4. Tax Increment District No. 10
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227,1100
Fax: 952,227,1110
BUilding Inspections
Phone: 952,227,1180
Fax: 952,227.1190
Engineering
Phone: 952,227,1160
Fax: 952,227,1170
Finance
Phone: 952,227.1140
Fax: 952,227.1110
Park & Recreation
Phone: 952,227,1120
Fax: 952,227,1110
Recreation Center
2310 Coulter Boulevard
Phone: 952,227,1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952,227,1130
Fax: 952,227,1110
Public Works
1591 Park Road
Phone: 952,227,1300
Fax: 952.227,1310
Senior Center
Phone: 952.227,1125
Fax: 952,227,1110
Web Site
www.ci.chanhassen.mn.us
'+
TO:
Todd Gerhardt, City Manager
Laurie Hokkanen, Assistant City Manager ~
o~.
FROM:
DATE:
April 2, 2010
SUBJ:
Resolutions Approving the Elimination of Parcels from TIP #4,
Adopting a Modification to the Redevelopment Plan for the
Downtown Chanhassen Redevelopment Project Area, and
Establishing TIP District #10.
PROPOSED MOTION
The City Council adopts the attached Resolutions (2).
BACKGROUND
As a part of the development of Chanhassen Station, the City signed a
redevelopment agreement with Bloomberg Companies. At that time we agreed to
create a Tax Increment Financing District (TIP). The purpose of the District is to
allow Bloomberg Companies to offset their Assessments for the road and utility
improvements occurring to facilitate Chanhassen Station and further development
of the property surrounding the Chanhassen Dinner Theatre.
In order to qualify as a redevelopment district, the City engaged LHB Architects
to determine qualifications. LHB did declare the parcels within the TIP to be
blighted. A copy of the full report is available upon request.
The first Resolution approves the elimination of parcels from TIP #4. When the
area was re-platted, a small portion of three of the new parcels are in TIP #4. It is
our desire to remove those parcels from TIP #4 and include them with TIP #10.
Staff estimates that this change will result in a loss of revenue to TIP #4 of
approximately 10%, however TIP #4 will still have sufficient revenue to pay its
debt.
The second Resolution approves a modification to the Redevelopment Plan for
the Downtown Chanhassen Redevelopment Project Area, and Establishes TIP
District #10.
Attachment #1: Tax Increment Financing District Overview, provides a summary
of the terms of the Tax Increment Financing District.
G:\Admin\LH\TIF\TIF #10 Chan Station\Staff Report, adopt T1F 10.doc
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
If the TIF District is implemented, the next step would be to enter into a Contract for Private
Redevelopment with Bloomberg Companies.
RECCOMENDA TION
Staff reccomends the City Council adopt the attached Resolutions.
ATTACHMENTS
1. Tax Increment Financing District Overview, prepared by Ehlers
2. Modification to the Redevelopment Plan for the Downtown Redevelopment Project Area
and the Modificacation to the Tax Increment Financing Plan for the Tax Increment
District No.4 and the Tax Increment Financing Plan for the establishment of Tax
Increment District No. 10, prepared by Ehlers
3. Resolution Adopting a Modification to the Redevelopment Plan for the Downtown
Chanhassen Redevelopment Project Area; and Establishing Tax Increment Financing
District No. 10 Therein Establishing a Tax Increment Financing Plan Therefor.
4. Resolution Approving the Elimination of Parcels from Tax Increment Financing District
No.4, Located Within the Downtown Chanhassen Redevelopment Project Area, in the
City of Chanhassen.
G:\Admin\LH\TIF\TIF #10 Chan Station\Staff Report, adopt TIF 10.doc
Tax Increment Financing District Overview
City of Chanhassen
Tax Increment Financing District No.1 0
The following summary contains an overview of the basic elements of the Tax Increment Financing Plan
for Tax Increment Financing District No. 10. More detailed information on each of these topics can be
found in the complete Tax Increment Financing Plan.
Proposed action:
Type of TIF District:
Parcel Numbers:
Proposed
Development:
Maximum duration:
~ Modification to the Redevelopment Plan for the Downtown Chanhassen
Redevelopment Project Area includes the establishment of Tax Increment
Financing District No. 10, which represents a continuation of the goals and
objectives set forth in the Redevelopment Plan for the Downtown
Chanhassen Redevelopment Project Area.
~ Modification of Tax Increment Financing District NO.4 and the adoption
of a Modification to the Tax Increment Financing, reflecting the removal
of parcels.
~ Establishment of Tax Increment Financing District No. 10 (District) and
the adoption of a Tax Increment Financing Plan (TIF Plan).
A redevelopment district
25-1680010
25-1680020
25-1680030
25-1680040*
* These parcels are being removed from Tax Increment Financing District
No.4 to be included in the District.
The District is being created to facilitate the new development of 50 units of
housing and 10,000 square feet of retail in Downtown Chanhassen and the
construction of public improvements adjacent to the park and ride facility for
South West Transit and the Chanhassen Dinner Theater site. Please see
Appendix A of the TIF Plan for a more detailed project description.
The duration of the District will be 25 years from the date of receipt of the
first increment (26 years of increment). The EDA or City elects to receive the
first tax increment in 2011, which is no later than four years following the
year of approval of the District. Thus, it is estimated that the District,
including any modifications of the TIF Plan for subsequent phases or other
changes, would terminate after 2036, or when the TIF Plan is satisfied. If the
first increment is received in 2012, or a subsequent year, the termination of
the District will occur 26 years after the first receipt. The EDA or City
reserves the right to decertify the District prior to the legally required date.
25-1680050
25-1680060*
25-2830031 *
EHLERS
LEADERS IN PUBLIC FINANCE
Estimated annual tax
increment:
Authorized uses:
Form of financing:
Administrative fee:
Interfund Loan
Requirement:
4 Year Activity Rule
(9469.176 Subd. 6)
5 Year Rule
(9469.1763 Subd. 3)
Up to $243,015
The TIF Plan contains a budget that authorizes the maximum amount that
may be expended:
Land/Building Acquisition..................................... .............. ..$800,000
Site Improvements/Preparation................................................ $60,000
Public Utilities...................................................................... .$500,000
Public Parking Facilities ......................... ...............................$1 00,000
Streets and Sidewalks.... ................ ............ ......................... ...$500,000
Administrative Costs (up to 10%)..........................................$440.000
PROJECT COSTS TOTAL .............................................$2.400.000
See Subsection 3-10, on page 3-6 of the TIF Plan for the full budget
authorization. Additional uses of funds are authorized which include bonded
indebtedness.
The project is proposed to be financed by a pay-as-you-go note and interfund
loan.
Up to 10% of annual increment, if costs are justified.
If the City wants to pay for administrative expenditures from a tax increment
fund, it is recommended that a resolution authorizing a loan from another
fund be passed PRIOR to the issuance of the check.
After four years from the date of certification of the District one of the
following activities must have been commenced on each parcel in the District:
. Demolition
· Rehabilitation
. Renovation
· Other site preparation (not including utility services such as sewer and
water)
If the activity has not been started by approximately April of 2014, no
additional tax increment may be taken from that parcel until the
commencement of a qualifying activity.
Within 5 years of certification revenues derived from tax increments must be
expended or obligated to be expended.
Any obligations in the District made after approximately April of 2015, will
not be eligible for repayment from tax increments.
The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required
pursuant to MS., Section 469.175, Subd. 3, are included in Exhibit A of the City resolution.
Page 2
EHLERS
LEADERS IN PUBLIC FINANCE
Tax Increment Financing District Nos. 4 and 10
Downtown Chanhassen Redevelopment Project Area
City of Chanhassen, Minnesota
.........
il"."r Downtown Chanhassen Redevelopment Project Area
Page 3
EHLERS
LEADERS IN PUBLIC FINANCE
Page 4
EHLERS
LEADERS IN PUBLIC FINANCE
4~
..... 0
=~
= ~ .
~~Z
r;J'J J-.l .....
~ tJ tJ
,.d =."""
=~.b
~ '-# r;J'J
,.d ~."""
U~O
\ol-( "t:i b/)
o ~ =
r;J'J ."""
~OtJ
.""" ~ =
U 0 ~
;..c ."""
~~
Q
'""'
Q
<'l
C"l'
'""'
~
....
<::
~
As of March 31,2010
Draft for City Council Review/Public Hearing
Modification to the Redevelopment Plan
for the Downtown Chanhassen Redevelopment Project Area
and the
Modification to the Tax Increment Financing Plan
for Tax Increment Financing District No.4
(a redevelopment district)
and the
Tax Increment Financing Plan
for the establishment of
Tax Increment Financing District No.1 0
(a redevelopment district)
both located within the
Downtown Chanhassen Redevelopment Project Area
Chanhassen Economic Development Authority
City of Chanhassen
Carver County
State of Minnesota
Public Hearing: April 12, 2010
Adopted:
EHLERS
-
Prepared by: EHLERS & ASSOCIATES, INC.
3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105
651-697-8500 fax: 651-697-8555 www.ehlers-inc.com
Table of Contents
(for reference purposes only)
Section 1 - Modification to the Redevelopment Plan
for the Downtown Chanhassen Redevelopment Project Area . . . . . . . . . . . . . . . . .. 1-1
Foreword ............................................................. 1-1
Section 2 - Modification to the Tax Increment Financing Plan
for Tax Increment Financing District No.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-1
Section 3 - Tax Increment Financing Plan
for Tax Increment Financing District No. 10 ................................ 3-1
Foreword. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-1
Statutory Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-1
Statement of Objectives ................................... 3-1
Redevelopment Plan Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-1
Description of Property in the District and Property To Be Acquired . 3-2
Classification of the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-2
Duration and First Year of Tax Increment of the District. . . . . . . . . .. 3-4
Original Tax Capacity, Tax Rate and Estimated Captured Net
Tax Capacity Value/Increment and Notification of Prior
Planned Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-4
Sources of Revenue/Bonds to be Issued ...................... 3-5
Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-6
Fiscal Disparities Election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-7
Business Subsidies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-7
County Road Costs ....................................... 3-8
Estimated Impact on Other Taxing Jurisdictions. . . . . . . . . . . . . . . .. 3-9
Supporting Documentation ................................ 3-10
Definition of Tax Increment Revenues ....................... 3-11
Modifications to the District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-11
Administrative Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-12
Limitation of Increment ................................... 3-13
Use of Tax Increment .................................... 3-13
Excess Increments ...................................... 3-14
Requirements for Agreements with the Developer. . . . . . . . . . . . .. 3-14
Assessment Agreements ................................. 3-15
Administration of the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-15
Annual Disclosure Requirements ........................... 3-15
Reasonable Expectations .... . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-15
Other Limitations on the Use of Tax Increment. . . . . . . . . . . . . . . .. 3-15
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-16
Subsection 3-1.
Subsection 3-2.
Subsection 3-3.
Subsection 3-4.
Subsection 3-5.
Subsection 3-6.
Subsection 3-7.
Subsection 3-8.
Subsection 3-9.
Subsection 3-10.
Subsection 3-11.
Subsection 3-12.
Subsection 3-13.
Subsection 3-14.
Subsection 3-15.
Subsection 3-16.
Su bsection 3-17.
Subsection 3-18.
Subsection 3-19.
Subsection 3-20.
Subsection 3-21.
Subsection 3-22.
Subsection 3-23.
Subsection 3-24.
Subsection 3-25.
Subsection 3-26.
Subsection 3-27.
Subsection 3-28.
Appendix A
Project Description ...................................................... A-1
Appendix B
Maps of the Downtown Chanhassen Redevelopment Project Area and the District .... B-1
Appendix C
Description of Property to be Included in the District ............................ C-1
Appendix 0
Estimated Cash Flow for the District ........................................ 0-1
Appendix E
Minnesota Business Assistance Form ....................................... E-1
Appendix F
Redevelopment Qualifications for the District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. F-1
Appendix G
Findings Including But/For Qualifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. G-1
Appendix H
Prior Planned Improvements .............................................. H-1
Section 1 - Modification to the Redevelopment Plan
for the Downtown Chanhassen Redevelopment Project Area
Foreword
The following text represents a Modification to the Redevelopment Plan for the Downtown Chanhassen
Redevelopment Project Area. This modification represents a continuation of the goals and objectives set forth
in the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area. Generally, the
substantive changes include the establishment of Tax Increment Financing District No. 10.
F or further information, a review of the Redevelopment Plan for the Downtown Chanhassen Redevelopment
Project Area is recommended. It is available from the City Manager at the City of Chanhassen. Other
relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing
Districts located within the Downtown Chanhassen Redevelopment Project Area.
Chanhassen Economic Development Authority
Modification to the Tax Increment Financing Plan for Tax Increment Financing District No.4
1-1
Section 2 - Modification to the Tax Increment Financing Plan
for Tax Increment Financing District No.4
Parcels to be Included in Tax Increment Financing District No.4
(As Modified on April 12, 2010)
The following property and all adjacent rights-of-way identified by the parcel numbers listed below are
certified in Tax Increment Financing District No.4. These parcels are being removed from Tax Increment
Financing District No.4 and will be included in Tax Increment Financing District No. 10.
Old Parcel Numbers:
25-0130700
25-2830030
(The parcel numbers have been retired due to a new plat and split.)
New Parcel Numbers:
25-1680040
25-1680060
25-2830031
Chanhassen Economic Development Authority
Modification to the Tax Increment Financing Plan for Tax Increment Financing District No.4
2-1
Section 3 - Tax Increment Financing Plan
for Tax Increment Financing District No. 10
Subsection 3-1. Foreword
The Chanhassen Economic Development Authority (the "EDA"), the City ofChanhassen (the "City"), staff
and consultants have prepared the following information to expedite the establishment of Tax Increment
Financing District No. 10 (the "District"), a redevelopment tax increment financing district, located in the
Downtown Chanhassen Redevelopment Project Area.
Subsection 3-2. Statutory Authority
Within the City, there exist areas where public involvement is necessary to cause development or
redevelopment to occur. To this end, the EDA and City have certain statutory powers pursuant to Minnesota
Statutes ("MS.'J, Sections 469.090 to 469.1082, inclusive, as amended, and MS., Sections 469.174 to
469.1799, inclusive, as amended (the "Tax Increment Financing Act" or IlTIF Act"), to assist in financing
public costs related to this project.
This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant
information is contained in the Modification to the Redevelopment Plan for the Downtown Chanhassen
Redevelopment Project Area.
Subsection 3-3. Statement of Objectives
The District currently consists of seven parcels ofland and adjacent and internal rights-of-way. The District
is being created to facilitate a new development of approximately 50 units of housing and 10,000 square feet
of retail in Downtown Chanhassen and the construction of public improvements adjacent to the park and ride
facility for SouthWest Transit and the Chanhassen Dinner Theater site. Parcels are being removed from Tax
Increment Financing District No.4 in order to create a portion ofTIF District No.1 O. Please see Appendix
A for further District information. The EDA intends to enter into respective agreements with Bloomberg
Companies and SouthWest Transit. This TIF Plan is expected to achieve many of the objectives outlined in
the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area.
The activities contemplated in the Modification to the Redevelopment Plan and the TIF Plan do not preclude
the undertaking of other qualified development or redevelopment activities. These activities are anticipated
to occur over the life ofthe Downtown Chanhassen Redevelopment Project Area and the District.
Subsection 3-4. Redevelopment Plan Overview
1. Property to be Acquired - Selected property located within the District may be acquired by
the EDA or City and is further described in this TIF Plan.
2. Relocation - Relocation services, to the extent required by law, are available pursuant to
MS., Chapter 117 and other relevant state and federal laws.
3. Upon approval ofa developer's plan relating to the project and completion of the necessary
legal requirements, the EDA or City may sell to a developer selected properties that it may
acquire within the District or may lease land or facilities to a developer.
4. The EDA or City may perform or provide for some or all necessary acquisition, construction,
relocation, demolition, and required utilities and public street work within the District.
Chanhassen Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 10
3-1
Subsection 3-5. Description of Property in the District and Property To Be Acquired
The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the
parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information
on the location of the District.
The EDA or City may acquire any parcel within the District including interior and adjacent street rights of
way. Any properties identified for acquisition will be acquired by the EDA or City only in order to
accomplish one or more of the following: storm sewer improvements; provide land for needed public streets,
utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to
accomplish the uses and objectives set forth in this plan. The EDA or City may acquire property by gift,
dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives ofthis TIF
Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition
and related costs.
Subsection 3-6. Classification of the District
The EDA and City, in determining the need to create a tax increment financing district in accordance with
MS., Sections 469.174 to 469.1799, as amended, inclusive, find that the District, to be established, is a
redevelopment district pursuant to MS., Section 469.174, Subd 10(a)(1) as defined below:
(a) "Redevelopment district" means a type of tax increment financing district consisting of a project,
or portions of a project, within which the authority finds by resolution that one or more of the
following conditions, reasonably distributed throughout the district, exists:
(1) parcels consisting of70 percent of the area in the district are occupied by buildings, streets,
utilities, paved or gravel parking lots or other similar structures and more than 50 percent
of the buildings, not including outbuildings, are structurally substandard to a degree
requiring substantial renovation or clearance;
(2) The property consists of vacant, unused, underused, inappropriately used, or infrequently
used rail yards, rail storage facilities or excessive or vacated railroad rights-ol-way;
(3) tank facilities, or property whose immediately previous use was for tank facilities, as defined
in Section 115C, Subd 15, if the tankfacility:
(i) have or had a capacity of more than one million gallons;
(ii) are located acijacent to rail facilities; or
(iii) have been removed, or are unused, underused, inappropriately used or infrequently
used; or
(4) a qualifYing disaster area, as defined in Subd 10b.
(b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in
structural elements or a combination of deficiencies in essential utilities and facilities, light and
ventilation, fire protection including adequate egress, layout and condition of interior partitions,
or similar factors, which defects or deficiencies are of sufficient total significance to justifY
substantial renovation or clearance.
Chanhassen Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 10
3-2
(c) A building is not structurally substandard ifit is in compliance with the building code applicable
to new buildings or could be modified to satisfy the building code at a cost of less than 15
percent of the cost of constructing a new structure of the same square footage and type on the
site. The municipality may find that a building is not disqualified as structurally substandard
under the preceding sentence on the basis of reasonably available evidence, such as the size,
type, and age of the building, the average cost of plumbing, electrical, or structural repairs or
other similar reliable evidence. The municipality may not make such a determination without
an interior inspection of the property, but need not have an independent, expert appraisal
prepared of the cost of repair and rehabilitation of the building. An interior inspection of the
property is not required, if the municipality finds that (1) the municipality or authority is unable
to gain access to the property after using its best efforts to obtain permission from the party that
owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion
that the building is structurally substandard.
(d) A parcel is deemed to be occupied by a structurally substandard building for purposes of the
finding under paragraph (a) or by the improvement described in paragraph (e) if all of the
following conditions are met:
(1) the parcel was occupied by a substandard building or met the requirements of paragraph
(e), as the case may be, within three years of the filing of the request for certification of the
parcel as part of the district with the county auditor;
(2) the substandard building or the improvements described in paragraph (e) were demolished
or removed by the authority or the demolition or removal was financed by the authority or
was done by a developer under a development agreement with the authority;
(3) the authority found by resolution before the demolition or removal that the parcel was
occupied by a structurally substandard building or met the requirement of paragraph (e) and
that after demolition and clearance the authority intended to include the parcel within a
district; and
(4) upon filing the request for certification of the tax capacity of the parcel as part of a district,
the authority notifies the county auditor that the original tax capacity of the parcel must be
adjusted as provided by ~ 469.177, subdivision 1, paragraph (f).
(e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved
or gravel parking lots or other similar structures unless 15 percent of the area of the parcel
contains buildings, streets, utilities, paved or gravel parking lots or other similar structures.
(f) For districts consisting of two or more noncontiguous areas, each area must qualify as a
redevelopment district under paragraph (a) to be included in the district, and the entire area of
the district must satisfy paragraph (a).
In meeting the statutory criteria the EDA and City rely on the following facts and findings:
The District is a redevelopment district consisting of seven parcels.
An inventory shows that parcels consisting of more than 70 percent of the area in the District are
occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures.
An inspection of the buildings located within the District finds that more than 50 percent of the buildings
are structurally substandard as defined in the TIF Act. (See Appendix F).
Chanhassen Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 10
3-3
Pursuant to MS., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that
qualified under the provisions of MS., Sections 273.111 or 273.112 or Chapter 473H for taxes payable in
any of the five calendar years before the filing of the request for certification of the District.
Subsection 3-7. Duration and First Year of Tax Increment of the District
Pursuantto MS., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first year of tax
increment of the District must be indicated within the TIP Plan. Pursuantto MS., Section 469.176, Subd. 1 b.,
the duration ofthe District will be 25 years after receipt of the first increment by the EDA or City (a total of
26 years of tax increment). The EDA or City elects to receive the first tax increment in 2011, which is no
later than four years following the year of approval of the District. Thus, it is estimated that the District,
including any modifications of the TIP Plan for subsequent phases or other changes, would terminate after
2036, or when the TIP Plan is satisfied. If the first increment is received in 2012, or a subsequent year, the
termination of the District will occur 26 years after the first receipt. The EDA or City reserves the right to
decertify the District prior to the legally required date.
Subsection 3-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity
Value/Increment and Notification of Prior Planned Improvements
PursuanttoMS., Section 469.174, Subd. 7 andMS., Section 469.177, Subd.1, the Original Net Tax Capacity
(ONTC) as certified for the District will be based on the market values placed on the property by the assessor
in 2009 for taxes payable 2010.
Pursuant to MS., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning
in the payment year 2011) the amount by which the original value has increased or decreased as a result of:
I. Change in tax exempt status of property;
2. Reduction or enlargement of the geographic boundaries of the district;
3. Change due to adjustments, negotiated or court-ordered abatements;
4. Change in the use ofthe property and classification;
5. Change in state law governing class rates; or
6. Change in previously issued building permits.
In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no
value will be captured and no tax increment will be payable to the EDA or City.
The original local tax rate for the District will be the local tax rate for taxes payable 2010, assuming the
request for certification is made before June 30, 2010. The ONTC and the Original Local Tax Rate for the
District appear in the table on the following page.
Pursuant to MS., Section 469.174 Subd. 4 and MS., Section 469.177, Subd. 1, 2, and 4, the estimated
Captured Net Tax Capacity (CTC) of the District, within the Downtown Chanhassen Redevelopment Project
Area, upon completion ofthe projects within the District, will annually approximate tax increment revenues
as shown in the table on the following page. The EDA and City request 100 percent of the available increase
in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable
2011. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District
are completed.
Chanhassen Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 10
3-4
Project Estimated Tax Capacity upon Completion (PTC)
Original Estimated Net Tax Capacity (ONTC)
$331,097
$80,848
$23,818
$226,431
Fiscal Disparities Reduction
Estimated Captured Tax Capacity (CTC)
Original Local Tax Rate
1.07324
Estimated
Pay 2010
Estimated Annual Tax Increment (CTC x Local Tax Rate)
$243,015
Percent Retained by the EDA 100%
*Tax cap.acity includes a 2% inflation factor for the duration of the District. The tax cagacity included in this
chart is The estimated tax capacity of the District in year 25. The tax capacity of the Uistnct in year one is
estimated to be $111,063.
Pursuant to MS., Section 469.177, Subd 4, the EDA shall, after a due and diligent search, accompany its
request for certification to the County Auditor or its notice of the District enlargement pursuant to MS.,
Section 469.175, Subd 4, with a listing of all properties within the District or area of enlargement for which
building permits have been issued during the eighteen (18) months immediately preceding approval of the
TIF Plan by the municipality pursuant to MS., Section 469.175, Subd 3. The County Auditor shall increase
the original net tax capacity of the District by the net tax capacity of improvements for which a building
permit was issued.
The City has reviewed the area to be included in the District and has found building permits that were
issued in the past 18 months prior to the public hearing. Please see Appendix H for the building
permits that were issued.
Subsection 3-9. Sources of Revenue/Bonds to be Issued
The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax
increments. The EDA or City reserves the right to incur bonds or other indebtedness as a result of the TIF
Plan. As presently proposed, the projects within the District will be financed by a pay-as-you-go
note/interfund loan. Additional indebtedness may be required to finance other authorized activities. The total
principal amount of notes to be issued, or other indebtedness related to the use of tax increment financing,
will not exceed $2,400,000 without a modification to the TIF Plan pursuant to applicable statutory
requirements. It is estimated that $1 ,400,000 in interfund loans will be financed with tax increment revenues.
It is estimated that $1,000,000 in pay-as-you go notes will be financed with tax increment revenues. Any
refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification.
This provision does not obligate the EDA or City to incur debt. The EDA or City will issue bonds or incur
other debt only upon the determination that such action is in the best interest of the City. The EDA or City
may also finance the activities to be undertaken pursuant to the TIF Plan through loans from funds of the
EDA or City or to reimburse the developer on a "pay-as-you-go" basis for eligible costs paid for by a
developer.
Chanhassen Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District NO.1 0
3-5
The total estimated tax increment revenues for the District are expected to be approximately $4,400,000, as
shown in the table below:
SOURCES OF FUNDS
TOTAL
$4,400,000
Tax Increment
The EDA or City may issue bonds (as defined in the TIP Act) secured in whole or in part with tax increments
from the District in a maximum principal amount of $2,400,000. Such bonds may be in the form of pay- as-
you go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total
bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of this
modification.
Subsection 3-10. Uses of Funds
Currently under consideration for the District is a proposal to facilitate the new development of approximately
50 units of housing and 10,000 square feet of retail in Downtown Chanhassen and the construction of public
improvements adjacent to the park and ride facility for SouthWest Transit and the Chanhassen Dinner Theater
site. The EDA and City have determined that it will be necessary to provide assistance to the projects for
certain District costs, as described. The EDA has studied the feasibility of the development or redevelopment
of property in and around the District. To facilitate the establishment and development or redevelopment of
the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible
expenses. The estimate of public costs and uses of funds associated with the District is outlined in the
following table.
USES OF TAX INCREMENT FUNDS TOTAL
Land/Building Acquisition $800,000
Site Improvements/Preparation $60,000
Public Utilities $500,000
Public Parking Facilities $100,000
Streets and Sidewalks $500,000
Administrative Costs (up to 10%) $440.000
PROJECT COST TOTAL $2,400,000
Interest $2,000,000
PROJECT AND INTEREST COSTS TOTAL $4,400,000
For purposes of OSA reporting forms, uses of funds include interfund loans, bond principal, TIF Note
principal, and transfers, all in the principal amount of $2,400,000. These amounts are not cumulative, but
represent the various forms of "bonds " included within the concept of bonded indebtedness under the TIF Act.
The total project cost, including financing costs (interest) listed in the table above does not exceed the total
projected tax increments for the District as shown in Appendix D.
Chanhassen Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 10
3-6
Estimated costs associated with the District are subject to change among categories without a modification
to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed,
without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant
to MS., Section 469.1763, Subd. 2, no more than 25 percent of the tax increment paid by property within the
District will be spent on activities related to development or redevelopment outside of the District but within
the boundaries of the Downtown Chanhassen Redevelopment Project Area, (including administrative costs,
which are considered to be spent outside of the District) subject to the limitations as described in this TIP
Plan.
Subsection 3-11.
Fiscal Disparities Election
Pursuant to MS., Section 469.177, Subd. 3, the EDA or City may elect one of two methods to calculate fiscal
disparities. If the calculations pursuant to MS., Section 469.177, Subd. 3, clause b, (within the District) are
followed, the following method of computation shall apply:
(1) The original net tax capacity shall be determined before the application of the fiscal disparity
provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal
disparity commercial-industrial net tax capacity increase between the original year and the
current year multiplied by the fiscal disparity ratio determined pursuant to MS., Section
276A.06, subdivision 7 or MS., Section 473F.08, subdivision 6. Where the original net tax
capacity is equal to or greater than the current net tax capacity, there is no captured tax capacity
and no tax increment determination. Where the original tax capacity is less than the current tax
capacity, the difference between the original net tax capacity and the current net tax capacity
is the captured net tax capacity. This amount less any portion thereof which the authority has
designated, in its tax increment financing plan, to share with the local taxing districts is the
retained captured net tax capacity of the authority.
(2) The county auditor shall exclude the retained captured net tax capacity of the authority from the
net tax capacity of the local taxing districts in determining local taxing district tax rates. The
local tax rates so determined are to be extended against the retained captured net tax capacity
of the authority as well as the net tax capacity of the local taxing districts. The tax generated by
the extension of the less of (A) the local taxing district tax rates or (B) the original local tax rate
to the retained captured net tax capacity of the authority is the tax increment of the authority.
The EDA will choose to calculate fiscal disparities by clause b.
According to MS., Section 469.177, Subd. 3:
(c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or
(b) shall remain the same for the duration of the district, except that the governing body may
elect to change its election from the method of computation in paragraph (a) to the method in
paragraph (b).
Subsection 3-12.
Business Subsidies
Pursuant to MS., Section 116J993, Subd. 3, the following forms of financial assistance are not considered
a business subsidy:
(1) A business subsidy ofless than $150,000;
(2) Assistance that is generally available to all businesses or to a general class of similar businesses,
Chanhassen Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 10
3-7
such as a line of business, size, location, or similar general criteria;
(3) Public improvements to buildings or lands owned by the state or local government that serve a
public purpose and do not principally benefit a single business or defined group of businesses at
the time the improvements are made;
(4) Redevelopment property polluted by contaminants as defined in MS., Section 116J.552, Subd. 3;
(5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing
it up to code and assistance provided for designated historic preservation districts, provided that
the assistance is equal to or less than 50% of the total cost;
(6) Assistance to provide job readiness and training services if the sole purpose ofthe assistance is to
provide those services;
(7) Assistance for housing;
(8) Assistance for pollution control or abatement, including assistance for a tax increment financing
hazardous substance subdistrict as defined under MS, Section 469.174, Subd. 23;
(9) Assistance for energy conservation;
(10) Tax reductions resulting from conformity with federal tax law;
(11) Workers' compensation and unemployment compensation;
(12) Benefits derived from regulation;
(13) Indirect benefits derived from assistance to educational institutions;
(14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and
bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal
Revenue Code of 1986, as amended through December 31, 1999;
(15) Assistance for a collaboration between a Minnesota higher education institution and a business;
(16) Assistance for a tax increment financing soils condition district as defined under MS, Section
469.174, Subd. 19;
(17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation
is 70 percent or more ofthe assessor's current year's estimated market value;
(18) General changes in tax increment financing law and other general tax law changes of a principally
technical nature.
(19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local
government agency;
(20) Funds from dock and wharf bonds issued by a seaway port authority;
(21) Business loans and loan guarantees of$150,000 or less; and
(22) Federal loan funds provided through the United States Department of Commerce, Economic
Development Administration.
The EDA will comply with MS, Sections 116J.993 to 116J.995 to the extent the tax increment assistance
under this TIF Plan does not fall under any of the above exemptions.
Subsection 3-13. County Road Costs
Pursuant to MS., Section 469.175, Subd. 1 G, the county board may require the EDA or City to pay for all or
part of the cost of county road improvements if the proposed development to be assisted by tax increment
will, in the judgment of the county, substantially increase the use of county roads requiring construction of
road improvements or other road costs and if the road improvements are not scheduled within the next five
years under a capital improvement plan or within five years under another county plan.
If the county elects to use increments to improve county roads, it must notify the EDA or City within forty-
five days of receipt of this TIP Plan. In the opinion of the EDA and City and consultants, the proposed
development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan
Chanhassen Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 10
3-8
was not forwarded to the county 45 days prior to the public hearing. The EDA and City are aware that the
county could claim that tax increment should be used for county roads, even after the public hearing.
Subsection 3-14. Estimated Impact on Other Taxing Jurisdictions
The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF
Plan would occur without the creation of the District. However, the EDA or City has determined that such
development or redevelopment would not occur "but for" tax increment financing and that, therefore, the
fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as
follows if the "but for" test was not met:
IMPACT ON TAX BASE
Carver County
City of Chanhassen
Eastern Carver County ISD
No. 112
Estimated
2009/Pay 2010
Total Net
Tax Capacity
116,726,885
39,217,539
65,686,587
Estimated Captured
Tax Capacity (CTC)
Upon Completion
Percent of CTC
to Entity Total
226,431
226,431
226,431
0.1940%
0.5774%
0.3447%
IMPACT ON TAX RATES
Estimated Percent Potential
Pay 2010 of Total CTC Taxes
Extension Rates
Carver County 0.395970 36.89% 226,431 89,660
City of Chanhassen 0.254330 23.70% 226,431 57,588
Eastern Carver County ISD 0.365690 34.07% 226,431 82,804
No. 112
Other 0.057250 5.33% 226,431 12.963
Total 1.073240 100.00% 243,015
The estimates listed above display the captured tax capacity when all construction is completed. The tax rate
used for calculations is the estimated Pay 2010 rate. The total net capacity for the entities listed above are
based on estimated Pay 2010 figures. The District will be certified under the actual Pay 2010 rates, which
were unavailable at the time this TIF Plan was prepared.
Pursuant to MS. Section 469.175 Subd. 2(b):
(1) Estimate oftotal tax increment. It is estimated that the total amount of tax increment that will be
generated over the life of the District is $4,400,000;
(2) Probable impact of the District on city provided services and ability to issue debt. An impact ofthe
District on police protection is expected. The City currently contracts with the Carver County
Chanhassen Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 10
3-9
Sheriffs Office for police services. Retail development does usually bring a small increase in police
services for minor theft and similar calls. The retail development is expected to be no more than
10,000 square feet, so the impact should be minor. A similar existing ramp has had 21 calls for
service since 2008. The City does not expect that the proposed development, in and of itself, will
necessitate new capital investment in vehicles or require that the City expand its contract with Carver
County .
The probable impact of the District on fire protection is not expected to be significant. The new
construction of retail and apartments are expected to have modern fire suppression design. A similar
existing parking ramp has been operational for approximately two years and there have been no calls
for service.
The impact of the District on public infrastructure is expected to be minimal. The retail and housing
development is not expected to significantly impact any traffic movements in the area. The current
off-site infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional
volume generated from the proposed development. Street maintenance costs are not expected for 20-
40 years. Based on the development plans, there are no additional costs associated with sweeping,
plowing, lighting and sidewalks, as SouthWest Transit will be responsible for them. Lighting
operating costs are estimated to be at $700.00/year. Sanitary sewer (SAC) and water (WAC) fees
are yet to be determined.
The probable impact of any District general obligation tax increment bonds on the ability to issue
debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any
general obligation debt issued in relation to this project, therefore there will be no impact on the
City's ability to issue future debt or on the City's debt limit.
(3) Estimated amount of tax increment attributable to school district levies. It is estimated that the
amount of tax increments over the life of the District that would be attributable to school district
levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions
remained the same is $2,152,904;
(4) Estimated amount oftax increment attributable to county levies. It is estimated that the amount of
tax increments over the life of the District that would be attributable to county levies, assuming the
county's share of the total local tax rate for all taxing jurisdictions remained the same is $2,331,160;
(5) Additional information requested bv the county or school district. The City is not aware of any
standard questions in a county or school district written policy regarding tax increment districts and
impact on county or school district services. The county or school district must request additional
information pursuant to MS. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax
increment financing plan.
No requests for additional information from the county or school district regarding the proposed
development for the District have been received.
Subsection 3-15. Supporting Documentation
Pursuant to MS. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and
description of studies and analyses used to make the findings are required in the resolution approving the
District. Following is a list of reports and studies on file at the City that support the EDA and City's findings:
Chanhassen Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 10
3-10
· Report of Inspection Procedures and Results for Determining Qualifications of a Tax Increment
Financing District as a Redevelopment District, Chanhassen Dinner Theater TIP District, LHB, Inc.,
March 25,2010
· Downtown Transit Station Site Improvements, Feasibility Study and Report, Kimley-Horn and
Associates, Inc., March, 2009
Amendment #1 to the Downtown Transit Station Site Improvements, Feasibility Study and Report,
Kimley-Horn and Associates, Inc., October 30, 2009
· Park & Ride Analysis, SouthWest Transit, 2006
Federal CMAQ/STP Funding Application - Transit Expansion, 2005
SouthWest Metro Transit Park & Ride Study, LSA Design, Inc., June 2003
Project Memorandum for Minnesota Project No. SP 91-080-06 CMAQ 1010 (SouthWest Transit,
Chanhassen Station), Hay Dobbs, P.A., 2010
Subsection 3-16. Definition of Tax Increment Revenues
Pursuant to MS., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing
district include all ofthe following potential revenue sources:
1. Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under MS.,
Section 469.177;
2. The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was
purchased by the Authority with tax increments;
3. Principal and interest received on loans or other advances made by the Authority with tax increments;
4. Interest or other investment earnings on or from tax increments;
5. Repayments or return of tax increments made to the Authority under agreements for districts for
which the request for certification was made after August 1, 1993; and
6. The market value homestead credit paid to the Authority under MS., Section 273.1384.
Subsection 3-17. Modifications to the District
In accordance with MS., Section 469.175, Subd. 4, any:
1. Reduction or enlargement of the geographic area of the District, if the"teduction does not meet the
requirements of MS., Section 469.175, Subd. 4(e);
2. Increase in amount of bonded indebtedness to be incurred;
3. A determination to capitalize interest on debt if that determination was not a part of the original TIF
Plan;
4. Increase in the portion ofthe captured net tax capacity to be retained by the EDA or City;
5. Increase in the estimate of the cost of the District, including administrative expenses, that will be paid
or financed with tax increment from the District; or
6. Designation of additional property to be acquired by the EDA or City,
shall be approved upon the notice and after the discussion, public hearing and findings required for approval
of the original TIF Plan.
Pursuant to MS. Section 469.175 Subd. 4 (f), the geographic area of the District may be reduced, but shall not
be enlarged after five years following the date of certification of the original net tax capacity by the county
auditor. If a redevelopment district is enlarged, the reasons and supporting facts for the determination that
the addition to the district meets the criteria of MS., Section 469.174, Subd. 10, paragraph (a), clauses (1) to
(5), must be documented in writing and retained. The requirements of this paragraph do not apply if(l) the
Chanhassen Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 10
3-11
only modification is elimination ofparcel(s) from the District and (2) (A) the current net tax capacity of the
parcel(s) eliminated from the District equals or exceeds the nettax capacity of those parcel(s) in the District's
original net tax capacity or (B) the EDA agrees that, notwithstanding MS., Section 469.177, Subd. 1, the
original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s)
eliminated from the District.
The EDA or City must notify the County Auditor of any modification that reduces or enlarges the geographic
area of the District. Modifications to the District in the form of a budget modification or an expansion of the
boundaries will be recorded in the TIF Plan.
Subsection 3-18. Administrative Expenses
In accordance with MS., Section 469.174, Subd. 14, administrative expenses means all expenditures of the
EDA or City, other than:
1. Amounts paid for the purchase of land;
2. 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;
3. Relocation benefits paid to or services provided for persons residing or businesses located in the
District; or
4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued
pursuant to MS., Section 469.178; or
5. Amounts used to pay other financial obligations to the extent those obligations were used to finance
costs described in clauses (1) to (3).
For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982,
and before August 1, 2001, administrative expenses also include amounts paid for services provided by bond
counsel, fiscal consultants, and planning or economic development consultants. Pursuant to MS., Section
469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative
expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures
authorized by the TIF Plan or the total tax increments, as defined by MS., Section 469.174, Subd. 25, clause
(1), from the District, whichever is less.
F or districts for which certification was requested after July 31, 2001, no tax increment may be used to pay
any administrative expenses for District costs which exceed ten percent of total estimated tax increment
expenditures authorized by the TIF Plan orthe total tax increments, as defined in MS., Section 469.174, Subd.
25, clause (1), from the District, whichever is less.
Pursuant to MS., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual
administrative expenses incurred in connection with the District and are not subject to the percentage limits
of MS., Section 469.176, Subd. 3. The county may require payment of those expenses by February 15 of the
year following the year the expenses were incurred.
Pursuant to MS., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36
percent) of any increment distributed to the EDA or City and the County Treasurer shall pay the amount
deducted to the State Treasurer for deposit in the state general fund to be appropriated to the State Auditor
for the cost of financial reporting of tax increment financing information and the cost of examining and
auditing authorities' use of tax increment financing. This amount may be adjusted annually by the
Commissioner of Revenue.
Chanhassen Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No.1 0
3-12
Subsection 3-19.
Limitation of Increment
The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District
may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow
account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or
redemption date.
Pursuant to MS., Section 469.176, Subd. 6:
if, after four years from the date of certification of the original net tax capacity of the tax
increment financing district pursuant to MS., Section 469.177, no demolition, rehabilitation
or renovation of property or other site preparation, including qualified improvement of a
street adjacent to a parcel but not installation 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 net tax
capacity of that parcel shall be excluded from the original net tax capacity of the tax
increment financing district. If the authority or the owner of the parcel subsequently
commences demolition, rehabilitation or renovation or other site preparation on that parcel
including qualified 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 net tax capacity thereof as most
recently certified by the commissioner of revenue and add it to the original net tax capacity
of the tax increment financing district. The county auditor must enforce the provisions of this
subdivision. The authority must submit to the county auditor evidence that the required
activity has taken place for each parcel in the district. The evidence for a parcel must be
submitted by February 1 ofthefifth year following the year in which the parcel was certified
as included in the district. For purposes of this subdivision, qualified improvements of a
street are limited to (1) construction or opening of a new street, (2) relocation of a street,
and (3) substantial reconstruction or rebuilding of an existing street.
The EDA or City or a property owner must improve parcels within the District by approximately April 20 14
and report such actions to the County Auditor.
Subsection 3-20.
Use of Tax Increment
The EDA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxable
property located in the District for the following purposes:
1. To pay the principal of and interest on bonds issued to finance a project;
2. To finance, or otherwise pay the cost of redevelopment of the Downtown Chanhassen
Redevelopment Project Area pursuant to MS., Sections 469.090 to 469.1082;
3. To pay for project costs as identified in the budget set forth in the TIF Plan;
4. To finance, or otherwise pay for other purposes as provided in MS., Section 469.176, Subd. 4;
5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the
EDA or City or for the benefit of the Downtown Chanhassen Redevelopment Project Area by a
developer;
6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing
the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to
MS., Chapter 462C. MS., Sections 469.152 through 469.165, and/or MS., Sections 469.178; and
Chanhassen Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 10
3-13
7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on
the tax increment bonds or bonds issued pursuant to MS, Chapter 462C, MS., Sections 469.152
through 469.165, and/or MS, Sections 469.178.
These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other
purposes prohibited by MS., Section 469.176, Subd. 4.
Tax increments generated in the District will be paid by Carver County to the EDA for the Tax Increment
Fund of said District. The EDA or City will pay to the developer(s) annually an amount not to exceed an
amount as specified in a developer's agreement to reimburse the costs of land acquisition, public
improvements, demolition and relocation, site preparation, and administration. Remaining increment funds
will be used for EDA or City administration (up to 10 percent) and the costs of public improvement activities
outside the District.
Subsection 3-21. Excess Increments
Excess increments, as defined in MS., Section 469.176, Subd. 2, shall be used only to do one or more ofthe
following:
1. Prepay any outstanding bonds;
2. Discharge the pledge of tax increment for any outstanding bonds;
3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or
4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in
proportion to their local tax rates.
The EDA or City must spend or return the excess increments under paragraph (c) within nine months after
the end of the year. In addition, the EDA or City may, subject to the limitations set forth herein, choose to
modify the TIF Plan in order to finance additional public costs in the Downtown Chanhassen Redevelopment
Project Area or the District.
Subsection 3-22. Requirements for Agreements with the Developer
The EDA or City will review any proposal for private development to determine its conformance with the
Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the
following documents may be requested for review and approval: site plan, construction, mechanical, and
electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any
other drawings or narrative deemed necessary by the EDA or City to demonstrate the conformance of the
development with City plans and ordinances. The EDA or City may also use the Agreements to address other
issues related to the development.
Pursuant to MS, Section 469.176, Subd. 5, no more than 25 percent, by acreage, of the property to be
acquired in the District as set forth in the TIF Plan shall at any time be owned by the EDA or City as a result
of acquisition with the proceeds of bonds issued pursuant to MS., Section 469.178 to which tax increments
from property acquired is pledged, unless prior to acquisition in excess of25 percent of the acreage, the EDA
or City concluded an agreement for the development or redevelopment of the property acquired and which
provides recourse for the EDA or City should the development or redevelopment not be completed.
Chanhassen Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No.1 0
3-14
Subsection 3-23. Assessment Agreements
Pursuant to MS., Section 469.177, Subd. 8, the EDA or City may enter into a written assessment agreement
in recordable form with the developer of property within the District which establishes a minimum market
value of the land and completed improvements for the duration of the District. The assessment agreement
shall be presented to the County Assessor who shall review the plans and specifications for the improvements
to be 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 judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the
minimum market value agreement.
Subsection 3-24. Administration of the District
Administration of the District will be handled by the City Manager.
Subsection 3-25. Annual Disclosure Requirements
Pursuant to MS., Section 469.175, Subds. 5, 6, and 6b the EDA or City must undertake financial reporting
for all tax increment financing districts to the Office of the State Auditor, County Board and County Auditor
on or before August 1 of each year. MS., Section 469.175, Subd. 5 also provides that an annual statement
shall be published in a newspaper of general circulation in the City on or before August 15.
If the City fails to make a disclosure or submit a report containing the information required by MS., Section
469.175 Subd. 5 and Subd. 6, the OSA will direct the County Auditor to withhold the distribution of tax
increment from the District.
Subsection 3-26. Reasonable Expectations
As required by the TIF Act, in establishing the District, the determination has been made that the anticipated
development would not reasonably be expected to occur solely through private investment within the
reasonably foreseeable future and that the increased market value ofthe site that could reasonably be expected
to occur without the use of tax increment financing would be less than the increase in the market value
estimated to result from the proposed development after subtracting the present value of the projected tax
increments for the maximum duration of the District permitted by the TIF Plan. In making said
determination, reliance has been placed upon written representation made by the developer to such effects
and upon EDA and City staff awareness of the feasibility of developing the project site within the District.
A comparative analysis of estimated market values both with and without establishment of the District and
the use oftax increments has been performed as described above. Such analysis is included with the cashflow
in Appendix D, and indicates that the increase in estimated market value ofthe proposed development (less
the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the
District and the use of tax increments.
Subsection 3-27. Other Limitations on the Use of Tax Increment
1. General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF
Plan. The revenues shall be used to finance, or otherwise pay the cost of redevelopment of the
Downtown Chanhassen Redevelopment Project Area pursuant to MS., Sections 469.090 to 469.1082.
Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used
for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily
and regularly for conducting the business of a municipality, county, school district, or any other local unit
Chanhassen Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 10
3-15
of government or the state or federal government. This provision does not prohibit the use of revenues
derived from tax increments for the construction or renovation of a parking structure.
2. Pooling Limitations. At least 75 percent of tax increments from the District must be expended on
activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance
activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not
more than 25 percent of said tax increments may be expended, through a development fund or otherwise,
on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced
bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they
were solely for activities outside of the District.
3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall
be deemed to have satisfied the 75 percent test set forth in paragraph (2) above only if the five year rule
set forth in MS., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year
following certification of the District, 75 percent of said tax increments that remain after expenditures
permitted under said five year rule must be used only to pay previously committed expenditures or credit
enhanced bonds as more fully set forth in MS., Section 469.1763, Subd. 5.
4. Redevelopment District. At least 90 percent of the revenues derived from tax increment from a
redevelopment district must be used to finance the cost of correcting conditions that allow designation
of redevelopment and renewal and renovation districts under MS., Section 469.176 Subd. 4j. These costs
include, but are not limited to, acquiring properties containing structurally substandard buildings or
improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary
to provide a site of sufficient size to permit development, demolition and rehabilitation of structures,
clearing of the land, the removal of hazardous substances or remediation necessary for development of
the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated
administrative expenses of the EDA or City, including the cost of preparation of the development action
response plan, may be included in the qualifying costs.
Subsection 3-28.
Summary
The Chanhassen Economic Development Authority is establishing the District to preserve and enhance the
tax base, redevelop substandard areas, and provide employment opportunities in the City. The TIF Plan for
the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota
55113, telephone (651) 697-8500.
Chanhassen Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No.1 0
3-16
Appendix A
Project Description
In 2006, SouthWest Transit secured $7 million in federal funds to be used for the construction of a new park
and ride facility in downtown Chanhassen. The new multilevel ramp could accommodate up to 420 vehicles.
Currently, SouthWest Transit operates a one-acre park and ride facility (up to 120 vehicles) behind the
Chanhassen Dinner Theater. For this project to move ahead, the City will need to take the lead in providing
access to the new facility, which will include the construction of public roadway and utility improvements.
The public improvements are proposed to be constructed in two phases. Phase 1 will include the demolition
of the existing scene shop building for the Dinner Theater and a bus stop enclosure, site clearing and grading,
sanitary sewer relocation, and watermain improvements to prepare for the construction of the parking
ramp/transit station. Phase 2 will include street and storm drainage improvements that will be constructed
in conjunction with the transit station project. The tax increment and public improvements will also facilitate
the construction of approximately 50 multi-family housing units and 10,000 square feet of commercial
development in the District.
Appendix
A-1
Appendix B
Maps of the Downtown Chanhassen Redevelopment Project Area and the District
Appendix
B-1
Tax Increment Financing District Nos. 4 and 10
Downtown Chanhassen Redevelopment Project Area
City of Chanhassen, Minnesota
"","'"
=...... Downtown Chanhassen Redevelopment Project Area
z+
~O
=~
Q QJ .
aJ S ~
rI:J aJ ~
rI:J J..4 ~
ra u u
~ = .,...c
=~b
ra v rI:J
~ " .,...c
U~Q
~ "'0 blJ
o aJ =
rI:J · ,...c
~ou
.,...c ~ =
U 0 ~
J..4 . ,...c
~~
Q
~
Q
N
c--i'
~
....t::
~
~
Appendix C
Description of Property to be Included in the District
The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the
parcels listed below.
Parcel Numbers Legal Description Owner
25-1680010 Block 1, Lot 1, Chanhassen Transit Station Addition SouthWest Transit
25-1680020 Block 1, Lot 2, Chanhassen Transit Station Addition Bloomberg Companies
25-1680030 Block 1, Lot 3, Chanhassen Transit Station Addition Bloomberg Companies
25-1680040* Block 2, Lot 1, Chanhassen Transit Station Addition City of Chanhassen
25-1680050 Outlot A, Chanhassen Transit Station Addition City of Chanhassen
25-1680060* Outlot B, Chanhassen Transit Station Addition City of Chanhassen
25-2830031 * Outlot A, Frontier Cinema Addition, except that part Bloomberg Companies
platted as Chanhassen Transit Station
* These parcels are being removed from Tax Increment Financing District No.4
to be included in Tax Increment Financing District No. 10.
Appendix
C-1
Appendix D
Estimated Cash Flow for the District
Appendix
D-1
'"
Cl
to
n.
II)
<::
.2
a.
E
"
II)
II)
<(
'"
"
~
'"
II)
to
OJ
-
c:
Q)
E
Q.
0
G>
>
Q)
(I);;; "C C
.::a::: Q) '"
D:: c E
.. - Gl C.
W~ I/) 0
c: I/) c;;
....;:; Q) III >
..c '"
E ."
'" C '"
:1:: 1:: III 0::
..c ~
W: ca (,) '"
Q. - 1ii
<( 0 '"
.r:;
~ I-
"C ~
. U '"
c: <::
ca <::
C
ca
.(3
~
Q)
E
E
0
0
o
;;
~
M
0000
0000
NNNN
>.>.>.>.
co <<I co ca
n.n.n.n.
rftcf.cf!.?f!.
0000
"0::1" '<:t ON
NNOLO
('I)('I)OT'""
"":r--:cO~
~~.....o
lil
'"
~~
:2.l]l
0.9
1::.g
~ "0 C;;
~ '" '"
" II) X
U"tO
'02-i
.. m ~ B
~~~.E
C::Q)~"O
xU) E Q)
~-~52
"jii"'U'"
~&2&
c ~ ~ ~
~f-><t-
~~~~
-O(J)rn
E-':!2>
.~ ~ ~~
~:s!9rn
:2UCf):2
""
;;
N
c
'"
E
c.
o
C;;
>
'"
."
'"
0::
E ~~~;:~~~~aJS~~
N ~~ ~.g~~ f.3:g~;:~
NL()~u.- ~ ';; EU1t--:
,"",'""'Co. .E~~N
.E ~
~
Z
is
~ 13
~:~ ~ ~
iliE is."
~~ ~ ~
~~ ~ _:i:(f) ~
~~ ~ a3-;~.QC::
;: 0 t; ~ ~ [& ~
.Ez i::j-f: o"S.!:Qc(])
5 ~ i.; ~ ~ -; Q.~ g :2
.. cgm i~ ros~E~
i .2 a.>- () ~ c !: .. .!:Q:S e
.c t)CI)~ .. ~iI:Q)o~~5Q5
~~51~ 2~~~~mm~02
Z_tnuW ~:SoEa~:g~m~
CD.2C'i:' Q)c'L::3.t:_:;:::::l'-+':;:::::l
iEb8~2~~w~mx~'~o'~i
$~5;C&&~~~~~~~~~~
t)t)~~~coocQ)m~o~O~OO
~~c_i8~1~>~~~~Q)~~
w w j (1)._ co Q) Q) ~ x (/) co (f) 0 '- 0 0
CC8~~EE~iI:~~~~~E~~
'"
II)
to
.r:;
!!:
..
l!!
<(
~
x
~
:::
'"
>
~
l!?
m
m
m
.c
m
~
~
'6
.E
~
~
O>~""
~o.....
....."".....
N"tri'
<::
.2 0.---
cn:;e---E1919S
c3~~C3oo~aia3ai
:s wO::O::D:
(J
~
~
<;
l
0:
U.
E:
~
u.
~
~
i5
u.
~
;::
'&
i
0;
~
al
0:
aNNN
..........T'""I'--
._MO<OO
~ ~ ~ ri " ,.: ,...~
l: '5> ..
::S';: 0
(JO"
~
,.,
1:: U) a. 0.. a.
"'''II)",,,,,,,,,,EEE
e~c3()()(,)()~~~
c.. www
cv~~~~;?~~
:Um~~~~~~~~
~.5~i;'~~~~;Uro
>< .~(1)a..a..a..a..a..a..a..
~O~
::e
o
"E
o
8
w
't:J '#-#.'#-'#-'#.'#.cft.
(1)(1)_0000000
C)<nUooooooo
cv::::) 'CT"""T"""T"""T"""T"""T"""T"""
CCl)t)
Cl) =.-
u-c
t ~ (s
n........
o
g>
.~
J
~
~
~
z
00
00
NN
." "0
'" '"
II) II)
00
c. c.
e e
n.u.
0000000
Cl)ooooooo
::JLOW(OCOLOT"""O>
Cij a5C'?-OMI'-----.:t-~
m>COU')COLOT"""NCO
__COMMMN-.:t
~ Cl)N-
~
..
::e
oj
"
oC;
~ >
~ ~
<D~
~~
.. '"
"g:C
"' to
'" <::
" .-
tT'"
e~
.~ "3
<:: '"
~ f!
to 0)
u '"
"" "
'E 3:
'" '"
u <::
.....8
~~
~ .~
",c.
.. to
c.u
~ x
~.s
~~
\;::01
(I) 'C
~ 0
"'-
.a II)
o .a
-."
." to
"'-
'" 0
<:: <::
II) '"
'" "
.E! E
~z.
'" <::
II) "
CIl to 0
'0 CD (,)
Z ~N
~
.,;
*
"u
g
.::'
'"
~
'"
w
'"
"
"
i
0:
",8
0).2 Ul
.: ~~
::E-N..
'S .: T-
OJ ~
..
::e
Cl)ooooooo
::0000000
_OWCDCDLOT"""O)
-g ~ ~fig&5-~~-<i
CV-CO(")MMN-.:t
.....I~~
to
::e
II)
II)
e
."
."
<(
'"
8
~
*
~
w
0) 0) O):<=:
'"' '- l... l... (/,l
Cl) Q.) Q.) Q.) c:
c.o.o.om
3:EEE~
08885
mmmU)
'It
..
::e
N
Q)
'"
'"
lL
<J)
c
o
a
E
"
<J)
<J)
<0:
Q)
"
0;
>
Q)
<J)
'"
to
.
o
~
o
S
M
(I)::
1:::
wE
...1<>
::
w:
-
c::
Q)
E
0..
o
(j)
>
Q)
'0
Q)
0::
-
c::
Q)
E
~
ell
0..
<(
'0
c::
ell
ia
"(3
...
Q)
E
E
o
o
'E
"
c E
ale.
en.E
en "
ns >
..c"
c"g
nsct:
..c...
0.&
....'"
o Q)
.c:
>.~
~~
c:
i5
,;
"
E
;;::
c:
o
'"
Q)
J>
B
"
'"
Q)
c
VI
J!l
'"
,5
0;
Q)
VI
'"
"
iii
>
;;
""
CD ~
(5:;:
z,..:
~
B
'"
.g
...
Q)
.c:
'0
"
c:
'"
VI
~
'c
'"
e.
VI
'5
iii
'"
VI
;;::
~
.!!!
2
'"
0;
'"
Q)
E
'"
Q)
"
iii
>
c
o
e.
"
Q)
c:
'5
c:
"
e.
"
"
...
'"
Q)
:>.
B
...
'"
Q)
:>.
E
o
.l:
.2:-
i:
'"
'"
l;::
c:
'"
'iij
~
'"
> ,
="
.~ ~
'CiS
e[
~ Q)
"'J>
c_
o; g
'" c:
-",
"'"
i-5
~~
.s~
o ,
~
w
x
$i
...
'"
~
e
"
;;
~
"
c
c
'6
.g
~
~
"
:;:
~
i
a:
L1.
E:
~
L1.
E:
I
is
L1.
~
~
"
E-
o
l
"
Ii!
u
E
g
8
ill
c
'"
=
g>
.~
o
~
j
cg
)
~
z
<J)
<J)
.!!!
.!!1
C
Q)
E
~
'"
.!:
x
'"
~
c
Q)
Iii ~
w.o...," 0
I If) E
Q) W x
", '"
coo> I- :l
~-~ '0 g
~:::Cl)~(l).8
C\JQ)()roO>'
~~~:;:~~
a5:;E~ a5~ Q;
~ ~o ~o ~
()Z lL >
'5
o
=
.~
>-
8
w
s
'"
~
ill
~
~-
.~
~
'"
w
"
:;:
ill
~
"
e
il
e
0.
VI
U'I ~ UJ
~~~~~
~{!< (1."-1.&.
I-CI,)g.~~~
~:2c>m~
Q)~ ->0
g-.!~~CI,)l5
~J9.!~~ca
_(1)"-",10,,
.B t/I t/I (I) en c
o III II) en I/) c
.... CI) (I) CI) Cl)c::(
M 0
"
" ~
C>
'" :::
0-
N
;: ~
0 _ ~~NNMM~v~~mw~~rorommoo~~NNMMVV~~w~~~rorommoo~~NNMMV~~~WID~~rorom ~
'" ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~S~SSSSS~SSSSSSSSS
iii J
'" E~~eeeeeeeeeeeoeegeeeeeeeeeeeeeeeeeeOQeeeeOeeeeeeeeeeeeeeee
u ~ONroNroNroNroNroNroNOONroNroNroNroNroNroNroNroNroNroNroNroNroNroNroNroNroNroNroNWNOON
"E ~ 000000000000000000000000000000000000000000000000000000000
" ~
~
E - MMVV~~IDw~~rorommoo~~NNMMvv~~ww~~rorommoo~~NNMMvv~~WW~~roro ~
~ ~~~~~~~~~~~~~~NNNNNNNNNNNNNNNNNNNNMMMMMMMMMMMMMMMMMM '5
)( '" 0000000000000000000000000000000000000000000000000000
" .. " NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN .l?
.EO 1-> ~
X
'" ~~~N~M~v~~~w~~~ro~m~o~~~NmM~v~m~w~~mrommmom~~NmMmv~mmW '"
I- ci . ~ ~ ~ ~ ~ ~ ~ ci-ci-~-~-~~~-~-~-~-~~ciNciN~N~N~N~N~N
- - - - - - _ _ _ _ N ~ N N N N .
:E
~OOv~MOOOOON_mm_~~M~N~~M~OOOOOOOMvNmMMv~~OONOOM~_mNM_~N~M~m ~
~~~~~~~~~~~OO~~~~~~~~~~~~~~~~~~~~~~~~~~~~ffi~~~~~~~~~~~ ~
o~Mmrom~ri~m~mmm~ri~m~~Nromo~~~~~~rim~N~~w~O~~~~O~Wm~N~~M 0:
__mOvOOM~_~mM~_~mMmOvOO_~~N~mMW~MmmMWmN~mN~OO~v~~N~roOM~ u.
---NNMMMVV~~~~~~~~oooooo~~m~~~~~~~~~~~~~~~~~~~~~~~~~ ~
u.
mmOO__NN~~~mWW~~~~~mMMooNNroOOOooooovv~mMMrorovvNNvv__vvMM !
MMvvNNvv~~OOm~NN~mOOmmmwooroooNN~~NN~mNNmmNNOOMMNNWmmm 0
m~~~~~~~wwmm~~mmwwoooo~~_~vvWWOOMMroroNNroOOMMOO~~vvNNOOmm
~~NN~~mmwwociNN~~mmwoociciririmm~~ooNN~~~~~~NNmm~~ooririm~wro u.
__~~~~~~~~WWWWWWWWWW~~~~~~~~oooorooooooorororooommm~~~~~~~~~~~ ~
u.
~
I
MMOOOo~~R~~~~~~~~~~m~~~~OOOONN~~~m~~oooommoooomm~~~~~~~~ l
m~wwrooooO__MM~~roro~_vvroroNN~~MM~m~~NNooOOroWW~~~~~~wwrorooo
NNWWOOMM~~~~mm__vvwwroOO__MMWWroOO__vv~~~~NN~~roro__vv~~__ ~
- ~~mmmwmwmwmmmm~~~~~~~~rorororororororo~~~~~~~~OOOOciO~~~~~~NN 0:
C --------------------------------------~~~~S~~S~S~~~- "
Gl E
E ~
c.. w
0 - '"
Qj C --------------------------------------------------- ~
Gl ~~NNOOWro~~MM__mmroooww~~vvMMNN______OO____~_NNMMvvWW~~ .~
vv__NNNN~Mvv~~~~ww~~oooommOO__NNM~VV~~ww~~rorommoo__NNMM
CI)~ > E --~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ee~~~~~~~~~~~
Gl :I:
~: "'C C c.. J
Gl Gl 0
LLI:< 0::: III Qj
....;:; - III > I
c ell Gl mm____VV~~MMMMWW~~OOMMMMNNNNNNvvOOmmvvm~MMOO~~~mvvooro
.. Gl ..c "'C ~~__NN~~OOroroOOWW~~MMMMroWWroMMMMrorom~vvwwMMWW~mmmoo~~oo
%::: ~~~~qq~~~~~~~~qq~~~~~~~~qq~~~~~~~~~~~~q~~~~~~~~~~~~~
E c Gl NNroro__MM~~~~mmNNvvWWmm__VVwwmm__VV~~OOMM~~roro__~~ooro__
LLI: ~ ell 0::: __~~wwwmwwwwww~~~~~~~~oooooooooooooooommmmmm~~~~~~~~~~~~~~~~ ;;
..c l- i
~() Gl
-
. <(0 ell
Gl
"'C >...c <J) M ~ OJ '" "' '" M ;n co "' "' '" ... ... <Jl 0 <Jl OJ 0 r-.. 0 ... <Jl <J) '"
c - I- '" N ... 0; "' 0 ;:2 "' ~ ~ "' "' "' <0 <Jl N r-.. N <Jl 0 ...
ell 0 <J) "' 0 '" "' r-.. ... N N ... r-.. "' M 0 ~ <Jl <Jl N '" 0
I- .0 ~ N <D c5 .0 m- ..; <D cO ro cO ro cO ro cO m- ..; 0 <D ~ cO 0 <D cO
IV Gl N ~ ~ ;:2 ;:2 ;:2 ;'C ;'C ~ ~ ~ ~ ~ ~ ~ ~ ~ 0 0 N M M ...
N N N N N N N N
.u C
C
l- e
Gl
E ~ ~ ~ ~ '" *- ~ ~ *- ~ *- *- *- *- *- *- *- ~ ~ ~ ~ '" *- ~ ~ ~
E r-.. r-.. r-.. r-.. r-.. r-.. r-.. r-.. r-.. r-.. r-.. r-.. r-.. r-- r-.. r-.. r-.. r-.. r-.. r-.. r-.. r-.. r-.. r-.. r-.. r-..
0 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
()
r-.. "' ;:2 ~ <0 N <0 r-.. 0 OJ '" c;; <Jl 0 "' <0 0 ~ r-.. r-.. ... c;; <0 '" "' c;;
<0 <Jl <0 ... r-.. <Jl 0 <0 "' <0 ... <0 N r-.. '" 0 "' 0 <Jl 0
'" r-.. <Jl ~ <J) 0 N "' <Jl ... 0 "' "'. N "!. N "'. "' 0 ... 0 r-.. ... ... ...
..; m- cO ,..: ~ .0 0 ..; ro N r-... N <D ~ <D ~ <D ~ <D N ,..: cO ro ..; 0 <D
N ~ ~ ;:2 ;:2 ;:2 ;:!: ;:!: ~ ~ ~ ~ ~ ~ ~ 0 0 N N N
N N N N
r::- iD iD iD ;:- ij) ij) iD 0 0 r::- N 0 iD ij) 0 iD "' ij) N ;:- ;:- c;) iD
N 0 0 0 ;::: N ... r-.. 0 '" '" '" ~ OJ '" M M N M ;'C. r-.. 0 ... <Jl '" co
0 ... ... ... 0 M "' '" "' 0 r-.. '" <Jl '" r-.. "'. 0 ... OJ M
~ .0 .0 .0 ~ <D <D <D ,..: ,..: ,..: ro ro ro m- m- m- 0 0 N N N cO cO
~ ~ ~ ~ ~ ~ ~ ~ ~
iD iD iD iD a;- iD iD iD iD iD iD iD a;- a;- a;- a;- iD iD iD iD a;- iD iD iD a;- iD
... ... '<t '<t ciI ... ... '<t '<t ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... '<t
OJ <0 <0 OJ <0 <0 OJ OJ OJ <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 OJ <0 <0 <0 OJ
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
'"
8
0
.
M 0 r-.. "' 0 <Jl '" N r-.. "' 0 0 <Jl OJ <Jl '" r-.. <0 0 ... '" N 0 0 '" r-.. m
"' '" "' ~ '" co r-.. '" ~ 0 M ... "' <0 ... <0 ~ 0 <0 OJ 0 ... 0 <Jl .0
o. <0 <Jl ... N <0. ... '" <J) c:c N '" 0 '" 0 <0 OJ 0 N "' c:c ;;
.0 m- ~ ro N ,..: ;;; <D ~ <D 0 .0 co <D ;::: ,..: N ro ..; m- .0 N 05 ..; C;; w
0 0 N N N M ... '" '" "' r-.. OJ <0 <J) <Jl 0 N ~
~ N N N N N N N N N N N N N N N N N N N '" '" M M M
.,;
~
.~
~ ~ ~ ~ *- ~ ~ ~ ~ '" '" '" ~ ~ ~ ~ ~ '" *- *- *- *- *- *- ~ *- ~
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ..
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 0
.
:E
w
0 '"
0 D
U
~ .
m
0.
C;; ~
l1.
Appendix E
Minnesota Business Assistance Form
(Minnesota Department of Employment and Economic Development)
A Minnesota Business Assistance Form (MBAF) should be used to report and/or update each calendar year's
activity by Aprill of the following year.
Please see the Minnesota Department of Employment and Economic Development (DEED) web site at
htto:/ /www.deed.state.mn.us/Communitv/subsidiesIMBAFF orm.htm for information and forms.
Appendix
E-1
Appendix F
Redevelopment Qualifications for the District
Appendix
F-1
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES
STATE OF MINNESOTA
Council member
introduced the following resolution and moved its adoption:
RESOLUTION NO.
RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT
PLAN FOR THE DOWNTOWN CHANHASSEN REDEVELOPMENT PROJECT
AREA; AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO.
10 THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN
THEREFOR.
BE IT RESOLVED by the City Council (the "Council") of the City of Chanhassen, Minnesota
(the "City"), as follows:
Section 1.
Recitals
1.01. The Board of Commissioners of the Chanhassen Economic Development Authority (the
"EDA") has heretofore established the Downtown Chanhassen Redevelopment Project Area (the "Project
Area") and adopted the Redevelopment Plan therefor. It has been proposed by the EDA and the City that
the City adopt a Modification to the Redevelopment Plan (the "Redevelopment Plan Modification") for
the Project Area and establish Tax Increment Financing District No. 10 (the "District") therein and adopt
a Tax Increment Financing Plan (the "TIP Plan") therefor (the Redevelopment Plan Modification and the
TIP Plan are referred to collectively herein as the "Plans"); all pursuant to and in conformity with
applicable law, including Minnesota Statutes, Sections 469.090 to 469.1082 and Sections 469.174 to
469.1799, all inclusive, as amended, (the "Act") all as reflected in the Plans, and presented for the
Council's consideration.
1.02. The EDA and City have investigated the facts relating to the Plans and have caused the
Plans to be prepared.
1.03. The EDA and City have performed all actions required by law to be performed prior to
the establishment of the District and the adoption and approval of the proposed Plans, including, but not
limited to, notification of Carver County and Independent School District No. 112 having taxing
jurisdiction over the property to be included in the District, a review of and written comment on the Plans
by the City Planning Commission, approval of the Plans by the EDA on April 12, 2010, and the holding
of a public hearing upon published notice as required by law.
1.04. Certain written reports (the "Reports") relating to the Plans and to the actIvltIes
contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council
and/or made a part of the City files and proceedings on the Plans. The Reports, including the
redevelopment qualifications reports and planning documents, include data, information and/or
substantiation constituting or relating to the basis for the other findings and determinations made in this
resolution. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated
into and made as fully a part of this resolution to the same extent as if set forth in full herein.
1.05 The City is not modifying the boundaries of the Project Area, but is however, modifying
the Redevelopment Plan therefor.
Section 2.
Findings for the Adoption and Approval of the Plans
2.01. The Council hereby finds that the Plans are intended and, in the judgment ofthis Council,
the effect of such actions will be, to provide an impetus for development in the public interest and
accomplish certain objectives as specified in the Plans, which are hereby incorporated herein.
Section 3.
Findings for the Establishment of the District
3.01. The Council hereby finds that the District is in the public interest and is a "redevelopment
district" under Minnesota Statutes, Section 469.174, Subd. lO(a)(I) of the Act.
3.02. The Council further finds that the proposed redevelopment would not occur solely
through private investment within the reasonably foreseeable future and that the increased market value of
the site that could reasonably be expected to occur without the use of tax increment financing would be
less than the increase in the market value estimated to result from the proposed development after
subtracting the present value of the projected tax increments for the maximum duration of the District
permitted by the TIP Plan, that the Plans conform to the general plan for the development or
redevelopment of the City as a whole; and that the Plans will afford maximum opportunity consistent
with the sound needs of the City as a whole, for the development or redevelopment of the District by
private enterprise.
3.03. The Council further finds, declares and determines that the City made the above findings
stated in this Section and has set forth the reasons and supporting facts for each determination in writing,
attached hereto as Exhibit A.
3.04. The EDA elects to calculate fiscal disparities for the District in accordance with
Minnesota Statutes, Section 469.177, Subd. 3, clause b, which means the fiscal disparities contribution
would be taken from inside the District.
Section 4.
Public Purpose
4.01. The adoption of the Plans conforms in all respects to the requirements of the Act and will
help fulfill a need to develop an area of the City which is already built up, to improve the tax base and to
improve the general economy of the State and thereby serves a public purpose. For the reasons described
in Exhibit A, the City believes these benefits directly derive from the tax increment assistance provided
under the TIP Plan. A private developer will receive only the assistance needed to make this development
financially feasible. As such, any private benefits received by a developer are incidental and do not
outweigh the primary public benefits.
Section 5.
Approval and Adoption of the Plans
5.01. The Plans, as presented to the Council on this date, including without limitation the
findings and statements of objectives contained therein, are hereby approved, ratified, established, and
adopted and shall be placed on file in the office of the City Manager.
5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to
proceed with the implementation of the Plans and to negotiate, draft, prepare and present to this Council
for its consideration all further plans, resolutions, documents and contracts necessary for this purpose.
5.03 The Auditor of Carver County is requested to certify the original net tax capacity of the
District, as described in the Plans, and to certify in each year thereafter the amount by which the original
net tax capacity has increased or decreased; and the EDA is authorized and directed to forthwith transmit
this request to the County Auditor in such form and content as the Auditor may specify, together with a
list of all properties within the District, for which building permits have been issued during the 18 months
immediately preceding the adoption of this resolution.
5.04. The City Manager is further authorized and directed to file a copy of the Plans with the
Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor pursuant to
Minnesota Statutes 469.175, Subd. 4a.
The motion for the adoption of the foregoing resolution was duly seconded by Council member
, and upon a vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
Dated: April 12, 2010
ATTEST:
Thomas A. Furlong, Mayor
Todd Gerhardt, City Manager
(Seal)
EXHIBIT A
RESOLUTION NO.
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (TIP Plan)
for Tax Increment Financing District No. 10 (District), as required pursuant to Minnesota Statutes, Section
469.175, Subdivision 3 are as follows:
1. Finding that the District is a redevelopment district as defined in M.S., Section 469.174, Subd. 1 O( a)( 1).
The District consists of seven parcels, with plans to redevelop the area for commercial and housing
purposes. At least 70 percent of the area of the parcels in the District are occupied by buildings, streets,
utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings
in the District, not including outbuildings, are structurally substandard to a degree requiring substantial
renovation or clearance. (See Appendix F of the TIP Plan.)
2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be
expected to occur solely through private investment within the reasonably foreseeable future and that the
increased market value of the site that could reasonably be expected to occur without the use of tax
increment financing would be less than the increase in the market value estimated to result from the
proposed development after subtracting the present value of the projected tax increments for the maximum
duration of the District permitted by the TIF Plan.
The proposed development, in the opinion of the City, would not reasonably be expected to occur solely
through private investment within the reasonably foreseeable future: This finding is supported by the fact
that the redevelopment proposed in the TIP Plan meets the City's objectives for redevelopment. Due to the
high cost of redevelopment on the parcels currently occupied by substandard buildings, the limited amount
of commercial property for expansion adjacent to the existing project, the incompatible land uses at close
proximity, and the cost of financing the proposed improvements, this project is feasibly only through
assistance, in part from tax increment financing. In 2006, SouthWest Transit secured $7 million in federal
funds to be used for the construction of a new park and ride facility in downtown Chanhassen. The new
multi-level ramp can accommodate up to 420 vehicles. Currently, SouthWest Transit operates a one-acre
park and ride facility (up to 120 vehicles) behind the Chanhassen Dinner Theater. While the ramp allows
additional parking for area businesses in the evening hours, the public roadway and utility improvements
are needed to facilitate new retail and housing development. The developer will receive TIP assistance only
when new private development occurs. The City has also expended dollars up front for acquisition and
associated public improvement costs, which it anticipates repaying with TIP.
The increased market value of the site that could reasonably be expected to occur without the use of tax
increment financing would be less than the increase in market value estimated to result from the proposed
development after subtracting the present value of the projected tax increments for the maximum duration
of the District permitted by the TIF Plan: This finding is justified on the grounds that the cost of site and
public improvements and utilities add to the total redevelopment cost. The public improvements are
proposed to be constructed in two phases. Phase 1 will include the demolition of the existing scene shop
building for the Dinner Theater and a bus stop enclosure, site clearing and grading, sanitary sewer
relocation, and watermain improvements to prepare for the construction of the parking ramp/transit station.
Phase 2 will include street and storm drainage improvements that will be constructed in conjunction with
the transit station project. The tax increment and public improvements will also facilitate the construction
of approximately 50 multi-family housing units and 10,000 square feet of commercial development in the
District. The City reasonably determines that no other redevelopment of similar scope is anticipated on this
site without substantially similar assistance being provided to the development.
Therefore, the City concludes as follows:
a. The City's estimate of the amount by which the market value of the entire District will increase
without the use of tax increment financing is $0.
b. If the proposed development occurs, the total increase in market value will be $8,290,200 (see
Appendix D and G of the TIP Plan)
c. The present value of tax increments from the District for the maximum duration of the district
permitted by the TIP Plan is estimated to be $1,966,835 (see Appendix D and G ofthe TIP Plan).
d. Even if some development other than the proposed development were to occur, the Council finds that
no alternative would occur that would produce a market value increase greater than $6,323,365 (the
amount in clause b less the amount in clause c) without tax increment assistance.
3. Finding that the TIF Plan for the District conforms to the general plan for the development or
redevelopment of the municipality as a whole.
The Planning Commission reviewed the TIP Plan and found that the TIP Plan conforms to the general
development plan of the City.
4. Finding that the TIF Plan for the District will afford maximum opportunity, consistent with the sound needs
of the City as a whole, for the development or redevelopment of Downtown Chanhassen Redevelopment
Project Area by private enterprise.
The project to be assisted by the District will result in increased employment in the City and the State of
Minnesota, the renovation of substandard properties, increased tax base of the State and add a high quality
development to the City.
Through the implementation of the TIP Plan, the City will increase the availability of safe and decent life-
cycle housing in the City.
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES
STATE OF MINNESOTA
Council member
introduced the following resolution and moved its adoption:
RESOLUTION NO.
RESOLUTION APPROVING THE ELIMINATION OF PARCELS FROM TAX
INCREMENT FINANCING DISTRICT NO. 4 (CARVER COUNTY TIF
DISTRICT NO. 28), LOCATED WITHIN THE DOWNTOWN CHANHASSEN
REDEVELOPMENT PROJECT AREA, IN THE CITY OF CHANHASSEN.
WHEREAS, on May 22, 1995, the City of Chanhassen (the "City) established Tax Increment
Financing District No.4 (the "TIP District") within its the Downtown Chanhassen Redevelopment Project
Area; and
WHEREAS, the Chanhassen Economic Development Authority (the "EDA") IS the
administrative authority for the TIP District; and
WHEREAS, the TIP District, in part, included the following parcel numbers, which were
previously certified in the TIP District (the "Parcels"):
Old Parcel Numbers:
25-0130700
25-2830030
The old parcel numbers have been retired due to a new plat and split.
New Parcel Numbers:
25-1680040
25-1680060
25-2830031
WHEREAS, the City desires by this resolution to cause the elimination of the Parcels from the
TIP District thereby reducing the size of the TIP District; and
NOW THEREFORE, BE IT RESOLVED as follows:
1. The tax increment financing plan ("TIP Plan") for the TIP District is hereby modified to
remove the Parcels from the TIP District, effective for taxes payable in 2011.
2. Upon approval of a similar resolution by the EDA, staff are authorized and directed to
attach a copy of this resolution to the TIP Plan for the TIP District in City files, file a copy of this
resolution with the County Auditor of Carver County along with instructions to adjust the records for the
TIP District accordingly, and file a copy of the resolution with the Commissioner of Revenue and the
Office of the State Auditor.
The motion for the adoption of the foregoing resolution was duly seconded by Council member
, and upon a vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
Dated: April 12, 2010
ATTEST:
Thomas A. Furlong, Mayor
Todd Gerhardt, City Manager
(Seal)