EDA Agenda - 05/11/2022 (Workshop)AGENDA
WORKSHOP MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, May 11, 2022 — 5:00 p.m.
Academy Room, Monticello Community Center
Members: President Steve Johnson, Vice President Jon Morphew, Treasurer Tracy Hinz,
011ie Koropchak-White, Hali Sittig and Councilmembers Lloyd Hilgart and Jim
Davidson
Staff: Executive Director Jim Thares, Sarah Rathlisberger, Angela Schumann, and
Hayden Stensgard
1. Call to Order
2. Roll Call
3. Continued Discussion of Draft Pooled TIF Allocation and Spending Plan
4. Adjournment
EDA: 04/27/22
3. Consideration of Discussion and Feedback of Proposed DRAFT Pooled TIF Allocation Plan
(JT/AS)
A. REFERENCE AND BACKGROUND:
The EDA is being asked to consider providing feedback and/or direction regarding a
proposed DRAFT Pooled TIF Allocation and Spending Plan. The EDA currently administers all
TIF Districts utilized for housing, redevelopment, and economic development projects in the
City of Monticello. The genesis of the available and projected Pooled TIF increment dollars
was discussed during the EDA Workshop Meeting on April 13, 2022. It was noted that there
are sizeable, pooled resources available for housing and redevelopment efforts. There will
possibly be additional Affordable Housing and Redevelopment pooled dollars in the future
years depending on the EDA disposition and/or decisions related to the Interfund loan
linking TIF District 1-6 and TIF District 1-41 and the decertification dates of the existing
Affordable Housing TIF Districts. During the Workshop, it was noted that there may be a
benefit to directly identify projects for potential fit and use of the Pooled increment funds.
Adopting such a Plan may also lead to a reduction of in-house administrative tasks stemming
from the annual TIF District reporting requirements through the decertification (closure) of
older TIF Districts.
Staff is seeking EDA feedback on the attached DRAFT Pooled TIF Allocation and Spending
Plan. The Plan identifies more intentionally how and where to use the extra Pooled dollars.
Several of Housing and Redevelopment TIF Districts have sizeable extra available TIF dollars
that can be allocated or Pooled to support projects currently in motion or in the early
planning stages. An allocation timeline of 24 months starting June 30, 2022 is the
benchmark date in the plan.
Previously, as a follow up to the 2016 TIF Management Plan approval, the EDA discussed and
reviewed potential uses of the Pooled TIF dollars and directed drafting of Policy Statements
for the Management of Available (Pooled) Tax Increment Funds. The Policy Statement was
reviewed and approved at the January 10, 2018 meeting. That document is broadly worded
and purposefully flexible. It is also attached as Exhibit B. The Pooled TIF Allocation Plan
would replace the Policy Statements.
Al. STAFF IMPACT: There is a limited staff impact in presenting a DRAFT Pooled TIF
Allocation and Spending Plan for consideration at this time. Staff involved in the early
consideration of the Plan includes the City Administrator, Community Development Director,
Economic Development Manager, Finance Director, and the EDA-City financial advisor,
Northland Securities, Inc, as well as the EDA attorney.
A2. BUDGET IMPACT: There is a modest budget impact related to the proposed DRAFT
Pooled TIF Allocation and Spending Plan as presented. If the Plan or some form of it is
adopted, the budgetary impacts will reflect in adjustments to the various TIF Districts and
related support for potential proposals -projects identified in the Plan. There may also be a
EDA: 04/27/22
small budget benefit due to reduced reporting requirement stemming from several older TIF
Districts that could be decertified in the near future.
B. ALTERNATIVE ACTIONS:
1. No motion; staff is seeking EDA discussion and direction on the proposed Plan.
2. Motion to table consideration of the Pooled TIF Allocation and Spending Plan for further
research and/or discussion.
3. Motion of other as directed by the EDA.
C. STAFF RECOMMENDATION:
No recommendation is offered. Staff is seeking feedback and direction from the EDA to the
DRAFT Pooled TIF Allocation and Spending Plan. The comments and/or direction provided
by the EDA will help with the next steps as the EDA determines the strategy or plan to utilize
the pooled TIF increment that it has access to in the various existing TIF Districts.
D. SUPPORTING DATA:
a. DRAFT Pooled TIF Allocation and Spending Plan
b. TIF Policy Statements (adopted 1-10-2018)
c. TIF Management Plan Spreadsheet w/ 12-31-21 Fund Balances and Future Yr. projections
Pooled Tax Increment Financing (TIF) Allocation
and Spending Plan
04-27-22
The City of Monticello Economic Development Authority (the "EDA") administers the Tax Increment
Financing Districts in the City of Monticello. Several TIF Districts have fulfilled increment payment
completed obligations and Extra Pooled TIF increment dollars are currently available for "Pooled" use
pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, inclusive, as amended (the "TIF
Act"). To better utilize the available resource of Pooled TIF increment dollars, the EDA proposes to
adopt an Allocation and Spending Plan utilizing the Pooled TIF dollars in the various TIF Districts. The
purpose of the Allocation and Spending Plan is to provide assistance to development proposals through
the use of the Pooled TIF increment funds to offset eligible costs related to the identified proposals or
projects. The proposals -projects must achieve the objectives of affordable housing, economic
development with tax base and job creation and redevelopment, eliminating blight conditions and
increasing tax base and creating new jobs.
Several identified proposals -projects are anticipated to commence development within the next 24
months (cutoff date of June 30, 2024). With that knowledge, the EDA sets forth in the Allocation and
Spending Plan specific Proposals -Projects and dollars amounts of Pooled TIF increment dollars that it can
allocate towards eligible costs in those Proposals -Projects. The EDA defines "Pooled -Extra TIF funds" as
both current and future projected dollars legally available within established TIF funds, and not
committed to existing obligations, for the EDA to spend on redevelopment and/or assisting affordable
housing projects, all pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, inclusive, as
amended (the "TIF Act"). Allocation and Spending Plan commitments are shown in the various type of
TIF District categories below.
Redevelopment TIF Districts: The EDA will commit Pooled TIF funds to
Redevelopment Proposals -Projects as shown below:
A. Block 52 Redevelopment TIF District 1-45
1. TIF District 1-6: 12-31-21 Balance = $18,001 —Allocate $18,001 to Block 52 Redevelopment TIF
District 1-45 with the goal of paying for eligible developer and public costs.
Page 1 1
April 27, 2022
2. TIF District 1-20: 12-31-21 Balance = $104,220 -Allocate $104,220 to Block 52 Redevelopment TIF
District 1-45 with the goal of paying for eligible developer and public costs.
3. TIF District 1-22: 12-31-21 Balance = $145,512 -Allocate $145,512 to Block 52 Redevelopment TIF
District 1-45 with the goal of paying for eligible developer and public costs.
4. TIF District 1-34: 12-31-21 Balance = $54,503 —Allocate $54,503 to Block 52 Redevelopment TIF
District 1-45 with the goal of paying for eligible developer and public costs.
5. TIF District 1-40: 12-31-21 Balance = $1,598 —Allocate $1,598 to Block 52 Redevelopment TIF
District 1-45 with the goal of paying for eligible developer and public costs.
Total Pooled TIF increment dollars allocated to Block 52 Redevelopment TIF 1-45 to pay for
eligible developer and public costs = $323,834
B. Block 34 Renovation and Renewal TIF District 1-##
1. TIF District 1-06: 12-31-21 Balance = Projected increment dollars and Interfund Loan
Repayment from TIF District 1-41 = $215,000 — Allocate $215,000 to Block 34 TIF District
1-## with the goal of paying for eligible developer and public costs.
Total Pooled TIF increment dollars allocated to Block 34 TIF 1-## to pay for eligible developer
and public costs = $215,000
Affordable Housing Projects: The EDA will commit Pooled TIF funds to
Affordable Housing Proposals -Projects as shown below:
A. Headwaters Development Affordable Housing TIF District 1-42 and 1-43:
1. TIF District 1-19: 12-31-21 Balance = $131,947 — Allocate $131,947 to Headwaters
Development Affordable Housing Development TIF District 1-42 and 1-43 with the goal of
paying for eligible developer and public costs.
Page 12
April 27, 2022
2. TIF District 1-22: 12-31-21 Balance = $170,361— Allocate $170,361 to Headwaters
Development Affordable Housing Development TIF District 1-42 and 1-43 with the goal of
paying for eligible developer and public costs.
3. TIF District 1-24: 12-31-21 Balance = $174,076 - Allocate $174,076 to Headwaters
Development Affordable Housing Development TIF District 1-42 and 1-43 with the goal of
paying for eligible developer and public costs.
4. TIF District 1-29: 12-31-21 Balance = $193,964 —Allocate $194,964 to Headwaters
Development Affordable Housing Development TIF District 1-42 and 1-43 with the goal of
paying for eligible developer and public costs.
5. TIF District 1-30: 12-31-21 Balance = $113,146 — Allocate $113,146 to Headwaters
Development Affordable Housing Development TIF District 1-42 and 1-43 with the goal of
paying for eligible developer and public costs.
Total Pooled TIF increment dollars allocated to Headwaters Development Affordable
Housing TIF District 1-42 and 1-43 to pay for eligible developer and public costs = $783,494
B. Duffy Development LIHTC Muti-Family Development Proposal (no new TIF District)
1. TIF District 1-19: 12-31-21 Balance = $131,947 —Allocate $131,947 to Duffy Development
Affordable Housing Development Proposal (no new TIF District created) with the goal of
paying for eligible developer and public costs.
2. TIF District 1-22: 12-31-21 Balance = $170,361—Allocate $170,361 to Duffy Development
Affordable Housing Development Proposal (no new TIF District created) with the goal of
paying for eligible developer and public costs.
3. TIF District 1-24: 12-31-21 Balance = $174,076 - Allocate $174,076 to Duffy Development
Affordable Housing Development Proposal (no new TIF District created) with the goal of
paying for eligible developer and public costs.
4. TIF District 1-29: 12-31-21 Balance = $193,964 — Allocate $194,964 to Duffy Development
Affordable Housing Development Proposal (no new TIF District created) with the goal of
paying for eligible developer and public costs.
5. TIF District 1-30: 12-31-21 Balance = $113,146 — Allocate $113,146 to Duffy Development
Affordable Housing Development Proposal (no new TIF District created) with the goal of
paying for eligible developer and public costs.
Page 13
April 27, 2022
Total Pooled TIF increment dollars allocated to Duffy Development Affordable Housing
Development Proposal (no new TIF District created) with the goal of paying for eligible
developer and public costs = $783,494 or a greater or lessor amount as determined by the
EDA.
C. 4th Street East -Future Affordable Housing Development TIF District 1-##?
1. TIF District 1-19: 12-31-21 Balance = $131,947 —Allocate $131,947 to 4th Street East Future
Affordable Housing Development TIF District 1-## with the goal of paying for eligible
developer and public costs.
2. TIF District 1-22: 12-31-21 Balance = $170,361— Allocate $170,361 to 4th Street East Future
Affordable Housing Development TIF District 1-## with the goal of paying for eligible
developer and public costs.
3. TIF District 1-24: 12-31-21 Balance = $174,076 - Allocate $174,076 to 4th Street East Future
Affordable Housing Development TIF District 1-## with the goal of paying for eligible
developer and public costs.
4. TIF District 1-29: 12-31-21 Balance = $193,964 —Allocate $194,964 to 4th Street East Future
Affordable Housing Development TIF District 1-## with the goal of paying for eligible
developer and public costs.
5. TIF District 1-30: 12-31-21 Balance = $113,146 — Allocate $113,146 to 41h Street East Future
Affordable Housing Development TIF District 1-## with the goal of paying for eligible
developer and public costs.
Total Pooled TIF increment dollars allocated to 41n Street East Future Affordable Housing
Development TIF District 1-## to pay for eligible developer and public costs = $783,494 or a
grater or lessor amount as determined by the EDA.
In adopting the Pooled TIF Allocation and Spending Plan, the EDA, as needed, may amend the budget set
forth in the Tax Increment Financing Plans for the TIF Districts as necessary to provide for the assistance
authorized by the Plan. The EDA may also take any other action necessary and authorized under the Act
in connection with the Plan above as required. The components of the Plan are subject to Minnesota
Statutes, Sections 116J.993 to 116J.995 (the "Business Subsidy Law"), if applicable, and shall be subject
to the City's Business Subsidy Policy.
Page 14
April 27, 2022
Policy Statements for Management of Available Tax
Increment Financing (TIF) Funds
The City of Monticello Economic Development Authority (the "EDA") has prepared the following policy
statements to guide both staff and EDA members to make consistent and informed financial decisions
regarding the use of available tax increment financing (TIF) funds. The policy statements are intended to
be a guide. The EDA may determine to allocate funds to other types of projects, not included below,
based on other criteria and factors that may exist. The EDA defines "available TIF funds" as both current
and future projected dollars legally available within established TIF funds, and not committed to existing
obligations, for the EDA to spend on redevelopment and/or assisting affordable housing projects, all
pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, inclusive, as amended (the "TIF
Act").
POLICY STATEMENTS:
Redevelopment Projects
The EDA will consider allocating available TIF funds, without priority order, to the following types
of redevelopment projects:
1. Acquisition of property — Block 52 to facilitate redevelopment consistent with the objectives
of the Downtown Small Area Study.
2. Acquisition of Property — Block 34 to facilitate redevelopment consistent with the objectives
of the Downtown Small Area Study.
3. Acquisition of Property - Other downtown sites that provide relatively immediate
development opportunities that support the objectives of the Comprehensive Plan and the
Downtown Small Area Study.
4. Masters Fifth Avenue Site —Assistance for underground or structured parking improvements
for a development consistent with the objectives of the Comprehensive Plan, the Downtown
Small Area Study, the TIF Plan and the existing Contract for Private Development, and
approved by the EDA.
5. Assistance for installation of public or private infrastructure and value-added site
improvements such as underground or structured parking for redevelopment projects
consistent with the objectives of the Comprehensive Plan and/or the Downtown Small Area
Study and approved by the EDA.
Page 1 1
January 10, 2018 (Revised)
508678v2 MNI MN190-101
Affordable Housing Projects
The EDA will consider allocating available TIF funds, without priority order, to the following types
of affordable housing projects:
1. Assistance to lower overall project costs via reimbursement of TIF-eligible expenses related
to projects that meet the EDA's value-added standards/criteria.
2. Block 52 — Assistance for underground or structured parking and/or value added site
improvements in connection with a market -rate, multi -family housing with an affordable
component.
3. City Core - Establishment of a scattered -site owner -occupied rehabilitation program.
4. Downtown Area - Assistance for underground or structured parking and/or value added site
improvements in connection with development of market -rate, multi -family projects with
an affordable component.
5. City-wide — Assistance for the installation of public or private infrastructure serving sites to
be developed with market rate, multi -family housing with an affordable component
6. Acquisition of property for purposes of facilitating development of a market -rate, multi-
family housing project with an affordable component consistent with the goals and
objectives of the Comprehensive Plan.
Page 12
January 10, 2018 (Revised)
508678v2 MNI MN190-101
EXHIBI'
PRELIMINARY FOR DISCUSSION ONLY
City of Monticello
Tax Increment Financing Districts
Year -End Cash Balance 1,3
Cash Available as as of Year End 2021 (preliminary, un-audited)
FUTURE - Cash Balance Estimates as of Year End 203D
Funds Available Funds Available Funds to be
TIF District for for Affordable Returned to Lccal Total Funds
TIF District for for Affordable Total Funds
Redevelopment
.• ..
Housing Projects
Projects Jurisdictions
Projects Projects
TIF 1-6 5 18,001 18,001
TIF 1-6 5 468,001 468,001
TIF 1-19
131,947
131,947
TIF 1-19
194,615
194,615
TIF 1-20
104,220
104,220
TIF 1-20
117,795
117,795
TIF 1-22
145,512
170,361
188,359
504,232
TIF 1-22 7
258,302
222,804
481,106
TIF 1-24
174,076
174 076
TIF 1-24
387,986
387,986
TIF 1-29
193,964
-
193,964
TIF 1-29
391,284
110,983
391,284
110,983
TIF 1-30
113,146
113,146
TIF 1-30
TIF 1-34
54,503
54,503
TIF 1-34
TIF
60,440
60,440
TIF 1-40
1,598
1,598
53,388
53,388
TIF 1-41
-41 z
-31,060
0
Total
323,834
783,494
188,359
r 1,295,687 1
904,539
2,265,599
Notes:
1. The facts for each individual TIF district should be reviewed and confir a : spending of fu,
2. These districts are not planned to be decertified before year 2030. The L, ice shown is as estimated as of year-end 2030.
3. Available funds must be spent within the bol i.ndaries of Redevelopment Prc,. No. 1 or pursuant to the TIF law and any temporary laws that may
apply.
4. The funds for TIF 1-6 are shown here as available for "Redevelopmer P, ejects". The funds are also available to pay for housing or economic
development project costs, should the EDA so determine. The analysis assumes TIF 41 will generate sufficient tax increment to repay TIF 1-6 the
outstanding interfund loan.
5. The amounts shown are : ker use of funds to meet existing ,uligations. EDA may captitalize on future flow of funds with approval by resolution. EDA
may reimburse itself throu,,' i interfund TIF Ioap
6. The balance does not include fund that m--v be available if land held for resale is sold. The land held for resale at the end of 2020 was valued at
$163,200. The balances shown do not take i n10 account the spend -down of these funds prior to Year End 2030; there are no specific plans at this time for
use of this projected Future Cash Balance.
7. Funds may be available for spending pursuant to "Temporary Transfer Authority (2021 Law)" subject to confirmation with State Auditor and potential
change in statement of position by the State Auditor.
8. Analysis assumes that payments due on Pay -go TIF Notes have been recorded as of December 31, 2021, and that the year-end cash balances do not
include funds obligated to outstanding notes payble on February 1.
NORTHLAND
Pusu- FINANci
2/23/2022
Pooled Tax Increment Financing (TIF) Allocation
and Spending Plan
04-27-22
The City of Monticello Economic Development Authority (the "EDA") administers the Tax Increment
Financing Districts in the City of Monticello. Several TIF Districts have fulfilled increment payment
completed obligations and Extra Pooled TIF increment dollars are currently available for "Pooled" use
pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, inclusive, as amended (the "TIF
Act"). To better utilize the available resource of Pooled TIF increment dollars, the EDA proposes to
adopt an Allocation and Spending Plan utilizing the Pooled TIF dollars in the various TIF Districts. The
purpose of the Allocation and Spending Plan is to provide assistance to development proposals through
the use of the Pooled TIF increment funds to offset eligible costs related to the identified proposals or
projects. The proposals -projects must achieve the objectives of affordable housing, economic
development with tax base and job creation and redevelopment, eliminating blight conditions and
increasing tax base and creating new jobs.
Several identified proposals -projects are anticipated to commence development within the next 24
months (cutoff date of June 30, 2024). With that knowledge, the EDA sets forth in the Allocation and
Spending Plan specific Proposals -Projects and dollars amounts of Pooled TIF increment dollars that it can
allocate towards eligible costs in those Proposals -Projects. The EDA defines "Pooled -Extra TIF funds" as
both current and future projected dollars legally available within established TIF funds, and not
committed to existing obligations, for the EDA to spend on redevelopment and/or assisting affordable
housing projects, all pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, inclusive, as
amended (the "TIF Act"). Allocation and Spending Plan commitments are shown in the various type of
TIF District categories below.
Redevelopment TIF Districts: The EDA will commit Pooled TIF funds to
Redevelopment Proposals -Projects as shown below:
A. Block 52 Redevelopment TIF District 1-45
1. TIF District 1-6: 12-31-21 Balance = $18,001 —Allocate $18,001 to Block 52 Redevelopment TIF
District 1-45 with the goal of paying for eligible developer and public costs.
Page 1 1
April 27, 2022
2. TIF District 1-20: 12-31-21 Balance = $104,220 -Allocate $104,220 to Block 52 Redevelopment TIF
District 1-45 with the goal of paying for eligible developer and public costs.
3. TIF District 1-22: 12-31-21 Balance = $145,512 -Allocate $145,512 to Block 52 Redevelopment TIF
District 1-45 with the goal of paying for eligible developer and public costs.
4. TIF District 1-34: 12-31-21 Balance = $54,503 —Allocate $54,503 to Block 52 Redevelopment TIF
District 1-45 with the goal of paying for eligible developer and public costs.
5. TIF District 1-40: 12-31-21 Balance = $1,598 —Allocate $1,598 to Block 52 Redevelopment TIF
District 1-45 with the goal of paying for eligible developer and public costs.
Total Pooled TIF increment dollars allocated to Block 52 Redevelopment TIF 1-45 to pay for
eligible developer and public costs = $323,834
B. Block 34 Renovation and Renewal TIF District 1-##
1. TIF District 1-06: 12-31-21 Balance = Projected increment dollars and Interfund Loan
Repayment from TIF District 1-41 = $215,000 — Allocate $215,000 to Block 34 TIF District
1-## with the goal of paying for eligible developer and public costs.
Total Pooled TIF increment dollars allocated to Block 34 TIF 1-## to pay for eligible developer
and public costs = $215,000
Affordable Housing Projects: The EDA will commit Pooled TIF funds to
Affordable Housing Proposals -Projects as shown below:
A. Headwaters Development Affordable Housing TIF District 1-42 and 1-43:
1. TIF District 1-19: 12-31-21 Balance = $131,947 — Allocate $131,947 to Headwaters
Development Affordable Housing Development TIF District 1-42 and 1-43 with the goal of
paying for eligible developer and public costs.
Page 12
April 27, 2022
2. TIF District 1-22: 12-31-21 Balance = $170,361— Allocate $170,361 to Headwaters
Development Affordable Housing Development TIF District 1-42 and 1-43 with the goal of
paying for eligible developer and public costs.
3. TIF District 1-24: 12-31-21 Balance = $174,076 - Allocate $174,076 to Headwaters
Development Affordable Housing Development TIF District 1-42 and 1-43 with the goal of
paying for eligible developer and public costs.
4. TIF District 1-29: 12-31-21 Balance = $193,964 —Allocate $194,964 to Headwaters
Development Affordable Housing Development TIF District 1-42 and 1-43 with the goal of
paying for eligible developer and public costs.
5. TIF District 1-30: 12-31-21 Balance = $113,146 — Allocate $113,146 to Headwaters
Development Affordable Housing Development TIF District 1-42 and 1-43 with the goal of
paying for eligible developer and public costs.
Total Pooled TIF increment dollars allocated to Headwaters Development Affordable
Housing TIF District 1-42 and 1-43 to pay for eligible developer and public costs = $783,494
B. Duffy Development LIHTC Muti-Family Development Proposal (no new TIF District)
1. TIF District 1-19: 12-31-21 Balance = $131,947 —Allocate $131,947 to Duffy Development
Affordable Housing Development Proposal (no new TIF District created) with the goal of
paying for eligible developer and public costs.
2. TIF District 1-22: 12-31-21 Balance = $170,361—Allocate $170,361 to Duffy Development
Affordable Housing Development Proposal (no new TIF District created) with the goal of
paying for eligible developer and public costs.
3. TIF District 1-24: 12-31-21 Balance = $174,076 - Allocate $174,076 to Duffy Development
Affordable Housing Development Proposal (no new TIF District created) with the goal of
paying for eligible developer and public costs.
4. TIF District 1-29: 12-31-21 Balance = $193,964 — Allocate $194,964 to Duffy Development
Affordable Housing Development Proposal (no new TIF District created) with the goal of
paying for eligible developer and public costs.
5. TIF District 1-30: 12-31-21 Balance = $113,146 — Allocate $113,146 to Duffy Development
Affordable Housing Development Proposal (no new TIF District created) with the goal of
paying for eligible developer and public costs.
Page 13
April 27, 2022
Total Pooled TIF increment dollars allocated to Duffy Development Affordable Housing
Development Proposal (no new TIF District created) with the goal of paying for eligible
developer and public costs = $783,494 or a greater or lessor amount as determined by the
EDA.
C. 4th Street East -Future Affordable Housing Development TIF District 1-##?
1. TIF District 1-19: 12-31-21 Balance = $131,947 —Allocate $131,947 to 4th Street East Future
Affordable Housing Development TIF District 1-## with the goal of paying for eligible
developer and public costs.
2. TIF District 1-22: 12-31-21 Balance = $170,361— Allocate $170,361 to 4th Street East Future
Affordable Housing Development TIF District 1-## with the goal of paying for eligible
developer and public costs.
3. TIF District 1-24: 12-31-21 Balance = $174,076 - Allocate $174,076 to 4th Street East Future
Affordable Housing Development TIF District 1-## with the goal of paying for eligible
developer and public costs.
4. TIF District 1-29: 12-31-21 Balance = $193,964 —Allocate $194,964 to 4th Street East Future
Affordable Housing Development TIF District 1-## with the goal of paying for eligible
developer and public costs.
5. TIF District 1-30: 12-31-21 Balance = $113,146 — Allocate $113,146 to 41h Street East Future
Affordable Housing Development TIF District 1-## with the goal of paying for eligible
developer and public costs.
Total Pooled TIF increment dollars allocated to 41n Street East Future Affordable Housing
Development TIF District 1-## to pay for eligible developer and public costs = $783,494 or a
grater or lessor amount as determined by the EDA.
In adopting the Pooled TIF Allocation and Spending Plan, the EDA, as needed, may amend the budget set
forth in the Tax Increment Financing Plans for the TIF Districts as necessary to provide for the assistance
authorized by the Plan. The EDA may also take any other action necessary and authorized under the Act
in connection with the Plan above as required. The components of the Plan are subject to Minnesota
Statutes, Sections 116J.993 to 116J.995 (the "Business Subsidy Law"), if applicable, and shall be subject
to the City's Business Subsidy Policy.
Page 14
April 27, 2022
Policy Statements for Management of Available Tax
Increment Financing (TIF) Funds
The City of Monticello Economic Development Authority (the "EDA") has prepared the following policy
statements to guide both staff and EDA members to make consistent and informed financial decisions
regarding the use of available tax increment financing (TIF) funds. The policy statements are intended to
be a guide. The EDA may determine to allocate funds to other types of projects, not included below,
based on other criteria and factors that may exist. The EDA defines "available TIF funds" as both current
and future projected dollars legally available within established TIF funds, and not committed to existing
obligations, for the EDA to spend on redevelopment and/or assisting affordable housing projects, all
pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, inclusive, as amended (the "TIF
Act").
POLICY STATEMENTS:
Redevelopment Projects
The EDA will consider allocating available TIF funds, without priority order, to the following types
of redevelopment projects:
1. Acquisition of property — Block 52 to facilitate redevelopment consistent with the objectives
of the Downtown Small Area Study.
2. Acquisition of Property — Block 34 to facilitate redevelopment consistent with the objectives
of the Downtown Small Area Study.
3. Acquisition of Property - Other downtown sites that provide relatively immediate
development opportunities that support the objectives of the Comprehensive Plan and the
Downtown Small Area Study.
4. Masters Fifth Avenue Site —Assistance for underground or structured parking improvements
for a development consistent with the objectives of the Comprehensive Plan, the Downtown
Small Area Study, the TIF Plan and the existing Contract for Private Development, and
approved by the EDA.
5. Assistance for installation of public or private infrastructure and value-added site
improvements such as underground or structured parking for redevelopment projects
consistent with the objectives of the Comprehensive Plan and/or the Downtown Small Area
Study and approved by the EDA.
Page 1 1
January 10, 2018 (Revised)
508678v2 MNI MN190-101
Affordable Housing Projects
The EDA will consider allocating available TIF funds, without priority order, to the following types
of affordable housing projects:
1. Assistance to lower overall project costs via reimbursement of TIF-eligible expenses related
to projects that meet the EDA's value-added standards/criteria.
2. Block 52 — Assistance for underground or structured parking and/or value added site
improvements in connection with a market -rate, multi -family housing with an affordable
component.
3. City Core - Establishment of a scattered -site owner -occupied rehabilitation program.
4. Downtown Area - Assistance for underground or structured parking and/or value added site
improvements in connection with development of market -rate, multi -family projects with
an affordable component.
5. City-wide — Assistance for the installation of public or private infrastructure serving sites to
be developed with market rate, multi -family housing with an affordable component
6. Acquisition of property for purposes of facilitating development of a market -rate, multi-
family housing project with an affordable component consistent with the goals and
objectives of the Comprehensive Plan.
Page 12
January 10, 2018 (Revised)
508678v2 MNI MN190-101
EXHIBI'
PRELIMINARY FOR DISCUSSION ONLY
City of Monticello
Tax Increment Financing Districts
Year -End Cash Balance 1,3
Cash Available as as of Year End 2021 (preliminary, un-audited)
FUTURE - Cash Balance Estimates as of Year End 203D
Funds Available Funds Available Funds to be
TIF District for for Affordable Returned to Lccal Total Funds
TIF District for for Affordable Total Funds
Redevelopment
.• ..
Housing Projects
Projects Jurisdictions
Projects Projects
TIF 1-6 5 18,001 18,001
TIF 1-6 5 468,001 468,001
TIF 1-19
131,947
131,947
TIF 1-19
194,615
194,615
TIF 1-20
104,220
104,220
TIF 1-20
117,795
117,795
TIF 1-22
145,512
170,361
188,359
504,232
TIF 1-22 7
258,302
222,804
481,106
TIF 1-24
174,076
174 076
TIF 1-24
387,986
387,986
TIF 1-29
193,964
-
193,964
TIF 1-29
391,284
110,983
391,284
110,983
TIF 1-30
113,146
113,146
TIF 1-30
TIF 1-34
54,503
54,503
TIF 1-34
TIF
60,440
60,440
TIF 1-40
1,598
1,598
53,388
53,388
TIF 1-41
-41 z
-31,060
0
Total
323,834
783,494
188,359
r 1,295,687 1
904,539
2,265,599
Notes:
1. The facts for each individual TIF district should be reviewed and confir a : spending of fu,
2. These districts are not planned to be decertified before year 2030. The L, ice shown is as estimated as of year-end 2030.
3. Available funds must be spent within the bol i.ndaries of Redevelopment Prc,. No. 1 or pursuant to the TIF law and any temporary laws that may
apply.
4. The funds for TIF 1-6 are shown here as available for "Redevelopmer P, ejects". The funds are also available to pay for housing or economic
development project costs, should the EDA so determine. The analysis assumes TIF 41 will generate sufficient tax increment to repay TIF 1-6 the
outstanding interfund loan.
5. The amounts shown are : ker use of funds to meet existing ,uligations. EDA may captitalize on future flow of funds with approval by resolution. EDA
may reimburse itself throu,,' i interfund TIF Ioap
6. The balance does not include fund that m--v be available if land held for resale is sold. The land held for resale at the end of 2020 was valued at
$163,200. The balances shown do not take i n10 account the spend -down of these funds prior to Year End 2030; there are no specific plans at this time for
use of this projected Future Cash Balance.
7. Funds may be available for spending pursuant to "Temporary Transfer Authority (2021 Law)" subject to confirmation with State Auditor and potential
change in statement of position by the State Auditor.
8. Analysis assumes that payments due on Pay -go TIF Notes have been recorded as of December 31, 2021, and that the year-end cash balances do not
include funds obligated to outstanding notes payble on February 1.
NORTHLAND
Pusu- FINANci
2/23/2022