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HomeMy WebLinkAbout2015-05-13 HEDC Packet AGENDA CITY OF MAPLEWOOD HOUSING AND ECONOMIC DEVELOPMENT COMMISSION Wednesday, May13, 2015 7:00 P.M. Council Chambers -Maplewood City Hall 1830 County Road B East 1.Call to Order 2.Roll Call 3.Approval of Agenda 4.Approval of Minutes: a.November 12, 2014 5. New Business: a.Business Engagement Plan –Susan Fronk b.Approval of Redevelopment Tax Increment Financing District, Villages at Frost- English, 1955 English Street c.2014 Code Enforcement Year-End Report d.2014HEDC Annual Report e.Election of Officers (No Report) 6.Unfinished Business: 7.Visitor Presentations: 8.Commission Presentations: 9.Staff Presentations: a.Development Summary (No Report) 10.Adjourn MINUTES OF THE HOUSING AND ECONOMIC DEVELOPMENT COMMISSION 1830 COUNTY ROAD B EAST, MAPLEWOOD, MINNESOTA 7:00 P.M., WEDNESDAY,NOVEMBER 12, 2014 1.CALL TO ORDER A meeting of the Commissionwas held in the City Hall Council Chambers and was called to order at 7:00p.m.byChairperson Wessel. 2.ROLL CALL Commissioners Spencer Gansluckner, CommissionerPresent Mark Jenkins, CommissionerPresent Gary Kloncz, CommissionerPresent Absent Jennifer Lewis, Commissioner Joy Tkachuck, Vice ChairPresent Dennis Unger, CommissionerPresent Warren Wessel, ChairpersonPresent Staff Michael Martin, Planner 3.APPROVAL OF AGENDA Commissioner Ungermoved to approve the agenda as submitted. Seconded by CommissionerTkachuck..Ayes –All The motion passed. 4.APPROVAL OF MINUTES Commissioner Jenkinsmoved to approve the HEDC minutesfor August 13,2014as submitted. Seconded by CommissionerUnger.Ayes –All The motion passed. 5.NEW BUSINESS a.New Member Orientation i.New HEDC Commissioner, Spencer Gansluckner introduced himself to the commission. b.Partners in Energy–Xcel Energy Community Partnership i.Planner, Mike Martin introduced the item and Joe Ballandby ii.Green Corp member, Joe Ballandby introduced himself and his role in thePartners in Energyprogram. iii.Xcel Energy Representative, Tamara Gunderzik, gave the Partners in Energy presentation and the Xcel partnership to the commission. iv.Environmental Planner, Shann Finwall addressed the commission regarding this program. November 12, 2014 1 Housing and Economic Development CommissionMeetingMinutes Commissioner Jenkins moved to recommend approval of the Partners in Energy Memorandum of Understanding in (Attachment 3 in the staff report). The MOU enters the city into a community support program with Xcel Energy in order to carry out the planning phase of an energy action plan. Commissioner Jenkins recommended the appointment of Commissioner Gansluckner (Housing and Economic Development Commission member) to serve on the energy action team. Commissioner Jenkins recommendedto offer guidance on the appointment of individuals from Maplewood’s business community and business associations to serve on the energy action team. Seconded by Commissioner Unger.Ayes –Chairperson Wessel, Commissioner’s Gansluckner, Tkachuck & Unger Abstention–Commissioner Kloncz Commissioner Kloncz abstained because this is his last HEDC meeting. Commissioner Gansluckner will be the representative and Commissioner Tkachuck will be the alternate. The motion passed. c.Approval of Resolution of Appreciation for Beth Ulrich i.Planner, Michael Martin gave the report on the Resolution of Appreciation for Beth Ulrich. Commissioner Jenkins moved to approve the resolution of appreciation for Beth Ulrich. Seconded by Chairperson Wessel.Ayes –All The motion passed. d.Approval of Resolution of Appreciation for Gary Kloncz i.Planner, Michael Martin gave the report on the Resolution of Appreciation for Gary Kloncz. Commissioner Jenkins moved to approve the resolution of appreciation for Gary Kloncz. Seconded by Chairperson Wessel.Ayes –Chairperson Wessel, Commissioner’s Gansluckner, Tkachuck & Unger Abstention –Commissioner Kloncz The motion passed. e.Update on Sale of City Properties i.Planner, Michael Martin gave the update on the Sale of City Propertiesin the City of Maplewood. November 12, 2014 2 Housing and Economic Development CommissionMeetingMinutes 6.UNFINISHED BUSINESS None. 7.VISITOR PRESENTATIONS City Councilmember, Marv Koppen addressed Commissioner Kloncz. 8.COMMISSIONPRESENTATIONS Commissioner Jenkins addressed the commission regardingan event at the MCC and staff will get further information posted for the commission. 9.STAFF PRESENTATIONS a.Development Summary (No Report) i.Planner, Michael Martin gave the update on development in the City of Maplewood. Projects in the city include: 1.U-Haul is expanding into the old Goodwill building on White Bear Avenue & Cope Avenue. 2.The Bureau located at English & Hwy 36 is doing a remodeling project and a loading dock project. 3.The Days Inn building by the Maplewood Mall is being proposed to be converted into a senior housing project. 4.Holiday Station Store is building at the old Baby Zone location on Cope Avenue. 10.ADJOURNMENT Chairperson Wesseladjourned the meeting at 8:19p.m. November 12, 2014 3 Housing and Economic Development CommissionMeetingMinutes MEMORANDUM TO: Melinda Coleman, City Manager FROM: Michael Martin, AICP,Planner DATE: May 6, 2015 SUBJECT: Business Engagement Plan – Susan Fronk Introduction Susan Fronk will be attending the housing and economic development commission’s May 13, 2015 meeting to discuss a business community outreach plan that she and city staff have developed for 2015. This plan was developed as a follow up to the city’s Multi-Cultural Business Eventwhich was held in February. Discussion Susan Fronkis a business consultant working with the city to create effective strategies to engage businesses and individuals in a meaningful way and thatthecity can measure. Ms. Fronk will engage the commission on the business engagement plan in order to get commissioners thoughts and recommendations considered and addressed in the plan. The business engagement plan is being developed as a response to city council directives and the housing and economic development commission’s approved work plan which encourages the city to sponsor business events,build relationships with businesses and feature city facilities like the community center. The plan outlines several events and workshops that are being held throughout the year. These events allowthe city to bemore engaged with the business community. Recommendation No action required. Attachments 1. Business Engagement Plan 1 Business/Community Outreach Plan April-December, 2015 I.SCORE Saint Paul Workshop Series(April 29-June 3, 2015) Purpose/Objectives: To support the successful start-up and, growth and success of new local businesses. To strengthen the engagement and connection between the City of Maplewood and the local business community. To foster long term economic growth for the City of Maplewood. To enhance Maplewood’s image and reputation as a great place to do business. Target Audience: Entrepreneurs and individuals who want to start and grow a business. Description: SCORE Saint Paul’s “Simple Steps to Starting Your Business” workshop series includes six three-hour sessions.The workshop content is designed to help entrepreneurs launch a successful business.The initial workshop series has been scheduled at MCC for the following dates: Wednesday April 29th, 6pm to 9pm Wednesday May 6th, 6pm to 9pm Wednesday May 13th, 6pm to 9pm Wednesday May 20th, 6pm to 9pm Wednesday May 27th, 6pm to 9pm Wednesday June 3rd, 6pm to 9pm SCORE will promote the series online and electronically to a list of over 3,000 contacts. Since the first two introductory sessions are free (the session on May 6 is a repeat of the April 29 session) – if the City of Maplewood so desires, SCORE can send the registration invitation to any email distribution list they wish to share. The intro session attendees can then register for the remaining 4 sessions if they so choose. 2 II.SBA Workshops(May 7 and 14) Purpose/Objectives: To support the successful start-up and, growth and success of new local businesses. To strengthen the engagement and connection between the City of Maplewood and the local business community. To foster long term economic growth for the City of Maplewood. To enhance Maplewood’s image and reputation as a great place to do business. Target Audience: Entrepreneurs and existing business owners who are looking for start-up capital or additional funding for growth and expansion. Entrepreneurs and existing business owners who want to learn how to secure government contracts. Description: The “Access toCapital” workshop would include a panel of small business lendersand micro lenderssuch as NDC(Neighborhood Development Center). The workshop content is designed to educate entrepreneurs identify the resources and requirements in order to obtain funding for new businesses (start-up capital) as well as businesses that are looking for second round funding and/or expansion. The “Selling Your Product or Service to the Government” workshop would include a representative from PTAC (Procurement Technical Assistance Center) and a government contracting officer. Each session would be approximately two hours long. A fee can be charged to offset the expenses for each event. SBA would provide assistance in promoting the workshops. 3 III.Pathways to Opportunityfor Youth(June 9, 2015) Purpose/Objectives: To enhance Maplewood’s image and reputation as a great place for youth development. To engage, inspire, educate and support youth in finding and accessing opportunities. To facilitate connections between emerging talent and local businesses. To facilitate connections between the City of Maplewood and education. To reduce the “skills gap” between what employers need and the local talent pool. Target Audience: Youth (ages 14-21) Parents/Guardians School Administrators/Teachers/Guidance Counselors Program Administrators/Instructors/Counselors supporting youth development Business Owners/Executives/Human Resources/Staffing/Career Coaching Professionals Description: The event would include a panel of experts comprised of a group of panel members/speakers from schools, community, government and employers who will share insightsand perspectivesand advice. Attendance would be free to young peopleas well as the non-profit, government and community resource providers,panelists/speakers. The cost for the event would be covered by fees paid (set by the City of Maplewood) by sponsors(food and beverages would be provided by local vendor/sponsors). The event has been scheduled for June 9, 2015 from 10am until 5:00 pm. 10:00am - 11:30 am Speaker Breakfast (Ballroom) 1:00 pm -5:00 pmPanel/Speaker Presentations(Theatre) 1:30 pm - 5:00 pmOpportunity Fair (Ballroom) 4 IV.Small Business Success Workshop(June 23, 2015) Purpose/Objectives: To support the success, growth and profitability of local businesses. To strengthen the engagement and connection between the City of Maplewood and the local business community. To enhance Maplewood’s image and reputation as a great place to do business. To foster new jobs and economic growth in the City of Maplewood. Target Audience: Entrepreneurs and business owners who are serious about growing a profitable business. Description: The workshopis three hourslong and includes content designed to help business owners who have an existing company,are focused on taking it to the next level and are willing to invest time and money to make it a reality. The cost for these workshops will be covered by aparticipant fee. Any revenue generated over and above the per-participant fee of $49 paid to Small Business Success will belong to the City of Maplewood. Specific roles, responsibilities and rewards will be divided as follows: Small Business Success expects to receive $49 per participant off the top of the fee which can be set by the City of Maplewood. The City of Maplewood can set the workshop fee anywhere from $89 to $149 per participant depending on whether or not food and beverages will be provided. The City of Maplewood can (and should) offer discounts to Maplewood businesses and or early registration. Small Business Success will provide consulting assistance to the City of Maplewood with the regard to promotion, attendee registration and collection of fees for the workshops. The first workshop is scheduled for Tuesday June 23, 2015from 9am until 12 noon. 8:00 am –9:00Check-in and Networking 5 9:00 am – 10:30 Introduction to Small Business Success Best Practices 10:30 am – 10:45Break 11:00 am -12:00 Critical Strategies, Tools and Technologiesfor Success V.MaplewoodBusiness Environmental and Sustainability Forum(Sept, 2015) Hosted by the City of Maplewood and White Bear Chamber – Dewey is forming a committee VI. Maplewood Community Engagement Event(October 15, 2015) Purpose/Objectives: To strengthen the engagement, connection and collaboration between the City of Maplewood and the community. To reinforce the connection, connection and collaboration between the City of Maplewood and key leaders from local Health Care, Technology and Education. To promote the City of Maplewood’s image as a great place to live, learn, recreate and prosper. To reinforce the City of Maplewood’s commitment to economic development. Target Audience : Selected leaders and representatives from Maplewood organizations involvedin Health Care, Technology and Education. Description: The event will include a complimentary breakfast with selectedrepresentatives from leadingMaplewood organizations in Health care, Technology and Education. The date for the event is October 15,2015. The agenda is as follows: 7:30 am – 8:15Welcome/Introductions and Breakfast 8:15 am - 9:30 Speaker Presentations 6 VII.State of MaplewoodEvent (Jan, 2016) Purpose/Objectives: To recognize members of Maplewood’s community from 2015with awards for notable contributions and achievements in several key areas (new and emerging businesses, job growth, innovation, youth development, diversity, impact on environmental sustainability, etc.) To unveil the Cityof Maplewood’s plan for 2016. To reinforce the City of Maplewood’s image as a great place to live, learn, recreate and prosper. To reinforce the City of Maplewood’s commitment to economic development. To inspire progress, innovation and investment in Maplewood’s future. Target Audience: Residents, businesses, schools, partners, employees and stakeholders in Maplewood. Description: The program would include a luncheon followed by an address by Melinda Coleman. MEMORANDUM TO: Melinda Coleman, City Manager FROM: Michael Martin, AICP, Planner DATE: May 6, 2015 SUBJECT: Approval of Redevelopment Tax Increment Financing District, Villages at Frost-English, 1955 English Street Introduction Sherman Associates is proposing to redevelop the 5.5 acre former Maplewood Bowl site (1955 English) into a three-phased, mixed-use project to be called the Villages at Frost-English. The first phase will be a four-story, multi-family building with 50 units. Phase two will be an 80-unit multi-family building rented exclusively to seniors and phase three will be a 6,000square foot commercial retail building near Frost Avenue and English Street. Sherman Associates has made an application to the city requesting tax increment financing (TIF) assistance. Background May 8, 2013: The housing and economic development commission reviewed the potential redevelopment of 1955 English Street and approved a motion supporting the city council to consider financial assistance mechanisms to assist with this project. January 22, 2014: The Metropolitan Council approved a livable communities demonstration account (LCDA) grant request for the city of Maplewood for $1,900,000. This grant money will be used for public infrastructure improvements along Frost Avenue and will assist with the purchase of the Maplewood Bowl site. February 12, 2014:The housing and economic development commission received an update on the redevelopment of 1955 English Street and the Phase 2 public improvements for the Gladstone neighborhood. Discussion The city has been working with Sherman Associates for more than two years on the potential redevelopment of the former Maplewood Bowl site located at 1955 English Street. The city council has approved the land use applications for the overall site plan and phase one of the development. The applicant is seeking TIF assistance from the city to assist with the redevelopment of this site. A TIF plan has been drafted and is attached to this report.Tom Denaway of Springsted, the city’s financial consultant, will be present at the May 13 meeting to address the commission and answer questions. Commission Review March 17, 2015: The planning commission reviewed requests for a conditional use permit and lot division for the Villages at Frost-English redevelopment project and recommended approval of both. March 24, 2015: The community design review board reviewed a request for design review and recommended approval. April 13, 2015: The city council made all land use approvals required for this project to move forward. May 5, 2015: The planning commission reviewed the request for tax increment financing and approved a resolution stating the proposed project is consistent with the city’s 2030 Comprehensive Plan May 13, 2015: The housing and economic development commission will review a request for tax increment financing and make a recommendation to the city council which will review the request on May 26, 2015. Recommendation Make a recommendation to the city council to approve the TIF Plan to support the Villages at Frost-English redevelopment project. Attachments 1.Approved Site Plan 2.Comprehensive Plan Land Use Map 3.Modification to Development Program for Development District No. 1 4.Draft TIF Plan 5.HEDC Minutes, May 8, 2013 Copyright Kaas Wilson Architects11/26/2014 10:55:23 AMP:\1444-Sherman-Maplewood-Frost English MHFA\Models\1444-Sherman - Maplewood Apartments.rvt Attachment 2 Maplewood, Source: Esri, DigitalGlobe, GeoEye, i-cubed, Earthsta 1955 English Street - Villages at Frost and English Legend Geographics, CNES/Airbus DS, USDA, USGS, AEX, Getmapping, Aerogrid, IGN, IGP, swisstopo, and the GIS User Community, City Maplewood, Esri, HERE, DeLorme, TomTom, MapmyIndia, © Low Density Residential Former Maplewood Bowl site - Land Use Map OpenStreetMap contributors, and the GIS user community Open Space Mixed Use Attachment 3 MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 CITY OF MAPLEWOOD, MINNESOTA Draft: May 26, 2015 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 Attachment 3 SECTION IDEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 3 1.1.Definitions.............................................................................................................. 3 1.2. Statement of Public Purpose .................................................................................. 5 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 ....................................................................................... 10 1.10.Park and Open Space to be Created ..................................................................... 10 1.11. Proposed Reuse of Property ................................................................................. 10 1.12.Administration and Maintenance of Development District ................................. 10 1.13.Rehabilitation ....................................................................................................... 11 1.14.Relocation ............................................................................................................ 11 1.15. Parcels To Be Acquired In Whole or In Part Within the Development District.................................................................................................................. 11 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.................................................................................................................. 13 Exhibit A Boundaries of Development District No. 1 .................................................. A-1 Attachment 3 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. Attachment 3 May 12, 2003: The Program for Development District No. 1was 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 DevelopmentDistrict 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. May 26, 2015: The program for Development District No. 1 was modified by increased Project Costs and the Tax Increment Financing Plan for RedevelopmentDistrict No. 1-13 within Development District No. 1 was adopted. Attachment 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 469.133, 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, July 22, 2013, and May 26, 2015. 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, qualified disaster area, or housing district, but which the City finds to be in the public interest because: Attachment 3 (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 1934, the National Housing Act of 1959, the United States 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 469.1655, as amended. "Municipality" means any city, however organized as defined in Minnesota Statutes, Section 469.125, Subd. 2. “Redevelopment District” means a type of tax increment financing district consisting of a project, or portions of a project, not meeting the requirements found in the definition of economic development district, renewal and renovation district, soils conditions district, qualified disaster area, or housing district, and subject to the provisions of Minnesota Statutes 469.174, Subd. 10. "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. Attachment 3 "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 developmentopportunities 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 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. Inaddition, 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 forprivate 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. Attachment 3 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 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. The City has established a redevelopment district as permitted under Minnesota Laws, 2013, Chapter 143, Article 9, Section 21 and Redevelopment District No. 1-13 as a type of tax increment financing district described in Section 469.174, Subd. 10. 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 Attachment 3 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. (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. Attachment 3 (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; (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; Attachment 3 (17)construction of traffic improvements on White Bear Avenue from Interstate Highway 694 to Beam Avenue; (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; (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; and (20)the redevelopment of the existing Maplewood Bowl site, into a three phased mixed-use development, consisting of the construction of an approximately 50- unit multi-family apartment building, an approximately 79-unit senior housing living facility, and an approximately 6,000 square foot commercial building along with corresponding site work, infrastructure, and parking improvements associated with the mixed-use project. (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 tobe 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 eligibleexpenses, 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. Attachment 3 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; (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 theCity 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 Attachment 3 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 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. The City intends to reimburse the developer for a portion of the cost of the land within Redevelopment District No. 13 if such determination is made. 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. Attachment 3 (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. (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). Attachment 3 (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). (r)The City intends to enter into a development agreement with Sherman Associates, Inc. with respect to the mixed-use three phase redevelopment project to be constructed on the existing Maplewood Bowl site (the Maplewood Bowl Redevelopment 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 theDevelopment 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. Attachment 3 Exhibit A Boundaries of Development District No. 1 Consists of the entire corporate boundaries of the City of Maplewood. Attachment 4 Maplewood, Minnesota Tax Increment Financing Plan for Tax Increment Financing (Redevelopment) District No. 1-13 Within Development District No. 1 (Maplewood Bowl Redevelopment Project) Draft Dated: April 24, 2015 Public Hearing Scheduled: May 26, 2015 Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street, Suite 300 St. Paul, MN 55101-2887 (651) 223-3000 WWW.SPRINGSTED.COM Attachment 4 TABLE OF CONTENTS SectionPage(s) Definitions .............................................................................................................................................................. 1 A. Statutory Authorization .......................................................................................................................................... 1 B. Statement of Need and Public Purpose ................................................................................................................. 1 C. Statement of Objectives ........................................................................................................................................ 1 D. Designation of Tax Increment Financing District as a Redevelopment District ...................................................... 2 E. Duration of the TIF District ..................................................................................................................................... 3 F. Property to be Included in the TIF District.............................................................................................................. 3 G. Property to be Acquired in the TIF District ............................................................................................................. 2 H. Specific Development Expected to Occur Within the TIF District .......................................................................... 3 I. Findings and Need for Tax IncrementFinancing ................................................................................................... 5 J. Estimated Public Costs .......................................................................................................................................... 4 K. Estimated Sources of Revenue ............................................................................................................................. 5 L. Estimated Amount of Bonded Indebtedness .......................................................................................................... 7 M. Original Net Tax Capacity ...................................................................................................................................... 7 N. Original Local Tax Rate ......................................................................................................................................... 6 O. Projected Retained Captured Net Tax Capacity and Projected Tax Increment ..................................................... 8 P. Use of Tax Increment ............................................................................................................................................ 8 Q. Excess Tax Increment ........................................................................................................................................... 7 R. Tax Increment Pooling and the Five Year Rule ..................................................................................................... 8 S. Limitation on Administrative Expenses .................................................................................................................. 8 T. Limitation on Property Not Subject to Improvements - Four Year Rule ................................................................. 9 U. Estimated Impact on Other Taxing Jurisdictions .................................................................................................. 11 V. Prior Planned Improvements ............................................................................................................................... 11 W. DevelopmentAgreements ................................................................................................................................... 12 X. Assessment Agreements ..................................................................................................................................... 12 Y. Modifications of the Tax Increment FinancingPlan ............................................................................................. 10 Z. AA. Administration of the Tax Increment FinancingPlan ........................................................................................... 11 . Filing TIF Plan, Financial Reporting and Disclosure Requirements ..................................................................... 11 AB Map of the Tax Increment Financing District within Development District No. 1 ...................................... EXHIBIT I Assumptions Report ............................................................................................................................... EXHIBIT II Projected Tax IncrementReport ............................................................................................................ EXHIBIT III Estimated Impact on Other Taxing Jurisdictions Report ........................................................................EXHIBIT IV Market Value Analysis Report ................................................................................................................EXHIBIT V Attachment 4 City of Maplewood, Minnesota 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. "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. 1-13. "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 Designation of Tax Increment Financing District as a Redevelopment District Redevelopment districts are a type of tax increment financing district in which one or more of the following conditions exists and is reasonably distributed throughout the district: (1) parcels comprising at least 70% of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50% of the buildings, not including outbuildings, are structurally substandard requiring substantial renovation or clearance. A parcel is deemed SPRINGSTED Page 1 Attachment 4 City of Maplewood, Minnesota "occupied" if at least 15% of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots; or other similar structures. (2)the property consists of vacant, unused, underused, inappropriately used, or infrequently used railyards, rail storage facilities, or excessive or vacated railroad right-of-ways; or (3)tank facilities, or property whose immediately previous use was for tank facilities, as defined in section 115C.02, subdivision 15, if the tank facilities: (i)have or had a capacity of more than 1,000,000 gallons; (ii)are located adjacent to rail facilities; and (iii)have been removed or are unused, underused, inappropriately used, or infrequently used. For districts consisting of two more noncontiguous areas, each area must individually qualify under the provisions listed above, as well as the entire area must also qualify as a whole. The City is in the process of having a blight study completed by an independent third-party to determine if the proposed TIF District qualifies as a redevelopment district in that it meets all of the criteria listed in (1) above. The supporting facts and documentation for this determination will be included in the final version of this plan as an Exhibit, and will be retained by the City for the life of the TIF District and will be available to the public upon request at prior to the public hearing. "Structurally substandard" is defined as buildings containing defects or deficiencies in structural elements, essential utilities and facilities, light and ventilation, fire protection (including egress), layout and condition of interior partitions, or similar factors. Generally, a building is not structurally substandard if it is in compliance with the building code applicable to a new building, or could be modified to satisfy the existing code at a cost of less than 15% of the cost of constructing a new structure of the same size and type. A city may not find that a building is structurally substandard without an interior inspection, unless it can not gain access to the property and there exists evidence which supports the structurally substandard finding. Such evidence includes recent fire or police inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence. Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained. A parcel is deemed to be occupied by a structurally substandard building if the following conditions are met: (1) the parcel was occupied by a substandard building within three years of the filing of the request for certification of the parcel as part of the district; (2)the demolition or removal of the substandard building was performed or financed by the City, or was performed by a developer under a development agreement with the City, (3)the City found by resolution before such demolition or removal occurred that the building was structurally substandard and that the City intended to include the parcel in the TIF district, and (4)the City notifies the county auditor that the original tax capacity of the parcel must be adjusted upon filing the request for certification of the tax capacity of the parcel as part of a district. In the case of (4) above, the County Auditor shall certify the original net tax capacity of the parcel to be the greater of (a) the current tax capacity of the parcel, or (b) a computed tax capacity of the parcel using the estimated market value of the parcel for the year in which the demolition or removal occurred, and the appropriate classification rate(s) for the current year. At least 90 percent of the tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation as a redevelopment district. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, SPRINGSTED Page 2 Attachment 4 City of Maplewood, Minnesota demolition and rehabilitation of structures, clearing of land, removal of hazardous substances or remediation necessary to develop the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the City may be included in the qualifying costs. Section F 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 2043). 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 2018. Section G Property to be Included in the TIF District The TIF District is an approximately 5.57-acre area of land located within the Development District. A map showing the location of the TIF District within the Development District is shown in Exhibit I. The boundaries and area encompassed by the TIF District are described below: r* Legal Description* Parcel Numbe 162922140007 W 1/2 Of Vac Alley In Blk 1 Adj Lots 14 Thru 22 & E 1/2 Of Chambers St Vac Adj & Lots 14 Thru 22 In Blk 1 & W 1/2 Of Chambers St Vac & E 1/2 Of Alley Vac & Lots 6 Thru 11 Blk 2 & W 1/2 Of Alley Vac & Lots 12 Thru Lot 16 Blk 2 162922140074 E 1/2 Of Vac Alley Adj And Lots 9 1o And Lot 11 Blk 1 162922140073 E 1/2 Of Vac Alley Adj And Lot 8 Blk 1 162922140072 E 1/2 Of Vac Alley Adj And Lot 7 Blk 1 162922140071 E 1/2 Of Vac Alley Adj And Lot 6 Blk 1 162922140070 E 1/2 Of Vac Alley Adj And Lots 4 And Lot 5 Blk 1 162922140099 Subj To Rd; E 1/2 Of Vac Alley Accruing & Lots 1 Thru 3 Blk 1 SPRINGSTED Page 3 Attachment 4 City of Maplewood, Minnesota 162922140079 E 1/2 Of Chambers St Vac Adj & Fol; Ex E 80 Ft; Lots 23, 24 & Lot 25 Blk 1 162922140080 W 1/2 Of Vac Street & All Of Vac Alley Accruing & Lot 1 Blk 1 162922140081 Alleys & Street As Vac In Doc Nos. 1528547, 1807561 & 567589 Accruing & Fol; Lots 2 Thru 5 Blk 1 Kuhls Re & In Sd Lincoln Park; Lots 4 & Lot 5 Blk 2 162922140085 W 1/2 Of Alley As Vac In Doc #567589 Accruing & Fol; Lot 18 Blk 2 162922140086 W 1/2 Of Vac Alley Adj & Lot 17 Blk 2 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 parcels to be located in the TIF District are being replatted. The Parcel Numbers and legal descriptions are representative of the parcels prior to the replatting. Section H 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. Section I Specific Development Expected to Occur Within the TIF District The proposed project includes the redevelopment of the existing Maplewood Bowl site, into a three phase mixed-use development. The redevelopment of the site will be undertaken in three separate component, phase 1 of the redevelopment is projected to consist of an approximately 50-unit multi-family apartment building, phase 2 is projected to consist of an approximately 79-unit senior living facility, and phase 3 is projected to consist of an approximately 6,000 square foot commercial building. The redevelopment will also include corresponding site work, infrastructure, and parking improvements associated with mixed use project. The City anticipates using tax increment to reimburse the Developer for a portion of the TIF eligible project costs occurred in the development of the Facility. Included in the projected eligible costs to be reimbursed are costs associated with demolition of existing buildings, site work, private utility improvements, and other eligible improvements associated with the project. Additionally, the City anticipates using tax increment to finance public improvements and site work on property located within the Development District, along with related administrative expenses. Construction of the project is expected to begin in 2015, and be completed by 2016. The development is projected to be 100% assessed and on the tax rolls as of January 2, 2017 for taxes payable in 2018. SPRINGSTED Page 4 Attachment 4 City of Maplewood, Minnesota At the time this document was prepared there were no signed construction contacts with regards to the above described development. Section J 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 E 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 three-phase mixed use development. A key component to the redevelopment is the reimbursement of eligible expenses through tax increments. The Developer 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 site 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: 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 $19,354,736, including the value of the building (See Exhibit V). c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $2,395,400 (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 $16,959,336 (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 TIF District by private enterprise. The proposed development is the construction of a mixed-use redevelopment, in the Factual basis: Development District that is expected to create substantial new tax base for the City and the state. The SPRINGSTED Page 5 Attachment 4 City of Maplewood, Minnesota development clearly meets the City's housing and redevelopment goals of creating additional affordable and senior housing opportunities; additionally, the development meets the agency’s goal of the removal of blight.. (4) The TIF Plan conforms to general plans for development of the City as a whole. The City Planning Commission has determined that the development proposed in the TIF Plan Factual basis: 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 K 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 $1,723,230 improvements/preparation costs, related infrastructure and other eligible improvements Paygo Note Interest Payments1,904,137 Public site work/infrastructure costs and 1,394,036 Administrative expenses Other Expenditures 0 Total $5,021,403 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. Section L Estimated Sources of Revenue Tax Increment revenue $5,021,403 Interest on invested funds 0 Bond proceeds 0 Loan proceeds 0 Grants 0 Other 0 Total $5,021,403 The City anticipates using future tax increments for reimbursement of public costs incurred from Section K. As increments are collected from the TIF District in future years, a portion of 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 developer as reimbursement for eligible costs incurred related to the redevelopment of the site. SPRINGSTED Page 6 Attachment 4 City of Maplewood, Minnesota 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 TIF District to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section M 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 $5,021,403 (total estimated public costs). Section N 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 Authority intends to file the request for certification prior to July 1, 2015. Therefore, the original net tax capacity will be the net tax capacity as of January 2, 2014. The Estimated Market Value of all property within the TIF District as of January 2, 2014, for taxes payable in 2015, is $1,616,300, and is classified as commercial property. Upon redevelopment a portion of the site will be classified as rental property, and a portion will be classified as commercial property. Therefore, the estimated tax capacity is currently unknown; however, for purposes of the revenue projections in this TIF plan, the City has assumed a pro-rata share of the land area will be classified as rental an a portion as commercial resulting in $12,664, which is estimated to be the original net tax capacity of the TIF District. 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. Section O 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. As noted in Section M, the Authority intends to file the TIF District for certification prior to July 1, 2015; therefore, the Original Local Tax Rate will be the rate that applies for taxes payable in 2015. For purposes of estimating the tax increment generated by the TIF District, the sum of the local tax rates for taxes levied in 2014 and payable in 2015, is 152.372% as shown below. SPRINGSTED Page 7 Attachment 4 City of Maplewood, Minnesota 2014/2015 Taxing Jurisdiction Local Tax Rate 46.353% City of Maplewood 58.922% Ramsey County 35.864% ISD # 622 11.233% Other Total152.372% Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment The City anticipates that development will be initiated in 2015, and completed in 2016 creating a total tax capacity for the TIF District No. 1-13 of $110,87 as of January 2, 2017. The captured tax capacity as of that date is estimated to be $98,209 and the first-year of tax increment is estimated to be $149,643 payable in 2018. A complete schedule of estimated tax increment from the TIF District is shown in Exhibit III. 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; while rental class rates will remain constant at 1.25% and 0.75% for 4(d) rental class rates. 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. Exhibit II gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit III which shows the projected tax increment generated over the anticipated life of the TIF District. Section Q 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 III 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: SPRINGSTED Page 8 Attachment 4 City of Maplewood, Minnesota (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 R 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; (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 S Tax Increment Pooling and the Five-Year Rule At least 75% of the tax increments from the TIF District must be expended on activities within the district or to pay for bonds used to finance the estimated public costs of the TIF District (see Section E for additional restrictions). No more than 25% of the tax increments may be spent on costs outside of the TIF District but within the boundaries of the Project Area, except to pay debt service on credit enhanced bonds. All administrative expenses are considered to SPRINGSTED Page 9 Attachment 4 City of Maplewood, Minnesota have been spent outside of the TIF District. Tax increments are considered to have been spent within the TIF District if such amounts are: (1) actually paid to a third party for activities performed within the TIF District within five 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 five-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 five years after certification of the district; or (4) used to reimburse a party for payment of eligible costs (including interest) incurred within five years from certification of the district. Beginning with the sixth year following certification of the TIF District, at least 75% of the tax increments must be used to pay outstanding bonds or make contractual payments obligated within the first five 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. The City anticipates that tax increments will be spent outside of the TIF District (including a portion for allowable administrative expenses) for eligible redevelopment pooling expenditures. Section T 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 (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 U Limitation on Property Not Subject to Improvements - Four Year Rule If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent street has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified SPRINGSTED Page 10 Attachment 4 City of Maplewood, Minnesota improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The City must submit to the County Auditor, by February 1 of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the City or owner of the parcel subsequently commences any of the above activities, the City shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. Section V Estimated Impact on Other Taxing Jurisdictions Exhibit IV 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 $5,021,403. 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 $1,186,164. 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 $1,948,783. 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. Section W 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. SPRINGSTED Page 11 Attachment 4 City of Maplewood, Minnesota Section X 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 Y 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 Z 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. 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 AA 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, the City shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of SPRINGSTED Page 12 Attachment 4 City of Maplewood, Minnesota 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 AB 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. SPRINGSTED Page 13 Attachment 4 Exhibit II MAP OF TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 1-13 Within Development District No. 1 SPRINGSTED Attachment 4 Exhibit II Assumptions Report City of Maplewood, Minnesota Tax Increment Financing (Redevelopment) District No. 1-13 Maplewood Bowl Redevelopment Project Combined Phases TIF Projections Type of Tax Increment Financing DistrictRedevelopment Maximum Duration of TIF District25 years from 1st increment Projected Certification Request Date06/30/15 Decertification Date12/31/43 (26 Years of Increment) 2014/2015 Base Estimated Market Value$1,616,300 Original Net Tax Capacity$12,664 Assessment/Collection Year 2015/20162016/20172017/20182018/2019 Base Estimated Market Value$1,616,300$1,616,300$1,616,300$1,616,300 Estimated Increase in Value - New Construction0011,600,20011,842,300 Total Estimated Market Value1,616,3001,616,30013,216,50013,458,600 Total Net Tax Capacity$12,664$12,664$110,874$112,840 City of Maplewood46.353% Ramsey County58.922% ISD #62235.864% Other11.233% Local Tax Capacity Rate152.372%2014/2015 Fiscal Disparities Contribution From TIF District0.0000% Administrative Retainage Percent (maximum = 10%)10.00% Pooling Percent17.76% Present Value Date & Rate06/30/155.00%PV Amount$2,395,400 Notes Projections assume no future changes to classification rates and current tax rates remain constant. Projections are based on 50 Multi-Family units valued at $100,000/unit, 79 Senior Units valued at $95,000/unit Commercial Portion is based on 6,000sf building valued at $100 psf. Base value is based on tax capacity calculated on pro-rata basis per usage for each phase. Projecitons are based on a 2% market value inflator for each phase. Projections assume commencment of construction in 2015, with project completion in 2016, but a delay of first receipt to 2018 to coincide with full value. Multi-Family Projections are based on 40 units at 4D class rate, and 10 units at standard class rate. Senior Projections are based on 79 units at 4D class rate. SPRINGSTED Attachment 4 Exhibit VII Market Value Analysis Report City of Maplewood, Minnesota Tax Increment Financing (Redevelopment) District No. 1-13 Maplewood Bowl Redevelopment Project Combined Phases TIF Projections Assumptions Present Value Date06/30/15 P.V. Rate - Gross T.I.5.00% Increase in EMV With TIF District$19,354,736 Less: P.V of Gross Tax Increment2,395,400 Subtotal$16,959,336 Less: Increase in EMV Without TIF0 Difference$16,959,336 AnnualPresent Gross TaxValue @ Year Increment5.00% 0201700 12018149,643129,267 22019152,639125,576 32020155,694121,990 42021158,810118,506 52022161,988115,122 62023165,231111,835 72024168,538108,641 82025171,912105,539 92026175,352102,525 102027178,86199,596 112028182,44196,752 122029186,09293,989 132030189,81791,305 142031193,61488,697 152032197,48986,164 162033201,44183,703 172034205,47381,313 182035209,58578,990 192036213,77976,734 202037218,05674,542 212038222,42072,414 222039226,87170,345 232040231,41168,336 242041236,04166,384 252042240,76564,489 262043245,58262,646 $5,039,545$2,395,400 SPRINGSTED Attachment 5 MINUTES OF THE HOUSING AND ECONOMIC DEVELOPMENT COMMISSION 1830 COUNTY ROAD B EAST, MAPLEWOOD, MINNESOTA 7:00 P.M., WEDNESDAY,MAY 8, 2013 5. NEW BUSINESS a.Review of Adopted Gladstone Neighborhood Master Plan i.Planner, Mike Martin gave a presentation on the Gladstone neighborhood master plan and answered questions of the commission. No action was required. b.Review of Updated Market Study for Gladstone Neighborhood i.Planner, Mike Martin gave the presentation on the market study for the Gladstone neighborhood and answered questions of the commission. No actionwas required. c.Potential Redevelopment of Maplewood Bowl Site, 1955 English Street i.Planner, Mike Martin gave the presentation and answered questions of the commission. ii.Project Manager, Andrew Hughes, with Sherman Associates, addressed and answered questions of the commission. iii.Project Architect, Enrico Williams, with Kaas Wilson Architects, addressedand answered questions of the commission. The chair recognized Maplewood resident and Maplewood business owner, Diana Longrie, 1771 Burr, Maplewood to address the commission regarding this report and the TIF financing in the staff report. Commissioner Jenkins moved to support that the city council consider approval of a financial assistance mechanism, such as, but not limited to, tax-increment financing(TIF) to assist in the redevelopment of the Maplewood Bowl site. Approval should only be granted after the city’s financial consultants have done athorough review of any finances involved with the project. Seconded by Commissioner Unger. Ayes – All May 8, 2013 1 Housing and Economic Development CommissionMeetingMinutes MEMORANDUM TO: Melinda Coleman, City Manager FROM: Michael Martin, AICP,Planner DATE: May 6, 2015 SUBJECT: 2014 Code Enforcement Year-End Report Introduction Attached to this memo is Chris Swanson’s 2014 Code Enforcement report. Discussion Mr. Swanson, the city’s environment and code specialist, provided the attached data and information for the housing and economic development commission’s review. Mr. Swanson will be at the Maymeeting to discuss the city’s efforts with code enforcement and to answer any questions the commission may have. Recommendation No action required. Attachments 1.2014 Code Enforcement Report 2014 CODE ENFORCEMENT YEAR END REPORT January 1 to December 31, 2014 Type of ComplaintNumber of Complaints Received Pending Enforcement Matters Resolved Correction letters/Citations/Abatements Comments Code Enforcement Violations Code Enforcement Violations by Year L­­Ò;  š·Œ /š’’;©-zŒ Ý;wz-Œ; ‰ ;¨Òz¦’;“·   9ã·;©zš© {·š©m;      Iš’; h--Ò¦·zš“  IšÒ­; ‰ t©š¦;©·ä az“·;““-;       Wғ‰ ;wz-Œ;       [ޓ az“·;““-;   ©­w ‰ D©,m;      ©­w /š“·z“;© {·š©m;  …“¦¦©šÝ;7 t©‰z“m     az­-u /š’¦Œz“·­ bš L“Eš      š·Œ         Code Enforcement Map MEMORANDUM TO: Warren Wessel,Housingand Economic Development Commission FROM: Michael Martin, AICP,Planner DATE: May 6, 2015 SUBJECT: 2014Annual Report Introduction Attached to this memo is thedraft of the housingand economic development’s (HEDC)2014 Annual Report. This report isproduced every year and then forwardedon to the city council for its review of the HEDC’swork throughout the previous year. Discussion The format of the 2014Annual Report is similar to last year’sreport andwhat other city commissionssubmit to the city council. Recommendation Recommend approval of the HEDC’s 2014Annual Report. Attachments 1.2014HEDCAnnual Report MEMORANDUM TO: Melinda ColemanCity Manager FROM: Warren Wessel,Housingand Economic Development CommissionChair DATE: May 13, 2015 SUBJECT: Approval of the Housingand Economic Development Commission’s 2014 Annual Report Introduction Annually,the housingand economic development commission (HEDC) is required toreport the HEDC’sactions and activities for the city councilfor the previous year. In 2014, the HEDC reviewed the following 18items during itssixmeetings: Type of Proposal # Reviewed InformationalCommission Reviews2 1.Minnesota Waste Wise (April 9, 2014) 2.Green Economy –Presentation by Tim Nolan, Sustainable Industrial Development Coordinator with the Minnesota Pollution Control Agency (July 9, 2014) Miscellaneous Reviews and Actions 16 1.EDA Status Report Update (January 8, 2014) 2.Election of Officers (January 8, 2014) 3.Review of Revolving Loan Fund Policy Guidelines (January 8, 2014) 4.Update on Maplewood Bowl Redevelopment and Gladstone Neighborhood (February 12, 2014) 5.Review of Real Estate Broker Request for Proposal (February 12, 2014) 6.2013HEDCAnnual Report (February 12, 2014) 7.Gladstone Phase 2 Improvements, Project 14-01(April 9, 2014) 8.Formation of Subcommittee to Draft (RLF) Revolving Loan Fund Guidelines (April 9, 2014and July 9, 2014) 9.Broker Selection Subcommittee (April 9, 2014and July 9, 2014) 10.Sale of Excess Real Property, Fire Department Properties (July 9, 2014) 11.Approval of the 2015 –2019 Capital Improvement Plan (CIP)(August 13, 2014) 12.New Member Orientation (November 12, 2014) 13.Partners in Energy –Xcel Energy Community Partnership (November 12, 2014) 14.Approval of Resolution of Appreciation for Beth Ulrich (November 12, 2014) 15.Approval of Resolution of Appreciation forGary Kloncz (November 12, 2014) 16.Update on Sale of City Properties (November 12, 2014) Total18 Comparative Information YearNumber of Items Reviewed 201017 201115 201214 201321 201418 Membership The HEDCconsistsof sevenmembers appointed by the city council. Membership terms are for threeyears, with extensions for additional terms approved by the city council. During 2014, members Gary Kloncz and Beth Ulrich did not seek reappointment to the HEDC. The city council appointed Spencer Gansluckner to fill one of the vacancies. The city is currently advertising for the one vacancy on the HEDC. The membership as of the end of 2014: Board MemberMembership BeganTerm Expires Dennis Unger07/25/119/30/15 Joy Tkachuck09/25/069/30/16 Mark Jenkins01/25/109/30/16 Jennifer Lewis04/25/119/30/16 Warren Wessel12/13/109/30/17 Spencer Gansluckner09/22/149/30/17 Vacant9/30/17 Commissioner Wessel wasreappointed for an additional term in2014.CommissionerUnger’s termisup for reappointment during 2015.The reappointment process will being in the summer of 2015. Discussion 2014Actions/Activities In 2014,the HEDC continued its commitment to development and redevelopment in the city of Maplewood by working on several projects. The HEDC spent a good portion of its year working to implement elements of its work plan. The commission spent several meetings looking at how to develop a revolving loan fund program and select a broker to assist the city in sellingits excess parcels. While work still needs to be done on establishing a loan program, the work accomplished in selecting a broker has resulted in the selling of two city parcels into private ownership. The HEDC’s work planidentifies the Gladstone neighborhood as an area the city and the HEDC should be focusing efforts on. In 2014, Sherman Associates officially purchasedthe Maplewood Bowl siteand will soon start its redevelopment ofthe property with a mixture of family and senior housing along witha commercial element. Sherman and the city have been collaborating on the redevelopment of this site since 2013, which included the award of a grant for $1.9 million from the Metropolitan Council. The HEDC and staff worked on business outreach throughenvironmental and energy efficiency programs. These programs provide a link between the city and the business community while supporting two of the city’s key goals –economic development and sustainability. 2015Activities In 2015, the HEDC will continue to implement its work plan and concentrate on key redevelopment areas within the city. The Maplewood Bowl redevelopment project is scheduled to move forward and the HEDC will review all requests to city assistance. The HEDC will continue its efforts todevelop a program and guidelines for its revolving loan fund program –building on what it learned from the first application. The HEDC is a key resource as the city looks to continue and expand its economic development efforts. In 2015, the HEDCwill be committedto the development and enhancement of the city of Maplewood. Recommendation Approve the HEDC’s2014annual report.