Loading...
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.