City Council Agenda Packet 01-29-1990AGENDA
SPECIAL MEETING - MONTICELLO CITY COUNCIL
lJ Monday, January 29, 1990 - 7:00 p.m.
Mayor: Ken Maus
Council Members: Fran Fair, Warren Smith, Shirley Anderson, Dan Blonigen
1. Call to order.
2A. Consideration of accepting feasibility report and estimate of cost for
street and utility improvements to 7th Street and Minnesota Street.
B. Consideration of accepting hydrologic study and feasibility report for
improvements to the 7th Street watershed.
3. Consideration of project finance plan and consideration of revised plan
for use of tax increment financing.
4. Consideration of calling a public hearing on street and utility
improvements to 7th Street and Minnesota Street. Public hearing
tentatively scheduled for February 12, 1990.
5. Adjournment.
0
C
Special Council Agenda - 1/29/90
2A. Consideration of accepting feasibility report and estimate of cost for
street and utility improvements to 7th Street and Minnesota Street.
2B. Consideration of accgptinq hydrologic study and feasibility report for
improvements to the 7th Street watershed. (J.O.)
A. REFERENCE AND BACKGROUND:
Council is asked to review and accept the feasiblity reports completed in
conjunction with the development of the K -Mart addition. The information
contained in both reports provides City staff with precise cost
information that allows us to negotiate with The Lincoln Companies
regarding the financing of the proposed improvements. In addition, the
hydrologic study provides information that allows the City to complete
short -tens planning for the management of storm water created by the
K -Mart addition and also provides information that allows us to plan for
future storm water improvement associated with continued development
along the 7th Street right-of-way.
John Simla and I have reviewed the reports in detail and have found the
information to be clear and complete.
Please note that there have been some slight modifications in feasibility
study costs for certain aspects of the project. These changes have been
incorporated into the finance plan which you will be reviewing as part of
the next agenda item. Please do not be concerned if there are some
slight differences in cost between the alternatives noted in the
feasibility studies and the like alternatives outlined in the finance
plan.
B. ALTERNATIVE ACTIONS:
1. Motion to accept feasibility reports 2A and 2B.
2. Motion to deny acceptance of feasibility reports 2A and 2B.
C. STAFF RECODWFd1DATION:
Staff recommends that the feasibility reports be accepted as presented.
D. SUPPORTING DATA:
Copy of feasibility studies 2A and 20. )
1
Special Council Agenda - 1/29/90
Consideration of project finance plan and consideration of revised plan
for use of tax increment financing. (J.O.)
A. REFERENCE AND BACKGROUND:
Following is a brief history of the development of the tax increment
financing plan associated with the project, which is then followed by a
review of two project finance plans. Plan #1 represents the best choice
in terms of engineering; however, the total cost of plan Al is greater,
and the proposers method of financing this alternative requires that
Council break new ground by using TIF revenue to defer payment of special
assessments. Plan 12 is an acceptable, though lesser, plan in terms of
engineering; however, the lower cost associated with plan @2 allows the
City to stay within the current policy. Each plan has some degree of
support from The Lincoln Companies although it appears that The Lincoln
Companies would prefer plan R1.
On September 25, 1989, Council adopted the basic package for use of tax
increment financing (see attached supplemental data) which called for use
of TIF primarily for costs associated with realignment and construction
of 7th Street. At that time, Council approved use of TIF in the amount
of $298,500. After adding soft costs, including bonding, capitalized
interest, and a contingency, the original level of TIF contribution
amounted to $470,000. Subsequent to the September 25, 1989, TIF plan
approval, Council acted to remove the Kramer property from the list of
property to be acquired which resulted in a net reduction of $129,000.
Changes to the plan for public improvements along with development of
more detailed engineering data necessitated another look at the project
finance plan. The original finance plan called for development of the
7th Street right-of-way along a grade that would have allowed the David
Hornig property to have access to the 7th Street right-of-way at the
south side of the Hornig property. Due to the request from K -Mart, the
7th Street right -0f. -way was elevated, which resulted in added project
cost and resulted in Hornig losing access to the 7th Street right-of-way.
Other detail provided by the feasibility studies is in place which gives
the City the information necessary to make a final determination
regarding the use of tax increment financing.
POLICY ISSUFS--USE OF TIF FOR PUBLIC IMPROVkMMrS RELATED TO RETAIL EST.
Council is asked to review plans tl and !2 keeping in mind the plan
adopted September 25, 1989. Please note that staff entered negotiations
with the developer with the goal of limiting the use of tax increment
financing to off-site improvements. Obviously, use of TIF funding along
with a retail project is a sensitive issue; therefore, staff attempted to
hold the line by proposing TIF financing of off-site improvements only.
By way of illustration, off-site improvements would include development
of an over -sized road intended to serve the community at large by
conveying traffic as a collector street. Another example of an off-site
improvement might include extension of a storm water system from a
distant position. Example of an on-sito improvement providing direct
benefit to a retail establishment would include use of tax increment
financing to pay for land, parking lot, or on-site ponding.
Special Council Agenda - 1/29/90
PLANS #1 AND 02
Respectively, the proposed plans include total private and public
improvement costs in the amount of $821,989/$751,562. Of this amount, it
is proposed that The Lincoln Companies finance $70,000/$70,000 out of
pocket, and $127,425/$111,570 via the assessment process. it is also
proposed that total TIF contribution, including capitalized, interest
equal $523,339/$436,662 (the plan adopted 9/25/89 called for TIF expenses
of $470,000). Under this plan, not including revenue from payment of
deferred assessment and not including revenue from City sale of land,
TIF revenue remaining amounts to $76,661/$163,379. The remaining cost
associated with the public improvements would be assessed to benefiting
land owners in the amount of $83,488/$68,008.
A. MINNESOTA STREET SANITARY SEWER
The major difference between plan R1 and plan 12 involves sanitary sewer
and water development along Minnesota Street. Finance plan #2 calls for
development of a short stub off 7th Street and Minnesota Street
intersection which would extend south down Minnesota Street just far
enough to provide service to The Lincoln Companies property. Total cost
to create this service extension amounts to $8,300. It is proposed that
tax increment financing be utilized to finance 208 of the this for
over -sizing necessary to serve the south side of the freeway. The
retaining 808 will be assessed to The Lincoln Companies and to Brennan
and Kramer. Under plan il, it is proposed that sanitary sewer be
extended all the way to the freeway along Minnesota Street from its
present location at Minnesota Street. Under this scenerio, the K -Mart
addition would access the sewer line at the rear of the undeveloped
parcel front Minnesota Street. The cost to extend the service as
proposed created a problem according to The Lincoln Conpanies. This
improvement costs $30,000. of that amount, The Lincoln Companies would be
required to pay $12,000 according to the existing assessment policy. The
Lincoln Companies requested that this co ponent of the project be deleted
so as to reduce the assessment. In addition, Mr. Brennan also indicated
that he preferred that this part of the project be deferred until
development actually is impending. Council does have the option of
utilizing excess TIF funds to finance the full extension of the sanitary
sewer from 7th Street to the freeway; however, doing so would amount to
providing The Lincoln Companies with a direct benefit, which is generally
inconsistent with the Council's policy.
In an effort to overcome this policy constraint and at the same time
develop the Minnesota Street Sewer and Water system in a manner
consistent with the recommendations of the City Engineer, it is proposed
under plan 11 that the assessments to The Lincoln Companies, Brennan, and
Kramer for sewer and water be deferred until such time that the
improvements are used. Under this sconerio, TIF revenue would be used to
finance the utilities as they are installed; however, the benefiting land
owners would still be required to pay full value for the utilities at
soma point in the future.
Special Council Agenda - 1/29/90
B. MINNESOTA STREET WATER
The same situation exists for this item as the item above. It is
proposed that Minnesota Street water be extended only far enough for The
Lincoln Companies to obtain service. The cost to accomplish this under
plan #2 will amount to $13,000. The cost to extend services to the
freeway under plan U1 amounts to $30,000. Onder both plans, it is
proposed that TIF finance the cost to over -size the water line. The
remaining costs would be equally divided between The Lincoln Companies
and property owners on the west side of Minnesota Street.
C. MINNESOTA ST. STREET IMPROVEMENT
The cost tc extend Minnesota Street from the existing point to 7th Street
will amount to $50,000. Of this amount, it is proposed that tax
increment financing be used to finance $2,400, which represents the
frontage associated with the old 7th Street right-of-way. The City will
also be financing $2,550 associated with the property the City will be
purchasing from Pratt. The remaining balance will be assessed as
follows:
Ridgemont Apartments $21,300
Brennan $17,400
Kramer $ 1,150
Springborg S 5,200
Plans 11 and #2 treat this improvemnt the same.
D. SEVENTH STREET
The 7th Street improvements, including site grading caTpleted by the
developer, will amount to approximately $202,000. Of this amount, the
site grading is valued at $280000. it is proposed that tax increment
financing be utilized to finance 259 of the over -sizing cost. The
remaining balance will be financed as follows: The Lincoln Companies
will pay for 1/2 of the cost of the remaining balance of: the 7th Street
right-of-way, which amounts to $58,625. This amount includes a credit
for added costs associated with grading the over -sized roadway. It is
proposed that tax increment financing will pick up the north side
construction costs, as other than the city at large, there are no
benefiting properties to the north; however, the City will be required to
provide access to the Hornig property via purchase of the Wright County
State Bank land and development of a driveway. it is proposed in this
finance plan to assess Hornig for the benefit that he will receive by
gaining access to Locust. It is proposed at this point that Hornig would
pay 1/2 of the cost that he normally would have paid had he been provided
access to 7th Street.
Plans 01 and /2 treat this improvenont the same way.
Special Council Agenda - 1/29/90
E. SEVENTH STREET STORM SEWER
Finance plans #1 and #2 call for development of a 24 -inch storm sewer
which will convey water from 7th Street to the interceptor at Maple
Street. This cost, amounts to $70,000. The storm sewer assessment
proposed for The Lincoln Companies is based on what The Lincoln Carpanies
"should have paid" had the original city storm sewer system been designed
to incorporate both Hornig and Ridgemont Apartments. Under this
scenerio, that portion that Hornig and Ridgenont Apartments should have
paid for storm water imgprovements will be financed via TIF. The finance
plan calculates The Lincoln Companies portion of the total cost at 668.
This is based on the amount of water that the three developments
produce. Under this scenerio, TIF expense anounts to $25,200. The
Lincoln Cortpanies assessment amounts to $44,800.
Please note that the City Engineer recommends development of an
additional storm sewer structure designed to service the Brennan
property. This improvement, though prudent, is not absolutely necessary
for the K -Mart project. City staff deleted this improvement from the
finance plan and is not proposing that this improvement be installed via
TIF with assessments to Brennan deferred. The major reason why it was
removed is because it would have increased The Lincoln Companies
assessment by $5,000; however, there are some arguments for reintroducing
this to the plan. Be assured, however, that Mr. Brennan does not care
for this improvement without deferring the assessment. Council, if it so
desires, may reintroduce this inprovement to the plan at the Council
meeting.
�-1��1�YihC�i�� 7 is •r
After considerable review and discussion, it was determined that The
Lincoln Companies would self -finance and complete all project activities
associated with development of the retention basin in the rear of the
propoerty. Staff looked at the possibility of completing this
improvement as a public improvement. The major reason why a public
immprovemont was considered is because the City may have been able to
recover some of the retention basin construction expense from the State
of Minnesota, as a significant amount of runoff from the freeway system
would be managed in part through development of this retention basin.
After looking at tlho State policy which limits State contribution to
construction cost only, and in light of the fact that if the retention
basin became a City project making the City responsible for maintenance,
It was determined that the best course of action would be to encourage
the developer to complete the retention basin and then act Independently
to recover costs fran the State of Minnesota.
G. WRIGHT COUNTY BANK PROPERTY
As you will note in the site plan and as mentioned earlier, the City will
need to acquire the Wright County State Bank property in order to provide
access to the Hornig property. As you recall, access to the Hornig
property was eliminated with the elevation of the 7th Street
Special Council Agenda - 1/29/90
right-of-way. The cost to acquire the Wright County State Bank property
is estimated at $86,000, which represents $2.53 per square foot. The
offer made by the bank is based on the cost per square foot of land sold
to the owner of National Bushing which is across the street. Bank
officials did recognize that an appraisal should be done on this property
arca that the final oriro may Vo adjuc cd t,, raflRoL Lite appraisea value
of the property.
It is proposed that tax increment financing be utilized to finance the
full portion of this cost. As you can see on the attached site plan, a
significant amount of land will be acquired that could be combined with
the old 7th Street tight -of -way and also combined with The Lincoln
Companies remnant parcel in a manner that would allow development of a
valuable piece of property at the corner of Locust and 7th Street. It
appears realistic to expect that the City will be able to recover most of
its costs through reselling of the three properties.
In addition, as you will note in the hydrologic study, there is a need to
develop a retention basin equal to 1/2 acre in size, which would be used
to handle overflow water associated with the 100 -year rainfall event.
This particular site could become the location for the proposed overflow
basin; however, given the high value of this location in terms of a
commercial location, it may not make sense to place the overflow basin at
this location. Furthermore, there currently exist sufficient low areas
on private property to accommodate the 100 -year event. It appears that
maintaining an overflow basin at this point is not critical to protecting
the area from flooding. At the same time, however, the City should not
rely on the private low areas for protection; and at some point in the
future, development of an overflow area should be completed. Please
review the hydrologic study for more information on this matter.
H. PRATT ACQUISITION
As in the original finance plan, it is proposed that TIF be used to
finance this acquisition of $61,000. The City has an option on this
property; and because of a default situation, the City may need to
purchase this property as early as March 15, 1990, which is only 15 days
after the site development work begins.
1. HOLTHAUS ACQUISITION
The original finance plan called for expenditure of $49,000 for this
piece of property. At the time the original finance plan was completed,
Holthaus indicated that his price, for tax reasons, was contingent on the
property heing purchased in the fall of 1989. Since the land acquisition
did not occur at that time, Holthaus has adjusted his price upward to the
previous price of $56,000.
Special Council Agenda - 1/29/90
K. REMNANT PARCELS
The development of the 7th Street right-of-way will create remnant
oaTrnla oflard n_,,.;ed b- t~c C.tl a c;6;7.r—J Lay LinCQln Cum%�dnies. it
is proposed that the remnant parcels owned by The Lincoln Companies on
the north side of 7th Street be exchanged for the remnant parcel owned by
the City on the south side of 7th Street right-of-way. Please see the
site plan for detail regarding this item.
L. Di24OLITION RELOCATION
The finance plan calls for a $4,000 expenditure associated with
demolition of the Pratt property.
M. SOFT COSTS
under both plans, soft costs, including capitalized interest, bonding
costs, etc., are estimated at 458 of the actual project cost.
B. ALTERNATIVE ACTIONS:
1. Motion to modify and approve finance plan 11.
As noted earlier, finance plan #1 represents the best choice in terms
of the design of storm sewer and sanitary sewer and water structures
associated with Minnesota Street. At the same time, costs associated
with plan 41 in the short tern are greater, which results in higher
assessments for both The Lincoln Companies and Mr. Brennan. Given
the present City policy, it appears difficult to complete the
develolxmnt under. plan Al unless the City finances Minnesota Street
sewer and water via TIF and defers the assessment. This method of
delaying required assessment payments may set a bad precedent. On
the other hand, under this scenerio, K -Mart or the new owner of the
undeveloped parcel will ultimately be required to pay for the
improvement at some point in the future; therefore, the developer,
though reaping the benefits of the delay, is not actually receiving a.
free ride.
2. Motion to modify and approve finance plan 02.
If Council is concerned about policy implications associated with
plan 01, then Council should consider approval of plan 02. This
plan, though inferior in terms of infrastructure planning, is
acceptable and appears to be acceptable to The Lincoln Companies.
1r
Special Council Agenda - 1/29/90
C. STAFF RECOMENDATION:
Staff is leaning toward recd mandation of plan 11. It is a superior plan
in terms of engineering design and utilizes TIF LCVEiiVC to extc-,
utilities to a position where they can be used by property owners south
of the freeway. In addition, the TIF tool allows the City to finance the
inprovement without creating an immediate hardship on affected lard
owners. Furthermore, benefiting property owners will still be required
to pay an assessment, which defeats the argument that TIF is being used
to unduly benefit a commercial enterprise in competition with other
retailers. At the same time, however, there may be some policy
implications that may emerge during discussion that nay shoot down this
plan.
D. SUPPORTING DATA:
Septenber 25, 1989, finance plan; Finance plan @1; Finance plan 12;
Wright County State Bank site plan; Site plan.
o�v
�) �o
FINANCE MODEL VERSION:- 4!t /- -_- (JIrJLQo� C.t 01s
USES ILINCOLN IHORNIG ITIF HH/PRAT JASSESSABLE PROPERY
TOTAL I I I ASSESS/TIFILINC. HORNIG RDGEMNT BREN KRAMER SPRNG IITOi1L
- - -'------------------- I --------------- 1 - f0 ii -ii
A. MN AVE. SNI SEM (30.000 I I I $21,000 16,000 1 112,000 /1 ,000 13,000 30 II $51,000
S. MN AVE. NATER $30,000 I I 1 $24,000 $6,000 1 312,000 I . 1 $0 19,000 13,000 s0 $54,000
C. M9 AYE. ST IMPR $50,000 I 1 1 $2,400 $2.550 I so $21,300 $11,400 $1,150 $5,200 II $50,000
D. 7TH STREET 1203,000 1128.000 I I $43,750 $58,188 1 358,625 $14,438 s0 f0 $0 $0 •11$203.000
E. 7TH ST STORM $70,000 1 1 I $25,200 I $41,800 so so so so I1 $70,000
F. ON-SITE PONDING 112,000 1$42.000 1 I I 11 $12.000
I I I I I I 10
G. WRIGHT CTY BANK 10
Land $86,000 1 1 I $86,000 1 11 186,000
Dvvy/eurb $5,0001 115,0001 I II 15,000
I I 1 I I I 10
H. PRATT ACO 161,000 1 to I 1 $51.000 so 1 10 10 so so so •11 151.000
1. HOLTHAUS ACQ $56,00C 1 so I 1 $55,000 so I so f0 so $o 10 '1I $56,000
J. KRAMER ACQ so 1 s0 I I so so I so $0 3o s0 to •1I so
K. REMNANT PARCELS (TRADE - CITY REMNANT FOR LINCOLN CO REMNANTS) II so
L. DEMO/RELOCATION $4,000 I so I 1 $4,000 so I so 10 so so so •11 14.000
M. SOFT COSTS INCL$179.S89 I s0 1 11179,589 1 111179,589
CAP INTEREST - EST 153 I 1 1 't________ I 11
OF HARD COSTS I I I (Sub tot $72.738 I 11
:::.=n:-..--=.I=...:.::.._::_:_:::.:::...::..:..::.:::.::::::_:::::11=:::=.::_
I I I I II
TOTAL COST $816,589 1170,000 115.000 1$578,677 1 1121,12S 114,438 121,300 135,100 Is7,150 15,200 '111864,589
TOTAL LINCOLN COMPANIES COST: $197,425
TOTAL UP FRONT TIF EXPENSE: 1578,677
REMAINING TIF FUNDS: 121,323
TOTAL DEFERRED ASSESSMENTS: 136.000
TOTAL TIF EXPENSE MINUS DEFERRED
ASSESSMENTS MINUS REVENUE FROM
LAND SALE: $455,677
wu........ I.nI'M n.u..u.un.nn.....nu.......I..,.uunun....... ..... M$MM ... ...... SMI.n..wu. u.
Plea 6 e r /
eD /a « fi �a.�c r 0 leA + s � w.f 4 21 ti'.r I✓�101- fr ./
'JIeaSP 17/ofe that tieor.akn rAc0rrecl��a
f � L H t4 /Pra-t
AseesS�rF
iY) a k c s cL b.
COIuMV% P,FOV"
ar.11ere (.
{L, - TZ F /0It- /,
FINANCE MODEL VERSlO4::;t ;' upj_,,kJ '4 f /go
USES ILINCOLN JKORNIG ITIF HH/PRAT IA55ESSABLE PROPERY
TOTAL I I I ASSESS/TIFILINC. HORNIG ROGEXNT BREA KRAMER SPRNG 11TOTAL
_----------- -------- ------- ------------------- ------------------------------------------------- 11 ---------
A. MN 18,300 11,660 $0 I 13,320 $0 13,320 so so II $8,300
S. !tl! AYE. 4ATER 113.000 I 1 I $2,600 so 1 15,200 $0 $5,200 $0 10 II $13.000
C. PIN AVE. ST INPRV $50,000 I I 1 12,400 112,550 I io !!.!5P 15,rn II 150.000
0. ITH STREET $202.000 1120,000 1 1 143,500 $57.895 I $58,250 $11,355 $0 10 30 $0 -111202.000
E. 7TH ST STORM 170,000 1 1 1 $25.200 1 144,800 so $0 so so $70,000
F. ON-SITE PONDING $42.000 IS42.000 1 1 0.28 1 II $42,000
so
G. WRIGHT CTY BANK I I I I II so
Land $86.00. I I 1186,000 I II $86.000
Dwy/curlb 15.000 115,0001 I II $5,000
1 1 I II so
H. PRATT ACO 161.000 1 so 1 1 $61,000 so I so so so $o to all $61,000
1. HOLTHAUS ACO $56,000 1 so 1 1 156.000 so I to so to so so $56,000
J. KRAMER ACQ to I so I I so so 1 so so so so so so
K. REMNANT PARCELS (TRADE - CITY REMNANT FOR LINCOLN CO REMNANTS) 11 $0
L. OERO/RELOCATION 14.000 1 so I 1 $4,000 to 1 to so so so so 1A.000
M. SOFT COSTS INCLUD $154.252 I so I 11154.262 1 1I3154,262
CAP INTEREST - EST 15% I I I --------- I II
OF HARD COSTS I I I (Sub tot 160.445 I II
..... zz— ............... ....... =- :::......:::.zz ........ :...I I
.
TOTAL COST $751,562 117D,000 115,000 1l497.068 1 1111,570 111.355 121.100 125.920 $1.150 $5.200 -111751,563
TOTAL LINCOLN COMPANIES COST: 1191.570
TOTAL TIF EXPENSE: 1497,058
REMAINING TIF FUNDS: 1102,932
TOTAL TIF MINUS LAND
SALE: 1111,069
8 ..... I ...... $oil ..... I—$ .... n..nnanu uu..un....num..un...... ................ 4.......
ICA. L -e ' �,,2 , , j
791,, -14
I hc_ OL 'I ^ L 0 1 f e C. cl r
A 5 1015 51-rr A
T F <'
L3
Scec:al Council Agenda - 1/29/90
P.a?:S 41 A`.7 12
Res-pectively, the proposed plans include total private and public
:ove ,ent toss in the arnunt of BIW/
,-S99/7Sb
;S1 Of tn:s amount, it
is p^posed that The Lincoln Corpanies finance 7o ewol10.000 out of
pocket, and is7,ya 5/iii, S70 via the assessment process. It is also
proocsed that total TIF contribution, including capitalized, interest
e --,:al e70, G v7/Y97, 648 (the plan adopted 9/25/89 called for TIF ex;enses
o;# y70,000 . Under this plan, not including revenue from payaent of
deferred assessment and not including revenue from City sale of land,
TIF revenue remaining amounts to a+, 3>3,-io?,9l� The remaining cost
associated witn the public improvements would be assessed to benefiting
land owners in the amxmht of
A. MINNESOTA STREET SANITARY SUER
The major difference between plan 91 and plan 42 involves sanitary sewer
and water development along Minnesota Street. Finance plan $2 calls for
develocment of a short stub off 7th Street and Minnesota Street
intersection which would extend south down Minnesota Street just far
enough to provide service to The Lincoln Companies property. Total cost
to create this service extension amounts to $8,300. It is proposed that
tax increment financing be utilized to finance 20% of the this for
over -sizing necessary to sere the south side of the freeway. The
regaining 808 will be assesses] to The Lincoln Companies and to Brennan
and Kramer. Under plan $1, it is proposed that sanitary sewer be
extended all the way to the freeway along Minnesota Street from its
present location at Minnesota Street. Under this scene:io, the R Mart
addition would access the sewer line at the res: of the undeveloped
parcel front Minnesota Street. The cost to extend the service as
proposed created a problem according to The Lincoln Companies. This
improvement costs $30,000. Of that amount, The Lincoln Companies would be
required to pay $12,000 according to the existing assessment policy. The
Lincoln Companies requested that this component of the project be deleted
so as to reducethe assessment. In addition, Mr. Brennan also indicated
that he preferred that this part of the project be deferred until
development actually is impending. Council does have the option of
utilizing excess TIF funds to finance the ta11 extension of the sanitary
sewer from 7th Street to the freeway; however, doing so would amount to
providing The Lincoln Companies with a direct benefit, which is generally
inconsistent with the Council's policy.
In an effort to overcare this policy constraint and at the same time
develop the Minnesota Street Sewer and Water system in a manner
consistent with the recommendations of the City Engineer, it is proposed
under plan 11 that the assessments to The Lincoln Companies, Brennan, and
Kramer for sewer and water be deferred until such time that Lho
improvements are used. Under this scenerio, TIF revenue would be used to
finance the utilities as they are installed; however, the benefiting land
owners would still be required to pay full value for the utilities at
somne point in the future.
FINANCE MODEL VERSION:
USES (LINCOLN IHORNIG ITIF
HH/PRAT (ASSESSABLE PROPERY
TOTAL I I
I
ASSESS/TIFILINC. HORNIG
RDGEMNT OREN KRA14ER
SPRNG IITOTAL
MN AVE. SAN SEX !30,000 I 1 1 {30,000
-- -1 -- --
{6,000 Il 112,000
- '-- -
SO t {9,000 •13,000
11
{0 II 160,000
MN AVE. NATER 130,000 I i
1130,000
16,000 10 {12,000
SO r {9.000 *S3,000
SO II 160,000
MN AVE. ST IMPR 150,000 I I
1 12,100
12,550 1 10
121,300 {17,100 11,150
15,200 II 150,000
7TH STREET 1203,000 1128.000 I
1 143.750
158,188 1 158,625 114,438
10 10 10
10 '111203,000
1T4 ST cruor 179.000 1 I
1 125,200
I {11,800
10 10 10
10 11 170,000
ON-SITE PONDING 142.000 1142,000 1
1
I
II 342,000
I I
I
I
I I to
WRIGHT CTY BANK I I
I
1
11 f0
Land 186,000 1 1
1186,000
1
11 186,000
Dwy/curb 15,000 1 115,000
1
I
Il 15,000
1 1
1
I
I I so
PRATT ACO {61,000 1 f0 I
1 151,000
10 I 10
10 10 10
10 '11 161,000
HOLTHAUS ACQ 155,000 1 f0 1
1 155,000
f0 I f0
10 10 10
10 111 156,000
MRAMER ACQ f0 I 10 I
1 10
10 I f0
SO 10 {0
{0 'll f0
REMNANT PARCELS (TRADE - CITY REMNANT FOR LINCOLN CO REMNANTS)
II 10
DEMO/RELOCATION 11,000 1 {0 1
1 14,000
f0 I f0
SO {0 f0
f0 '11 14,000
SOFT COSTS INCL1184,989 I f0 I
11181,989
I
111184,989
CAP INTEREST - EST 15{ I I
I
______ 1
11
OF HARD COSTS I I
I (Sub tot
172,738 I
II
TOTAL COST 1821,989 11170,000 1115,000
111523,339
II 1127,425 114,438 {21,300 135,100 17,150
15,200 '11111861,989
TOTAL LINCOLN COMPANIES COST:
1197.425
TOTAL UP FRONT TIF EXPENSE:
{523,339
REMAINING TIF FUNDS:
176,661
TOTAL DEFERRED ASSESSMENTS:
148,000
TOTAL TIF EXPENSE MINUS DEFERRED
ASSESSMENTS MINUS REVENUE FROM
LAND SALE:
1389,339
n.nun.42....... ......nnnn......
.w ... u.u....uan ..n.nnnu....uuuuuwun.. u..nwn.u.........
(( FINANCE MODEL VERSION
USES
ILINCOLN IHORNIG ITIF
HH/DRAT (ASSESSABLE PROPERY
TOTAL I I
I
ASSESS/TIFILINC. HORNIG ROGEMNT BREW
KRAMER SPRNG 11 TOTAL
- -
A. IW AVE. SAN SEW.
- - 1 I
18.300 I I
1-------------------
I $1.660
1-------------------------------------------------
10 1 13,320
10 $3,320
II.
so 10 II 18,300
B. MN AVE. NATER
113,000 I I
I $2,600
10 1 15.200
90 $5,200
t0 s0 II 113.000
C. MN AVE. ST IMPRV
150.000 1 I
I $2,100
51,550 I t0
$21,300 $17,400
11,150 $5.200 II 150,000
D. 7TH STREET
$202,009 1128,000 1
I $43,500
$57,895 1 $58,250 111,355
so 30
$o $0 '111202,000
E. 7TH ST STO:JI
170.000 1 1
1 125,20D
1 $44,800
$0 s0
so t0 II $70,000
F. ON-SITE PONDING
$42,000 1512,000 1
1
0.28 1
II $12,000
I I
t
I
I I 10
G. WRIGHT CTY BANK
I I
I
I
II 30
Land
$86,000 I I
1 $86,000
1
11 $86.000
Dvwy/curb
$5,000 1 115,000 1
I
II 35,000
I 1
1
I
I I so
H. PRATT ACO
151.000 1 so 1
1 $51,000
$0 1 $0
10 $0
so so 'll 161,000
1. HOLTHAUS ACQ
$56,000 1 s0 1
1 356,000
so 1 $0
10 to
$o to 156,000
J. KRAMER ACQ
$o I so I
I s0
10 I 10
s0 $0
$0 $0 'II to
K. REMNANT PARCELS
(TRADE - CITY REMNANT FOR LINCOLN CO
REMNANTS)
11 s0
L. DEMO/RELOCATION
14,000 I s0 1
1 $4,000
so 1 $0
10 so
$0 So '11 $1,000
M. SOFT COSTS INCLUD
$151,262 1 t0 1
11151,262
1
111151,252
CAP INTEREST - EST
451 I I
1
_ 1
11
OF HARD COSTS
I I
I (Sub tat $50,115 I
II
TOTAL COST
1751,562 11510.000 1115,000 111436,622
II $111,570 114,355
521,300 125,920
$1,150 $5,200 '11111751,563
TOTAL LINCOLN
COMPANIES COST:
1181,510
TOTAL TIF
EXPENSE:
$436,622
REMAINING
TIF FUNDS:
$163,378
TOTAL TIF MINUS LAND
SALE: 1350.622
m M.$uuu............nnuw..0 a$MMM ..nun.unwnunuuuuu..n...1.1.1...1...8....8..........18.81.
I-
,LTERNATIVE 5 ADOPTED FINANCE PLAN -9/25/89
- Then amended
12/11/89
by deleting Kramer
HOLIHOUSLAND
STRAIGHT ALIGNMENT - CITY FINANCES
ALIGNMENT COST AND 'CITY'
PORTION OF
ASSESS
SEVENTH STREET
CONSTRUCTION
COST
1
ISOURCES
PROCEEDS
1 •------------------•----------------------•---------------------------
SEVENTH STREET 1151,000 ) 166,053
10
TOTAL ITIF
LINCOLN
LINCOLN
HORNIG
HOLTHOUSLAND CITY
TOTAL
USES I
so
ASSESS
ASSESS
ASSES SALE ASSESS
to
10
to
to
PROCEEDS
PRATT 161,000 ) 161,000
----------------------------------------------------------------------
SEVENTX STREET 8151,000 1 $56.063
10
856.625
128.313
$0
80 $151,000
LAND VALUE s0 1 s0
s0
s0
10
s0
s0 s0
EXCESS LAND 80 I t0
so
s0
90
s0
80 so
PRATT 161.000 1161,000
90
10
$0
$0
$0 $61,000
HOLTHAUS 149,900 1 $38,500
111,000
so
80
s0
$0 $69,500
KRAMER 1187,000 18111,000
so
s0
s0
$0 810,000
$0 $187,000
SAN/ST SEWER {81,000 I
$04,000
80
t0
s0
90 181,000
ON-SITE PONDING 139,400 I
139,400
s0
so
10
10 $39,400
DEMO/RELOCATION 116,000 1 $15,000
s0
so
s0
s0
$0 $16,000
------------------------1-------------------------•--------------------------------------------
I
TOTAL COST $588,300 19298,563
$134,100
156,625
$20,313
s0 170,000
$0 1587,900
ACTUAL CITY COST (181) $53,741
ACTUAL LINCOLN COMPANIES COST $191,025
j , ...... un..uun.n.....M.$.$............un.nu............nn.......................
A9111111111111IED - LATEST PLAN
STRAIGHT ALIGNMENT - CITY FINANCES ALIGNMENT COST AND 'CITY' PORTION OF
SEVENTH STREET CONSTRUCTION COST
ISOURCES
TOTAL I11F
LINCOLN
LINCOLN
MORN IG
HOLIHOUSLAND
CITY TOTAL
USES )
ASSESS
ASSESS
ASSESS SALE
ASSESS
1
PROCEEDS
1 •------------------•----------------------•---------------------------
SEVENTH STREET 1151,000 ) 166,053
10
156,625
128,313
s0
s0 1151,000
LAND VALUE 10 1 t0
to
s0
so
s0
t0 t0
EXCESS LAND 90 I to
to
10
to
to
so to
PRATT 161,000 ) 161,000
s0
s0
10
10
10 161,000
HOLTHAUS 119,900 1 138,500
111,000
to
t0
10
so 119,500
INFR 10,1 so
to
so
so
so so
to so
SAN/ST SEWER 181,000 1
181,000
t0
t0
to
10 181,000
ON-SITE PONDING 1]9,100 I
139,100
10
t0
s0
t0 139,100
DEMO/RELOCATION 11,000 1 54,000
........................ -----------------------------------------------------------------•----
t0
s0
to
30
10 11.000
I
TOTAL COST $189,300 11169.553
1131,100
156,625
128.313
t0 to
to 1396,900
C,TUAL CITY COST (161) 130,521
ACTUAL LINCOLN COMPANIES COST
1191,025
.....m..nuu.n.... u. ...... ....n......
um*
.....uuuununuuu.
nnn... nun.
�Y
l
� e
i 5 J I
.OPPNQAF�l� PdFGCC dPLdJ � 1 G JJ
~C♦ Ki tfJ f
= I
r "*
NKLi C Iptr SC T II' J•j, y
rorrc .IRC- sxuu ra ir.
r
�... cif ••� \\
t IS2✓t.lfG 'Sty t � � � `�
Q
G.
IITI. -
17
140
- !. /'fi , �� f i �N F- x ISTIN6
W4
MALU
;D
Special Council Agenda - 1/29/90
i
4. Consideration of calling a public hearing_ on street and utility
improvements to 7th Street and Minnesota Street. Public hearing_
tentatively schEduled for- February 12, 1990. (J.0.)
A. REFERENCE AND BACKGROUND:
If Council approves the feasibility studies, and if the developer and the
City come to terns regarding the use of TIF as part of the public
improvement finance plan, then Council should call for a public hearing
on the improvement project. According to the project schedule, the
public hearing is scheduled for February 12, 1990.
After the public hearing is held, Council will be asked to consider
ordering plans and specifications for the public improvement.
B. ALTERNATIVE ACTIONS:
1. Motion to call a public hearing on the 7th Street/Minnesota Street
improvement project. The public hearing is to be conducted
February 12, 1990.
2. Motion to deny calling a public hearing on the 7th Street/Minnesota
Street improvement project.
L
SL._ RECOFPfQIDATION:
Staff recommends alternative 11 if Council accepts the feasibility
studies and if it appears there is agreement between the City and
developer regarding use of tax increment financing in conjunction with
the public improvement finance plan.
D. SUPPORTING DATA:
Nona.
L