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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 z Z M,J, SOREH Doe 9915 ;22.68 ILOOMBERg · DOG NO. CITY 9182~ · 9588g ?9·. om DRIVE 1:5468 " I'q · }.' J. 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