HRA Agenda Packet 09-07-1983HRA AGENDA
Wednesday, September 7, 1983
Monticello City Hall - 7:00 P.M.
Chairperson: Phil White.
Members: Don Cochran, Jack Reeve, Vic Vokaty, Bud Schrupp.
1. Call to Order.
2. Minutes of the August 3, and August 9, 1983 meetings.
3. Public Hearing - Disposition of Public Lands.
4. Consideration of Tax Increment Finance Plan relating to
T.I.F. District i3.
5. Consideration of Purchasing lots 5 and 6 in Block 3,
Oakwood Industrial Park.
6. Consideration of a proposal to participate in a joint powers
agreement to issue mortgage revenue bonds.
7. Other Business.
8. Adjournment.
�01
MINUTES
HOUSING 6 REDEVELOPMENT AUTHORITY MEETING
August 9, 1983 - 7200 A.M.
A special meeting of the Monticello Housing & Redevelopment Authority
was duly held at 7:00 A.M. on Tuesday, August 9, 1983, at Parkin's
Restaurant. Members present were Cochran, Reeve, Vokaty, White and
Schrupp. Members absent none. Also present were Administrator Eidem
and Brad Larson.
The purpose of the meeting was to review a tax increment finance pro-
posal to assist the firm of Metcalf and Larson in the construction of
a new professional office building. Eidem presented to the authority
preliminary data showing the original asseused value, the estimated
new assessed value and explained that an estimated tax increment of
$4,234 would be generated annually. Eidom went on to explain that
based on the estimated figures, the [IRA could assist in the elimination
of the house which now lies immediately north of the Metcalf and Larson
vacant lot which would promote the construction. He indicated that the
HRA would incur an initial debt of $36,000. He noted that the total
debt incurred by the HRA in providing a subsidy of $36,000 would be
approximately $63,000. Anticipating collecting increment for a period
of twelve (12) years, he explained, there were two alternatives to
discuss with respect to repayment. Eidem noted that Alternative A
would require an approximate $17,000 up front payment, the proceods
of which would be used to retire capitalized interest and to sup-
plomnnt the annual increment during the term of debt retirement.
Alternate B would be to require approximately $11,000 to $12,000
and require the developer to pay to the HRA a sum slightly over
$500 per year to ouppinmont the anticipated increment. Laroon,
the developer, stated that. as developers, they favored Alternate B
since it lessened the initial outlay. lie said that it would be
easier to stretch the payments over a time period. Eidem noted
that taking a lessor amount up front would, of course, roduco interest
that the MRA coulo oarn,and suggested a third alternative: that Laing,
that the HRA require an annual payment of a sum greater than the
absolute minimum of $521. Larson indicated that as developers they
would be receptive to that sort of a proposal. It was the conconaus
of the authority that Eidem investigate receiving annual payments of
$750 to $1,000. Larson requested that the actual figure remain open
us that he could consult with hiu partner and stated that he would
gat back to Eidam in hopes of negotiating what an annual fee might
be out at. A motion by Schrupp, auconded by Reeve and carried
unanimously to give preliminary approval to the development con-
copto for Metcalf and Larson, and callinq for a public hearing on
the disposition of public lands for Soptembur 7, 1983.
LIRA Minutes - 8/9/83
2. Eidem presented to the Authority a resolution establishing a
percentage of total project to be charged against any tax
increment finance project for administrative expense. A
motion by Vokaty, seconded by Cochran and carried unanimously
to adopt the following resolution: See attached copy of
resolution.
Eidem indicated to the commission that he would be investigating
with representatives of Holmes and Craven, the possibility of
establishing a tax increment district in the downtown that would
expand beyond the boundaries of the Metcalf and Larson project.
He noted that there could be substantial benefit in having a
larger district rather than dealing with site specific `
districts as each project developed. White expressed some con-
cern about the district growing to large and involving a govern-
ment unit where it need not be involved. All members expressed
a similar concern, but requested Eidem at least proceed with
his investigation of a larger district.
4. Eidem gave a brief up date on the proposed elderly housing project
in Block 51 and of negotiations with the Oakwood Industrial park
Partnership. He indicated that, with respect to Oakwood Industrial
Park, he is investigating the outright purchase of hots 5 and 6
in Block 3 on behalf of IXI, Inc. He stated that a member of the
HRA may need to be present at the August 22, 1983 City Council
mooting to request financial backing for the purchano. He stated
that he would provide additional information to the members in
the near future.
S. Thero being no further busineas, the meeting woo adjourned.
Thomas Eidem
City Administrator
- 2 -
MINUTES
HOUSING 6 REDEVELOPMENT AUTHORITY MEETING
August 3, 1983, - 7:00 PM.
The regularly scheduled meeting of the Monticello Housing b Redevelop-
ment Authority was duly held at 7:00 PM on Wednesday, August 3, 1983 in
The City Hall Chambers. Members present were: Vic Vocaty, .lack Reeve, b
Bud Schrupp. Members absent were: Chairman Phil White, b Don Cochran.
Others present were Tom Eidem (City Administrator), 6 Allen Pelvit (Director
of Economic Development).
Because Chairman White and Cochran were not present, Eidem moved that the
meeting be recessed and held when all members could attend. The importance
of itms 43, and 44, consideration of a resolution establishing an HRA
Policy for setting an administration fee for Tax increment Financing
Projects, and Consideration of a Preliminary Proposal for Tax Incre-
ment Financing - Developers, Metcalf and Larson, respectively.
It was the eoncensus of those present, to reschedule this meeting to
August 9, 1983, at 7:00 AN. Said meeting to take place at Perkins. Brad
Larson will attend also.
Eidem will have the resolution at the special meeting, on 8-9-83.
As long as Dale Lungwits was in attendance. Eidem suggested we adjourn
the meeting and have an open discussion. So moved.
There being no other business, the meeting was adjourned.
I - RI-s—
ILAllen L. Pelvit
Director of Economic Development
HRA Agenda - 9/7/83
AGENDA SUPPLEMENT
3. Public Hearinq - Disposition of Public Lands.
This is the hearing called for at our last regular meeting
relating to the northerly 50 feet of Lots 8, 9, s 10,
Block 50. This is the property Metcalf and Larson need
to carry out their construction plans.
4. Consideration of Tax Increment Finance Plan relating to
T.I.F. District 03.
Relates to above item. The district proposed now includes
the following parcels:
1. Bass property
2. Toslow property
3. Both of Metcalf 5 Larson's lots
4. Capps property (parcel to be bought S sold)
5. All of Flake's property
6. Jones Mfg.
7. O'Connor truck garage
We had to include all these parcels in order to meet the
statutory requirements. This will be the whole district,
but we will only do the Metcalf/Larson project for now.
Other projects may be done at a later time without jeopardizing
the district.
5. Consideration of purchasinq Lots 5 and 6 in Block 3, Oakwood
Industrial Park.
The City Council approved the HRA's loan request at their last
regular meeting. This means that with a simple motion the
HRA can purchase Lots 5 and 6, Block 3 in Oakwood Industrial
Park.
The request from IXI to borm these lots is still before the
HRA. Dee Johnson has indicated that IXI will gladly enter
an agreement stipulating that if they (IXI) do not over use
the land, they will regrado to its original condition. with
this agreement, I see no difficulty in giving our permission.
6. Consideration of a proposal to participate in a ioint powers
agroemcnt to issue mortgage revenue bonds.
Late item. I will try to provide further detailo on this
at the meeting. To date, I have very limited information
myself.
HRA Agenda - 9/7/83
AGENDA SUPPLEMENT
3. Public Hearing - Disposition of Public Lands.
This is the hearing called for at our last regular meeting
relating to the northerly 50 feet of Lots 8, 9, b 10,
Block 50. This is the property Metcalf and Larson need
to carry out their construction plans.
4. Consideration of Tax Increment Finance Plan relating to
T.I.F. District 03.
Relates to above item. The district proposed now includes
the following parcels:
1. Hass property
2. Teslow, property
3. Both of Metcalf S Larson's lots
4. Capps property (parcel to be bought b sold)
5. All of Flake's property '
6. Jones Mfg.
7. O'Connor truck garage
We had to include all these parcels in order to meet the
statutory requirements. This will be the whole district,
but we will only do the Metcalf/Larson project for now.
Other projects may be done at a later time without jeopardizing
the district.
5. Consideration of purchasinq Lots 5 and 6 in Block 3, Oakwood
Industrial Park.
The City Council approved the HRH's loan request at their last
regular meeting. This means that with a simple motion the
HRA can purchase Lots 5 and 6, Block 3 in Oakwood Industrial
Park.
The request from IXI to berm these lots is still before the
RRA. Doc Johnson has indicated that IXI will gladly enter
an agreement stipulating that if they (IXI) do not over use
the land, they will rograde to its original condition. With
this agreement, I see no difficulty in giving our permission.
6. Consideration of a proposal to participate in a joint powers
41 agroement to issue mortgage revenue bonds.
Late item. I will try to provide further details on this
at the meeting. To data, I have very limited information
myself.
Talpho. 2954711 DDee
2 East Broadway
Route 4, Box 83A
MONTICELLO, MN 55362
September 6, 1983
Monticello HRA
Monticello, MN 55362
M"- Una 3335739
RE: Dletcalf and Larson Tax Increment Financing Proposal
Dear Monticello HRA Chairman:
As per request from Mr. Allen Pelvit, Director of Economic
Development, I have prepared a new estimated market value
for the proposed new building of Metcalf and Larson, also a
new land value for the newly purchased Lindberg property.
The new estimated market value for the split entry proposed
office building would be $124,500, plus a new land value
of $7,600, carrying a total estimated market value of the
land and the building without the new vacant lot of the
Lindberg property of $132,100. The assessedObTt $132,100
would be $56,009. The new estimated market value on the
Lindberg property, which would be used for a parking lot,
would be $4,000 with a new assessed value being $1,702.
This should be all the information that you will need in
regard to this project. If you have any questions, please
feel free to contact me.
Sincerely,
Gary Anderson
City Assessor
GA/kad
TAR INCREIIENT ECONOMIC DEVELOPMENT FINANCE PLAN
A.
STATUTORY AUTHORITY
The City of Monticello is authorized to establish a tax
increment district pursuant to Minnesota Statutes 273.71 -
273.78.
B.
STATEMENT OF OBJECTIVES
1) Provide incentive for the expansion of Metcalf/Larson
Law Offices in the City of Monticello.
2) Provide expanded tax base.
3) Create a use for currently under-utilized land.
4) Eliminate a blighted, non -conforming structure.
C.
DEVELOPMENT PROGRAM
In accordance with Minnesota Statutes 273.74, a description
of the redevelopment program for the tax increment financing
district is provided.
1) The City of Monticello will acquire the northerly 50
feet of Lots 8, 9 & 10 in Block 50, original plat and
raze the existing blighted, non -conforming structure.
2) The City will convey to Metcalf and Larson, the developers,
the above described parcel in a condition suitable for
construction.
3) Metcalf and Larson will construct a 2800 sq. ft. per
floor split foyer office building (with parking
facilities) on the above parcel and on land adjoining
said parcel.
D.
PROPERTY ACQUISITION
The City shall acquire all of the northerly 50 feet of Lots
8, 9, & 10 in Block 50, O.P.
E.
DEVELOPMENT ACTIVITIES COVERED BY AGREEMENT
All activities planned aro delineated in the development
agreement which is attached as Appendix A. To date, a
purchase agreement has boon executed between Metcalf and
Larson and Capps, the present owner, and said agreement has
been assigned to the HRA.
;i F. DESCRIPTION OF PROPERTY IN THE TAX INCREMENT FINANCING
y DISTRICT.
(155-010-050082) Leg. Desc. : N 50 ft. of lots 8,
9, 6 10 Blk 50.
G. CLASSIFICATION OF THE TAX INCREMENT FINANCING DISTRICT
The tax increment financing district to be established
within the area designated as the Central Monticello
Redevelopment Areas is classified as an economic re-
development district.
The property to be included in the district is as
follows: (by PIN)
a. 155-010-050010
b. 050011
C. 050081
d. 050082
e. 050100
f. 051010
q. 051011
h. 051020
i. 051040
Of the nine parcels, all but parcel e. are occupied by
structures. Five of the eight structures (parcels a,
d, f, h and i) are considered to be structurally substandard,
while parcels b and g have structures that are both non-
conforming uses and on lots that are too small for their use.
This proposal has been found to be in the public interest
because it will eliminate blight and non -conforming use,
create use for a vacant lot, provide temporary construction
employment, and generate other improvements within the
district. Because this district meets the requirements
of MS 273.73, Subdivision 10, it shall be classified as a
Redevelopment District.
H. ESTIMATE OF COSTS
The estimate of public costs associated with this project,
and to be recovered by tax increment financing are as
follows:
Land Acquisition $33,000.00
Assessments 184 6 beyond 535.00
Site Preparation 5,000.00
$38,535.00
Legal, Contingency, 3,082.80
Administration (8i)
Subtotal $41,617.80
Less up front payment -10,000.00
Total HRA Cost *$31,617.80
*Rounded off to $32,000.00
The Monticello Tax Increment Financing District $3
will be established with respect to the N. 50 feet
of Lots 8, 9, 6 10, Block 50.
I. ESTIMATE OF INDEBTEDNESS
The HRA, by action taken at a special meeting held on
August 9, 1983, approved a method that would require the
developers to pay $10,000.00 up front; the proceeds of
which would be used to retire capitalized interest and
to supplement the annual increment during the term of
annualized debt retirement.
*Tile $10,000.00 will be deducted from the subtotal amount
of $41,617.80 (41,617.80 - 10,000.00 = 31,617.80), giving
a total initial debt of $31,617.80.
*This is rounded to $32,000.00.
Attached is the Debt Retirement Schedule.
J. SOURCE OF REVENUE
The primary source of revenue to be used to retire the loan
from the City Council will be tax increments generated as a
result of the development. The other source of income will
be the proceeds for the conveyance of the land from the HRA
to the developers.
K. ORIGINAL ASSESSED VALUE
Pursuant to [linnesota Statutes 273.74, Subdivision 1 and
273.76. Subdivision 1, the Original Assessed Value (OAV)
for the Monticello District /3 is based on the sum of all
nine parcels, Original Assessed Values, provided by the
County Assessor in 1983. This value is $50,689.00. Each
year the Office of the County Auditor will measure the amount
of increase or decrease in the total assessed value of the
tax increment economic development district to calculate the
tax increment payable to the Monticello HRA. Each year the
County Auditor shall also add to the original assessed value
of the economic development district an amount equal to the
original assessed value for the preceding year multiplied by
the average increase in the assessed valuation of all property
included in the economic development district during the five
years prior to district certification. In any year in which
there is an increase in total assessed valuation in the tax
increment economic development above the annual percentage
increase, a tax increment will be payable. In any year in
which the total assessed valuation in the tax increment
economic development district is less than the original
assessed value, no assessed valuation will be captured and
no tax increment will be payable.
The County Auditor shall certify in each year after the date
the original assessed value was certified, the amount the
OAV has increased or decreased as a result of any of the
followings
1) Change in tax exempt status of property;
2) Alteration of the geographic boundaries of
the district;
3) Change due to stipulations, adjustments,
negotiated or court ordered abatements.
L. ESTIMATED CAPTURED ASSESSED VALUE
Pursuant to Minnesota Statutes 273.74, Subdivision 1 and
273.76, Subdivision 2, the estimated Captured Assessed
Value (CAV) of the tax increment economic development
district will be $77,500.00. The City of Monticello requests
1008 of the available increase in assessed value commencing
! in 1983 for taxes payable in 1984 be captured for repayment
of debt and current expenditures.
M. DURATION OF THE DISTRICT
The City of Monticello expects to terminate the Monticello
Tax Increment Economic Development District 03 on January 2,
2010. The 25 year duration of the district is based on the
ability of the City to collect tax increments for 5 years
commencing in 1985 and ending in 2010.
N. IMPACT ON OTHER TAXING JURISDICTIONS
It is anticipated that $3,982 in tax increment will be
captured during the first 12 years of the District's 25
years.
For taxes payable in 1983, the City of Monticello comprised
24.88 of the mill rate (21.0), School District 0882 comprised
42.88 of the mill rate (36.2), and Wright County comprised
28.39 of the mill levy (23.9). The Monticollo-Big Lake
Hospital District made up the final 4.19 with a mill rate of
(3.4). A mill rate of 84.5 mills has boon used throughout
the debt retirement schedule uood in thio tax increment
financing plan. Applying the appropriate percentage of the
total mill rate levied by each taxing jurisdiction to the
projected mill rate and the annual tax increment of $3,982
reveals the annual forfeit of tax dollars by each taxing
jurisdiction.
All assessed values exclude the amount of assessed valuation
already found in tax increment financing districts in other
municipalities in Wright County.
0. MODIFICATION TO TAX INCREMENT PLAN
In accordance with Section 273.74, Subdivision 4 of the
Tax Increment Financing Act, the geographic area of the
project or tax increment financing district, increase in
the amount of bonded indebtedness to be incurred, including
a determination to capitalize interest on debt if that
determination was not part of the original plan, or to
increase or decrease the amount of interest on the debt to
be capitalized, increase in the portion of the captured
assessed value to be retained by the City, increase in total
estimated tax increment expenditures or designation of
additional property to be acquired by the authority shall be
approved upon the notice and after the discussion, public
hearing and findings required for approval upon the notice
and after the discussion, public hearing and findings required
for approval of the origin plan. The geographic area of the
Monticello Tax Increment Financing District $3 may be reduced,
but shall not be enlarged after five years following the
date of certification of original assessed value by the office
of the County Auditor. The Monticello Tax Increment Financing
District 43 may therefore be expanded until 1988.
P. LIMITATION ON AD14INISTRATIVE EXPENSES
In accordance with M.S. 273.73, Subd. 13 and 273.75, Subd. 3,
the administrative expenses means all expenditures of an
authority other than amounts paid for the purchase of land
or amounts paid to contractors or others providing materials
and services, including architectural and engineering services,
directly connected with the physical development of the real
property in the district, relocation benefits paid to or
services provided for parsons residing or businesses located
in the district or amounts used to pay interest on, fund a
reserve for, or sell at a discount bonds issued pursuant to
M.S. 237.77. Administrative expenses include amounts paid
for services provided by bond council, fiscal consultants and
planning, economic, or legal consultants. No tax increment
shall be used to pay any administrative expenses for a project
which exceeds 10% of the total tax increment expenditures
authorized by the tax increment financing plan or the total
tax increment expenditures for the project, whichever is loss.
Q. LIMITATION ON DURATION OF TAX INCREMENT FINANCING DISTRICTS
Pursuant to M.S. 273.75, Subd. 1, "No tax increment shall be
paid to an authority three years from the date of certification
by the County Auditor unless within the three year period (1)
bonds have been issued pursuant to Section 273.77 or in aid
of a project pursuant to any other law, except revenue bonds
issued pursuant to Chapter 474, prior to the effective date
of the act: or (2) the authority has acquired property
within the district: (3) the authority has constructed or
caused to be constructed public improvements within the
district..." The City of Monticello must therefore acquire
the property so stipulated in this plan by 1985 or the office
of the County Auditor may dissolve the tax increment district.
R. LIMITATION ON QUALIFICATION OF PROPERTY IN TAX INCREMENT
DISTRICT NOT SUBJECT TO IMPROVEI4ENT
Subd. 6. Limitation on increment.
If, after four years from the date of certification of the
original assessed value of the tax increment financing district
pursuant to section 273.76, no demolition, rehabilitation or
renovation of property or other site preparation, including
improvement of a street adjacent to a parcel but not in-
stallation of utility service including sewer or water systems,
has been commenced on a parcel located within a tax increment
financing district by the authority or by the owner of the
parcel in accordance with the tax increment financing plan,
no additional tax increment may be taken from that parcel, and
the original assessed value of that parcel shall be excluded
from the original assessed value of the tax increment financing
district. If the authority of the owner of the parcel sub-
sequently commences demolition, rehabilitation or renovation
or other site preparation on that parcel including improvement
of a street adjacent to that parcel, in accordance with the
tax increment financing plan, the authority shall certify to
the county auditor that the activity has commenced, and the
county auditor shall certify the assessed value thereof as most
recently certified by the commissioner of revenue and add it
to the original assessed value of the tax increment financing
district. For purposes of this subdivision "parcel" moans a
tract or plat of land established prior to the certification
of the district as a single unit for purposes of assessment.
S. LIMITATION ON THE USE OF TAX INCREMENT
All revenue derived from tax increment shall be used in
accordance with the tax increment financing plan. The revenue
shall be used to finance or otherwise pay the capital and
administrative cost of a development district pursuant to
M.S. 472A. These revenues shall not be used to circumvent
existing levy limit law. No revenue derived from tax increment
shall be used for the construction or renovation of a munici-
pally owned building used primarily and regularly for con-
ducting the business of the municipalityi this provision
shall not prohibit the use of revenue derived from tax
increments for Cie construction or renovation of a parking
structure, a commons area used as a public park or a facility
used for social, recreational, or conference purposes and
not primarily for conducting the business of the municipality.
T. NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS
Pursuant to M.S. 273.76, Subd. 4, the City has reviewed and
searched the property to be included in the tax increment
economic development district and found that no building
permit has been issued during the 18 months immediately
preceding approval of th- tax increment financing plan by
the County. If the building permit had been issued within
the 18 month period preceding approval of the tax increment
financing plan by the City, the County Auditor shall increase
the original assessed value of the district by the assessed
valuation of the improvements for which the building permit
was issued, excluding the assessed valuation of improvements
for which a building permit was issued during the 3 month
period immediately preceding said approval of the tax increment
financing plan, as certified by the assessor.
U. EXCESS TAX INCREMENTS
Pursuant to M.S. 273.75, Subd. 2 of the Tax Increment
Financing Act, in any year in which the tax increment
exceeds the amount necessary to pay the costs authorized
by the tax increment plan, including the amount necessary to
cancel any tax levy as provided in M.S. 475.61, Subd. 3, the
City shall use the excess amount in order selected by the
Authority to:
1. Prepay outstanding Bonds;
2. Discharge the pledge of tax increment, therefor;
3. Pay into an escrow account dedicated to the payment of
such Bond;
4. Repay any loans including interest on those loans; or
5. Return the excess amount to the County for pro rata
distribution to the affected taxing jurisdictions.
V. REQUIREMENT FOR AGREEMENTS WITH TKE DEVELOPER
Pursuant to Minnesota Statutes, Section 273.75, Subdivision 5,
no more than twonty-five percent (259) by acreage of the
property to be acquired by the Authority in the redevelopment
district shall be owned by the Authority as a result of
acquisition with the proceeds of bonds issued pursuant to
Section 273.77 without the Authority having prior to
acquisition in excess of twenty-five percent (259) of the
acreage, concluded an agreement for the development of tho
property acquired and which provides recourse for the Authority.
W. ASSESSMENT AGREEMENTS
Pursuant to M.S. 273.76, Subd. 8, the City may, upon entering
into a development agreement, enter into an agreement in
recordable form with the developer of property within the
tax increment financing district which establishes a minimum
market value of the land and completed improvements for the
duration of the tax increment economic development district.
The assessment agreement shall be presented to the County
Assessor who shall review the plans and specifications for
the improvements constructed, review the market value previously
assigned to the land upon which the improvements are to be
constructed, and so long as the minimum market value contained
in the assessment agreement appears in the judgement of the
assessor to be a reasonable estimate, the assessor may certify
the minimum market value agreement.
X. ADMINISTRATION AND MAINTENANCE OF THE TAX INCREMENT ACCOUNT
Administration of the tax increment financing economic
development district will be handled by the City of Monticello
Housing and Redevelopment Authority and the office of the
City Administrator. The tax increment received as a result
of increases in the assessed value of the tax increment
economic development district will be maintained in a special
account separate from all other municipal accounts and ex-
pended only upon sanctioned municipal activities identified
in the finance plan as amended.
Y. ANNUAL DISCLOSURE REQUIREMENTS
Pursuant to M.S. 273.74, Subd. 5, an authority must file an
annual disclosure report for all tax increment financing
districts. The report shall be filed with the school board,
county board, and the Minnesota Department of Energy, Planning
and Development. The report shall include the following
information:
1. The amount and source of revenue in the account;
2. The amount and purposes of expenditures from the account;
3. The amount of any pledge of revenues, including principal
and interest on any outstanding indebtedness;
4. The original assessed value of the districts;
5. The captured assessod value retained by the authority,
6. The captured assessed value sharod with othor taxing
districts;
7. The tax increment received.
The annual disclosure report is designed to bo a two-way
modium of information dissemination for both the offico of
the County Auditor and the City Council. Should the auditor
request additional information from the City regarding the
tax increment financing activities, such information should
be roquestod prior to submission of the annual disclosure
report by the City. Similarly, the City Council may utilize
the annual disclosure report as a means for requesting in-
formation from the office of the County Auditor.
Additionally, the authority must annually publish a statement
in a newspaper of general circulation in the municipality
showing the tax increment received and expended in that year,
the original assessed value, the captured assessed value,
amount of outstanding indebtedness, and any additional
information the authority may deem necessary.
Z. ASSUMPTIONS
It was necessary in the preparation of this plan to make certain
assumptions regarding income, costs, and timing of the
economic development district. These assumptions are listed
below:
1. INCOME
a. Original Market and Assessed Valuation of N. 50 ft.
of Lots 8, 9, 6 10, Block 50, O.P. (provided by
office of County Assessor).
Market Value 23,678
Assessed Value 5,209
b. New Market and Assessed Valuation of N. 50 ft. of
Lots 8, 9, 6 10, Block 50, O.P. (provided by office
of County Assessor).
Market
Land 1,702
Building 56,009
This amount of tax dollars foregone by each taxing jurisdiction
is listed in the table below:
TABLE I:
Percent of tax increment attributable to taxing jurisdictions.
Estimated
Annual
Tax Jurisdiction
Mills
Percent
Tax Inc.
City of Monticello
21.0
24.8
988
School District 0882
36.2
42.8
1,704
Wright County
23.9
28.3
1,127
Hospital District
3.4
4.1
163
84.5
100.0
3.982
The following table represents the additional mills that
would have to be levied by each taxing jurisdiction to
compensate for the tax dollars captured as tax increments.
The tax increments derived from the project alluded to in
the tax increment economic development district would not
be available to any of the taxing jurisdictions were it not
for the public intervention by the City of Monticello.
Although the increases in assessed value due to the economic
development plan will not be available to the other
jurisdictions for the application of their mill levy for the
duration of the tax increment financing district, this new
assessed value will eventually be applied to all jurisdictions
assessed valuation and could conceivably permit a mill levy
decrease. If it is assumed that the captured assessed value
would be available for each taxing jurisdiction, the amount
of tax dollars, represented as tax increments, which would
not be received by the other jurisdictions can be computed.
This computation is facilitated by estimating how much the
mill levy for property outside of the tax increment financing
district would have to be increased to raise the same amount
of tax dollars in each jurisdiction had the project occurred
without the assistance of the City of Monticello.
TABLE II:
Impact on taxing jurisdictions if development occurred without
public assistance.
Payable 83 Required Annual
Tax Jurisdiction Assessed Value Mills Tax Increment
City of
Monticello 58,492,537 .0169 988
School District
0882 79,049,159 .0216 1,704
Wright County 340,696,792 .0331 1,127
Hospital District 92,564,703 .00176 163
3,982
Based on EHV of 132.100
Assessed
First $50,000 at .34 17,000
Balance at 438 - 82,100 X .43 35,303
Total Assessed Value 52,303
Loss OAV - 5,209
Total CAV 47,094
Mill Rate x .084556
y
Not Increment 3,982
2. EXPENDITURES
All expenditures have been pre -determined except:
a) Consulting fee - estimate by Holmes S Graven.
b) Interest on loan - computed by City of Monticello
Finance Director.
I
,_ DEBT RETIREMENT
Term:
12 years
Amount:
$32,000
Interest Rate:
108
Issue Date:
October 1, 1983
Annual Payment Rate:
September 30
PRINCIPAL
INTEREST
TOTAL
1.
3,200
3,200
2.
2,880
2,880
3. 2,667
3,200
5,867
4. 2,667
2,880
5,547
5. 2,667
2,560
5,227
6. 2,667
2,240
4,907
7. 2,667
1,920
4,587
B. 2,667
1,600
4,267
9. 2,667
1,280
3,947
10. 2,667
960
3,627
11. 2,667
640
3,307
12. 2,667
320
2,987
13. 2,667
-0-
2,667
14. 2,667
-0-
2,667
32,004
23,680
55,684
li TAX INCREMENT FINANCIW.; CH,ECF.LI'-T
Preliminary 19tabe
m
4
O
Site Plan
Buildinq Plan
Wgal Description
Land Cost (Current Market Askinq Price)
Statement of Developer's Financial Committment
Comprehensivu Plan
Orlqinal Assessed Value (OAV)
New Assessed Value (NAV)
Captured Assessed Value (CAV)
Preliminary Dovolooment Agrcement
Certification Phase
Final Site Plan
Final Buildinq Plan
Purchase Agreement/Option on lanai
NRA Resolution Approvinq P[uvosal
Notice of Public ilearznq on Sale of Public Lands
Minutes of Public Ilearina un Sale of Public Ieanda
MRA Resolution Adopting T.I.F. Plan
Iletters to School Dintriet and Cuunty
Sian-uftu by School biutrict ► County (it available)
Notice of Public Ilearing on T.I.F Plan
Ninutcu nl lUhlic Ilcaranq un T.I.F. Plan
Qmncil Revolution Adloptinq T.I.F. Plan
County Auditor's Certification of GAY
Aosesnor'n letter F.ettinq P,ptimated NAV
T.I.F. Plan (Final)
Itxeeutod Developer n na m'nt
l
TAX INCRFMENT FINANCING GE14ERAL GUIDE
Developer must Provide:
1) Proposed Development in as much detail as possible. Formal
plans and specifications are desirable.
2) Legal Description of Property.
3) Cost of Land Preposed fox Development.
4) Proposed Development Time Table.
5) Statement of Financial Comittment and Arrangements to Date.
L) Financial Justifications for T.I.F.
7) Proposed Number of Nev Jobs Created by Project (This relates
only to redevelopment and ecainmic develo)mcnt proporals).
8) Corporate Comprehenuive Plan Of available).
City/IMA Will Providez
1) Current Valuations: uu Ve.gwrty.
2) Eutrmated Valuationu on Pru)wt:cd nevelo),ment.
j J) T.I.F. Formula.
4) Development AyreLment.
If Project Proceeds Suceensfully,
5) T.I.P. Plan and Finance Statement.
R
ZENERAL TIME TABLE
OPTION A
Not more than 30 days
First Wedneaday of Month
Firat Wednesday of '.unth
14 days
At least 14 da,L aftui fir -.t :IudneLday of Month
Same flight
Fourth Monday of Month
Sams Night
Next Day
31 days after recuipt ct Man Ly County and School
or whenever they sign -off, whichever tomos first.
As soon as is feasible after T.I.F. is certified.
Developer makes presentation to Cit;/IIRA Staff.
City Staff accumulatez valuation data and prepares Tax Increment
Finance formula and propoaal. Feturns results to developer.
If acceptable to developer, the developer will make presentation
to HRA.
HRA adopts resolution appro:•inr, Iro;.oual, authorizing the
acquisition of the lard, setting a iublic hearing for tho
disposition of public lands, and ru;austing the City Council
to act a public hearin-, or. the .I.F. plan.
Staff nagotiaten acquisiticn and -_o of land and prepares
transfer doeumento an: developer'. ulreemcnti Freparos
T.I.F. Plan.
HRA Public Hearing on d1s;.o„1Li; _` pullic lama.
HRA adopts raaolution adcft.nj T.I.i. Ilan and suhmito to
City Council for the public I.earinl. Cortes aloo submitted to
Wright County Board of Corr:% ,sitz 1. and Independent School
Diatrict 0882. County and ivo 30 days within which
to respond.
City Council holds public :.uarinj ;n T.I.F. Plan.
City Council adopts rocolut1111 adri a „g the T.I.F. Plan.
Staff begino financing vrrangca..:,t-.
T.I.F. certified to Cu•.int; Auditut.
Execution of Dovelopucrit Agreement and Acquisition of land by
IIRA and sale to dovelcprr.
Not more than 30 days
First Wednesday of Xonth
First Wednesday of Month
Second Tucaday of :4onth
First Wednorday of Xontl.
Second Monday of Month
First Wedneoday of :lona.
14 days after publication .f ':itico of Hoaring
Day after HRA adoption of T.:.i. Flan
Developer makes presentation to City/HRA Staff.
City Staff accumulates valuation data and prepares Tax increment
Finence formula and proposal. Returns result= to developer.
If acceptable to developer, the developer will make presentation
to HRA.
HRA adopts resolution sanding proposal, with continents, to the
Planning Commission for review.
Planning Ccc=iasion reviews proposals, adopts resolution
approving and returns to HRA.
HRA receives Planning Commission resolution, adol.ts resolution
approving proposal and submits to City Council for znvicw.
Council reviews and adopts resolution approv u:q proposal,
setting a public hearing on T.I.F. ,lar..
Staff proparoa T.I.F. Plan and Dovslolmont lyrecment.
HRA roviewa T.I.F. Plan and rots {'.ublic Learing for dis-
position of public lands.
HRA holdo hoaringi adopto resolution adopting T.I.F. Plan,
submits to Council requesting public h -ring or. plan.
Staff oubmita copioa to County and Sc6nol.
Fourth Monday of -Ionth Council holdo hoaringi adoptr rosvlutior adoiting T.I.F. Plan.
Next Day Staff begino financing preparation.
31 dayo after submittal to Cou:.ty and School District T.I.F. Plar certified to Auditor.
Ae coon as possible after Cortificaticn Execute Development 7yreement and land tranofer.
GENEFAL TIME TABLE
OPTIC:! B
Not more than 30 days
First Wednesday of Xonth
First Wednesday of Month
Second Tucaday of :4onth
First Wednorday of Xontl.
Second Monday of Month
First Wedneoday of :lona.
14 days after publication .f ':itico of Hoaring
Day after HRA adoption of T.:.i. Flan
Developer makes presentation to City/HRA Staff.
City Staff accumulates valuation data and prepares Tax increment
Finence formula and proposal. Returns result= to developer.
If acceptable to developer, the developer will make presentation
to HRA.
HRA adopts resolution sanding proposal, with continents, to the
Planning Commission for review.
Planning Ccc=iasion reviews proposals, adopts resolution
approving and returns to HRA.
HRA receives Planning Commission resolution, adol.ts resolution
approving proposal and submits to City Council for znvicw.
Council reviews and adopts resolution approv u:q proposal,
setting a public hearing on T.I.F. ,lar..
Staff proparoa T.I.F. Plan and Dovslolmont lyrecment.
HRA roviewa T.I.F. Plan and rots {'.ublic Learing for dis-
position of public lands.
HRA holdo hoaringi adopto resolution adopting T.I.F. Plan,
submits to Council requesting public h -ring or. plan.
Staff oubmita copioa to County and Sc6nol.
Fourth Monday of -Ionth Council holdo hoaringi adoptr rosvlutior adoiting T.I.F. Plan.
Next Day Staff begino financing preparation.
31 dayo after submittal to Cou:.ty and School District T.I.F. Plar certified to Auditor.
Ae coon as possible after Cortificaticn Execute Development 7yreement and land tranofer.