EDA 1995 05 18FILE COPY
AGENDA
CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
THURSDAY, MAY 18, 1995, 5:30 P.M.
CHANHASSEN CITY HALL, 690 COULTER DRIVE
CALL TO ORDER
1. Consider approval of TIF Dislxict No. 4.
ADJOURNMENT
CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
TO:
Housing and Redevelopment Authority
FROM:
Todd Gerhardt, Assistant Executive Director
DATE: May 9, 1995
SUB J:
Consider Approval of TIF Di;
Attached for the I-IRA's consideration is the
District g4 (Attachment/fl). The purpose
of the bowling center, the old Instant Web
Country Suites Hotel. The
boardwalk and expanding the existing
costs are anticipated to be incurred:
this
Financing Phm for crea~g TIF
is to assist with the redevelopment
Center and expansion to the
consist of a new facade,
(Attachment #2). The following
Entertainment Center
Land Acquisition/F~i~mra'ovements
Boardwalk/Sid.e. walk~'Improvements
Parking Lo~.oap..'.m.g._
~, ..._ ...... ,:.....'-;..-
$ 690,000
$ 470,000
$ 300.000
Hotel/Conference Center Expffnsion~ ~
Public Improvements $
Land Acquisition V $ 210.000
Subtotal $ 255,000
45,000
Administrative Expenses
$ 50.000
TOTAL $ 1.7{iS.999
HRA
May 9, 1995
Page 2
The process being considered to pay for these improvements is a "pay as you go program.'
Under this process, the redevelopers (Dan Dahlin, bowling center; Bob Copeland, movie
theater; Herb Bloomberg, Frontier Center) would constmct/f'mance the improvements up front.
The HRA would then enter into a private redevelopment agreement with each of these parties,
establish a minimum market value for each of their developments then reimburse the
redevelopers their costs for the public improvements and interest (see Attachment #3 for cash
flow assumptions). Staff will be prepared to answer any questions regarding this information
at Thursday night's meeting.
RECOMMENDATION
Staff would recommend approving the resolution creating Tax Increment Financing District
No. g4 and adopting the Tax Increment Financing Plan as presented.
01
CITY OF CHANHA~SEN
HOUSING AND REDEVELOPMEKF AUTHORITY
Da~e
Motion By
Resolution No.
_, ._ . . ; n _j .... .,..
· Seconded By .
RN~OLUTION APPROVING THE PLAN FOR
TAX IN~ ~"q~~O DISTRICT NO. 4
!0
le
BE IT RB$OLVED by the Housing ~d Red~elopmeut Au~ in pnd for t.~he City of
Cb._s. nhas,s~, Mlnnasota as follow8:
Section 1.
1,01. The Houaing a_nd Redevelopment Authorl~ in and for the City of C~s, hassen
(Authority) and the City Council of the City of Chanhass~n (City) approved a red~elopment
project for the downtown Chanhassen area (Proj~) and adopted a redevel~ plan _s__.d tax
increment financing pl~ for same on Noveml~ 29. 1977 and December 19, 1977, r~vely.
1.02. Due to changes in the nature ~;d exttmt of lmblic and private improvements to bt
constructed or increases the area induded w/.~t, the Project, the t~elo~ plan and tax
increment financing plan have been the subj~ of nuroetous modifications since their adoption
in 1977.
1.03. In Ught of rece. ut redevelopment proposals and the ]imllE/t duration of flu~
downtown tax incremem fmandn$ disu-ict, it has bern ~ to remove selec,4~ properties
from the downtown tax incms~ financing dis~ct m~d ~o incl~ ~n in a new tax imrement
district, to be called Tax Increment F/nandn$ ~ No. 4 ~ District No. 4).
1.04. In response, to these chan~, the Anthority _*.-.d th~ City have authorized the
preparation of a plan (Plan) for Tax Increment Finamdng Dislrict No. 4 which is contaimed in a
document entitled "Tax Incr~t Financing Plan, Tax Increm~t Financing Dislflct No. 4" dated
May 22, 1995 and on file with the Authority.
2.01. The Au~hadty finds tb~t the objectives of the Author/ty and the Oty of
~ncouraging deve~ and redevelopment wiflfln the Project will be advanced ~y adoption of
the Plan for TI~ District No. 4.
2.02. The lq.an is hereby approved a~ adopted by the Authofiiy.
R~B~a408
C'R130-&0 1
MAY 10 ' 95 lZl: 10 HOLP1ES ~ C~/EP~ P. 3
~.01. It is noted that copies of the Plan have been transmitted to the board of
Independeat $¢hool Distr/ot No, 112 and the board of commiss/oners of Carver County for
review and oomm nt and that said public bodies havo been notified of the hearing to be held on
~e Plan by ~e City,
3,02. The Authority requests the City to bokl a public ~g on the 1~. pursuant w
Minn~eso~a StatuteS., section 469.175, suM. ~ as soon heres, tier aa is practicable and recommends
that the Plan be approved by the City.
Adopted by the Housing ~ l~d~elopment Authorky in and for the City of Chanhassen,
Minnesota this __ day of ,1995.
ATTEST:
~884~8
0~130-40 2
*1
I
TAX INCR~ FINANCING PLAN,
TAX INCB,]~'ENT FINANCING DISTRICT NO. 4
CITY OF CHANHASSEN, MINNESOTA
May 22, 1995
Tht= document dzafted by:
HOLMES & GRAVEN, CHART~I~
470 pi11=bu.ey Centez,,
M'inn_,~polis, ~ 55402
(612) 337-9300
~.EB87299
(31130-40
TABLE OF CONTENTS
Page
TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT
NO. 4
Subsection A.
Subsection B.
Subsection C.
Subsection D.
Subsection E.
Subsection F.
Subsection G.
Subsection H.
Subsection I.
Subsection J.
Subsection K.
Subsection L.
Subsection M.
Subsection N.
Subsection O.
Subsection P.
Subsection Q.
Subsection R.
Subsection S.
Subsection T.
Subsection U.
Subsection V.
Subsection W.
Subsection X.
Definitions ........................ 1
Statutory Authority ................. : . 2
Statement of Objectives ................. 2
Statement of Public Pm~pose ........ 2
Development District Program . i. i.. 12. 2.. i a
Description of TIF District ............... S
Development District Contracts ............ S
Classification of TIF District .............. 3
Modification of TIF Plan ................ S
Use of Tax Increment .................. S
Excess Tax Increment ................. S
Limitation on Increment ...... 4
Limitation on Administrative~x~en~e; i i i :.. i : 4
Limitation on Boundary Changes ............ 4
Relocation
TIF Account 5
· · · · · · · · · · · · · · · · · · · · · ·
Estimate of Costs 5
............
Estimate of Bonded n 5
Original TIF Capacity and Tax Inc~'e~s'n~ i i i i i i i 5
Duration of the TIF District ........
Estimate of Captured Tax Cap~it~ [ -. [. . . [ 6 6
Estimated of Impact on Other Taxing Jurisdiction . . 6
Annual Reports ..................... 6
1~1~8729g
C1:1130-40
(t)
TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT
NO. 4. _.
A. Definitions
For the purposes of the Tax Increment Flnancin~ Plan for Tax Increment
Financin~ District No. 4, the followtn~ terms shs11 have the meantn~ specified
below, unless the context otherwise requires:
"Administrative expenses" means all expenditures of the Authority other than
amounts paid for the purchase of land or amounts paid to contractors or others
providtn~ materials and services, inciudin~ architectural and en~lneertn~ set-vices,
directly connected with the physical development of real p~pe~ in the District,
relocation benefits paid to or se~wtces provided for pereons residin~ or businesses
located in the District, or amounts used to pay interest on, fund a reserve for, or
sell at a discount bonds issued pursuant to section 469.178 of the TIF Act.
Administrative expenses includes amounts paid for se~wices provided by bond
counsel, fiscal consultants and planntng or economic development consultants.
"Authority" me-hA the Housing and Redevelopment Authority in and for the
City of Chanhassen, a public body corporate and politic under the laws of Mt-n~sota;
"City" means the City of Cba~ha~sen, a municipal corporation under the laws
of 1M~nnesota;
"City Council" or "Council" m~ns the Chanh8ssen City Council;
"City Development District Act" or "Act" means Minnesota Statutes, sections
469.124 through 469.134, as amended;
"Comprehensive Plan" means the City's objectives, policies, st~n~ and
programs to guide public and private land use, development, redevelopment and
preservation for all lands and water within the community;
"County" means Carver-County, l~tnnesota;
"Development District Program" or "Program" means the Program for the
Downtown Chanhassen Redevelopment Project;
"HRA Act" means Minnesota Statutes, sections 469.001 through 469.047, as
amended;
"Project" means the Downtown ChanhAAsen Redevelopment Project;
"State" means the State of Minnesota;
"Tax Increment Bonds" means any general obligation or revenue tax increment
bonds issued by the Authority or the City to finance the public costs associated with
the Project as stated in the Pro~ or in the Plan for TIF District No. 4 or any
obligations issued to refund the Tax Increment Bonds;
"Tax Increment Financing Act" or "TIF Act" means l~tnnesota Statutes,
sections 469.174 through 469.179, as Amended; and
RBBe7299
CR130-40 ~
"Tax Increment Financing Districttt or 'TIF Districtt~ means Tax Increment
Financing District No. 4, which is being created and established within the Project
pursuant to the TIF Act; and
t~Tax Increment Financing Plan" or "Plan" means the Plan for TIF District
No. 4, which will be adopted by the Authority on May 22, 1995.
tB'he Statutory Authority. Pursuant to section 469.175, subd. 4 of the TIF
Act,
Authority is authorized to establish tax increment financing districts to
facilitate and provide financing for the development objectives a~dculated in the
Progmum. The Authority will operate the TIF District pursuant to the HEA Act and
TIF Act.
C. Statement of Objectives. The Authority seeks to achieve the following
objectives through the establishment of TIF District No. 4;
1. provide employment opportunities witbt,~ the community;
2. improve the tax base of Chantmssen and the general economy of
the City and State;
3. encourage development in areas of the community which have not
been utilized to their full potential;
4. implement relevant portions of the Comprehensive Plan.
The Authority*s specific purpose in establishing TIF District No. 4 is to assist
several projects which are proposed in the Project*s entertsfnment district, near the
Chanhassen Dinner Theater. The area to be incorporated into TIF District No. 4 is
currently located within the Project and the Authority*s downtown TIF district. The
downtown TIF district was established as a tax increment district prior to August 1,
1979 and has operated as a *tpre-1979" TIF district. As such, it is subject to
termination after April 1, 2001 in accordance with the bond maturities of obligations
issued by the City or Authority prior to April 1, 1991. Too little time remains in the
life of the downtown TIF distl~lct to provide adequate assistance to the proposed
developments. In order to lengthen the time during which increment may be
collected and to provide sufficient assistance to induce the proposed development,
the Authority proposes to remove specified parcels from the downtown TIF district
and to incorporate them into TIF District No. 4.
D. State of Public Purpose. In adopting the Plan for TIF District No. 4,
the Authority will make the following findings:
1. Anticipated development would not reasonably be expected to
occur solely through private investment within the reasonably foreseeable
future and, therefore, the use of TIF is deemed necessary;
2. The TIF Plan will afford maximum opportunity, consistent with
the sound needs of the community as a whole, for development of the TIF
District by private enterprise.;
3. The TIF Plan conforms to general plans for development of
Chanhassen as a whole; and
4. The area included within TIF District No. 4 qualifies as a
redevelopment TIF district within the meaning of the TIF Act.
RI~872gg
CE130-40
The conclusions to be reached by the Authority re~ the above ar~ based
upon the recommendations of city staff and the planntnE commission as well as
the f_-mtltawlty of members of the HRA with the properties involved and the
likelihood that those propel'des will develop witht, the reasonably foreseeable
future solely through private efforts. City staff membera have ravtewed the
p~rperties and the conditions of the buildings located thereon, as well as
reviewed the City's building permit files, and have dete~ned that the a~ea
qualifies as a redevelopment TIF alt-trier. Stafffs findings in this regar~l
contained in a report in the Authority's office which will be retRt,~ed by the
Authority for the life of TIF District No. 4.-
E. Development District l~og~un. The plan for development of the City
outlined in the Program will continue to provide the basis of the City's efforts to
develop portions of the community which have not and remain unitkely to be
-developed solely through private efforts. The Plan for TIF Distr~ct No. 4 is
consistent with the Program for the downtown Chanhassen p~oJect ar~a.
F. Description of TIF District. The proper~ identification numbera of the
parcels within TIF District No. 4 ar~ included as ],~rhtbtt A. A map of the boundaries
of TIF District No. 4 is attached hereto as Ibrhtbit B. I~chibi~ A and B are
incorporated herein by reference.
G. Development District Contracts. The City has not yet entered into a
development contract with regard to the development of any proper~ within TIF
District No. 4. Contracts regarding p~operty within TIF District No. 4 will be
entered into in accor~lance with section 469.176, subd. 5 of the TIF Act.
H. Classification of TIF District. TIF District No. 4 qualifies u a
redevelopment TIF district, pursuant to section 469.174, subd. 10 of the TIF Act.
I. Modification of TIF Plan. The plan for TIF District No. 4 may be
modified by the Authority, provided that any enlargement of the geographic area of
the TIF District, increase in amount of bonded indebtedness to be inc. um~d,
including a determination to capitalize interest on the debt if that determtnstion was
not a part of th~ original Plan; or to increase or decrease the amount of interest on
the debt to be capitalized, increase in the portion of the captured tax capacity to be
retained by the Authority, increase in total estimated tax increment expenditures or
designation of additions/prope~-ty to be acquieed by the Authority shall be approved
upon the notice and efter such discussion, public hearing and findings u required
for approval of the original Plan.
J. Use of Tax Increment. Pursuant to section 469.176, subd. 4 of the TIF
Act, all revenues derived from TIF District No. 4 shall be used in acco~lance with
the TIF Plan. The revenues shall be used to finance or othemvise pay the capital and
administrative costs of development activities within the TIF district as identified in
the Progrmn and Plan.
K. Excess Tax Increment. Pursuant to section 469.176, subd. 2 of the TIF
Act, in any year in which the increment exceeds the amount necessat-y to pay the
costs authorized by the TIF Plan, the Authority shal! use the excess amount to do
any of the foUowing, in the order determined by the Authority:
1. prepay the outstanding bonds or other obligations;
2. discharge the pledge of tax increment therefor;
X:U~87299
C~130-40 3
S. pay into an escrow account dedicated to the payment of bonds or
other obligations; or
4. return the excess amount to the Carver County auditor who shall
distribute the excess amount to the City, the County and school district in
direct proportion to their respective tax capacity rates.
The Authority may also choose to modify the TIF Plan in order to provide for
other public improvements or assistance within the TIF District.
L. Limitation of Increment.
1. No increment shall be paid to the Authority from TIF District No.
4 after three years from the date of certification of the original tax capacity
of the property in the TIF district by the county auditor unless within the
three year period (a) bonds have been issued pursuant to section 469.178 of
the TIF Act, or (b) the Authority has acquired property within TIF District
No. 4, or (c) the Authority has constructed or caused to be constructed
public improvements within TIF District No. 4.
2. If, after four years from the date of certification of the original
tax capacity of TIF District No. 4, no demolition, rehabilitation, or renovation
of property or other site preparation, including qualified improvement of a
street or right-of-way adjacent to a parcel but not installation of underground
utility service, including sewer or water systems, have been commenced on a
parcel located within TIF District No. 4 by the Authority or by the owner of
the parcel in accordance with the TIF Plan, no additional increment may be
taken from that parcel, and the orig/nal tax capacity of that parcel shall be
excluded from the original tax capacity of the TIF District. If one of these
activities subsequently commences, the Authority sb_~]] so certify to the
county auditor, and the tax capacity of the property as most recently certified
by the commissioner of revenue may be added to the TIF District.
0!
3. No tax increment shall in any event be paid to the Authority from
TIF District No. 4 after~25 years from the date of receipt by the Authority of
the first increment.
M. Limitation on Administrative Expenses. Pursuant to section 489.176,
subd. 3 of the TIF Act, administrative expenses are limited to 10 percent of the total
tax increment expenditures budgeted or actually incurred, whichever is less. Each
time the Authority increases the budget of TIF District No. 4, the amount of
increment allocated to administrative costs may be increased as long as the total of
administrative expenditures does not exceed 10 percent of the total budget of the
TIF District.
N. Limitation on Boundary Changds. The geographic area of TIF District
No. 4 may be reduced, but cannot be enlarged after five years following the date of
certification of the original tax capacity by the Carver county auditor.
O. Relocation. Although no relocation is anticipated, the Authority accepts
as binding its obligations under state law regarding relocation benefits and, if
necessary, will administer relocation services for families, individuals and
businesses displaced by public action.
1~IB87299
CH130-40 4
P. Parcels to Be Acquired Within the TIF District. The Authority intends
to acquire property within .TIF District No. 4 and to resell the land to the developer
at a ~educed cost,
Q. TIF Account. The tax increment reoatved with respect to the TIF
District No. 4 shall be seKregated by the Authority in a special account on its offt~A1
books and records.
R. Estimate of Prolect Costs.
expenditure within TIF District No. 4:
The followl~ costs are authorized for
EntertAinment Center Redevelopment
Land acquisition
BoardwAlk / sidewalk improvements
pa~ktng lot/landseapin~ improvements
Subtotal
$ 690,000
470,000
300,000
$1,460,000
Hotel/Conference Center Expansion
Public improvements
Land acquisition
$ 45,000
210~000
Subtotal $ 255,000
Administrative Expenses
~ . 50~000
TOTAL $11765~000
S. Estimate of Bonded Indebtedness. The Authority intends to issue a
limited revenue note in an amount not to exceed $1,500,000 to £tn.~ce the public
costs associated with the Entertainment Center Redevelopment and authorized by the
Plan for TIF District No. 4.
T. Orizinal Tax Capacity and Tax Increment. lhrsuant to section 469.177,
subd. 1 of the TIF Act, the original tax capacity for TIF District No. 4 is $135,037.
Each year the Ca~ver county auditor will measure the increase or decrease in the
total tax capacity of proper~y in the TIF district. Any yea~ in whtah the tax
capacity of TIF District No. 4 exceeds $135,037, an increment will be payable to the
Authority. Any year in which the tax capacity is below $135,037, no value will be
captured and no increment will be payable to the Authority.
Each year after the ceriiflcation of the o~n-1 tsx capacity, the county
auditor will increase or decrease the ovi~nal tax capacity of prepex-ty within TIF
District No. 4 as a result of:
1. change in the tax exempt status of the proper~y;
2. reduction or enlargement of the geographic boundaries of the TIF
District; or
3. reduction of valuation by me~ns of a couP-ordered abatement,
stipulation aKreement, voluntar~r abatement made by the assessor or auditor
or by order of the Minnesota commissioner of revenue.
RBB87299
C~130-40
U. Duration of the TIF District. In accordance with section 489.176, subd.
1 of the TIF Act, the City wishes to retain its right to receive TIF payments until
years from the date of the receipt of the first increment.
V. Estimate of Captured Tax Capacity. Pursuant to sections 489.175,
subd. 1 and 489.177, subd. 2 of the TIF Act, the estimated net captured tax
capacity of TIF District No. 4, will be $136,363 after January 2, 1997, for taxes
payable in 1998. The captured tax capacity was estimated in the following manner:
Tax Capacity on January 2, 1997
$271,400
Original Tax Capacity
'$135,037
Captured Tax Capacity
$138,383
Pursuant to section 469.177, subd. 2 of the TIF Act, it is found and declared
that all of the captured tax capacity generated by TIF District No. 4 is necessary to
finance or otherwise make permissible expenditures authorized by section 469.176,
subd. 4 of the TIF Act.
Estimated of Impact on Other Tax. inK Jurisdiction. In is anticipated that
$204,220 in increment will be captured annually within TiF District No. 4. This
increment amount is based on the value of the development on January 2, 1997, for
taxes payable in 1998. For the puFposes of esttma~g increment during the life of
TIF District No. 4, no inflation has been assumed in the value of the new
development. The composite tax capacity rate for the affected property is currently
149. 763 percent. Applying the percentage of the total tax capacity rate attributable
to each taxing Jurisdiction to the annual increment of $204,220 reveals the annual
"loss" of tax dollars by each Jurisdiction if the projects would have occurred without
TIF. Although the Authority believes the actual impact on other ts3dng Jurisdictions
is zero because development would not have occurred within the ~sasonably
foreseeable future without public intervention, the assumed amount of tax dollars
foregone by each jurisdiction is listed below:
Percent-of Tax Increment Attributable
to Various Taxing Jurisdictions
TaxinK Jurisdiction
City of Chanhassen
Carver County
Independent School District No. 112
Other
TOTAL
Tax % of
Capacity Total Tax Est. Tax
Rate Capacity Loss ($)
25. 834 17.2 $35,228
47. 033 31.4 64,135
71.221 47.5 97,118
5. 675 3.9 7 ~ 739
149. 763 100.0 $204,220
X. Annual Reports. Pursuant to section 469.175, subd. 6 of the TIF Act,
the Authority must file an annual financial report relarding TIF District No. 4. The
report shall be filed by July 1 of each year with the school board, the county board
and the state auditor. The report to be filed by the Authority shall include the
following information:
X~E~87299
cs~s0-40 6
1. the original tax capacity of TIF District No. 4;
2. the captured tax capacity of TIF District No. 4, including the
amount of any captured tax capacity shared with other taxing districts;
3. the outstanding principal amount of bonds issued or other loans
incurred to finance project costs in TIF District No. 4;
·
4. for the repo~cing period and for the duration of TIF District
No. 4, the amount budgeted under the TIF Plan and the actual amount
expended for the following categories:
(a) acquisition of 1And and buildings through condemnation
purchase;
(b) site improvement or preparation costs;
(e) installation of public utilities or other public improvements;
(d) administrative costs, including the allocated cost of the
Authority;
5. for properties sold to developers, the total cost of the property
to the Authority and the price paid by the developer; and
6. the amount of tax exempt obligations, other than those reported
under clause (3), which were issued on behalf of private entities for facilities
located in TIF District No. 4.
In addition, the Authority must report ,,nnually by M_o_,r~h 1 to the _Mtn,,esots
commissioner of revenue the following amounts for the entire municipality:
(1) the total principal amount of nondefeased tax increment financing bonds
that are outstanding at the end of the previous calendar year; and
·
(2) the total annual amount of principal and interest payment that are due
for the current calendar year on (i) general obligation tax increment financing
bonds, and (ii) other tax increment ftnan~ng bonds.
The Authority must -,,n,mlly report to the commissioner of revenue the
following amounts for TIF District No. 4:
(1) the type of district, whether economic development, redevelopment,
housing, soils condition, mined underground space, or hazardous substance site;
(2) the date on which the district is required to be decerttfled;
(3) the captured net tax capacity of the district, b~ff properl~y class as
specified by the commissioner of revenue, for taxes payable in the current _~,~endar
year;
(4)
year;
the tax increment revenues for taxes payable in the current calenda~
(5) whether the tax increment financing plan or other g~vern~ng document
permits increment revenues to be expended (t) to pay bonds, the proceeds of which
KEB87299
CII130-40 7
were or may be expended on activities located outside of the district, (it) for deposit
into a common fund from which money may be expended on activities located outside
of the district, or (iii) to other~se finance activities located outside of the tax
increment financing district; and
(6) any additional information that the commissioner of revenue may
require.
RB:B87299
c~3.3o-~o 8
EX'BIT A
Parcels included within TIF District No. 4. (P.I.D.)
25-118-00-10
25-118-00-20
25-130-07-00
25-195-00-20
25-195-00-21
25-119-00-30
25-119-00-40
25-195-00-30
25-272-00-30
25-272-00-20
25-272-00-10
R~87299
C~130-40
II
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CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
MEMORANDUM
Don Ashworth, City Manager
FROM:
DATE:
Todd O~rha~t, Assista]t City Managor -~,'
April 20, 1995
8UBJ:
Financial Information Regarding TIF District No. 4, Eute~ Ceater
At our last meeting, staff was asked to bring ~¢k firand_ al Information regarding TIF District No. 4
and the assistance requested for the Enmrtainmmt C, mmr Project. Am¢l~ ts the following
information:
1. A map of TIF District No. 4 that shows
con~_ dered for mdevelopne~
.
TIF Cash How Assumptions: Thts
generated from the redevelopmeat proj~
1995 taxes and ~ proposed new taxes
3. TIF Cash Flow Assumptions that the
a.
Semi-Annual Gross Tax New
improvements = $101 x 2 = $203,422 in
generated based on the pml~sed
taxes annually.
b. Administration
$20,342 .
10%: Money the HRA
to administer tl~ 'rlF District =
C.
Net
BoardwAlk/Sidewalk
Total
the redeveloper for ~ public
x2--
300~000
$1,460,000
The HRA cannot use tax increment to build or pay for facade improvemen~ but
the liRA can purchase enough land at a cost equal to tt~ amount of thc facad~
S~ Attachment ~, for proposed public improvements.
Mr. Don Ashworth
April 20, 1995
Page 2
LGA, Local Government Aid (Homestead Credi0:. With the creation of tltts new
district, the city will see a loss of homestead credit allocation from the state starting in
2002. This revenue may be made up if we find a general fund expenditure that could
be made in TIF District ~4 where the district could expend their revenues to pay for
the improvement/expense.
Limited Revenue Note: This sheet shows the proposed repayment schedule from the
HRA to the redeveloper for installation of public/fac~e improvements totalling
$1,460,000. This repayment schedule also takes into account interest payments to the
redeveloper at a level 9%. You should also be aware that payment would only be
made if the project generates suffident taxes as outlined in the pwforma.
LGA Cash Flow: This chart shows a comparison of the administrative fee the HRA
would receive minus the loss of local government aid from the creation of the disUtct~
The net result of the city would be a $139,567 loss in local government aid. But
again, one way to make up this loss would be to find a general fund expenditure that
would be needed in TIF District No. 4, i.e. the development of Heritage Square Park
and redevelopment of old St. Hubert's Ch~.
Staff has invited Sid Inman from Public Corp to Monday's meeting to analyze the attached cash flows
he prepared. Following his presentation, staff will be prepared to answer any questions.
P.2~S
'_
1.491763 l~y ~
0.00%
39.28%
97,50%
27.01%
~ THI~ CAgH FLOW A~SUMES ~ AU,. THE 10% ADMINISTRATION TO COVER ANY LQ, A, LOSS,
Rate: C/I 4.800O% Pay 94
P~Q~CT V~[~ m'm_~V~TlO~
Typ, o~ TaX mcmm~'~ New. nm~,m~m Dm~r~
PID Total Taxe~ Pm' TOIII Tax Mmrk~ Date Data
~]. Pt. Sq. Pt,_ Tmu~
P..S.11E~c)c)-lO ~,448 18,400 400,0oo 1006 1097
25-118-00.20 82.345 65.200 1,200,000 1996 1~97
25..130-07-C)0 00,07'0 6,k400 1,400,000
.25-10S-00-30 . 61 ,?$9
...
0~:83PM EH~ERS & ASSOCIATES
P, 9/'5
PERIOD BEGINNING
Yrs. Mth. Yr.
0.0 06-01 1
0.0 02,431 1996
0.0 08-01 1996
0.0 02-o 1 1997
0.0 08-01 1997
0.5 02-Ol 1998
1,0 08-.01
1,5 02-01 1999
2.0 08-01 1999
2.5 O2-01 2000
3.0 08-01 2000
8`5 02-01 2001
4.0 08-01 2001
4,5 02-01 2OO'3
5.0 08-0t 2002.
5.5 02-01 20O3
6,0 08-01 2003
6.5 02-01 2004
7.0 0801 2OO4
7.~ 02-01 2OO5
8.0 08-01 2005
8.5 02-01 2OO8
g.0 08-01 2008
g.5 02-01 2O07
10.0 08.01 2OO7
10.5 02-01 20O8
11,0 08-01 2OO8
11J~ 02-o 1 2009
12.0 O8-01 2oOg
12.5 02-01 2010
13.0 08-01 2010
13.5 02-01 2011
14.0 0801 2011
14.6 02-0t 2012
15,0 08-01 2012
15.5 02-01 2013
16,0 08-01 2013
16.5 02-01 2014
1%0 08-01 2014
17.5 02-01 2015
18,0 08-01 2015
18.5 02-01 2018
19.0 08-01 2016
19.5 02-01 2017
20.0 O8-Ol 2017
20.8 02-01 2018
2~.0 08-01 2018
21.5 02-01 2019
~-~.0 08.01 2019
22.5 02-ol 2020
23.0 08-01 2020
23.5 02-01 2'021
24.0 08-01 2021
_i?,&~_0.2~01 2p.~
Original
Tax
135,037 135,037 0 0
135,037 136,037 0 0
135,037 135,037 0 0
135,037 135,037 0 0
1~,037 271,400 138,383 101,711
135,037 271,400 138,383 101,711
135,037 271,400 138,383 101,711
135,037 271,400 138,388 101,711
135,037 271,4O0 138,353 101,711
135,037 271,400 1 38,353 101,711
135,037 271,40O 13~ ,3&3 101,711
135,037 271,400 1 38,363 101,711
135,037 2'/1,400 138,:~t8 101,711
135,037 271,400 138,383 101,711
135,037 271,400 135,385 101,711
135,037 27t,400 138,363 101,711
135,037 271,400 138,383 101,711
135,037 E71,400 13~,383 101,711
135,037 271,400 138,368 101,711
135,037 271,400 138,383 101,711
135,037 271.400 138,363 101,711
135,037 271,400 138,~63 101,711
13,5,037 271,400 138,383 101,711
136,037 271,400 138,383 101,711
135,037 271,400 138,863 101,711
13~,037 271,400 136,363 101,711
135,037 ~71,400 138,383 101,711
135,037 271,400 1 38,383 101,711
1~,037 271,400 138,383 101,711
135,037 271.400 1 38,383 101,711
135,037 27t,400 13~,383 101,71t
1~5,037 271,400 138,383 101,711
135,037 271,400 136,353 101,711
135,037 271,400 1 35,383 101,711
135,037 271,400 138,363 101,711
138,087 271,400 135,~63 101,711
135,037 271,400 136,363 101,711
135,037 271,400 138,353 101,711
135,037 271,400 136,353 101,711
135,037 271,4430 136,38,3 101,711
135,037 271,400 1 38,363 101,711
138,037 271,400 136,383 101,711
135,037 271,400 136,383 101,7t 1
1 35,037 271,400 138,363 101,711
135,037 271,400 138,383 101,711
135,037 271,400 1~8,383 101,711
13$,037 271,400 136,383 101,711
135,037 271,400 135,383 101,7tl
135,037 271,400 136,383 101,711
138,037 271,400 1 35,383 101,711
138,037
135,037
135,037
~'mJ~ "c,,~'r~
Tax Tax Gro~ Tax at
. Capa..~._Capaot.ly Inomment 10.00%
0
0
0
0
10,171
10,171
10,171
10,171
10,171
10,171
10,171
10,171
10,171
10,171
10,171
10,171
10,171
10,171
10,171
10 171
10171
10 171
10 171
10.171
10 171
10.171
10 171
10 171
10 171
10 171
10 171
10171
10 171
10 171
10 17i
10 171
10 171
10 171
10 171
10,171
10,171
10,171
10,171
10,171
10,171
10,171
10,171
I0,171
10,171
10,171
Tax
Increment
0
0
0
0
{11,840
91,540
91,540
81,540
91,540
91 ,~40
91,840
91,540
91,540
91
91,540
91,640
81,840
91,540
91,640
91 ,$40
91,540 }
~)1.s40j
91,840i
91,54.0i
91,540!
91,540
91,540
91,540
91
91,840
91,540
91,540
81,540
91,540
91.540
91.lN0
91,640
91,540
91 .~,0
91
91,~t0,
91,640
~1.5401
el .~,Oi
271,400 138,383 101,711 10,171 91,640j
271,400 138,383 101,711 10,171 91,540
271,400 136,383 101,711 10,171 91,540
271~.400 . 135.,{~.L~ 101,7_1] _~10,171_ g. ~I..,_~..L_.~
Totals. ..- ~.. B,085~.1~__.~..608~.,554 4,~_'76,986,[
'PI.E.r~.~_..~.~u,~ .... 1,.{~z,~E... ~,~72
27.01% ~mount 1 Yin. Mth. Y!.___;
o':~o--~-' -'~-,' o.-~i i~,
0.00%
0.00%
0.00%
0,00%
0.00%
0,00%
0.00%
0.00%
0.00%
0,00%
0.00%
625%
6.25%
18.75%
16.76%
25.OO%
25,00%
31 25%
31,2~%
37,50%
37,60%
4.3.75%
43,75%
50,00%
50.00%
5625%
68.25%
62,50%
62.60%
68,75%
68,76%
75.00%
76.00%
81
81 25%
67,50%
87J0%
83,75%
93,75%
100,00%
100.00%
100.00%
100,00%
100.00%
100,00%
100.00%
100.00%
100.00%
100.oo%
100.00%
lOO.OO.%
0 0.o 08-01
0 0.0 02-Ol
0 0.o 08-ol
0 0.5 02-01
0 1.0 08-01
0 1.6 03-01
0 2.0 08-ol
0 2.5 02-01
0 8.0 08-01
0 3,5 02-01
0 4.0 08-01
1,717 4,5 02-Ol
1,717 5,0 08-Ol
3,434 5,$ 02-01
3,434 6.0 08-01
6,150 6,5 02-ol
5,150 7.0 08-01
8,8~7 7,5 02-01
6,887 6.0 08-01
8,584 8,~ 02-01
8,684 9.0 08-01
10,301 9.5 02.01
10,301 10,0 08-01
12,017 10.5 02-Ol
12,017 11.0 O8-01
13,734 11.502-01
13,734 12.0 08-Ol
15,451 12.$ 02-01
18,451 13.0 08-01
17,168 13.5 02-01
17,168 14.0 O8-Ol
18,8851 14,6 02-Ol
18,885~ 15,0 O8-01
20,601 ~. 16.5 02-01
20,6011 16.0 08-Ol
22,3181 16.5 02-01
~2,318~ 17,0 08-Ol
24,03S ! 17,~ 02-Ol
24,0361 16.0 08-01
~,7r~. 18.5 02-01
2s,7521 1~.00a-ol
27.4~8 10,6 02-01
27,468 ~0.0 08-01
27,468 20.5 0~-ol
27,488 21.0 08.01
27,488 21.5 02-01
27,468 22.0 06-01
27,468 22.5 02.01
27,468 23.0 08-Ol
27,468 23.5 02-01
~7,468 24.0 08-01
27,468 24.5 02-01
27,46~..: 25.0.{~-01
741 ~..~t~_
34~707j
1~7
1~7i
1988~
1999
2000
2OO0
2001!
20011
2OO2I
20021
2O03
2008
2OO4
2O04
2005
2005
2OO8
20O8
2OO7
2O0?
2OO8
2O08
2009
201 t
2011
2012
2012
2013
2013
2014
2016
2015'
2018
2018
2017'
2017;
20t8
2018
2019
2019
;2020
20201
2021 ~
2021[
202.~J
'9~' ' I;t3: 24PM
0.0 08-01 1997
0.5 02-01 1998
1.0 08-01 1998
1.5 02.01 1~9
2.0 0~01 1999
2,5 0201 2000
3.0 08-01 2OOO
4.0 138-01 2001
4.5 0201 200E
5.0 0801 2OO2
6.0 08.01 E~303
6.5 02--01 2004
7.0 08-01 2.O04
7.5 02-01 20O5
8.0 08-01 2OO5
8.5 o2-01 2O06
9.0 08-01 2006
9.5 02.01 2O07
10.0 08-01 2207
10.5 02-01 2OO8
11.0 08-01 2OO8
11.5 02-01 2O09
02-01 2010
13.O 08"01 2010
13.5 02-01 2011
14.0 0~01 ~.011
14.~ 02-01 2012
15.0 0601 2012
15.8 02-01 2013
16.0 08-01 2213
16.5 02-01 2214
17.0 08-01 2014
17.5 02-01 L2015
18.0 08-01 2015
18,5 02-01 2016
19.0 0~01 2016
19.5 02-01 2017
EO.O 08-01 2017
22,5 02-01 2018
21.0 08-01 2018
21.5 02-01 2019
22..0 01~01 2019
23.0 08-01 202O
24,0 08-01 2021
TotalS.
[ P ..me~_n~t Va~J~j~l~
LIM1TED RKr~F, NT~ NOTE
aeg~ ~/~-n.~'~ Principal Interest Total -End
Baarce ~nten~ ,~_Lmen. t
1,510,965 ~,263 0 0 0 1,885,228
1,58~,226 71,.385 0 0 0 1,~56,5~4
1,556,564 74,545 0 0 0 1,731,1
1,731,109 77,900 0 0 0 1,809,009
1,609,00~ 0 10,134 81,406 91,640 1,71~,~74
1,798,874 0 10,690 80,94~ 91,540 1,788,284
1,788,284 0 11,067 80,473 91,540 1,777,217
1,77'7,217 0 11,565 70,97// 91 ~ 1,765,662
1,766,662 0 12,0a5 76,454 91,640 1,763,~7
1,753,$67 0 12,(~29 76,911 91,64O 1,740,938
1,740,936 0 13,108 78,342 ' 91,64O 1,727,740
1,727,740 0 13,791 77,748 91,640 1,713,940
1,713,949 0 14,412 77,126 91,640 1,699,~7
1,699,/137 0 15,0~1 76,479 01;E,40 1,664,4~
1,e94,478 0 15,738 75.801 01,540 1,698,738
1,668,7'36 0 le,447 75,003 91..540 1,952,291
1,662291 0 17,187 74,353 91,640 1,63.5,106
1,635,108 0 17,960 73,68o 91,640 1,617,145
1,$17,145 0 18,768 72.77E 91,540 1,598,376
1,~98,370 0 19,613 71,027 91,~&0 1,678,764
1,576,764 0 20,495 71,044 91,640 1,658,268
1,558268 0 21,41~ 70,12~ 91,540 1,536251
1,E~6,851 0 22,381 69,168 91,540 1j14,4~9
1,514,460 0 23,369 68,151 91,640 1,491,080
1,401,080 0 24,441 67,0~9 91,540 1,406,630
1,466,939 0 26,541 66,609 91,/540 1,441,006
1,441,008 0 23,~90 64,840 91,640 1,414,406
1,414,406 0 27,891 63,648 91,540 1,366.517
1,386,517 0 29,140 ~2,3/~ 91,640 1,957,3"/0
1,/~7,370 o 30,468 61,082 91,540 1,326,912.
1,326,91~ 0 31,829 50,71 t 91,540 1,~.5,083
1,29~,068 0 33,251 ~6,270 91,54o
1 261,622 0 34,758 59,782 91,540 1,227,068
1,227,066 0 36,322 6~,216 ' 91,54o 1,190,743
1,100,743 0 87',~ 63,.583 91,540 1,152.787
t,162,707 0 3~,664 51,875 91,~40 1,113.122
1,113,122 0 41,449 50,091 91,540 1,/371,673
1,071,673 - 0 43,314 43226 91,540 1,028,359
963,095 0 47,300 44,230 9t ,64o 9~6,795
935,795 0 40,429 42,111 91,540 666,366
886,366 0 51.653 39,868 91,84o 834,712
934,712 0 53,97s 37,59~ 91,540 780,735
724,326 0 68,646 32,595 912,40 685,383
oes,3as 0 91 ~ 29,942. 91,54o e03,7s6
~433,766 0 64,369 27,170 91,.540 539,415
63~,41 $ 0 67,266 24,274 91 ,.540 472,150
472,t~:) 0 70,293 ~1,247 91,640 401,867
401,657' 0 73,466 18,084 91,640 328,401
3E8,401 0 76,762 14,776 91,540 2~1,639
2.61,~ 0 60,216 11,324 91,.540 171,423
171,423 0 63,626 7,714
.~',698. 0 aT..~94a 91.s40 0
P.4,~
PERIOD ENDING
0.0 02-01
0.0 08-01
0.0 02.-01
0.0 06-01
0.5 02-01
1,0 08-01
1.5 02-01
2.0 08-0t
3.0 C)~-C)I
4.0 0~,01
4.5 02.01
5.S 0~-01
6.0 08-01
6,.$ 02-ol
7.O 08-01
7.5 02,.01
8.0 08-01
6.5 02-01
9.0 08-01
6.5 02-01
10.0 06-0t
10.5 02"01
11.0 06-01
11.5 02.Ol
12.0 08-01
13.0 0~-01
15,5 02-01
14.0 0~.Ol
14,5 02-01
15,0 0~01
16,0 08-01
16.6 02-01
17.0 08-01
17-6 0'2-01
18-0 0~01
18.5 02-01
19,0 08-01
20,0 08-01
20,5 02-01
21,5 02"01
22,0 0~01
23.O 08-01
29,5 02-01
24~ 08-01
24.5
25.0
1997~
1998
1998
1099
2001
20O7
20O7
200~
2008
2010
2010
2011
L~011
2012
2013
20131
2O14
2014
2015
2015
2016
2017
2017
2018
2018
2019
2019
20201
04/12/~$
--
RPR 1~ "95
O3:8SPM EHLERS & RSSOCIATES
~ of Chanha~en · Inter~inment Center
P. 5/5
Pa~ 4
-' L.G.A. CASH FLOW
!PERIOD BEOINNING
Yrs. Mth. Yr.
0.0 06-01 1995
0.0 02-01 1996
0.0 08-01 1996
0.0 o2.o 1 1997
0.0 08.o1 1997
0.5 02,01 1998
1.0 o8.ol 1998
2,0 08-01 1999
2.5 02-01 2000
3.0 08-01 2000
3.5 02-01 2001
4.0 08-01 2001
4.5 02-01 ~002.
8J3 08-01 2002
5.5 02-01 2O03
6.0 08-01 2003
6.5 02-01 2004
7.0 08-01 2004
7.5 02-01 2005
8.0 08-01 200~
6.5 02-01 2008
9.0 08-01 2008
9.5 02-01 2007
10.0 O8-01 2007
10,5 02-01 2008
11.0 08-01 2008
11.5 02-01 20O9
12.0 08.01 2008
12.5 02-01 20t0
13.0 08-01 2010
13,5 02-01 2011
14.0 08-01 20tl
14,5 03-01 2012
15.0 08-01 2012
15,5 08-01 2013
16,0 08.01 2013
1~.5 02,ol 2014
17.0 08-01 2014
17.5 02-01 2015
18.0 08-01 2015
18.5 02-01 2016
19.0 08-01 2016
19.5 02-01 2017
20.0 08-01 2017
20.5 02,ol 2018
21.0 08-01 2018
21.5 02-01 2019
22,0 08-01 2019
22.5 02.01 2020
23.0 08.Ol 2020
i 23,5 02-01 2021
= 24.0 08-01 20'21
! 24.5 02-01 ~022
I
Beg. '/' Interest Admln.
Bal=noe 4,00~ Pmyme .nt. .
0 0 0
0 0 0
0 0 0
0 0 0
0 0 10,171
10,171 203 10,171
20,546 411 10,171
31,128 623 10,171
4,1,921 838 10,171
~.,1~1 1,059 t0,171
64,160 1,283 10,171
75,615 1,512 10,171
87,298 1,748 10,171
97,498 1,9~0 10,171
107,903 2,158 10,171
115,798 2,3.38 10,171
125,872 2,517 10,171
133,410 2,M8 10,171
141,099 2,822 10,171
147,225 2,944 10,171
153,473 3,08.9 10,171
158,130 3,183 10,171
1~,880 3,258 10,171
166,008 3,320 10,171
169,198 3,384 10,171
170,7'38 3,418 10,171
172,~)4 3,446 10,171
172,187 8,444 10,171
172,088 3,44.1 10,171
170,2~9 8,405 10,171
168,364 3,3~7 10,171
184,724 3,294 10,171
161,022 3,220 10,171
155,629 3,111 10,171
t49,926 2,i~9 10,171
142,494 2,850 10,171
134,914 2,6~8 10,171
128,46'5 2,509 10,171
115,827 2,317 10,171
104,:~80 2,08~ 10,171
92,502 1,850 10,171
78,771 1,575 10,171
64,76~ 1,295 10,171
48,784 975 10,171
32,442 649 10,171
15,794 316 10,171
(1,188) 0 10,171
(18,485) 0 10,171
(3~,783) 0 10,171
(83,080) 0 10,171
(70,377) 0 1 O, t 71
(67,$75) 0 10,171
(104,972) 0 10,171
(122~289)..... 0 10,171
. e3,5~....' -~8,654
L.G.A, Ending
Paymen! i~lsnc, e
0 0
0 o
0 0
0 0
0 10,171
0 20,54~
0 31,128
0 41,921
0 62,~1
0 ~4.,180
0 75,815
0 87,298
(1,717) 97,498
(1,717) 107,903
(3,434,) 11
(3,434) 125,872
(5,150) 133,410
(5,150) 141,099
(6,867) 147,225
(~,887) 163,473
(8,r~84) 158,180
(8,584) 162,880
(10,301) 18~,008
(10,301) 169,198
(12,017) 170,73~
(12,017) 1'~,304
(13,734) 172,187
(13,734) 172,068
(16,461) 170,229
(15,451) 168,354
(17,168) 164,724
(17,168) 161,022
(18,8e5)
(18,888) 149,926
(20,601) 142,494
(20,601) 134,914
(22,318) 121~,46~
(22,318) 115,827
(24,035) 104,280
(24,038) ~,502
(35,782) 78,771
(25,752) 64,766
(27,4~8) 48,764,
(~7,4~)
(27,488) 16,794
(27,468) (1,188)
(27,4~8) (18,486)
(27,488) (35,783)
(27,468) (83,080)
(27,468) (70,~77)
(27,4.88)
(27.468) (t04,972)
(27`468} (122,,~9)
.. ¢7,468) ..(.139.587~
· (741,648).
PERIOD ENDING
Yr~.
o.o
o.o o8.ol 1
0.0 02-01 1997
0.o
0.5
1.0
1.5
2,0
2,S
3.0
4.0
4.5
5,0
5,5
6.0
6.5
7.0
7.5
8.0
8.8
9.0
9.$
10.0
10.5
11.0
11.~
12.0
12.5
13.0
13.5
14.0
14.~
15.0
15.5
16.0
16.5
17,0
17.5
18.0
18,5
19.0
19.5
20.O
20.5
21.0
21.5
22,0
22,5
23.0
23.5
24.0
24,5
08-01 1997,
02-01 1998:
08-01 1998.
!
02-01 1999,
02-01 2o00)
OB`Ol 2000~
02-01 ~'001 i
OB-01 2001~
02-01 2OO2:
08-01 2002~
02-0t 20031
08-01 2003;
02-01 2004'
02-01 2005'
08.01 20051
02.01 20O6'
08-01 2006I
O2.Ol 2007
08-01 2007
02-01 2008
08-01 2008
02-01 2009
08-01 2O09
02.01 2010
02-01 20
08-01 2011
02-01 2012;
08-01 2012!
O2.-01 2013J
08-01 2013
02-01 201~
08.01 2014
02-01 2015'
08-01 2015'
02-01 2016
08-01 ~.016
02-01 2017
08.01 2017
02-01 2018
08-01 2018
02-01 2019
08-01 2019
02-01 '2020
08-01 '2020
02-01 2021
08-01 2021
02-01 2022
·
08-01 2_022