000) (1,500,000) Crestview/Highwood Area Streets (200,000) (8,650,000) (8,850,000) UPDATED REQUEST 13,218,000 5,044,100 7,805,120 12,985,280 7,632,000 46,684,500 Attachment 1 Agenda Item H2 Packet Page Number 199 of 275 5517596v1 CITY OF MAPLEWOOD NOTICE OF PUBLIC HEARING ON INTENTION TO ISSUE GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS AND THE PROPOSAL TO ADOPT A CAPITAL IMPROVEMENT PLAN THEREFOR NOTICE IS HEREBY GIVEN, that the City Council of the City of Maplewood, Minnesota, will meet on July 22, 2013, at 7:00 p.m. in the Maplewood City Council Chambers at 1830 East County Road B, in Maplewood, Minnesota, for the purpose of conducting a public hearing on (a) the intention to issue general obligation capital improvement plan bonds in an amount not to exceed $4,000,000 and (b) the proposal to adopt a capital improvement plan therefor. The plan identifies estimated capital expenditures and funding sources for a five-year period. The proceeds of the bonds will be used to finance capital improvements for the purpose of public safety facilities pursuant to Minnesota Statutes, Section 475.521 and the plan. All persons interested may appear and be heard at the time and place set forth above. If a petition requesting a vote on the issuance of the bonds is signed by voters equal to five percent of the votes cast in the City in the last general election and is filed with the City within thirty days after the public hearing, the bonds may only be issued upon obtaining the approval of the majority of the voters voting on the question of issuing the bonds. Individuals unable to attend the public hearing can make written comment by writing to the City Manager, Maplewood City Hall, 1830 East County Road B, Maplewood, Minnesota 55109- 2702. Written comments must be received prior to the date and time of the public hearing. BY ORDER OF THE CITY COUNCIL /s/ James Antonen City Manager Attachment 2 Agenda Item H2 Packet Page Number 200 of 275 5517596v1 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL CITY OF MAPLEWOOD MINNESOTA HELD: July 22, 2013 Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of Maplewood, Minnesota, was duly called and held at the City Hall in Maplewood, Minnesota on July 22, 2013, at 7:00 p.m. for the purpose, in part, of giving preliminary approval to the issuance of general obligation capital improvement plan bonds and adopting the capital improvement plan. The following members were present: and the following were absent: Member _____________ introduced the following resolution and moved its adoption: RESOLUTION GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS IN AN AMOUNT NOT TO EXCEED $4,000,000 AND ADOPTING THE CITY OF MAPLEWOOD, MINNESOTA, CAPITAL IMPROVEMENT PLAN FOR THE YEARS 2014 THROUGH 2018 A. WHEREAS, the City Council of the City of Maplewood, Minnesota (the "City") proposes to issue its general obligation capital improvement plan bonds (the "Bonds") and adopt the City of Maplewood, Minnesota, Capital Improvement Plan for the Years 2014 Through 2018 (the "Plan"); and B. WHEREAS, the City has caused notice of the public hearing on the intention to issue the Bonds and on the proposed adoption of the Plan to be published pursuant to and in accordance with Minnesota Statutes, Section 475.521; and C. WHEREAS, a public hearing on the intention to issue the Bonds and on the proposed Plan has been held on this date, following published notice of the public hearing as required by law; and D. WHEREAS, in approving the Plan, the City Council considered for each project and for the overall Plan: 1. The condition of the City's existing infrastructure, including the projected need for repair and replacement; 2. The likely demand for the improvement; 3. The estimated cost of the improvement; 4. The available public resources; 5. The level of overlapping debt in the City; 6. The relative benefits and costs of alternative uses of the funds; 7. Operating costs of the proposed improvements; and 8. Alternatives for providing services more efficiently through shared facilities with other local governmental units; and Attachment 3 Agenda Item H2 Packet Page Number 201 of 275 5517596v1 2 E. WHEREAS, the City Council has determined that the issuance of general obligation capital improvement plan bonds in the aggregate principal amount of up to $4,000,000 is the best way to finance the capital improvements identified in the Plan. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Maplewood, Minnesota, that the City hereby adopts the Plan and authorizes the issuance of up to $4,000,000 aggregate principal amount of general obligation capital improvement plan bonds. The motion for the adoption of the foregoing resolution was duly seconded by member ____________ and, after full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon the resolution was declared duly passed and adopted. [Bonds must be approved by at least a three-fifths vote of the membership.] [Issuance of Bonds is subject to a 30-day reverse referendum after the public hearing.] Agenda Item H2 Packet Page Number 202 of 275 5517596v1 3 STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF MAPLEWOOD I, the undersigned, being duly qualified and acting Manager of the City of Maplewood, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the City Council, duly called and held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to a resolution giving preliminary approval to the issuance of the City's general obligation capital improvement plan bonds and adopting the City's capital improvement plan therefor. WITNESS my hand on July 22, 2013. _______________________________________ City Manager Agenda Item H2 Packet Page Number 203 of 275 Agenda Item I1 AGENDA REPORT TO: City Council FROM: Charles Ahl, City Manager Steve Lukin, Fire Chief SUBJECT: Authorization to Implement Capital Project to Construct Fire Station Number 1 on 3M Campus DATE: July 16, 2013 INTRODUCTION The 3M Companies are currently preparing documents to donate a parcel of land to the City of Maplewood to be used for a new fire station. An evaluation of the property and site issues has determined that the site is appropriate for a station and will meet the long-term needs of the Fire Department from a facility and staffing approach. Earlier in the meeting during the Public Hearing for the Capital Improvement Plan, the City Council will have approved a resolution allowing for the issuance of Capital Improvement Bonds for the financing of the Fire Station. In addition, a Public Hearing was conducted on a Tax Increment Financing Plan for the 3M Research and Development Facility, whereby Maplewood receives up to 20% of the TIF revenue, a portion of which can support non-structural improvements to the donated land from 3M. These approvals secure the approval necessary to fund the construction of Fire Station 1 on the 3M Campus. Authorization to implement the project and complete final design service is recommended to remain on schedule for an October 2014 station opening. Background for Discussion The parcel of land that 3M is in the process of donating to the City is adjacent to McKnight Road approximately halfway between Conway Avenue and Minnehaha Avenue. The site is reasonably sized for a fire station and appropriately located to be consistent with the long range plans for providing fire service throughout Maplewood’s southern leg. The following FINANCING PLAN is proposed for this project: Established Project Budget: $4,250,000 Proposed Funding Sources: $4,250,000 • Sale of Londin Lane Fire Station: $2,000,000 • Proceeds from 3M TIF Plan: $1,250,000 • Proceeds from 2013 CIP Bond: $ 600,000 • 2013 Fees from Permits: $ 400,000 We have earlier selected the team from Kimley-Horn, Inc. to implement this project for the City and on July 8, 2013, the Council authorized Kimley-Horn to proceed on the first $50,000 of the design. The cost for design development and final construction documents is $241,800. The preliminary schedule provides for a completion of the project and opening in October 2014. RECOMMENDED ACTION It is recommended that the Council make a motion to approve a Capital project as Fire Station Number One on the 3M Campus in the total amount of $4,250,000; approve the engineering and architecture proposal with Kimley-Horn in the amount of $241,800 and provide the City Manager authority to execute said proposal and, direct the Finance Manager to transfer the necessary funds for this authorization into the project fund and make the necessary budget adjustments. Packet Page Number 204 of 275 MEMORANDUM TO: Charles Ahl, City Manager FROM: Michael Martin, AICP, Planner David Fisher, Interim Community Development Director SUBJECT: Approval of Resolution for a Conditional Use Permit, Our City – Our Neighborhood Church LOCATION: 1812 North Saint Paul Road DATE: July 17, 2013 INTRODUCTION Samuel Ly, on behalf of Our City – Our Neighborhood Church, is requesting approval of a conditional use permit (CUP) to locate their congregation to a vacant medical office building, located at 1812 North Saint Paul Road. The proposed seating capacity for the church is 187. Refer to the attachments. BACKGROUND On August 17, 1972, the city council approved building plans for a medical building. On March 1, 1973, the city council approved building plans for an expansion to the existing building. DISCUSSION Parking The applicant indicated the congregation is made up of 45 families. The proposed church seating capacity is 187 seats. Based on the seating capacity the code requires 47 parking spaces, based on an average of four persons per vehicle (the average noted in the city’s parking code). The existing parking lot provides spaces for up to 48 cars – meeting the code requirements. The applicant has submitted a letter from the CFO of Junior Achievement which has a large parking lot across the street from the proposed church location. This letter describes a willingness to develop a shared parking agreement if needed. At this point, city staff does not see the need to require a shared parking agreement, but if parking becomes an issue any parking agreements need to be approved by the city council. As conditions of approval for the CUP, staff is recommending the applicant submit a plan for restriping the parking lot as the current lines have faded. This plan should detail the number and dimensions of each space. Also, the applicant shall ensure none of the congregation members park on the street or on neighboring parking lots. Trash Enclosure Currently the site has no enclosed structure for trash receptacles. Code requires any exterior storage of trash receptacles to be within an enclosed structure. The applicant should be required to submit design plans for a trash enclosure to be built on site. CUP Findings for Approval The zoning ordinance requires that the city council find that all nine “standards” for CUP approval be met to allow a CUP. In short, these state that the use would (refer to the resolution for the complete wording): Agenda Item J1 Packet Page Number 205 of 275 • Comply with the city’s comprehensive plan and zoning code. • Maintain the existing or planned character of the neighborhood. • Not depreciate property values. • Not cause any disturbance or nuisance. • Not cause excessive traffic. • Be served by adequate public facilities and police/fire protection. • Not create excessive additional costs for public services. • Maximize and preserve the site’s natural and scenic features. • Not cause adverse environmental effects. The proposed church would meet these nine criteria. As mentioned above, though, parking should be restricted to the site and should be monitored and considered during the annual CUP reviews. Staff Comments Building Official Dave Fisher, the building official, stated the proposed church is a change in use and change in occupancy. A new certificate of occupancy is required. The building is required to be fire sprinklered. A design professional is required for building code analysis. This will provide the new owner with all the requirements. Assistant Fire Chief The applicant will need to install fire protection and alarm system per-code. The applicant will also need to provide access for the fire department in cases where the parking lot is full then the applicant will need to maintain both exits/entrances in and out of the parking lot. Police Lieutenant Richard Doblar had no concerns. City Engineering A SAC determination will be required for the change of use. The applicant shall pay all fees associated with this determination. COMMITTEE ACTION Planning Commission On July 16, 2013, the planning commission held a public hearing and recommended approval of the proposed CUP for the church. The planning commission did recommend one of the conditions of approval be amended to allow parking on another site as long as that property owner and the city council approves. RECOMMENDATION Adopt the resolution approving a conditional use permit for Our City – Our Neighborhood Church, located at 1812 North Saint Paul Road. Approval is based on the findings required by ordinance and subject to the following conditions: 1. No exterior site or building exterior changes, except signage, shall take place unless approved by the city. Signs shall follow the city’s sign ordinance. Signs shall not be installed Packet Page Number 206 of 275 unless the applicant first obtains sign permits. 2. Any and all trash receptacles shall be contained within an enclosed structure. Any design of a new structure shall be subject to the city’s design review process. 3. The proposed use must be substantially started within one year of council approval or the permit shall become null and void. The council may extend this deadline for one year. 4. The city council shall review this permit in one year. 5. All of the applicant’s parking shall be confined to the site and not allowed on city streets or neighboring properties, unless approved by a neighboring property owner and the city council. 6. The city shall monitor any parking complaints and report to the city council about compliance annually during the CUP review. 7. The applicant shall submit a parking restriping plan for staff approval. 8. The applicant shall comply with all requirements of the building official, assistant fire chief and city engineer. Packet Page Number 207 of 275 CITIZEN COMMENTS Staff surveyed the owners of the 29 properties within 500 feet of the proposed church for their comments. Of the four replies, one had “no comment,” one was in favor, one was opposed and one had a parking comment. In Favor As long as they comply with all applicable city ordinances – especially noise and garbage, we have no objections. (Junior Achievement, 1800 White Bear Avenue North) Opposed I would be opposed to another church in the area. We need more tax based businesses. How would parking be accommodated. (Debra Pedro, 1829 North Saint Paul Road) Parking Concners We, as Landlod, currently lease the adjacent property to O’Reilly Automotive Stores, who are concerned about the church utilizing O’Reilly’s parking lot which is closer to the proposed church than their existing parking. This is obviously a major concern to our tenant and us, as Landlaord as well. As you may be aware, O’Reilly Stories are open and operational on Sundays, and parking and traffic congestion are items of concern. (Kin Properties, 185 NW Spanish River Blvd., Boca Raton FL) No Comments I have no comments. (Alerus Financial, 401 Demers St., Grand Forks, ND) Packet Page Number 208 of 275 REFERENCE INFORMATION SITE DESCRIPTION Site size: 0.58 acres Existing land use: Vacant, former medical office building SURROUNDING LAND USES North: North Saint Paul Road and Junior Achievement South: Branch 28 Building East: Auto repair business West: Auto parts retail store PLANNING Land Use Plan designation: MU (mixed use) Zoning: MU (mixed use) CODE REQUIREMENTS Section 44-1092(3) of the city ordinances requires a CUP for churches. Findings for CUP Approval Section 44-1097(a) requires that the city council base approval of a CUP on nine findings. Refer to the findings for approval in the resolution. APPLICATION DATE The application for this request was complete on June 11, 2013. State law requires that the city decide on land use applications within 60 days. The deadline for council action, therefore, is August 10, 2013. P:\SEC14\1812 North St Paul Road\1218NorthStPaulRoad_CUP_PC_071613 Attachments: 1. Location Map 2. Aerial Map 3. Land Use Plan Map 4. Zoning Map 5. Applicant’s Written Narrative 6. Applicant’s Proposed Floor Plan 7. Letter from Junior Achievement, dated June 6, 2013 8. CUP Resolution Packet Page Number 209 of 275 Chad Bergo Proposed Church - 1812 North Saint Paul RoadLocation Map Attachment 1 1812 North Saint Paul Road (Proposed Church) 6 Packet Page Number 210 of 275 Chad Bergo Proposed Church - 1812 North Saint Paul RoadAerial Map Attachment 2 1812 North Saint Paul Road (Proposed Church) 7 Packet Page Number 211 of 275 Chad Bergo Proposed Church - 1812 North Saint Paul RoadFuture Land Use Map - Mixed Use Attachment 3 1812 North Saint Paul Road (Proposed Church) 8 Packet Page Number 212 of 275 Chad Bergo Proposed Church - 1812 North Saint Paul RoadZoning Map - Mixed Use Attachment 4 1812 North Saint Paul Road (Proposed Church) 9 Packet Page Number 213 of 275 Applicant: Our City- Our Neighborhood Church is applying to the City of Maplewood for approval of an Amendment of the Conditional Use Application for church services lplace of worship. Statement of intended Use Applicant seeks to amend the Conditional Use permit for Our Cily - Our Neighborhood Church as set forth herein. Applicant requests approval of church services lplace of worship located in a vacant office / medical building located at l8l2 North St. Paul Road, Maplewood, MN 55109. Applicant wishes to purchase the property immediately following approval of the Conditional Use application. Reasons the City should approve request: 1. The intended use of the property as a church is currently and will continue to be located, designed, maintained, constructed and operated to be in conformity with the city's comprehensive plan and code of ordinances. 2. The intended use of the property as a church will not change the existing or planned character of the surrounding area. 3. The intended use of the property as a church will not depreciate property values but will improve property value since it is currently vacant. 4. The intended use of the property as a church will not involve any activity, process, materials, equipment or methods of operation that would be dangerous, hazardous, detrimental, disturbing, or cause a nuisance to any person or property, because of excessive noise, glare, smoke, dust, odor, fumes, water, or air pollution, drainage water run-off, vibration, general unsightliness, electrical interference or other nuisances. 5. The intended use of the property as a church will generate only minimal vehicular traffic on local streets and would not create traffic congestion or unsafe access on existing or proposed streets. The small congregation is made up of 45 families and the parking lot of the proposed property has sufficient space to accommodate necessary parking. 6. The intended use of the property as a church will be served by adequate public facilities and services, including streets, police, and fire protection, drainage structures, water and sewer systems, schools and parks. 7. The intended use of the property as a church will not create excessive additional costs for public facilities or services. 8. The intended use of the property as a church will maximize the preservation of and incorporate the site's natural and scenic features into the development design and future designs. 9. The intended use of the property as a church will cause minimal adverse environmental effects. Attachment 5 10 Packet Page Number 214 of 275 Attachment 6 11 Packet Page Number 215 of 275 撫鸞_1爾 luniげ Achie、.ぐ 籍c,ボ ぶ th=tiPPcr卜 ↑1ご 、.cゝ 1:1( 1ぶ 00ヽ 1litc IItarヽ lcnll゛ N●rt:、 ヽlaPIcw。。d、卜11,1摯 ぃo(ai`1`)' いlが 10('1,1'憲 :|111■IⅢ 10 ゝib、 ltct w、.ヾ iat饉 10,3 A£狂kⅣ銀田lenぽ June 6, 2OL3 We at Our City - Our Neighborhood Church Mr. Ge Lee Treasurer Mr Lee: It was a pleasure talking with you the other day and exploring the option of leasing a portion of our parking lot during your weekend or evening worship services. We are open to receiving a proposal from you as your plans move forward. 1 As we discussed, Junior Achievement values its reputation as a responsible community citizen. To that end, your proposal would need to include responses to the following provisions: Meeting Ourinsurance requirements lndemnification for any damage or clairns your rnembers or guests rnight cause or have wh∥ e using Our property Provide any necessary security ofthe parking area when you are using it Make sure the grounds are cleaned of any debris after each use You will be in compliance with any requirernents specified by City of Maplewood ordinances or conditions of your conditional use perrnit` Specifications regarding tirnes of use and expected vehicle volurnes Flnancial consideration I fully believe we can arrive at mutually agreeable terms and wish you well in your applicatlon process. Thank you. Junior Achievement of the Upper Midwest CFO & Vice President of Finance and Administration Attachment 7 12 Packet Page Number 216 of 275 Attachment 8 CONDITIONAL USE PERMIT RESOLUTION WHEREAS, the Our City – Our Neighborhood Church applied for a conditional use permit to operate a church. WHEREAS, Section 44-1092(3) of the city ordinances requires a conditional use permit for churches and institutions of any educational, philanthropic and charitable nature. WHEREAS, this permit applies to the property located at 1616 Gervais Avenue. The property identification number is: 14-29-22-33-0012 WHEREAS, the history of this conditional use permit is as follows: 1. On July 16, 2013, the planning commission held a public hearing. The city staff published a notice in the paper and sent notices to the surrounding property owners. The planning commission gave everyone at the hearing a chance to speak and present written statements. The planning commission also considered the report and recommendation of city staff. The planning commission recommended that the city council approve this permit. 2. On ___________, the city council considered reports and recommendations of the city staff and planning commission. NOW, THEREFORE, BE IT RESOLVED that the city council __________ the above-described conditional use permit, because: 1. The use would be located, designed, maintained, constructed and operated to be in conformity with the City's Comprehensive Plan and this Code. 2. The use would not change the existing or planned character of the surrounding area. 3. The use would not depreciate property values. 4. The use would not involve any activity, process, materials, equipment or methods of operation that would be dangerous, hazardous, detrimental, disturbing or cause a nuisance to any person or property, because of excessive noise, glare, smoke, dust, odor, fumes, water or air pollution, drainage, water run-off, vibration, general unsightliness, electrical interference or other nuisances. 5. The use would not exceed the design standards of any affected street. 6. The use would be served by adequate public facilities and services, including streets, police and fire protection, drainage structures, water and sewer systems, schools and parks. 7. The use would not create excessive additional costs for public facilities or services. 8. The use would maximize the preservation of and incorporate the site's natural and scenic features into the development design. 9. The use would cause no more than minimal adverse environmental effects. Approval is subject to the following conditions: Packet Page Number 217 of 275 1. No exterior site or building exterior changes, except signage, shall take place unless approved by the city. Signs shall follow the city’s sign ordinance. Signs shall not be installed unless the applicant first obtains sign permits. 2. Any and all trash receptacles shall be contained within an enclosed structure. Any design of a new structure shall be subject to the city’s design review process. 3. The proposed use must be substantially started within one year of council approval or the permit shall become null and void. The council may extend this deadline for one year. 4. The city council shall review this permit in one year. 5. All of the applicant’s parking shall be confined to the site and not allowed on city streets or neighboring properties, unless approved by a neighboring property owner and the city council. 6. The city shall monitor any parking complaints and report to the city council about compliance annually during the CUP review. 7. The applicant shall submit a parking restriping plan for staff approval. 8. The applicant shall comply with all requirements of the building official, assistant fire chief and city engineer. The Maplewood City Council __________ this resolution on ___________. Packet Page Number 218 of 275 1 MEMORANDUM TO: Charles Ahl, City Manager FROM: Michael Martin, AICP, Planner David Fisher, Interim Community Development Director SUBJECT: Approval of Resolution for a Conditional Use Permit and Design Review, Maplewood Auto Mall, a Used Auto Sales Business LOCATION: 2529 White Bear Avenue (former Super America building) DATE: July 17, 2013 INTRODUCTION Lyudmila Cooper, of Maplewood Auto Mall, is proposing to sell used autos in the vacant, former gas station building (building “B”) located at 2529 White Bear Avenue. Selling used autos requires a conditional use permit (CUP) be approved by the city council. In addition, the applicant is proposing to repaint the façade. There are two existing CUPs for used auto sales at this site; however both only allow “by appointment only.” Ms. Cooper is requesting a CUP that would allow for regular, walk up customers. BACKGROUND March 22, 1988: The community design review board approved the plans for the Maplewood Auto Center. This facility was developed as an automotive center for auto parts, sales, and vehicle repairs. April 24, 1989: The city council denied an appeal of two of the community design review board’s conditions for approval of the Maplewood Auto Center (Attachment 2) including: 1) The exit on White Bear Avenue shall have only one exit lane, a “no left turn” sign and stop sign; and 2) there shall be no outside storage or displays of products or merchandise. November 22, 1999: The city council approved a CUP for Credit Equity Sales to open a motor vehicle sales business for this location. In the year 2000, this permit was taken over by Midwest Auto. July 9, 2001: The city council approved a CUP for Credit Equity to reopen a motor vehicle sales business for this location. August 27, 2001: The city council approved a CUP for Alamo Car Rental to lease motor vehicles. April 22, 2003: The CDRB (community design review board) approved a comprehensive sign plan amendment and design review change. July 27, 2004: The CDRB approved changes to the property owner’s color scheme for the larger building and its pylon sign. Agenda Item J2 Packet Page Number 219 of 275 DISCUSSION Conditional Use Permit Staff’s initial concern was allowing a used car sales business that was not by appointment only. However, considering the site’s previous use as a gas station, which created frequent activity with customers driving in and out of the lot, adding another used auto business would not be detrimental to the character of this development. Staff’s other major concern for this site is the allocation of parking spaces. For the past couple of years, staff has dealt with complaints from tenants within the development about other tenants’ use of spaces. Staff alerted the applicant and the property owner that a parking plan would be a conditional of approval for the CUP. The applicant has submitted a parking plan which shows how the parking spaces would be allotted among all the tenants. The parking plan is attached to this report. Currently there is not an enclosed structure for trash servicing the old gas station building. A condition of approval would be for the applicant to submit a plan to staff for how it intends to deal with trash and if needed to submit design plans for an enclosure, subject to the city’s design review process. Staff recommends conditioning the issuance of a license for auto sales on the applicant addressing the trash enclosure issue. Design Review Staff does not find any problem with this proposal, especially due to the fact that the applicant is proposing to paint the building with the same color scheme as the adjacent multi-tenant building. The proposed repainting of the building will give the building a fresh look after sitting vacant for many years. The renderings submitted by the applicant do not appear to match the intent of applicant’s color scheme. The design approval is conditioned on the applicant matching the color with the multi- tenant building. Signage There is a comprehensive sign plan approved for this site. Wall Signs for Tenants of building B (former Super America Gas Station) have the following requirements: a. Wall signage is limited to two signs including one of individual channel letters not to exceed 28-inches high and one readerboard sign not to exceed 24 square feet. Both signs to be placed on the east side of the building. b. Canopy signage is limited to one individual channel letter sign not to exceed 24 inches high. Canopy signage is limited to the east side of the canopy. DEPARTMENT REVIEW Fire Marshal’s Comments Butch Gervais, the Maplewood Fire Marshal, has the following comments regarding this proposal: • Fire protection systems (fire extinguishers and a sprinkler system) shall meet all requirements of the code. These systems shall be approved and installed before the applicant begins his business. • All vehicles shall be operational. There have been problems with inoperable vehicles on site. Packet Page Number 220 of 275 • There shall be no parting-out of vehicles outside the building and left in the parking lot. • The parking lot shall be kept clear of junk. • All service work that is needed on vehicles shall be completed inside a proper service garage. • There shall be an after-hours contact person on record with the city’s emergency dispatcher. Police Comments Lieutenant Richard Dobblar, of the Maplewood Police Department, finds no public saf ety concerns, but has concerns regarding the traffic patterns through the lot and the adjacent Mapleridge Shopping Center. Building Official’s Comments David Fisher, the Maplewood Building Official, has the following comments. The applicant shall: • Verify what was in the space in the past. If the building occupancy has changed, the applicant shall need to comply with all applicable code requirements relative to his new building use. A building permit may then be required. • Verify that the parking used with this business does not obstruct fire department access for their trucks. COMMITTEE ACTION Planning Commission On July 16, 2013, the planning commission held a public hearing and recommended approval of the proposed CUP revision for used auto sales business. Community Design Review Board On June 25, 2013 the community design review board recommended approval of the design plans for the proposed façade improvements. The board recommended the applicant be required to match the wall color and striping of building A. RECOMMENDATIONS A. Adopt the resolution attached to this report approving a conditional use permit for used car sales at 2529 White Bear Avenue. Approval is based on the findings required by the code and subject to the following conditions: 1. All façade improvements for the Maplewood Auto Mall used auto sales business shall follow the plans approved by the city. The director of community development may approve minor changes. 2. The applicant shall comply with the signage requirements of the city code and the auto center’s sign criteria. Packet Page Number 221 of 275 3. Fire protection systems (fire extinguishers and a sprinkler system) shall meet all requirements of the code. These systems shall be approved and installed before the applicant begins his business. 4. All vehicles shall be operational. There have been problems with inoperable vehicles on site. 5. There shall be no parting-out of vehicles outside the building and left in the parking lot. 6. The parking lot shall be kept clear of junk. 7. All service work that is needed on vehicles shall be completed inside a proper service garage. 8. There shall be an after-hours contact person on record with the city’s emergency dispatcher. 9. If the building occupancy has changed, the applicant shall comply with all applicable code requirements relative to his new building use. A building permit may then be required. 10. Verify that the parking used with this business does not obstruct fire department access for their trucks. 11. The proposed motor vehicle sales use must be substantially started within one year of city council approval or the permit shall become null and void. The council may extend this deadline for one year. 12. The city council shall review this permit in one year. 13. The property owner shall provide city staff a plan for trash removal or design plans for a new enclosed structure, subject to the city’s design review process. 14. All tenants at the Maplewood Auto Center must adhere to the parking plan, dated July 8, 2013, as submitted by the property owner to city staff. B. Approve the design plans attached to this report for the façade improvements on building B (former Super America) located at 2529 White Bear Avenue. 1. Color of stucco should be tan, matching building A. 2. Color striping sequence on the canopy shall match the existing sequence on building A. Packet Page Number 222 of 275 CITIZEN COMMENTS Staff surveyed the owners of the 18 properties within 500 feet of the proposed used auto sales business for their comments. Of the four replies, one had “no comment,” two were in favor and one was opposed. In Favor I have no objections as long as they maintain a clean operation especially along White Bear Avenue. A landscaped buffer along White Bear Avenue would be preferred. (Bachmans, 2600 White Bear Avenue North) We agree to the use of the property as proposed by Mila Cooper. (Regal Car Wash, 2635 White Bear Avenue) Opposed My name is Antoniette Guzzo. Per my mother’s (Carol Guzzo) request, I am responding to your request for my mother’s opinion regarding the Maplewood Auto Mall Proposal. Carol has reviewed the proposal to have a used auto sales at 2525 White Bear Avenue and with careful consideration has decided not to provide a favorable opinion. She would not like to see a used car lot in this area is it does not fit within the demographics of the area. White Bear Avenue has been an area where people come to frequent specialty stores and Hwy 61 has been delegated for new and used car dealers. Carol would like to preserve White Bear Avenue's slow paced family orientated atmosphere and request that this Auto Mall is located somewhere on Hwy 61. Carol is also concerned with the following points if this Auto Mall is approved. • Bright Lights - Car lots usually require brighter lights to showcase their vehicles and to help detour theft. If more lights are added it would be an eye soar to surrounding residence which would bring down the value of their homes. • Theft - There is a potential of people using the land behind Carol's property to access the Auto Mall. (Carol Guzzo 1876 County Road C. E.) No Comments I have no comments. (Alerus Financial, 401 Demers St., Grand Forks, ND) Packet Page Number 223 of 275 REFERENCE INFORMATION SITE DESCRIPTION Site Size: 4.8 acres Existing Use: Maplewood Auto Center and former Super America building SURROUNDING LAND USES North: A multi-tenant commercial building and vacant property. South: Mapleridge Shopping Center West: Undeveloped wetlands owned by Ramsey County. East: Across White Bear Avenue are Bachman’s and the Goodwill. PLANNING Land Use Plan: C (Commercial) Zoning: BC (Business Commercial) Ordinance Requirements Section 2-290 of the city code requires that the community design review board make the following findings to approve plans: 1. That the design and location of the proposed development and its relationship to neighboring, existing or proposed developments, and traffic is such that it will not impair the desirability of investment or occupation in the neighborhood; that it will not unreasonably interfere with the use and enjoyment of neighboring, existing or proposed developments; and that it will not create traffic hazards or congestion. 2. That the design and location of the proposed development is in keeping with the character of the surrounding neighborhood and is not detrimental to the harmonious, orderly and attractive development contemplated by this article and the city's comprehensive municipal plan. 3. That the design and location of the proposed development would provide a desirable environment for its occupants, as well as for its neighbors, and that it is aesthetically of good composition, materials, textures and colors. Section 44-512 (5) (a) requires a CUP for the sale of used motor vehicles. Section 44-1097 (a) states that the city council may approve a CUP, based on nine standards. Refer to the findings in the attached resolution. APPLICATION DATE Staff received the complete application and plans for this proposal on June 11, 2013. State law requires that the city take action within 60 days of receiving complete applications for a proposal. City council action is required on this proposal by August 10, 2013, unless the city needs an extension. p:sec11\Fleetwood Motors Attachments: 1. Location Map 2. Aerial Map 3. Land Use Map 4. Zoning Map 5. Site Plan 6. Parking Plan 7. Façade Update Plans 8. Applicant’s Letter of Request 9. Conditional Use Permit Resolution Packet Page Number 224 of 275 Chad Bergo Proposed Used Auto Sales - 2525 White Bear Avenue Location Map Attachment 1 2525 White Bear Avenue(Proposed Use Auto Sales) Packet Page Number 225 of 275 Chad Bergo Proposed Used Auto Sales - 2525 White Bear Avenue Aerial Map Attachment 2 2525 White Bear Avenue(Proposed Use Auto Sales) Packet Page Number 226 of 275 Chad Bergo Proposed Used Auto Sales - 2525 White Bear Avenue Future Land Use Map Attachment 3 2525 White Bear Avenue(Proposed Use Auto Sales) Commercial Open Space Government Commercial Packet Page Number 227 of 275 Chad Bergo Proposed Used Auto Sales - 2525 White Bear Avenue Zoning Map Attachment 4 2525 White Bear Avenue(Proposed Use Auto Sales) Business Commercial Farm Commercial Packet Page Number 228 of 275 瓦あ~~~~― 「 一¬ 2芦 妃 ヒず ヽ 、 Attachment 5 Packet Page Number 229 of 275 Attachment 6Packet Page Number 230 of 275 ロロMINEIN THE SuMMER口 F2口 1日 MAPLEWロ ロD AUT口 MALL Attachment 7Packet Page Number 231 of 275 ロロMINEIN THE SuMMER口 F2日 1ヨ MAPLEWロ ロD AUT口 MALL Attachment 7Packet Page Number 232 of 275 Gmail - Project Proposal https://mail.google.com/maillul 0 I ?li:2.&iled I 55a3 85 7 7 &view1t&... 2 of3 5/13/201311:38 AM Attachment 7 Packet Page Number 233 of 275 Lyudmilta ("MiIa") PROPOSED LOCAIION: 2524 WHITE BEARIAVENEIE, BUILD園 陽B I」APLE"OD,W55109 MAPLElW00D AUTO MALL CUP APPLICANT'S STATEMENT Objective Mila Cooper and Cooper Motors, LLC c/b/a Maplewood Auto Mall desires to move to the former Super America property located at2525 White Bear Avenue. Cooper Motors is an independent automobile sale and leasing dealership cunently located in Stillwater. Cooper Motors has reached agreement on a five-year lease for the property (owned by MNMAC Real Estate Trust, LLC), conditioned upon the City's approval of this CUP, The proposed Maplewood Auto Mall is a separate structure from the Maplewood Auto Center, which is an office/light industrial building on the same property with several other small businesses related primarily to automobile services. Criteria for Approval Met, in the order they appear on the The use would be located, designed, maintained, constructed, and operated in conformity with the City's comprehensive plan and Code of Ordinances. The use would not change the existing or planned character of the surrounding area: The property has two components: an office building--"Building A" and Building B--the proposed location--which was formerly operated as a Super America convenience store. The office building is referred to as the Maplewood Auto Center and houses a variety of car-related businesses. The addition of Maplewood Auto Mall will compliment the cunent use of the property. Use of the property will require only cos- metic improvements and changes to signage. Sign and lettering will be within the Plan previously ap- proved for the Super America signage. The use will not depreciate the property values: the property will be updated and a lot that has been inoperable for five years will be put to use. The business is sales and light mechanical and would not be hazardous or a nuisance due to exces- sive noise, glare, smoke, dust, odor, fumes, water or air pollution, drainage, water run-off, vibration, general unsightliness, electrical interference, or other nuisances. There will be no change in existing traffic patterns. The use of the property would result in considera- bly less traffic than the previous use as a convenience store. The use will be served by adequate public facilities and services: all changes to the property are cos- metic and all existing services are adequate for the proposed use. CUP Application: 1. 2. 3. 4. 651-551-0086 Attachment 8 Packet Page Number 234 of 275 PR10POSED LOCAnON: 2524 WHITE BEARIAVENEIE, BmDINGB ¨EW00D,m55109 7. 9. 10 MAPLEW00D AUTO MALL CUP The use would not create excessive additional costs for public facilities or services: the proposed use is in conformity with other businesses in the area, plus the sales tax revenue generated by automobile sales would offset any potential change in existing services. The use is within the plan already approved by the city, and cosmetic improvements to the vacant properiy would maximize the design and scenic features of the site. The use would cause minimal adverse environmental effects, as any potential effects would be far less than the gasoline sales and high-traffic business of the Super America or similar convenience store/ gas station. The proposed use would not require the Coucil to waive any of the CUP criteria. Lyudmilla ("Mila") Attachment 8 Packet Page Number 235 of 275 Attachment 9 CONDITIONAL USE PERMIT RESOLUTION WHEREAS, Lyudmila Cooper, of Maplewood Auto Mall, applied for a conditional use permit for the sale of used motor vehicles at the Maplewood Auto Center: WHEREAS, this permit applies to property located at 2529 White Bear Avenue. The legal description is: SUBJECT TO EASEMENTS: N 280 FEET OF LOT 2 & ALL OF LOT 1 BLOCK 1, MAPLE RIDGE MALL (PIN 11-29-22-22-0040) WHEREAS, the history of this conditional use permit is as follows: 1. On July 16, 2013, the planning commission held a public hearing and recommended that the city council approve this permit. The city staff published a notice in the paper and sent notices to the surrounding property owners. The planning commission gave everyone at the hearing a chance to speak and present written statements. The planning also considered reports and recommendations of the city staff. 2. On _________, 2013, the city council reviewed this proposal. The council also considered reports and recommendations of the city staff and planning commission. NOW, THEREFORE, BE IT RESOLVED that the city council approves the above-described conditional use permit based on the building and site plans. The city approved this permit because: 1. The use would be located, designed, maintained, constructed and operated to be in conformity with the City's Comprehensive Plan and this Code. 2. The use would not change the existing or planned character of the surrounding area. 3. The use would not depreciate property values. 4. The use would not involve any activity, process, materials, equipment or methods of operation that would be dangerous, hazardous, detrimental, disturbing or cause a nuisance to any person or property, because of excessive noise, glare, smoke, dust, odor, fumes, water or air pollution, drainage, water run-off, vibration, general unsightliness, electrical interference or other nuisances. 5. The use would not exceed the design standards of any affected street. 6. The use would be served by adequate public facilities and services, including streets, police and fire protection, drainage structures, water and sewer systems, schools and parks. 7. The use would not create excessive additional costs for public facilities or services. 8. The use would maximize the preservation of and incorporate the site's natural and scenic features into the development design. 9. The use would cause no more than minimal adverse environmental effects. Packet Page Number 236 of 275 Approval is subject to the following conditions: 1. All façade improvements for the Maplewood Auto Mall used auto sales business shall follow the plans approved by the city. The director of community development may approve minor changes. 2. The applicant shall comply with the signage requirements of the city code and the auto center’s sign criteria. 3. Fire protection systems (fire extinguishers and a sprinkler system) shall meet all requirements of the code. These systems shall be approved and installed before the applicant begins his business. 4. All vehicles shall be operational. There have been problems with inoperable vehicles on site. 5. There shall be no parting-out of vehicles outside the building and left in the parking lot. 6. The parking lot shall be kept clear of junk. 7. All service work that is needed on vehicles shall be completed inside a proper service garage. 8. There shall be an after-hours contact person on record with the city’s emergency dispatcher. 9. If the building occupancy has changed, the applicant shall comply with all applicable code requirements relative to his new building use. A building permit may then be required. 10. Verify that the parking used with this business does not obstruct fire department access for their trucks. 11. The proposed motor vehicle sales use must be substantially started within one year of city council approval or the permit shall become null and void. The council may extend this deadline for one year. 12. The city council shall review this permit in one year. 13. The property owner shall provide city staff a plan for trash removal or design plans for a new enclosed structure, subject to the city’s design review process. 14. All tenants at the Maplewood Auto Center must adhere to the parking plan, dated July 8, 2013, as submitted by the property owner to city staff. The Maplewood City Council ___________ this resolution on ____________, 2013. Packet Page Number 237 of 275 Item J3 MEMORANDUM TO: Charles Ahl, City Manager FROM: Karen Guilfoile, Director Citizen Services DATE: July 17, 2013 RE: Request of the City Council to Call a Special Meeting to Canvass the Results of the August 13, 2013 Municipal Primary Election There will be a Municipal Primary Election held on August 13, 2013 for the office of Mayor and two Councilmember seats to determine what candidates will move on to the November 5, 2013 General Election. Per State Statute 205.185 Subd. 3 the city council, serving as the canvassing board, shall canvass the returns and declare the results by resolution between the third and the tenth day after the election. It is requested that the city council call a special meeting to canvass the results of the Municipal Primary Election on Friday, August 16, 2013 at 3:00 p.m. or at a time when a quorum of the city council can be present. Packet Page Number 238 of 275 Item K1 AGENDA REPORT TO: Chuck Ahl, City Manager FROM: Michael Thompson, City Engineer / Public Works Director SUBJECT: East Metro Public Safety Training Center, City Project 09-09, Bid Package 5 1) Approval of Resolution Receiving Bids and Rejecting All Bids for Burn Building and Burn Tower 22)) Approval of Resolution Authorizing Re-Advertisement for Bids DATE: July 12, 2013 INTRODUCTION The Council has previously authorized advertisement for bids for Bid Packages 3, 4 and 5 including authorizing advertisement for bids for the two primary burn/training buildings on March 25, 2013. Advertisement for bids for the burn buildings began on June 5, 2013 for Bid Package 5 and the bid opening took place at 9:00 a.m. July 2, 2013. The council will consider rejecting all bids received. BACKGROUND / DISCUSSION The project has been in the planning stages for several years and in 2012 was presented to, and discussed with, the City Council, Environmental and Natural Resources Commission, Community Design Review Board and Planning Commission. The project is located at 1881 Century Avenue North at the intersection of Trunk Highway 120 and 34th Street North (TH 5). Bid Packages 1 and 2 which consisted of utility extensions and site grading and cleanup activities have been completed. Prior to the bid opening of Bid Package 5 it was anticipated that three remaining bid packages were necessary to complete the facility construction: • Bid Package 3 Site Civil, Utilities, Traffic Signal, Marshlands • Bid Package 4 Simulation and Training Building • Bid Package 5 Burn House and Training Tower Bid Package 3 is still planned to be completed in 2013, with Bid Package 4 being delayed until additional funding is available. Bid Package 5, for which the bid opening occurred on July 2, anticipated an engineering estimate for construction at $1.5 million which would allow the two burn buildings to be constructed. However, the lowest construction cost of the four bids received came in much higher than anticipated; at $700,000 over the engineering estimate. The currently identified funding sources cannot support the award of bid thus the City must reject all bids at this time. The following is a summary of bids: Bidder Total Bid Rochon $2,200,000 LS Black Constructors $2,280,000 Shaw-Lundquist Associates $2,341,000 Weber, Inc. $2,800,000 The City’s architect is working to revise the design plans in order to re-bid the project to synch with existing revenues identified in the approved budget. After a recent meeting of the Steering Committee the tentative approach is to re-bid Bid Package 5 with the burn building only as the base bid with an extended schedule which would see it constructed in the April-May timeframe of 2014. The extended schedule is due to the Packet Page Number 239 of 275 lead time on pre-cast panels and defining a shorter schedule has the potential to increase costs (paying an acceleration premium for pre-cast members). Also three alternates could possibly be bid as follows: - Alternate 1 Tower portion of tower building - 5 story tower - Alternate 2 Tower portion of tower building - 4 story tower - Alternate 3 Commercial portion of tower building In recent years Maplewood has fortunately saved hundreds of thousands of dollars on a number of projects including large road reconstruction improvements, however with the economy turning around contractors are not as “hungry” for work. Thus construction bids are higher as demand for labor and materials have increased significantly in the past year. The pre-cast building members for Bid Package 5 were significantly higher than what the engineer’s estimate predicted which is a reflection on suppliers raising prices because of high demand and limited supply. BUDGET The City has a total estimated budget of $4,335,000 for the Phase 1 work including a $3,000,000 grant from the State of Minnesota to design and construct a significant portion of the proposed improvements and a $450,000 grant from the Ramsey County Environmental Response. The following is a summary of the currently approved financing plan: FUNDING ITEM FUNDING SOURCE AMOUNT 1 STATE BONDING BILL GRANT $3,000,000 2 RAMSEY CO ERF GRANT $450,000 3 CITY EUF FUND $250,000 4 CITY CIP FUND $250,000 5 EAST METRO JPA – SPECIAL ASSESSMENT $175,000 6 MNDOT/MSA STREET ACCOUNT $55,000 7 ST PAUL REGIONAL WATER SERVICES (WATER MAIN LOOP) $55,000 8 SANITARY SEWER FUND $50,000 9 ST PAUL WAC FUND $50,000 TOTAL PHASE 1 $4,335,000 At this time there are no proposed budget adjustments, and the bids received are all proposed to be rejected. Bid Package 5 will be re-bid in a manner to allow more flexibility in what can be awarded in order to remain within the approved budget. RECOMMENDATION It is recommended that the city council approve the attached resolutions for the East Metro Public Safety Training Center, City Project 09-09, Receiving Bids and Rejecting All Bids and Authorizing Re- Advertisement for Bid Package 5. Attachments: 1. Resolution Receiving Bids and Rejecting All Bids 2. Resolution Authorizing Re-Advertisement for Bids Packet Page Number 240 of 275 RESOLUTION RECEIVING BIDS AND REJECTING ALL BIDS FOR BURN TOWER AND BURN BUILDING BID PACKAGE 5 WHEREAS, that the bids were opened on July 2, 2013 for the construction of a burn tower and burn building for the East Metro Safety Training Facility, Bid Package 5, Project 09-09, and those bids are as follows: Bidder Total Bid Rochon $2,200,000 LS Black Constructors $2,280,000 Shaw-Lundquist Associates $2,341,000 Weber, Inc. $2,800,000 WHEREAS the bids came in significantly higher than anticipated ($700,000 higher), and WHEREAS, the City does not have a sufficient funding to award a bid to the low bidder, and WHEREAS, the City has the authority to reject all bids, and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD, MINNESOTA, that all bids opened on July 2, 2013 for the construction of a burn tower and burn building for the East Metro Safety Training Facility, Bid Package 5, Project 09-09, are hereby rejected. Adopted by the council on this 22nd day of July, 2013. Packet Page Number 241 of 275 RESOLUTION AUTHORIZING RE-ADVERTISEMENT FOR BIDS BID PACKAGE 5 WHEREAS, pursuant to resolution passed by the city council on May 14, 2012 plans and June 25, 2012, plans and specifications for the East Metro Public Safety Training Center Improvements, City Project 09-09, were prepared by (or under the direction of) the city engineer, who has presented such plans and specifications to the council for approval. WHEREAS, the City Council rejected all bids on July 22, 2013 for Bid Package 5 bids opened on July 2, 2013. WHEREAS, the plans have been revised to in order to allow re-bidding of said project to reduce costs. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MAPLEWOOD, MINNESOTA: 1. Such preliminary plans for revised Bid Packages 5 a copy of which are available upon request, are hereby approved and ordered placed on file in the office of the city engineer. 2. The city clerk or office of the city engineer shall prepare and cause to be inserted in the official paper and in the Construction Bulletin an advertisement for bids upon the making of such improvement under such preliminary. The advertisement shall be published at least twice, and in conformance with State Statutes prior to the date set for bid opening, shall specify the work to be done, shall state that bids will be publicly opened and considered by the council at 10:00 a.m. on a date to be determined, at city hall and that no bids shall be considered unless sealed and filed with the clerk and accompanied by a certified check or bid bond, payable to the City of Maplewood, Minnesota for five percent of the amount of such bid. 3. The city clerk and city engineer are hereby authorized and instructed to receive, open, and read aloud bids received at the time and place herein noted, and to tabulate the bids received. The council will consider the bids, and the award of a contract, at a regular city council meeting. Adopted by the City Council on this 22nd day of July, 2013. Packet Page Number 242 of 275 Item M1 MEMORANDUM TO: Charles Ahl, City Manager FROM: Karen Guilfoile, Director Citizen Services SUBJECT: Notice of Cancellation of the September 2, 2013 Council Manager Workshop DATE: July 17, 2013 SUMMARY Due to September 2, 2013 being a legal holiday, staff is requesting formal cancellation of the regularly scheduled Council Manager Workshop scheduled on September 2, 2013. Packet Page Number 243 of 275 Agenda Item M2 Agenda Report TO: City Council FROM: Charles Ahl, City Manager DATE: July 16, 2013 SUBJECT: Council Meeting Calendar Report INTRODUCTION/SUMMARY This item is informational and intended to provide the Council an indication on the current planning for upcoming agenda items and the Work Session schedule. These are not official announcement of the meetings, but a snapshot look at the upcoming meetings for the City Council to plan their calendars. No action is required. Upcoming Important Dates to Remember 1. Police Department Open House – Saturday, July 27th ; 4:00 to 6:00 pm 2. National Night Out – Tuesday, August 6th Upcoming Work Session Schedule 1. Open Monday evening!!: July 29th 2. Department Budget Presentations – Aug 5: a. Police; Fire/Ambulance; Public Works; Citizen Services; Exec/Leg; Finance 3. Department Budget Presentations – Aug 12: Parks/Rec/MCC; Comm Dev; IT 4. Final Budget Discussion / Review of Options – Aug 12 5. No Work Session currently planned – August 26 6. No Work Session – September 2 due to Labor Day 7. New Commissioner Interviews – September 9 8. MnDOT Presentation on MnPASS on 35E – September 9 9. Approval of Maximum Tax Levy for 2014 – September 9 RECOMMENDATION No action required. Packet Page Number 244 of 275 5498279v4 For the Public Record Meeting Date: July 22, 2013 Agenda Item: H1 TAX INCREMENT FINANCING DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF MAPLEWOOD, MINNESOTA AND 3M COMPANY This document drafted by: BRIGGS AND MORGAN (MLI) Professional Association 2200 First National Bank Building St. Paul, Minnesota 55101 Packet Page Number 245 of 275 5498279v4 TABLE OF CONTENTS Page -i- ARTICLE I. DEFINITIONS .................................................................................................. 2 Section 1.1 Definitions......................................................................................................... 2 ARTICLE II. REPRESENTATIONS AND WARRANTIES................................................. 4 Section 2.1 Representations and Warranties of the City ...................................................... 4 Section 2.2 Representations and Warranties of the Developer ............................................ 4 Section 2.3 Fiscal Disparities ............................................................................................... 5 ARTICLE III. UNDERTAKINGS BY DEVELOPER AND CITY ........................................ 6 Section 3.1 Site Improvements ............................................................................................ 6 Section 3.2 Reimbursement: Tax Increment Revenue Note ................................................ 6 Section 3.3 Business Subsidies Act ..................................................................................... 7 Section 3.4 Reports .............................................................................................................. 8 Section 3.5 Prevailing Wage ................................................................................................ 8 ARTICLE IV. EVENTS OF DEFAULT .................................................................................. 9 Section 4.1 Events of Default Defined ................................................................................ 9 Section 4.2 Remedies on Default ......................................................................................... 9 Section 4.3 No Remedy Exclusive..................................................................................... 10 Section 4.4 No Implied Waiver ......................................................................................... 10 Section 4.5 Agreement to Pay Attorney's Fees and Expenses ........................................... 10 Section 4.6 Indemnification of City ................................................................................... 10 ARTICLE V. DEVELOPER'S OPTION TO TERMINATE AGREEMENT ...................... 12 Section 5.1 The Developer's Option to Terminate ............................................................. 12 Section 5.2 Action to Terminate ........................................................................................ 12 Section 5.3 Effect of Termination ...................................................................................... 12 ARTICLE VI. ADDITIONAL PROVISIONS ....................................................................... 13 Section 6.1 Restrictions on Use ......................................................................................... 13 Section 6.2 Conflicts of Interest......................................................................................... 13 Section 6.3 Titles of Articles and Sections ........................................................................ 13 Section 6.4 Notices and Demands ..................................................................................... 13 Section 6.5 Counterparts .................................................................................................... 14 Section 6.6 Law Governing ............................................................................................... 14 Section 6.7 Expiration ........................................................................................................ 14 Section 6.8 Provisions Surviving Rescission or Expiration............................................... 14 Section 6.9 Assignability of Agreement ............................................................................ 14 EXHIBIT A Description of Development Property ................................................................... A-1 EXHIBIT B Form of TIF Note ................................................................................................... B-1 EXHIBIT C Site Improvements.................................................................................................. C-1 Packet Page Number 246 of 275 5498279v4 DEVELOPMENT AGREEMENT THIS AGREEMENT, made as of the ____ day of ___________, 2013, by and between the City of Maplewood, Minnesota (the "City"), a municipal corporation organized and existing under the Constitution and laws of the State of Minnesota and 3M Company, a Delaware corporation (the "Developer"). WITNESSETH: WHEREAS, pursuant to Minnesota Statutes, Sections 469.124 through 469.133, as amended, the City established Development District No. 1 (the "Development District") and adopted a development program therefor (the "Development Program"); and WHEREAS, pursuant to laws of Minnesota for 2013, Chapter 143, Article 9, Section 21 (the "Act"), the City is authorized to establish one or more tax increment financing districts by December 31, 2018 within parcel 362922240002 (the "Project Area"); and WHEREAS, The Project Area is located within the Development District; and WHEREAS, pursuant to the Act and the provisions of Minnesota Statutes, Section 469.174 through 469.1794, as amended (the "Tax Increment Act") the City has created Tax Increment Financing District No. 1-12 (the "Tax Increment District") as a redevelopment district and has adopted a tax increment financing plan therefor (the "Tax Increment Plan") which provides for the use of tax increment financing in connection with certain development within the Project Area; and WHEREAS, in order to achieve the objectives of the Development Program and the Tax Increment Plan and particularly to make the land in the Project Area available for development by private enterprise in conformance with the Development Program, the City has determined to assist the Developer with the financing of certain costs of a Project (as hereinafter defined) to be constructed within the Project Area as more particularly set forth in this Agreement; and WHEREAS, the City believes that the development and construction of the Project, and fulfillment of this Agreement are vital and are in the best interests of the City, the health, safety, morals and welfare of residents of the City, and in accordance with the public purpose and provisions of the applicable state and local laws and requirements under which the Project has been undertaken and is being assisted; and WHEREAS, the requirements of the Business Subsidy Law, Minnesota Statutes, Section 116J.993 through 116J.995, apply to this Agreement; and WHEREAS, the City had adopted criteria for awarding business subsidies that comply with the Business Subsidy Law, after a public hearing for which notice was published; and WHEREAS, the Council has approved this Agreement as a subsidy agreement under the Business Subsidy Law. Packet Page Number 247 of 275 5498279v4 2 NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: ARTICLE I. DEFINITIONS Section 1.1 Definitions Agreement means this Tax Increment Financing Development Agreement, as the same may be from time to time modified, amended or supplemented; . All capitalized terms used and not otherwise defined herein shall have the following meanings unless a different meaning clearly appears from the context: Act means laws of Minnesota for 2013, Chapter 143, Article 9, Section 21; Business Day means any day except a Saturday, Sunday or a legal holiday or a day on which banking institutions in the City are authorized by law or executive order to close; City means the City of Maplewood, Minnesota; City Development Agreement means the Development Agreement for 3M Research and Development Facility Developer Project: 12-15, dated ________, 2013, as the same may be from time to time modified; County means Ramsey County, Minnesota; Developer means 3M Company, a Delaware corporation, its successors and assigns; Development District means the real property included in Development District No. 1; Development Program means the development program approved in connection with the Development District; Development Property means the real property located within the Tax Increment District and described in Exhibit A attached to this Agreement; Event of Default means any of the events described in Section 4.1 hereof; Note Payment Date means August 1, 2015, and each February 1 and August 1 of each year thereafter to and including February 1, 2041; provided, that if any such Note Payment Date should not be a Business Day, the Note Payment Date shall be the next succeeding Business Day; Project means the construction of an approximately 400,000 square foot research and development facility and outdoor parking of approximately 725 spaces on the Development Property in the City; Project Area means the 3M Renovation and Retention Project Area consisting of parcel 36.29.22.24.0002; Packet Page Number 248 of 275 5498279v4 3 Site Improvements means the site improvements to be undertaken on the Development Property as identified on Exhibit C attached hereto; State means the State of Minnesota; Tax Increment Act means Minnesota Statutes, Sections 469.174 through 469.1794, as amended; Tax Increment District means Tax Increment Financing District No. 1-12, located within the Project Area, a description of which is set forth in the Tax Increment Financing Plan which was qualified as a redevelopment district under the Act and the Tax Increment Plan; Tax Increment Financing Plan means the tax increment financing plan approved for the Tax Increment District by the City Council and any future amendments thereto; Tax Increments means 80% of the tax increments derived from the Tax Increment District which have been received and retained by the City in accordance with the provisions of Minnesota Statutes, Section 469.177; Termination Date means the earlier of (i) February 1, 2041, (ii) the date the Reimbursement Amount is paid in full, (iii) the date on which the Tax Increment District expires or is otherwise terminated, or (iv) the date this Agreement is terminated or rescinded in accordance with its terms; TIF Note means the Tax Increment Revenue Note (3M Research and Development Project) to be executed by the City and delivered to the Developer pursuant to Article III hereof, the form of which is attached hereto as Exhibit B; and Unavoidable Delays means delays, outside the control of the party claiming its occurrence, which are the direct result of strikes, other labor troubles, unusually severe or prolonged bad weather, acts of God, fire or other casualty to the Project, litigation commenced by third parties which, by injunction or other similar judicial action or by the exercise of reasonable discretion, directly results in delays, or acts of any federal, state or local governmental unit (other than the City) which directly result in delays. Packet Page Number 249 of 275 5498279v4 4 ARTICLE II. REPRESENTATIONS AND WARRANTIES Section 2.1 Representations and Warranties of the City (1) The City is a municipal corporation and has the power to enter into this Agreement and carry out its obligations hereunder. . The City makes the following representations and warranties: (2) The Tax Increment District is a "redevelopment district" within the meaning of the Act, and was created, adopted and approved in accordance with the terms of the Tax Increment Act and the Act. (3) The development contemplated by this Agreement is in conformance with the development objectives set forth in the Development Program. (4) To finance certain costs within the Tax Increment District, the City proposes, subject to the further provisions of this Agreement, to apply Tax Increments to reimburse the Developer for a portion of the costs of the Site Improvements incurred in connection with the Project as further provided in this Agreement. (5) The City makes no representation or warranty, either express or implied, as to the Development Property or its condition or the soil conditions thereon, or that the Development Property shall be suitable for the Developer's purposes or needs. Section 2.2 Representations and Warranties of the Developer (1) The Developer is Delaware corporation, and has power to conduct business in Minnesota, and authority to enter into this Agreement and to perform its obligations hereunder and, by doing so, is not in violation of any provisions of its articles of incorporation or bylaws, or the laws of the state of Minnesota and by proper action has authorized the execution and delivery of this Agreement. . The Developer makes the following representations and warranties: (2) The Developer shall cause the Project to be constructed in accordance with the terms of this Agreement, the Development Program, the City Development Agreement, and the Tax Increment Plan, and all local, state and federal taxes and regulations (including, but not limited to, environmental, zoning, energy conservation, building code and public health laws and regulations). (3) The construction of the Project would not be undertaken by the Developer, and in the opinion of the Developer would not be economically feasible within the reasonably foreseeable future, without the assistance and benefit to the Developer provided for in this Agreement. (4) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and Packet Page Number 250 of 275 5498279v4 5 conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provision of any contractual restriction, evidence of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (5) The Developer will cooperate fully with the City with respect to any litigation commenced with respect to the Project. (6) The Developer will cooperate fully with the City in resolution of any traffic, parking, trash removal or public safety problems which may arise in connection with the construction and operation of the Project. (7) The Developer acknowledges that Tax Increment projections contained in the Tax Increment Plan are estimates only and the Developer acknowledges that it shall place no reliance on the amount of projected Tax Increments and the sufficiency of such Tax Increments to reimburse the Developer for the costs of the Site Improvements as provided in Article III. (8) The Developer will not seek a reduction in the Market Value (as defined in Minnesota Statutes, Section 273.02) of the completed Project below $24,720,000. In the event that the Developer obtains a reduction in Market Value that results in the City having to make a payment to Ramsey County (the "County Payment"), the Developer agrees that: (a) If the TIF Note remains outstanding, the next Tax Increments to be paid to the Developer shall be reduced by the County Payment, and (b) If the TIF Note is no longer outstanding, Developer shall pay the amount of the County Payment to the City within thirty (30) days after written notice from the City as to the amount of the County Payment. Section 2.3 Fiscal Disparities . The City has elected the fiscal disparities election set forth in Minnesota Statutes, Section 469.177, Subd. 3(b) (the "Outside District Election") for the Tax Increment District. If the Developer has not obtained one or more building permits with minimum construction costs of not less than $50,000,000 for renovation and rehabilitation of Developer facilities (excluding the Project and normal valuation for routine maintenance projects) in the Project Area by December 31, 2021 the City may change the Outside District Election to the "in district election" set forth in Minnesota Statutes, Section 469.177, Subd. 3(a) as permitted by Minnesota Statutes, Section 469.177, Subd. 3(c). Packet Page Number 251 of 275 5498279v4 6 ARTICLE III. UNDERTAKINGS BY DEVELOPER AND CITY Section 3.1 Site Improvements Section 3.2 . The parties agree that the installation of the Site Improvements is essential to the successful completion of the Project. The costs of the Site Improvements shall be paid by the Developer. The Authority shall reimburse the Developer for up to $9,568,000 of the costs of the Site Improvements actually incurred and paid by the Developer (the "Reimbursement Amount") as further provided in Section 3.2. Reimbursement: Tax Increment Revenue Note (1) The TIF Note shall be dated, issued and delivered when the Developer shall have demonstrated in writing to the reasonable satisfaction of the City that the construction of the Site Improvements have been completed and that the Developer has incurred and paid all costs of the construction of Site Improvements, as described in and limited by Section 3.1 and shall have submitted paid invoices for the costs of construction of the Site Improvements in an amount not less than the Reimbursement Amount. . The City shall reimburse the Developer for the costs identified in Section 3.1 through the issuance of the City's TIF Note in substantially the form attached to this Agreement as Exhibit B, subject to the following conditions: (2) The unpaid principal amount of the TIF Note shall bear, simple, non- compounding interest from the date of issuance of the TIF Note, at 5.0% per annum Interest shall be computed on the basis of a 360 day year consisting of twelve (12) 30-day months. (3) The principal amount of the TIF Note and the interest thereon shall be payable solely from the Tax Increments. (4) The payment dates of the TIF Note shall be the Note Payment Dates. On each Note Payment Date and subject to the provisions of the TIF Note, the City shall pay, against the principal and interest outstanding on the TIF Note, the Tax Increments received by the City during the preceding six months. All such payments shall be applied first to accrued interest and then to reduce the principal of the TIF Note. (5) The TIF Note shall be a special and limited obligation of the City and not a general obligation of the City, and only Tax Increments shall be used to pay the principal and interest on the TIF Note. If, on any Note Payment Date, the Tax Increments for the payment of the accrued and unpaid interest on the TIF Note are insufficient for such purposes, the difference shall be carried forward, without interest accruing thereon, and shall be paid if and to the extent that on a future Note Payment Date there are Tax Increments in excess of the amounts needed to pay the accrued interest then due on the TIF Note. (6) The City's obligation to make payments on the TIF Note on any Note Payment Date or any date thereafter shall be conditioned upon the requirements that: (A) there shall not at that time be an Event of Default that has occurred and is continuing under this Agreement and (B) this Agreement shall not have been rescinded pursuant to Section 4.2(b) hereof. Packet Page Number 252 of 275 5498279v4 7 (7) The TIF Note shall be governed by and payable pursuant to the additional terms thereof, as set forth in Exhibit B. In the event of any conflict between the terms of the TIF Note and the terms of this Section 3.2, the terms of the TIF Note shall govern. The issuance of the TIF Note pursuant and subject to the terms of this Agreement, and the taking by the City of such additional actions as bond counsel for the TIF Note may require in connection therewith, are hereby authorized and approved by the City. Section 3.3 Business Subsidies Act (1) In order to satisfy the provisions of Minnesota Statutes, Sections 116J.993 to 116J.995 (the "Business Subsidies Act"), the Developer acknowledges and agrees that the amount of the "Business Subsidy" granted to the Developer under this Agreement is the Reimbursement Amount which is $9,568,000 for the Site Improvements paid by the Developer and reimbursed to the Developer by Tax Increments and that the Business Subsidy is needed because the Project is not sufficiently feasible for the Developer to undertake without the Business Subsidy. The Tax Increment District is a redevelopment district and the public purpose of the Business Subsidy is to encourage the construction of a research and development facility. The Developer agrees that it will meet the following goals (the "Goals") in connection with the development of the Project: It will cause to retain at least seven hundred (700) jobs at a average wage of at least $50.00 per hour, exclusive of benefits, within two years from the "Benefit Date", which is the date the Developer substantially completes the Project, pursuant to Minnesota Statutes, Section 116J.993, Subdivision 4. . (2) If the Goals are not met, the Developer agrees to repay all or a part of the Business Subsidy to the City, plus interest ("Interest") set at the implicit price deflator defined in Minnesota Statutes, Section 275.70, Subdivision 2, accruing from and after the Benefit Date, which is the earlier of the date the Developer completes or occupies the Project, compounded semiannually. If the Goals are met in part, the Developer will repay a portion of the Business Subsidy (plus Interest) determined by multiplying the Business Subsidy by a fraction, the numerator of which is the number of jobs in the Goals which were not retained at the wage level set forth above and the denominator of which is seven hundred (700) (i.e., number of jobs set forth in the Goals). (3) The Developer agrees to comply with the following: (i) report its progress on achieving the Goals to the City until the later of the date the Goals are met or two years from the Benefit Date, or, if the Goals are not met, until the date the Business Subsidy is repaid, (ii) include in the report the information required in Minnesota Statutes, Section 116J.994, Subdivision 7 on forms developed by the Minnesota Department of Employment and Economic Development, and (iii) send completed reports to the City. The Developer agrees to file these reports no later than March 1 of each year commencing March 1, 2016, and within 30 days after the deadline for meeting the Goals. The City agrees that if it does not receive the reports, it will mail the Developer a warning within one week of the required filing date. If within 14 days of the post marked date of the warning the reports are not made, the Developer agrees to pay to the City a penalty of $100 for each subsequent day until the report is filed up to a maximum of $1,000. Packet Page Number 253 of 275 5498279v4 8 (4) The Developer agrees to continue operations within the City for at least five (5) years after the Benefit Date. (5) There are no other state or local government agencies providing financial assistance for the Project other than the City which is providing the Tax Increment Note. (6) There is no parent corporation of the Developer. (7) The Developer certifies that it does not appear on the Minnesota Department of Employment and Economic Development's list of recipients that has failed to meet the terms of a business subsidy agreement. Section 3.4 Reports Section 3.5 . Subject to Section 3.3, the Developer shall provide the City reports in a timely manner with such information about the Project as the City may reasonably request, including information regarding goals as to minimum employment and wage levels set forth in Section 3.3, for purposes of satisfying any reporting requirements imposed by law on the City. Prevailing Wage. The Developer shall pay prevailing wages, as provided in the City Development Agreement, for the portions of the Site Improvements described in Section 25 of the City Development Agreement. Packet Page Number 254 of 275 5498279v4 9 ARTICLE IV. EVENTS OF DEFAULT Section 4.1 Events of Default Defined (a) Failure by the Developer to timely pay any ad valorem real property taxes assessed, special assessments, or other City charges with respect to the Development Property. . The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean whenever it is used in this Agreement any one or more of the following events: (b) Failure by the Developer to cause the construction of the Project to be completed pursuant to the terms, conditions and limitations of this Agreement. (c) Failure of the Developer to observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement. (d) If the Developer shall (A) file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act of 1978, as amended or under any similar federal or state law; or (B) make an assignment for the benefit of its creditors; or (C) admit in writing its inability to pay its debts generally as they become due; or (D) be adjudicated as bankrupt or insolvent; or if a petition or answer proposing the adjudication of the Developer, as a bankrupt or its reorganization under any present or future federal bankruptcy act or any similar federal or state law shall be filed in any court and such petition or answer shall not be discharged or denied within sixty (60) days after the filing thereof; or a receiver, trustee or liquidator of the Developer, or of the Project, or part thereof, shall be appointed in any proceeding brought against the Developer, and shall not be discharged within sixty (60) days after such appointment, or if the Developer, shall consent to or acquiesce in such appointment. Section 4.2 Remedies on Default. Whenever any Event of Default referred to in Section 4.1 occurs and is continuing, the City, as specified below, may take any one or more of the following actions after the giving of thirty (30) days' written notice to the Developer, but only if the Event of Default has not been cured within said thirty (30) days: Packet Page Number 255 of 275 5498279v4 10 (a) The City may suspend its performance under this Agreement and the TIF Note until it receives assurances from the Developer, deemed adequate by the City, that the Developer will cure its default and continue its performance under this Agreement. (b) The City may cancel and rescind the Agreement and the TIF Note. (c) The City may take any action, including legal or administrative action, in law or equity, which may appear necessary or desirable to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement. Section 4.3 No Remedy Exclusive Section 4.4 . No remedy herein conferred upon or reserved to the City is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. No Implied Waiver Section 4.5 . In the event any agreement contained in this Agreement should be breached by any party and thereafter waived by any other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Agreement to Pay Attorney's Fees and Expenses Section 4.6 . Whenever any Event of Default occurs and the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement or performance or observance of any obligation or agreement on the part of the Developer herein contained, the Developer agrees that it shall, on demand therefor, pay to the City the reasonable fees of such attorneys and such other expenses so incurred by the City. Indemnification of City (1) The Developer (a) releases the City and its governing body members, officers, agents, including the independent contractors, consultants and legal counsel, servants and employees (collectively, the "Indemnified Parties") from, (b) covenants and agrees that the Indemnified Parties shall not be liable for, and (c) agrees to indemnify and hold harmless the Indemnified Parties against, any claim, cause of action, suit or liability for loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Project or on the Development Property in which the claim is based upon the acts of the Developer or of others acting on behalf of or under the direction or control of the Developer. . (2) Except for any willful misrepresentation or any willful or wanton misconduct of the Indemnified Parties, the Developer agrees to protect and defend the Indemnified Parties, now and forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from the actions or inactions of the Developer (or if other persons acting on its behalf or under its direction or control) under this Agreement, or the transactions Packet Page Number 256 of 275 5498279v4 11 contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Project; provided, that this indemnification shall not apply to the warranties made or obligations undertaken by the City in this Agreement or to any actions undertaken by the City which are not contemplated by this Agreement. (3) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City and not of any governing body member, officer, agent, servant or employee of the City. Packet Page Number 257 of 275 5498279v4 12 ARTICLE V. DEVELOPER'S OPTION TO TERMINATE AGREEMENT Section 5.1 The Developer's Option to Terminate Section 5.2 . This Agreement may be terminated by the Developer, if (i) the Developer is in compliance with all material terms of this Agreement and no Event of Default has occurred; and (ii) the City fails to comply with any material term of this Agreement, and, after written notice by the Developer of such failure, the City has failed to cure such noncompliance within ninety (90) days of receipt of such notice, or, if such noncompliance cannot reasonably be cured by the City within ninety (90) days, of receipt of such notice, the City has not provided assurances, reasonably satisfactory to the Developer, that such noncompliance will be cured as soon as reasonably possible. Action to Terminate Section 5.3 . Termination of this Agreement pursuant to Section 5.1 must be accomplished by written notification by the Developer in the City within sixty (60) days after the date when such option to terminate my first be exercised. A failure by the Developer to terminate this Agreement within such period constitutes a waiver by the Developer of its rights to terminate this Agreement due to such occurrence or event. Effect of Termination. If this Agreement is terminated pursuant to this Article V, this Agreement shall be from such date forward null and void and of no further effect; provided, however, the termination of this Agreement shall not affect the rights of either party to institute any action, claim or demand for damages suffered as a result of breach or default of the terms of this Agreement by the other party, or to recover amounts which had accrued and become due and payable as of the date of such termination. Upon termination of this Agreement pursuant to this Article V, the Developer shall be free to proceed with the Project at its own expense and without regard to the provisions of this Agreement; provided, however, that the City shall have no further obligations to the Developer with respect to reimbursement of the expenses set forth in Section 3.2. Packet Page Number 258 of 275 5498279v4 13 ARTICLE VI. ADDITIONAL PROVISIONS Section 6.1 Restrictions on Use Section 6.2 . Until termination of this Agreement, the Developer agrees for itself, its successors and assigns and every successor in interest to the Development Property, or any part thereof, that the Developer and its successors and assigns shall operate, or cause to be operated, the Project as a research and development facility or other use authorized by the zoning requirements of the City and shall devote the Development Property to, and in accordance with, the uses specified in this Agreement. Conflicts of Interest Section 6.3 . No member of the governing body or other official of the City shall have any financial interest, direct or indirect, in this Agreement, the Development Property or the Project, or any contract, agreement or other transaction contemplated to occur or be undertaken thereunder or with respect thereto, nor shall any such member of the governing body or other official participate in any decision relating to the Agreement which affects his or her personal interests or the interests of any corporation, partnership or association in which he or she is directly or indirectly interested. No member, official or employee of the City shall be personally liable to the City in the event of any default or breach by the Developer or successor or on any obligations under the terms of this Agreement. Titles of Articles and Sections Section 6.4 . Any titles of the several parts, articles and sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Notices and Demands (a) in the case of the Developer is addressed to or delivered personally to: . Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by any party to any other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, and 3M Company 3M Center Building 224-05-N-40 St. Paul, MN 55144-1000 Attn: Real Estate Department (b) in the case of the City is addressed to or delivered personally to: City of Maplewood, Minnesota Maplewood City Hall 1830 County Road B East Maplewood, Minnesota 55109-2702 or at such other address with respect to any such party as that party may, from time to time, designate in writing and forward to the other, as provided in this Section. Packet Page Number 259 of 275 5498279v4 14 Section 6.5 Counterparts Section 6.6 . This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Law Governing Section 6.7 . This Agreement will be governed and construed in accordance with the laws of the State. Expiration Section 6.8 . This Agreement shall expire on the Termination Date. Provisions Surviving Rescission or Expiration Section 6.9 . Sections 4.5 and 4.6 shall survive any rescission, termination or expiration of this Agreement with respect to or arising out of any event, occurrence or circumstance existing prior to the date thereof. Assignability of Agreement. This Agreement may be assigned only with the consent of the City. The TIF Note may only be assigned pursuant to the terms of the TIF Note. Packet Page Number 260 of 275 5498279v4 S-1 IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and on its behalf and the Developer has executed this Agreement in its name and on its behalf, on or as of the date first above written. CITY OF MAPLEWOOD, MINNESOTA By ____________________________________ Its Mayor By ____________________________________ Its Administrator This is a signature page to the Tax Increment Financing Development Agreement by and among the City of Maplewood and 3M Company Packet Page Number 261 of 275 5498279v4 S-2 3M COMPANY By ____________________________________ Its ____________________________________ This is a signature page to the Tax Increment Financing Development Agreement by and among the City of Maplewood and 3M Company Packet Page Number 262 of 275 5498279v4 A-1 EXHIBIT A Description of Development Property PID: 36.29.22.24.0002 Packet Page Number 263 of 275 5498279v4 B-1 EXHIBIT B Form of TIF Note No. R-1 $_________ UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF MAPLEWOOD TAX INCREMENT REVENUE NOTE (3M RESEARCH AND DEVELOPMENT PROJECT) The City of Maplewood, Minnesota (the "City"), hereby acknowledges itself to be indebted and, for value received, hereby promises to pay the amounts hereinafter described (the "Payment Amounts") to 3M Company, a Delaware corporation (the "Developer" or the "Registered Owner"), but only in the manner, at the times, from the sources of revenue, and to the extent hereinafter provided. The principal amount of this Note shall equal from time to time the principal amount stated above, as reduced to the extent that such principal installments shall have been paid in whole or in part pursuant to the terms hereof; provided that the sum of the principal amount listed above shall in no event exceed $9,568,000 as provided in that certain Tax Increment Financing Development Agreement, dated as of _________________, 2013, as the same may be amended from time to time (the "Development Agreement"), by and between the City and the Developer. The unpaid principal amount hereof shall bear simple, non-compounding interest from the date of this Note at the rate of 5.00% per annum. Interest shall be computed on the basis of a 360 day year consisting of twelve (12) 30-day months. The amounts due under this Note shall be payable on August 1, 2015, and on each August 1 and February 1 thereafter to and including February 1, 2041, or, if the first should not be a Business Day (as defined in the Development Agreement) the next succeeding Business Day (the "Payment Dates"). On each Payment Date the City shall pay by check or draft mailed to the person that was the Registered Owner of this Note at the close of the last business day of the City preceding such Payment Date an amount equal to the Tax Increments (hereinafter defined) received by the City during the six month period preceding such Payment Date. All payments made by the City under this Note shall first be applied to accrued interest and then to principal. The Payment Amounts due hereon shall be payable solely from 80% of tax increments (the "Tax Increments") from the Development Property (as defined in the Development Agreement), within the City's Tax Increment Financing District No. 1-12 (the "Tax Increment District") within its Project Area (as defined in the Development Agreement) located in Development District No. 1, which are paid to the City and which the City is entitled to retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.1794, as the Packet Page Number 264 of 275 5498279v4 B-2 same may be amended or supplemented from time to time (the "Tax Increment Act") and the laws of Minnesota for 2013, Chapter 143, Article 9, Section 21 (the "Act"). This Note shall terminate and be of no further force and effect following the last Payment Date defined above, on any date upon which the City shall have terminated the Development Agreement under Section 4.2(b) thereof or the Developer shall have terminated the Development Agreement under Article V thereof, on the date the Tax Increment District is terminated, or on the date that all principal and interest payable hereunder shall have been paid in full, whichever occurs earliest. The City makes no representation or covenant, express or implied, that the Tax Increments will be sufficient to pay, in whole or in part, the amounts which are or may become due and payable hereunder. The City's payment obligations hereunder shall be further conditioned on the fact that no Event of Default under the Development Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder, but such unpaid amounts shall become payable if said Event of Default shall thereafter have been cured; and, further, if pursuant to the occurrence of an Event of Default under the Development Agreement the City elects to cancel and rescind the Development Agreement, the City shall have no further debt or obligation under this Note whatsoever. Reference is hereby made to all of the provisions of the Development Agreement, including without limitation Section 3.2 thereof, for a fuller statement of the rights and obligations of the City to pay the principal of this Note, and said provisions are hereby incorporated into this Note as though set out in full herein. This Note is a special, limited revenue obligation and not a general obligation of the City and is payable by the City only from the sources and subject to the qualifications stated or referenced herein. Neither the full faith and credit nor the taxing powers of the City are pledged to the payment of the principal of this Note and no property or other asset of the City, save and except the above-referenced Tax Increments, is or shall be a source of payment of the City's obligations hereunder. This Note is issued by the City in aid of financing a project pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including the Tax Increment Act. This Note may be assigned only with the consent of the City which consent shall not be unreasonably withheld. In order to assign the Note, the assignee shall surrender the same to the City either in exchange for a new fully registered note or for transfer of this Note on the registration records for the Note maintained by the City. Each permitted assignee shall take this Note subject to the foregoing conditions and subject to all provisions stated or referenced herein. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law; and that this Note, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation thereon. Packet Page Number 265 of 275 5498279v4 B-3 IN WITNESS WHEREOF, City of Maplewood, Minnesota, by its City Council, has caused this Note to be executed by the manual signatures of its Mayor and Administrator and has caused this Note to be dated as of __________________, 201__. _________________________________ ___________________________________ Administrator Mayor Packet Page Number 266 of 275 5498279v4 B-4 CERTIFICATION OF REGISTRATION It is hereby certified that the foregoing Note was registered in the name of 3M Company, and that, at the request of the Registered Owner of this Note, the undersigned has this day registered the Note in the name of such Registered Owner, as indicated in the registration blank below, on the books kept by the undersigned for such purposes. NAME AND ADDRESS OF REGISTERED OWNER DATE OF REGISTRATION SIGNATURE OF CITY ADMINISTRATOR 3M Company 3M Center Building 224-05-N-40 St. Paul, MN 55144-1000 Attn: Real Estate Department ________________ ______________________ __________________________ __________________________ __________________________ ________________ ______________________ __________________________ __________________________ __________________________ ________________ ______________________ __________________________ __________________________ __________________________ ________________ ______________________ Packet Page Number 267 of 275 5498279v4 C-1 EXHIBIT C Site Improvements Site Preparation Grading/earthwork Parking, Driveway, Curb and Sidewalk Improvements SAC/WAC Landscaping, including irrigation Foundations and Footings Engineering Survey Environmental Testing Soil Borings On Site Utilities Storm Water/Ponding Outdoor Lighting Steam and Chilled Water Packet Page Number 268 of 275 Packet Page Number 269 of 275 Packet Page Number 270 of 275 Packet Page Number 271 of 275 Packet Page Number 272 of 275 Packet Page Number 273 of 275 Packet Page Number 274 of 275 Packet Page Number 275 of 275