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2001 11 01F/LE COPy Agenda Economic Development Authority Thursday, November 1, 2001, 6:30p.m. City Council Chambers, 690 City Center Drive Public Hearing on Proposed Land Sale of Chanhassen Bowl Property, 581 West 78th Street. o Consider Resolution Adopting the Modification to the Redevelopment Plan, Establishing TIF District No. 8, Presbyterian Homes. Agenda Special Chanhassen City Council Meeting Thursday, November 1, 2001, Immediately Following the EDA Meeting City Council Chambers, 690 City Center Drive 3. Debt Study Presentation. ' ' ' ' CITYOF C I SEI 690 City Center Drive PO Box i47 Chanhassen, Minnesota 55317 Phone 952.93Zi900 General Fax 952.937. 5739 Engineering Deparonent Fax' 952.937.9152 Buildi,g Department Fax 952.934.2524 Web Site www. ci. cha,hasse,, m,. us TO: Economic Development Authority FROM: Todd Gerhardt, City Manager Bruce DeJong, Finance Director John Kelly, Campbell Knutson PA DATE: October 26, 2001 SUB J: Purchase Agreements -Chan Bowl Property Attached hereto is our comparison of the Purchase Agreements of Big Bear, LLC and Kraus-Anderson, Inc. for the Chan Bowl property owned by the Economic Development Authority in and for the City of Chanhassen ("EDA"). As you can see, there is a difference in the purchase price and some of the obligations of the City, i.e. cost of survey, etc. (see Attachment #1). There also is a difference in that Kraus- Anderson intends to develop only the Chan Bowl property, the land next to the theater, the Bloomberg parcel, and to reconfigure the parking area and SOuthwest Metro Park: and Ride area; wherein the Big Bear plan involves other properties and'is a much larger parcel or, ned by additional parties, and involves demolishing additional buildings; therefore, some of the terms are different and the Big Bear, LLC agreement requires more involvement of the City. ~ Depending on which Purchase Agreement the EDA intends to proceed with, we would recommend that prior to signing either agreement, the parties should be required to provide evidence that they have the financial capabilities to perform under the terms of their respective Purchase Agreement, i.e. they should provide financial statements on the entity signing the Purchase Agreement, names of shareholders, and descriptions of other projects they have developed, etc. We also believe that there should be specific timelines established for the party to perform such as (i) approve title and survey matters, (ii) approve environmental and soil testing, (iii) acquire other property necessary for the proposed development of the respective project, (iv) obtain any required financing for the project, (v) file all necessary applications for zoning and development with the City. If the Buyer fails to meet the proposed timelines, the EDA should then have the right to terminate the Agreement and refund any the earnest money. Once the EDA determines which proposal they would like to see proceed, we should meet with the party selected to fine tune the purchase agreement before it is executed. The O~ of Chanhasse,. A ctvwi,~ comm,nitv wit~ cba, /akec Mayor & City Council October 26, 2001 Page 2 Parameters for the Redevelopment of the "Bowl" Property 1. Turn the property quickly. 2. Staff told the EDA that it would take a minimum of two years to see the site developed (March 2001). 3. Use of the property was a concern. 4. Mitigate the risk of additional expenses. 5. Today's market (retail) is slow at best. Big Bear Pros Extra $100',000 purchase price Assuming Bloomberg Companies is a part of "Big Bear", they could easily purchase Outlot B, Bloomberg Addition and other small outlots (C, D & walkway). Addresses future Dinner Theater redevelopment. Coils They have not addressed Southwest Metro's Park and Ride needs (with the exception of a parking ramp). Staff believes it would take 2-3 years to build a parking ramp. That if, SW Metro is successful in receiving a grant in 2002. Their proposal is more "complicated" and would need an extended period of time to complete. Their proposal would also take years for the development to occur. No specific deadlines that will impact city holding costs and loss of future taxes on KA development. Big Bear would have to address acquisition of Easy Rider property currently owned by the City and SW Metro's permanent easement. Mayor & City Council October 26, 2001 Page 3 · Will it need city assistance? · Vacate Pauly Drive · Their purchase agreement is really a 1 year 6 months option agreement. Kraus Anderson Pros Cons · · Tentative agreement with Southwest Metro for Park and Ridge More fully developed concept plan Faster development timeframe Big Bear's redevelopment plan isn't precluded by KA's usage of property Specific deadlines for progress benchmarks Lower carrYing costs for city $100,000 less purchase $5,000 for survey · Must acquire remnant parcels also (condemnation?) · Requires cross access easement for Easy Rider outlots · Want 1 year leasing contingency · One year decision deadline Mayor & City Council October 26, 2001 Page 4 PROCESS TO BE USED TO REVIEW PROPOSALS I. Presentation by Big Bear (15-20 minutes) 2. Presentation by Kraus Anderson (15-20 minutes) 3. Open Public Hearing for Comments 4. Close Public Heating after all comments received 5. EDA Discussion/Consider Approval of Purchase Agreement ATTACHMENT 1. Comparison of Kraus-Anderson and Big Bear Proposals 2. Big Bear Proposal 3. Kraus Anderson Proposal g:hdmin\tg\chan bowl redevelop.doc vlotmc LOTUS REALTY SERVICES September 25,200 l TO: FROM: RE: Todd Gerhardt, City Manager Vernelle Clayton Bowling Alley Site Pursuant to earlier discussions, I am enclosing herewith a copy of a very preliminary massing sketch of the 'Bowling .a51ey Site and the adjacent parcels. The sketch is intended as a representational drawing to reflect the potential capacity of the site for a variety of uses. It is also intended to be a visual depiction of the need to design the Bowling Alley Site as a part of the whole in order to preserve the full development potential. No proposed changes are reflected regarding Country Suites or the High Timber Lounge and the only change to the Cinema reflects an example of how an addition could be made. Bloomberg Companies is cooperating in the process that will be undertaken to develop a specific plan tbr the Bowling Site which will be compatible with both the existing and future development of the overall site. And, it is the intent of the purchaser that the Bowling portion will be the fa'st portion to be redeveloped. As to how the sketch reflects the Bloomberg properties to the east, it is important that anyone viewing this sketch understands that although Bloomberg Companies has not had an opportunity tbr input to the planner'regarding their long term plans nor have they reviewed this plan or any other plan with their tenants. Nothing in these drawings is to be construed as in any way jeopardizing the rights of existing tenants in existing buildings to continue their peaceful enjoyment and use of the property. It is merely presented to illustrate development potential on the site. tt is equally important to understand that this sketch does not necessarily represent any specific plan for any other specific part of the property. Suffice to say the release of this sketch could have a very unproductive outcome and we respectfully request that there be no reproduction or public distribution of this sketch drawing unless authorized by Lotus and Bloomberg Companies. 551 WEST 78TH STREET · P.O, BOX 235 I CHANHASSEN, MINNESOTA 55317 [] (952) 934-4538 II FAX (952) 934-5472 July 5,2001 Architecture Engineering Planning Vernelle Clayton Lotus Realty Services 551 West 78th Street, P.O. Box 235 Chanhassen, Minnesota 55317 Re: Chanhassen Urban Infill and Redevelopment Project Dear Vernelle: Hammel, Green and Abrahamson, Inc. is pleased to submit this proposal for professional services for the above referenced project. Urban infill and redevelopment is a specialty of our urban planning practice and a service that we have strong experience with in the Twin Cities and throughout the Midwest. Successful revitalization of any project of this scale and complexity requires a collaborative approach and a team (client and consultant) committed to delivering all aspects necessary to redevelopment. HGA has the capacity and expertise needed to complete the initial planning and urban design work as welt as all facets of the project including architecture, engineering, cost estimating, project management, and construction administration. We also work with a variety of specialized consultants such as markefffinancial analysts and traffic/transportation planners that may be needed for your project. Our proposal is highlighted by: o Senior'level urban designers, planners and managers experienced with mixed-use, urban redevelopment projects supplemented with architects, landscape architects, civil and structural engineers. o A team very experienced with working with local officials through the approval process of Plan Commissions, City Council, staff review and public presentations. o A local and firm-wide base of resources that have designed theatre/performing arts centers, corporate offices, retail and mixed-use buildings, medical/healthcare facilities, light rail/transit stations as well as parking structures, hotels, restaurants and urban housing. o The ability to work in a confidential manner and coordinate in a consensus-building method with the key stakeholders on a regular basis. We have assembled a team that will be able to address all the key factors and provide solutions based on your collective goals and expectations. The result will be a conceptual master plan that meets an agreed-to development program, is feasible from a phasing and financial point, meets the requirements of the City and responds to the charadter and uses throughout and adjacent to the site. We think this is a great opportunity to create a unique, mixed use center in the heart of Chanhassen that will define a true place for people to live, work, shop, play and serve as a transit hub. We are very interested in this project and how we can help make it a success. Thank you for this opportunity to propose services; please let me know if you have any questions or need additional information. Sincerely, Project Director Enclosure 1201 Harmon Place · Minneapolis, Minnesota USA 55403-1985 Telephone 612.337.4100 Facsimile 612.332.9013 Visit our Website: www.hga.com Summary of Project Understand|ng We understand you and your stakeholders want to prepare a redevelopment plan for a key site in the Chanhassen central business district. A focus of this plan will be to gain acceptance and eventual approval from the City in order to move toward implementation, infill and redevelopment. You have identified a variety of uses and multiple sites that make up the project area and wish that they be planned and designed from an integrated, ~vholistic perspective. This approach would necessarily view the collection of uses and sites as a sum that together provides a greater value to the site than each use individually. We have visited the project area and understand the various components of the site. From our visit and discussions with 7ou we make the following observations: · West 78"' acts as the 'main street' and will provide primary access into the site. "Great Plains Boulevard from Hwy 5 acts as a 'gateway' to the site. "Topography in the south portions of the site provides an opportu nity to'tuck-in' a parking structure that would relate to multiple levels. · An abundance of surface parking exists now that is not being used most efficiently and presents an opportunityas building sites through the use of shred parking arrangements. · The rail line is an active freight line (and potential commuter line) that acts as the western boundary of the site. · A Southwest Metro park and ride stop is located on-site near Market 8oulevard; this transit function must remain but may be considered in another location. · The Country Suites Hotel and Cinema are proposed to remain; all other uses on-site (Frontier Building, Dinner Theatre and other retail uses) may be removed to accommodate the long-term vision for the site. · You made reference to a housing component on the west portions of the site (west of the cinema); we would also suggest considering the east portions of the site (e.g., the dinner theatre parking) as residential use. This particular area isa "quieter" area, elevated above the rail line, and could work (i.e., simila r scale and use) with the city-owned parcel, east side of Great Plains Boulevard. · This would place an emphasis on the west portions of site as retail/service and office uses. · We thinkthat havingthe dinner theater at the center of the site, on the 'main street', and situated on a town green or park, that may also have a relation ship to the cinema (i.e., an entertainment "core") could be a strong solution for redevelop- merit and for creating an active, people oriented place. These represent how we under- stand and how we are beginning to think about this project. We realize that the desired program must ~vork in concert and respond to a feasible phasing and development schedule. And that ~ve must work with you to determine the appro- priate solution for all the stakehold- ers. Chanhassen Urban Infill and Redevelopment Project HGA Experierience Selected Related Projects Urban Planning and Redevelopment Plans · West Site Flats - Master Plan NortheastQuadrant- Master Plan ,. Roseville Arona - Site Development Plan ,, Maplewood/St. Paul - Hillcrest Redevelopment P!an · Monnona Drive Corridor- Redevelopment- Madison, Wisconsin · Washington Avenue- Redevelopment - Madison, Wisconsin ,. Clover Fields- Chaska. Minnesota · RamseyVillage- Duluth, Minnesota Office · Grand Forks Corporate Center - Grand Forks, North Dakota - One Landmark Center- Madison. Wisconsin ,. Lake Forest Office Building- Lake Forest, Illinios · Park Nicol[et Medical Center- St. Louis Park, Minnesota Retail · GapStore- Uptown, Minneapolis · Retrospect/Room & Board - Edina, t,,,lin nesota · World Trade Center redevelo menu- Saint Paul. Minnesota · Town Square Redevelopment- Saint Paul, Minnesota Housing Prince George County- Mary land Artspace Housing (three sites) i].0 Grant- Minneapolis, Minnesota Mikary Plaza- Minneapolis, Minnesota .~01 Grovetand Terrace - Minneapolis, Minnesota Hotel · Hilton Garden Inn - Rochester, Minnesota .EmbassySuites- Philadelphia, Pennsylvania · University Radison Hotel - Minneapolis. Minnesota Theatre · Myles Reif Pedorming Arts Center- Grand Rapids, Minnesota · Playwrights' Center- Minneapolis, Minnesota · Valpa raisoUniversity Performing Arts Center-Valpo University, Indiana · Pantages Mann Theatre Renovation - Minneapolis, Minnesota · Guthrie Theatre Renovations- Minneapolis, Minnesota Restaurants · The St, Paul Grille- St. Paul, Minnesota · Minneapolis Cafe- Saint Paul, Minnesota .Canadian Honkers - Rochester, Minnesota Chanhassen Urban lnfill and Redevelopment Project Planning and Design Process l Planningand Preliminary Design 0 4weeks) · Prepare site development options for · ;'" analysisofcostand proforma evalua- ~.'.'~ .~ development , .'"; :.. phasing and preliminaryconcept plan for ' "'"'."' .',~ .............. ',"''"" initialcitystaffreviewandcomment , .'., , . .... ;.. ',, . ..: .': ..:'... ,,~..,;. ', , ' An interactive a nd collaborative process of design and planning designed to build directly on the pre- design data and project definition. The team will generate options that result in a project design and master plan direction being established and ultimately being set for further detailed development. 550 --750 hrs. $45,000 - $59,500 professional services Reimbursable expenses $2,000- $3,000 Thc allocation of fees is estimated only and will change as the work efforts and your specific needs become more clear after the initial meetings and work sessions. We will modit~, tasks, fee allocations and work cmphasis to tailor our Team's scmiccs to 3,our needs. This iterative process is typical at thc beginning o£a planning project. We Propose Our fees will be billed on an hourly basis based on our estimated range and assumes a resonable number of meetings and work sessions during July, August and September. Chanhassen Urban Infill and Redevelopment Project HGA Project Team HGA has identified a design team with experience in all areas of programatic project clements to lead and develop the project master plan. Copies of their resumes are included. Project Director/Senior Planner Mike Lamb Design Architects Kevin Flynn Phillip Koski Urban Planner Rich McLaughlin Project Architect/Manager Bill Madden Civil Engineer Kenny Horns Landscape Architect Terry Minarik Consultants As the project is in the initial predesign work effort, we will identi .fy any additional specialty areas of expertise that may be required, such as traffic, market analysis, construction cost estimat- ing that may be required for the desired work effort to be fully informed fo[ successful implemen- tation. Preliminary Project Schedule Design Team Selection 7/9 - 7/13 1 week Scope of Work]Contract 7/16 - 7/20 1 week Initial Project Work Session 7/24 - 7/26 2 days Pre-Design 7/27 - 8/17 3 weeks Review (Owner) 8/20 - 8/24 1 week Planning & Design 8/27 -9/21 4 weeks Review (Owner) 9/24 - 9/28 1 week Development/Documents 10/1 - 11/2 5 weeks Submit for EQB monitor 11/5 / 11/2 12/4 15 weeks 1/8 1/28 2/11 Submit plan for city review Planning Commission Meeting #1 Planning Commission Meeting #2 City Council Meeting #1 City Council Meeting #2 Chanhassen Urban Infill and Redevelopment Project West Side Flats Saint Pau~ Minnesota A new urban neighborhood for Saint Paul is being envisioned on the Mississippi River that clearly articulates the "Saint Paul on the Mississippi Development Frame- work". The new neighborhood is a mixed use urban village where people will live and work in the context o f the downtown. The plan seeks to create a bal- anced, sustainable place that incorporates the environment, the economy and the community into a riverfront neighborhood. The physical plan for the area recog- nizes the historic grid of streets and will contain over 900 new housing units and a central neighborhood park fronted by townhomes and apartments. The plan also includes corporate offices, high-end riverfront condominiums and restaurant/entertainment uses. The West Side Flats site contains a high quality public realm, a diversity of housing types, corpo- rate and community uses, and a strong relationship to the Missis- sippi River and the greater West Side neighborhood. Chanhassen Urban Infill and Redevelopment Project Clover Fields Neighborhood Development Plan Chm~, Minnesota Clover Fields is a 48 acre new traditional neighborhood develop- ment that will include a wide variety and mix of residential, commercial, community and park uses surrounding the new Cloveridge Elementary School. The new neighborhood was planned in response to develop- ment guidelines prepared by the Cio/ofChaska's Planning and Development Department to demonstrate principles of Smart Growth, sustainable development and "green" building through the application of traditional town planning principles. A mixed use commercial/apart- ment building will anchor one corner of the town center across from the school and communi .ty building. All units are organized around a neighborhood green. A major design feature of the plan is a prominent public realm of connected parks, open space (including a regional trail segment), sidewalks and pedestrian paths that accommodate convenient move- ment throughout the neighbor- hood. Development Data * Developed Area 24.5 ac · Street/Alley R.O.W. 12.9 ac ° Parks & Open Space 4.7 ac ° Wetland area 3.7 ac · Pond Area 1.5 ac · CommunityBuildingSite .8 ac A unique aspect of the plan is the use of modular building technology to provide a range and variety of' residential types, prices and sizes. The neighborhood includes almost 400 residential units from rental apartments and rowhouses to small and medium lot single family units and for-sale townhouses. Chanhassen Urban Infill and Redevelopment Project Grand Forks Corporate Center Gramt ?orks, North Dakota Do~vntown Grand Forks encoun- tered major destruction after the spring flood and fire of~997. The city of Grand Forks developed this project to reestablish the down- town core as a major place to do business. The Grand Forks Corporate Center includes one five level building ofTo,ooo sF and one three level building of3o,ooo sF. The two buildings are attached by a skyway and are connected to a new 40o car-parking structure. Grand Forks' largest bank (First National Bank of Grand Forks), their largest accounting firm (Brady Martz and Associates) and their largest law firm (Camrud Maddock Olson and Larsen) will be located in the larger, five level building and the 3o,ooo sF building will house several smaller tenants. The complex is scheduled to open in the spring of 1999, only two years after the disaster. The intersecnon of Fourth and Demers was selected as the project site as it was the former address of the three dislocated tenants. Also, this location is a logical center city axis as Demers is a major east-west thoroughfare and Fourth Street is a connector of important public buildings. A corner tower was built which anchors the Fourth and Demers intersection and serves as a beacon visible from the river and also upon approaching downtown from the west.- The limestone colored precast base, and the red brick and glass to,vet respect the historic character of downtown while creating a progressive corporate identity for the tenants. A public lobby, clearly articulated at the street level, serves the larger building and a grand staircase connects the first two levels of the building creating easy skyway access. Large windows at the street level enhance the building's pedestrian presence and provide daylight deep into the office space. The upper level will include a view of the river and a two level corner conference room. This complex is already serving as a catalyst for new downtown development and has positioned the city and the building tenants as leaders in the rebuilding of Grand Forks. Chanhassen Urban Infill and Redevelopment Project Gap Mim~ea?olis, Minnesota In designing the new Gap store at Hennepin Avenue and Lake Street in Minneapolis, we faced the task of creating a polite yet challenging building for one of the most vibrant corners in the Twin Cities area. The building had to be both historically-sensitive, yet dynamic and fashionable in order to succeed in a highly competitive setting. The design features two-story windows with soaring views that allow the entrance of light into the public areas of the building. Inspired by Madison Avenue in New York, display spaces on both floors were created to add a sense of complexity and allure to the objects and activities within. Chanhassen Urban Infil! and Redevelopment Project Chafoulias Companies Hibon Garden Inn Rochester. Minnesota The Hilton Garden Inn, Roches- ter, Minnesota, is an adaptation of a suburban style hotel to an urban site. The design incorporates signature architectural elements of the Garden Inn brand including the clerestory entrance pavilion, fitness center and conference room. Architectural precast concrete and glass at street level engage the sidewalk and adapt to the rhythm of the downtown street scape. Hotel guests are connected to the medical campus by skyway. Chanhassen Urban Infill and Redevelopment Project Myles Reif Performing Arts Center Grand Rapids, ~innesota Surrounded by magnificent pine ~voods, the Myles Reif Per~-brming Arts Center is an addition to an existing senior high school. The Performing Arts Center is the result of an unusual collaboration between a community arts associa- tion and the school district; facilities are utilized for theatrical and musical productions by both groups. Entry, to the site is a long narro~v curving road through a forest of Nonvay and white pines. The Arts Center, set at a 45 degree angle to the existing high school, provides a new image for the complex. Its cedar wood siding forms a theatri- cal banner relating the structure to the wooded surroundings and stands as an announcement of special community activities. Below the banner, glass walls enclose lobby spaces affording views of forest and also a glow of activity as one approaches the theater for evening performances. The major performing space is a theater with fixed seating for 630, capable of increasing to 700 with moveable seating. A minimum stagehouse for "tripped" scenery is used for proscenium productions and the fiat floor provides for construction of a unitized raised thrust stage. Flexible theatrical lighting, an extensive cat~valk system, adjust- able light ports and side lighting balconies give this theater a quality lighting system. Acoustically, the theater is "tuneable", incorporat- ing adjustable fabric banners and removable sound-reflecting baffles. The exterior wood is carried into the interior through lobby ceilings and forms the interior theater walls. Chanhassen Urban Infill and Redevelopment Project M~e Lamb Urban Dvsign/Project Director HGA Mike's ~vork xvith urban neighbor- hoods, town centers/downto~vns and redevelopment districts has given him unique experience with understanding, facilitating, planning and designing the public realm, urban housing and building types, and in-fill strategies. Mike's experience includes: · Town Center Redevelopment/Rail Station, Newport, Minnesota · Hiawatha LRT Corridor Citizen Work- shops, Minneapolis, Minnesota ° Downtown Redevelopment Plan, Hugo, Minnesota ° Robert Street Redevelopment Plan, West St. Paul, Minnesota ° State Capitol Comprehensive Plan, Oklahoma City, Oklahoma Urban Design and planning of new' urban neighborhoods, town centers and developments including: ,, West Side Flats, St. Paul, Minnesota · NEQuad/CooperSquare, St. Paul, Minnesota · Mixed Use Town Center, St. Louis Park, Minnesota · Easter Lake New Town Neighborhood, Des Moines, Iowa ,, Koch/Mobil Redevelopment Plan (St. Paul, Minnesota · UrbanVillage Development Plan, Minneapolis, Minnesota · M/drown Commons TND, Madison, Wisconsin Design Charrette and Community Workshop Experience Michael has led or participated in dozens of design charrettes and community-based interactive, participatory workshops. · Seven Corners Gateway, Saint Paul, Minnesota · Easter Lake New Town Neighborhood, Des Moines, Iowa · Marquette Neighborhood Master Plan, Madison, Wisconsin ° East Washington Avenue Corridor Plan, Madison, Wisconsin · Stevens Square Neighborhood Workshop, Minneapolis, Minnesota · Sibley Township Design Charrette, Pequot Lakes, Minnesota · Village Center Master Plan, McFarland, Wisconsin · CornerStone Design Charrette, Roseville, Minnesota · Midtown CoonsTND, Madison, Wisconsin · Lyndale Avenue Redevelopment Plan, Minneapolis, Minnesota · West Lake Street Urban Vilalge Charrette, Minneapolis, Minnesota · Robert Street Redvelopment Plan, West Saint Paul, Minnesota · Comprehensive Plan Workshop, West Saint Paul, Minnesota · Comprehensive Plan Workshop, Saint Paul Park, Minnesota · Town Center Charrette, St, Louis Park, Minnesota · Dowfitown Redevelopment Plan, Hugo, Minnesota · Hiawatha LRT Corridor Citizen Workshops, Minneapolis, Minnesota · Growth ManagementWorkshop, Sartell, Minnesota · Community Design Workshop, Blaine, Minnesota · Town Center Design Charrette, Fifty Lakes, Minnesota Minnesota Design Team Charrettes · Two Harbors (*) · SpringValley(*) · Columbia Heights(*) · Preston (*) · St. Peter(*) · Lake Elmo · Houston · Pillager Education and Professional Affiliations: · MasterofArchitecture in Urban Design, University of Colorado, 1988 · 8.A. Urban Studies, Universityof Alabama/Birmingham, ].984 · Congress for the New Urbanism · Minnesota Design Team Chanhassen Urban lnfill and Redevelopment Project PHILLIP GLENN KOSKI DesignArchitec~ As a key member of' the architec- tural design team, Phillip brings special skills in architectural design, master planning and urbanism. He has been recognized for his considerable experience with large scale commercial proiects and for his expertise in the design of urban environments. Phillip's HGA's project experience includes: · MCDA Minneapolis Downtown East LRTI Parking Structure/Plaza, Minneapolis, Minnesota · Hennepin Avenue Theatre District Master Plan, Minneapolis, Minnesota · Avenue of Arts Master Plan, Minneapo- lis, Minnesota · Andersen Consulting, Office Consolida- tion and Rennovation, Minneapolis, Minnesota · Medtronic, Inc - Corporate Headquar- ters Masterplan, Fridley, Minnesota · ADC - Shakopee Manufacturing Facility Masterplan, Shakopee, Minnesota · MNDOT- Regional Transportation Management Center, Roseville, Minnesota · General Mills - Bassett Creek Building, Golden Valley, Minnesota · Ryan/Lutheran 8roiherhood ~ Master Plan MarketPoint Speculative Office Development, Bloomington, Minnesota · United Properties- World Trade Ce_nter Ramp, St. Paul, Minnesota · Minnesota Department of Revenue- Stale Office Building Interior Architec- ture, St. Paul, Minnesota · Sheldahl - Manufacturing Facility Masterplan Study, Dahlin, China · Andersen Windows-Order Department Renovation, Bayport, Minnesota · Andersen Windows- Corporate Identity Offices, Bayport, Minnesota · United Properties - Town Square Retail Renovation, St. Paul, Minnesota Educational and Professional Affiliations: · Master of Architecture, University of Virginia, 1994 · Bachelor of Arts in Architecture, University of Minnesota, 1991 · Associate, American Institute of Architects · Virginia ChapterAIA Design Award for "Tudor Halll House Museum", 1999 · Solutia Award forAndersen Windows- Corporate Identity Offices, 1999. · Minnesota ChapterAIA Devine detail Honor Award for World trade Center Ramp, 1999. · Minnesota Chapter AIA Honor Award for General Mills- Bassett Creek Office Building, 1999. · Ralph Rapson Travelling Fellowship- Finalist, 1999. KEVIN M. FLYNN, AIA Desi~tArchitect One of HGA!s most talented and client focused designers, Kevin ~vill be responsible for coordinating the overall architectural design of' the project. He brings a strong back- ground in urban, cultural, and civic design and has worked with public agencies at both the state and federal level. With a passion for environ- mentally responsible and sustainable design, Kevin believes that good design is integral to the entire building process and enriches our lives. He strives to make each client's building the very best it can be. A partial list of Kevin's design experience includes: · Hennepin Avenue Methodist Church Mixed Use ExpansionMaster Plan, Minneapolis, Minnesota · Dayton-Hudson North Office Campus, Brooklyn Park, Minnesota · Hiawatha Corridor LRT Development Master Plan, Minneapolis, Minnesota · ADC Telecommunications World Heardquarters, Eden Prairie, Minnesota · ADC- BCG Manufacturing, Shakopee, Minnesota · ADC- BCG Manufacturing, Glenrothes, Scotland, United Kingdom · Marketpointe, Minneapolis, Minnesota · Andersen Corporation, Executive Offices, Bayport, Minnesota · Andersen Corporation, Corporate Identity Offices, Bayport, Minnesota · WalkerArt Center Expansion, Minneapo- lis, Minnesota · Allianz Insurance Expansion, Minneapo- lis, Minnesota · Minnesota Department of Revenue, St. Paul, Minnesota · Cambridge Community College, New Campus, Cambridge, Minnesota · Inver Hills Community College, Master Plan, Inver Grove Heights, Minnesota Complex, Apple Valley, Minnesota* · Universityof Minnesota Historical Restoration Survey, Minneapolis, Minnesota · Inver Hills Community College, Learning Center, Inver Grove Heights, Minnesota · Universityof Minnesota Centennial Hall, Renovation, Minneapolis, Minnesota · Normandale Community College, Fine Arts Patio Infill, ADA Improvements, Bloomington, Minnesota Education and Professional Affiliations: · North Dakota State University, Fargo, Bachelor of Architecture · North Dakota State University, Bachelor of Arts/Science, 1983 · University of Rome, Rome, Italy, summer semester, 1982 · NDAIA Student Gold Medal · AIA Student Gold Medal · Registered Architect: Minnesota · Member, American Institute of Archi- teds · Member, West Side Citizens Organiza- tion, St. Paul, Minnesota · Member, Na Fianna Theatre, St. Paul, Minnesota · MSAIA Paper Architecture Award · U ofM Cala Mentoring Program Chanhassen Urban Infill and Redevelopment Project RICHARD J. MCLAUGHLIN Urban Design Rich McLaughlin has led charrettes and community design workshops around the country. The use of design and development standards will provide expertise with physical codes and standards. Rich's extensive urban housing planning expertise will provide the team with current marketplace and industry research and design integration. Richard's experience includes: Districts and Corridors · West Broadway Corridor Redevelopment, Minneapolis, MN · Seven Corners Gateway Plan, Saint Paul, MN · East Washington Avenue Charrette, Madison, WI · Hiawatha LRT Corridor Citizen Work- shops, Minneapolis, MN · Downtown Redevelopment Plan, Mendota, MN · West Lake Street Urban Village Charrette, Minneapolis, MN · South Robert Street Redevelopment Plan, West St. Paul, MN · Town Center Redevelopment Plan, St. Louis Park, MN · Land PlanningToolbox for Local Governments, Twin Cities Neighborhoods · Easter Lake New Town Neighborhood, Des Moines, IA · Raymond Highpoint TND, Madison, WI · Williamson Street Charrette, Madison, WI · Village Center Charrette, McFarland, WI · Community Plan Charrette, Sibley Township, MN ° Village Center Plan, Fifty Lakes, MN · Greenway Crossing Neighborhood Plan, E Grand Forks, MN · Comprehensive Plan, Pine City, MN Design · Design and Development Standards, Saint Paul Park, MN · Block E Master Plan, Minneapolis MN · Urban and Architectural Standards, East Grand Forks, MN · Design Editor, TND Series plan books and TNDhomes.com Education and Professional Affiliations: · Master of Architecture, Arizona State University · B.A. Architecture, Universityof Minnesota · B.A. History, UniversityofWisconsin · Congress for the New Urbanism · Minnesota Design Team WILLIAM MADDEN, AIA Project Architect Bill has been a project architect, planner, and designer on a variety of building types during the last t4 years. Bill's leadership involvement in projects such as Jeremiah Housing and RiverStation Down- town Homes have equipped and familiarized him with the necessary skills to work intimately with the city of Chanhassen approval process. Bill has the ability to work with the client to develop meaning- ful solutions, and relishes total involvement from concept design through construction administra- tion and close out. Bill's project experience includes: Corporate ', Minnea polls Security Command Center, Hawthorne Parking Ramp, Minneapolis, Minnesota · Metropolitan Airports Commission, Lindbergh Terminal, St. Paul, Minnesota. -Metropolitan Airports Commission, Airport Police Department, M pis/St Paul International Airport; programming and remodel, St. Paul, Minnesota · Ruppert Office Development, Maple Grove, Minnesota · Woodbury Crossing Office Park, Woodbury, Minnesota · 4COM, Inc., Minneapolis, Minnesota Educational · St. Cloud State University, Lawrence Residence/Language Hall, St. Cloud, Minnesota · Arlington High School, St. Paul, Minne- sota · Mounds Park Ali-Nations School Remedel and Addition, St. Paul, Minnesota · Grand Marais Library, Grand Marais, Minnesota · St. Paul YMCA Magnet School Conver- sion Study, St. Paul, Minnesota Adaptive Reuse / Renovation · B.F Goodrich Factory, Adaptive Reuseto Student/Faculty Housing, Fitness Center and Parking Ramp, Akron, Ohio · Canal Place, Conversion of Warehouse to Flea Market, Akron, Ohio · Como Conservatory, Remodelingand Additions, St. Paul, Minnesota · Earl Brown Center, Conversion of Historic Farm Complex to Office, Convention Center, Restaurantand Bed and Breakfast Facility, Brooklyn Park, Minnesota Housing · RiverStation Downtown Homes, 360 Unit Condominium Complex, Minneapolis, Minnesota · Creekside Townhomes, 21 Unit Townhome Development, Chanhassan, Minnesota · Riverside Housing, 52 Unit Senior Housing Complex, Shakopee, Minnesota · Jeremiah Campus Community, Minne- apolis, Minnesota · Laurel Village II, Lowand Mid-rise Housing, Minneapolis, Minnesota · ParkviewVilla, Elderly Housing, High-rise Remodel and Low-rise Apartments, Columbia Heights, Minnesota · St. Paul's Church Home, St. Paul, Minnesota · The Lexington, North St. Paul, Minnesota · The Point on St. Joseph's, Notre Dame, Illinois Education and Professional Affiliations · Bachelor of Architecture, University of Minnesota, Minneapolis, Minnesota, 1987 · Registered Architect: Minnesota · Member, AIA · Member MSAIA [ncludes projects completed prior to joining HGA Chanhassen Urban Infill and Redevelopment Project TERRY F. MINARIK, MALA, CSLA La,dsca?e A rchitect, H GA With experience in campus planning and urban design in both the United States and Canada, Terry brings strong experience in public participation, sustainability, and site programming. From his work with such institutions as UniversiU, of Winnipeg and Bemidji State UniversiW, he offers expertise in phasing, cost estimat- ing and long-term facilities plan- ning needed for master plan implementation. He is also highly familiar with the ecology and plant communities of northern climates. Terry's project experience includes: · West Side Fiats, Saint Paul, Minnesota ° Clover Fields, Neighbor Development Plan, Chaska, Minnesota · Front Grounds Master Plan, Macnamara Courtyard, University of Winnipeg, Winnipeg, Manitoba · Facility of Agriculture and Food Science Complex, Downtown Campus Master Plan, University of Manitoba, Winnipeg, Manitoba · University Recreational Facilities Plan, University of Saskatchewan, Saskatoon, Saskatchewan · Bemidji State UniversityCampus Master Plan, Bemidji, Minnesota · Brandon River Corridor Master Plan; (River-front Conservation Travel idea Centre, Outdoor Interpretive Area, Elenor Kidd Botanical Garden, River Corridor Trail System, Canada Games Sports Complex), 8randon, Manitoba · Kilcona Park Master Plan, Winnipeg, Manitoba · Manitoba Legislative District Master Plan, Winnipeg, Manitoba · Thompson Downtown Revitalization Master Plan, Thompson, Manitoba · Churchill Sustainable Development Strategy, Churchill, Manitoba · Selkirk Waterfront Development Strategy, Selkirk, Manitoba · Canada Land Customs ~3order Facility Master Plan, Emerson, Manitoba · Forks National Historic Park Master Plan, Winnipeg, Manitoba Education and Professional Affiliations: · Master of Landscape Architecture, University of Manitoba . Bachelorof Environmental Studies/ Oesign, University of Manitoba · Registered Professional Landscape Architect, MALA · Member, Canadian Society of Landscape Architects, CSLA · Member American Society of Landscape Architects · Past Director MALA ].999-2000 · Past Chair MALA Examining 8oard 1998- 2000 KENNETH W. HORNS, P.E. Civil Engineer Kenny is a senior ~ivil engineer with over ~8 years of diverse experience as a project manager, design engineer, and field engi- neer. Currently, he directs the Civil Engineering group at HGA. This group prepares plans, specifications, and reports for site development and other infrastruc- ture improvements. Kenny coordinates designs with permit- ting agencies, responds to ques- tions from citizens and agencies, and has presented design alterna- tives at public meetings. He is experienced at obtaining necessary project approvals from communi- ties and permitting agencies. Kenny's relevant project work includes: · Dayton-Hudson Corporate North Office Campus, Brooklyn Park, Minnesota · Carleton College Academic and Dining Building, Northfield, Minnesota · General Mills JFB Technical Center Addition, Golden Valley, Minnesota · Med_tronic Inc. Corporate Headquarters -Lake Pointe, Fridley, Minnesota · Marketpointe Office Building, Bloomington, Minnesota · General Mills North Office Building, Golden Valley, Minnesota · Ceridian Headquarters, 81oomington, Minnesota · Dubuque Museum of Art, Dubuque, Iowa · Delta Dental Corporate Headquarters, Eagan, Minnesota · Barbara Baker Center for Dance, University of Minnesota. Minneapolis, Minnesota · Minnesota Department of Revenue Parking Ramp, St. Paul, Minnesota Following projects completed while with another firm: · 1-694/TH 47 RampWidening, Fridley, Minnesota* · CSAH 31/CSAH 53 Final Design; Hennepin County, Minnesota* · West Medicine Lake Drive/Community Park; Plymouth, Minnesota* · TH 14 and TH 56 ElS and Final Design; Dodge Center, Minnesota* · Dakota County North Urban Regional Trail; Dakota County, Minnesota* · Rice Creek West Regional Trail; Ramsey County, Minnesota* · TH 371 Location/Design Study; Brainerd, Minnesota* · TH 101 Bypass County Cross Roads Design; Shakopee, Minnesota* Education and Professional Affiliations: · Universityof Minnesota, Bachelor of Civil Engineering, 1980 · University of Minnesota, Graduate Study, Hydraulics and Hydrology, 1987-].988. · Licenced Professional Engineer: Minnesota, Iowa, Wisconsin & Michigan · Member, American SocietyofCivil Engineers · Past-President Minnesota Section ASCE · Member, Sensible Land Use Coalition Chanhassen Urban Infill and Redevelopment Project Site Photos and Observations Change in topography will accomodate parking ramp access on multiple levels Park and Ride station may be better served in another location Chanhassen Urban Infill and Redevelopment Project Site Photos and Observations Retail uses could face this existing shopping center The Dhmer Theatre site park ing area may be a good location for residential development Chanhassen Urban Infil! and Redevelopment Project Site Photos and Observations Dinner Theatre site may include new development that would "terminate "this view West 78th Street acts as the "main "street; the redevelopmentplan should rei,~rce this idea Chanhassen Urban Infill and Redevelopment Project Site Photos and Observations The Heritage Square site should relate to the redevolop mem plan Chanhassen Urban lnfill and Redevelopment Project KRAUS-ANDERSON~REALTY COMPANY Development · Leasing. Mansgement October 26, 2001. Todd Gerhardt City Manager 690 City Center Drive PO Box 147 Chanhassen MN 55317 Lot Two, Block One, Chanhassen Mall, Carver County, MN; Proposed Purchase by Kraus-Anderson, Incorporated Todd: Attached are the site plans and elevations for the proposed development of the Chanhassen Bowling Alley Site. It is our intention to purchase the site, raze the existing structure, and redevelop it into a mixed-use site consisting of 28,000 square 'feet of retail on the first level with two floors o£residential above. There are 48 units of market rate housing proposed. The north elevation entrance and parking area are dedicated to the residential units. There is also one level of underground parking below the building for the residents of the housing. The south and west sides of the site will service the commercial retail space. The tenant mix of the retail will probably consist of between 10 and 15 small users. We have had preliminary discussions with the SW Metro Transit and they have agreed to this layout and reconfiguration of the parking and circulation. We are excited about working with you in this project and are optimistic about the potential it holds. Sincerely, Scott Sclunitt, CCIM Sr. Director of Real Estate Development SJS:cm Enclosure 4210 West Old Shakopee Road · Bloomington, MN 55437-2951 952/881-8166 ° Fax: 952/881-8114 www.krausanderson.com CITYOF 690 City Center Ddve PO Box 147 Chanhassen, Minnesota 55317 Phone 952.937.1900 General Fax 952.937. 5739 Enghteering Department Fax 952.937.9152 &dldi,g Department Fax 952.934.2524 W/eb Site Oww. ci. cha,hassen.m,, us TO: FROM: Economic Development Authority Todd Gerhardt, City Manager ~ DATE: October 26, 2001 SUB& Consider Resolution Adopting the Modification to the Redevelopment Plan, Establishing TIF District No. 8, Presbyterian Homes Under Minnesota Statute, the EDA must adopt the Modification to the Redevelopment Plan for the Downtown Chanhassen Redevelopment area; modify the Tax Increment Financing Plan for the Downtown Chanhassen Tax Increment Financing District; establish Tax Increment Financing District No. 8 (within the Downtown Chanhassen Redevelopment Project area); and adopt the Tax Increment Financing Plan for the Presbyterian Homes, Villages on the Ponds development. The approval of this TIF Plan would allow for the city to collect the new taxes generated from this development. The new taxes would then be used to create 36 affordable senior rental units within the 151-unit Presbyterian Homes Apartment complex in the Villages on the Ponds. This TIF District is called a "Housing District," which requires at least 20% of the units to be affordable to persons at 50% or less of median income. The 36-units would be located in the independent living building, would have rent of $725 per month, and would be one bedroom units. By approving this plan modification, the EDA is not approving the amount of assistance to this project, but creating the district so that the city can collect the new taxes. At a future date, the EDA would enter into a Development Agreement with Presbyterian Homes to determine the amount of assistance is warranted for this project. RECOMMENDATION Staff would recommend approving the Resolution Adopting the Modification to the Redevelopment Plan, Establishing TIF District No. 8, Presbyterian Homes. ATTACHMENT 1. Resolution 2. TIF Plan gAadmin\tg\presbyterian homes 1 .doc The Cltv of Chanhasse,. A m'owi,v rommmdt~, wit/, c/ean CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY CITY OF CHANHASSEN CARVER COUNTY STATE OF MINNESOTA RESOLUTION NO. RESOLUTION ADOPTING THE MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE DOWNTOWN CHANHASSEN REDEVELOPMENT PROJECT AREA; AND THE MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE DOWNTOWN CHANHASSEN TAX INCREMENT FINANCING DISTRICT; AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 8 (WITHIN THE DOWNTOWN CHANHASSEN REDEVELOPMENT PROJECT AREA) AND ADOPTING THE TAX INCREMENT FINANCING PLAN THEREFOR. WHEREAS, it has been proposed by the Board of Commissioners (the "Board") of the Chanhassen Economic Development Authority (the "EDA") and the City of Chanhassen (the "City") that the EDA adopt a Modification to the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area, and a Modification to the Tax Increment Financing Plan for the Downtown Chanhassen Tax Increment Financing District, and establish Tax Increment Financing District No. 8 (the "District") and adopt the Tax Increment Financing Plan therefor, (collectively, the" " ' Mod~ficatmns and Plan"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090 thro,tgh 469.1081, and Sections 469.174 to 469.179, inclusive, as amended (the "Act"), all as reflected in the Modifications and Plan and presented for the Board's consideration; and . WHEREAS, the ~EDA has investigated the facts relating to the Modifications and Plan and has caused the Modifications and Plan to be prepared; and WHEREAS, the EDA has performed all actions required by law to be performed prior to the adoption of the Modifications and Plan. The EDA has also requested the City Planning Commission to provide for review of and ;vritten comment on Modifications and Plan and that the Council schedule a public hearing on the Modifications and Plan upon published notice as required by law. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: 1. The EDA hereby finds that Tax Increment Financing District No. 8 is in the public interest and is a "housing district" under Minnesota Statutes, Section 469.174, Subd. 11, and finds that the adoption of the proposed Modifications and Plan conform in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State of Minnesota which is already built up and that the adoption of the proposed Modifications and Plan will help provide employment opportunities in the State and in the preservation and enhancement of the tax base of the City and the State because it will discourage commerce and industry from moving their operations to another state or municipality and thereby serves a public purpose. 2. The EDA further finds that the Modifications and Plan will afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development or redevelopment of the project area by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible. 3. Conditioned upon the approval thereof by the City Council following its public hearing thereon, thc Modifications and Plan, as presented to thc EDA on this date, arc hereby approved, established and adopted and shall be placed on file in the office of the City Manager. 4. Upon approval of the Modifications and Plan by the City Council, the staff, the EDA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Modifications and Plan and for this purpose to negotiate, draft, prepare and present to this Board for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. Approval of the Modifications and Plan does not constitute approval of any project or a Development Agreement with any developer. 5. Upon approval of the Modifications and Plan by the City Council, the City Manager is authorized and directed to forward a copy of the Modifications and Plan to the Minnesota Department of Revenue pursuant to Minnesota Statutes 469.175, subdivision 2. 6. The City Manager is authorized and directed to forward a copy of the Modifications and Plan to the Carver County Auditor and request that the Auditor certify the original tax capacity of the District as described in the Modifications and Plan, all in accordance with Minnesota Statutes 469.177. Approved by the Board of Commissioners of the Chanhassen Economic Development Authority this 1st day of November, 2001. ATTEST: Chair Secretary UCt, 12,2001 12:49PM EHLERS & ASSOCIATES 1168 P. 3/31 As of October 12, 200/ Draft for Fiscal Implications MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE DOWNTOWN CHANHASSEN REDEVELOPMENT PROJECT AREA and the MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE DOWNTOWN CHANHASSEN TAX INCREMENT FINANCING DISTRICT and the TAX INCREMENT FINANCING PLAN fo~' the establishment of TAX INCREMENT FINANCING DISTRICT NO. 8 (a housing district) both within THE DOWNTOWN CHANHASSEN REDEVELOPMENT PROJECT AREA CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY CITY OF CHANHAS SEN CARVER COUNTY STATE OF MINNESOTA Public Hearing: November 13, 2001 Adopted: This doczanent is in draft farm for db'tribution to the County and the School District. The Plan contains the estimated~scal a'.nd economic implications of the proposed TfF District. The City and the EDA may make minor changes to this draft document prior to the public hearing. 0 LE RS Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 551 t3-1105 651-697-8500 fax; 651-697-8555 www.ehlers-inc,com 0CT, 12.2001 12'50PM EHLERS & ASSOCIATES N0.1168 P. 4/31 TABLE OF CONTENTS i (for reference purposes only) SECTION I- MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE DOWNTOWN CHANHASSEN REDEVELOPMENT PROJECT AREA ............................ 1-1 Foreword ' SECTION Ii - MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE DOWNTOWN CHANHASSEN TAX INCREMENT FINANCING DISTRICT ............ 2-1 SECTION III . TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 8 ............................................................. 3-1 Subsection 3-1. Foreword ................................................... 3-1 Subsection 3-2. Statutory At~thority ........................................... 3-1 Subsection 3-3. Statement of Objectives ....................................... 3-1 Subsection 3-4. RedeVelopment Plan Overview ................................. 3-1 Subsection 3-5. Description of Property in the District and Property To Be Acquired .... 3-2 Subsection 3-6. Classification of the District .................................... 3-2 Subsection 3-7. Duratibn of the District ........................................ 343 Subsection 3-8. Origin,al Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements ................... 3-3 Subsection 3-9. Sources of Revenue/Bonded Indebtedness ....................... 3-4 Subsection 3-10. Subsection 3-11. Subsection 3-12, Subsection 3-13. Subsection 3-14, Subsection 3-15, Subsection 3-16, Subsection 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. Subsection 3-29. APPENDIX A - APPENDIX B- APPENDIX C - APPENDIX D - APPENDIX E - APPENDIX F- Uses of Funds .............................................. 3-5 State ,Tax Increment Financing Aid (Local Contribution) - 3-6 Fiscal!Dispai'ities Election .................................. .... 3-6 Businems Submidies .......................................... 3-6 County Road Costs .......................................... 3-7 Estimated Impact on Other Taxing Jurisdictions .................... 3-7 Supporting Documentation. 3-8 Definition of Tax Increment Revenues ............................ 3-8 Modifi,bations to the District .................................... 3-8 Administrative Expenses ...................................... 3-9 Limitation of Increment ....................................... 3-10 Use of Tax Increment ........................................ 3-11 Excess Tax 'Increments ...................................... 3-11 Requirements for Agreements with the Developer ................. 3-12 Assessment]Agreements ..................................... 3-I 2 Administratien of the District .................................. 3-'12 Annual Disclosure Requirements ............................... 3-12 Reasdnable IExpectat'ons .................................... 3-13 Other'Limitations~' on the Use of Tax Increment .................... 3-13 Summary ................................................. 3-14 PROJECT DESCRIPTION ........................................... A-1 MAPS OF TI3E PROJECT AREA AND THE DISTRICTS .................. B-1 DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT ...... C-1 ESTIMATED[CASH FLOW FOR THE DISTRICT. ........................ D-1 HOUSING Q,UALIF!CATIONS FOR THE DISTRICT ...................... BUT/FOR QI~ALIFICATIONS ......................................... Foreword I=HLbI<S & ASGOCIAIES NO, 1168 SECTION ! ,.! MODIFICA T/ON TO THE REDEVELOPMENT PLAN FOR THE DOWNTOWN CHANHA$$~N REDEVELOPMENT PROJECT AREA I , 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 Pl~n for the Downtown Chanhassen Redevelo@ment Project Area. Generally, the substantive changes include the Modification of the Tax Increment Financing Plan for the Downtown Chanhassen Tax Increment Firian¢ing District and the adoption of the Tax Increment Finan¢ing Plan for Tax Increment Financing District No. 8. For further information, a review of the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area is recommended.: It ,s a?a,lable from the City Manager at the City. Otlm' relevant information is zontalned in the Tax Increment Fir/ancing Plat~s for the Tax Increment Financing Districts located within tile Downtown Chanhassen R~develSpment Project Area. City of Chanhnssen M0dificatilon to the Redevelopment Plan for die Downtown Chanhass~n Redevelopment Project Area 1 - l OCT. 12. 2001 12:50PM EH ERS & ASSOCIATES NO, 1168'---P. 6/91-- SECTION il - MODi, FICA TiON TO THE TAX INCREMENT FINANCING PLAN I=OR THE DOWNTOWN CHANHASSEN TAX INCREMENT FINANCING DISTRICT Parcels to be Included in the ~ownto~vn Chanhassen Tax Increment Financin~ District (~Is Modified on November 13, 200.I) The following property and ail adjaceat rights-of-way identified by the parcel number listed below is certified in the Downtown Chai~hassen Tax Increment Financing District, This parcel is being removed from the Downtown Chanhassen T~u~ Increment Financing District a~d will be included in Tax Increment Financing District No. 8. Parcel Number 25.8680080 City of Chanhassen Modification To the Fax lncrcm¢ilt Fi,~aneing Plan for the Downtown Chanhas$¢n 'ran Increment Finnne[nB D{~trict 2-I bH I-NS & ASSOC1AIES NO, 1168 SECT,'ON III - TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 8 Subsection 3-1, Forewor ' The Chanhasscn Economic De.~elopment Authority (the "EDA"), the City of Chanhassen (the "City"), staff and consultants have prepared,' the following information to expedite the establishment of Tax Increment Financing District No. 8 ("the District "), a housing tax incremeut financing district, located in the Downtown Chanhassen Redevelopment Project Area. Subsection 3-2, Statutor~ Authority Within the City, there exist'areas .where public involvement is necessaO, to cause development or redevelopmem to occur. To this end, ~he EDA and City have certain statutory powers pursnant to Minnesota Statutes ("MS. "), 469. 090 thr".ough 469.1081, inclusive, as amended, and M. 5'., Sections 469. ! 74 through 469.179, inclusive, as amended (the:"Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this proaect. This Section contains the Tax increment Finauc[ng Plan (the "Plan") for Tax Increment Financing District No. 8. Other relevant infort~ation is contained in the Modification to the Redevelopment Plan for the Downtown Cbanbassen Redevelopment Project Area. Subaection 3-3. Statem4nt of Oblectives The District currently consists of one parcel of land and adjacent and internal rights-of-way. The District is being created to facilitate a ~enior [~.ousing project to be owned by a local t)on-profit organization and will. include 8,000 s.fi of retail, 90 dnits fo[' independent living, 56 unlts of assisted living, and 18 units of memory care in the Chanhassen. Cont/'acts four this have not bee~) entered into at the time of preparation of this Plan, but the date when development is likely to occur is the Spring of 2002. This Plan is expected to achieve many of the objectives outlined in the Redevelopment Plan for the Downtown Cbanhassen Redevelopment Project Area. , The activities contemplated in the Modification to the Redevelopment Plan and the Plan do not preclude the undertaking of other qualified develbpment or redevelopment activities. These activities are anticipated to occur over the life of the Do~,ntown Chanhassen Redevelopment Project Area and the District. Subsection 34. Redeveloprn~nt Plan Overview 1. Property to be Acquii~ed - Selected property located withi~ the District not expected to btlt may be acquired by t!~e EDA or City and is further described in this Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.,5'., Chapter 117 and other relevant state and federal laws. P, 7/31 Upon approval cfa d=evelopeCs plan relating to the project and completion of the necessary legal requirements, t,he EDA or City may sell to a developer selected properties that they may acquire within the District or may lease land or facilities to a developer. City of Chanhassen Ta: Increment Finem¢in$ Plan tbr Tax Increment Financing District No. 8 3-1 0CT, 12,2001 12'50PM EHLERS & ASSOCIATES N0.1168 P. 8/91 4. The EDA or City n~ay perform or provide for some or all necessary acquisition, construction, ' ~ ....... relocatloO, demohtmn, and reqmred ut~httes and pubhe streets work within the District. Subsection 2,.5. Descript!on of Property in the District and Property To Be Acquired The District encompasses all pr, operty and adjacent rights-of-way identified by the parcel listed below. See the map ia Appendix B for further information on the location of the District. Parcel Number 25.8680080 Ihe EDA or City may acquire ~trty parcel within the District including interior mid 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 followiiag: 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 propen'y by gift, dedication, condemnation or direct p?rchase from willing sellers in order to achieve the objectives of this Plan. Such acquisitions will be underteken only when there is assurance of funding to finance the acquisition and related costs, i Subsection 3-6. Classification of the District The EDA and City, in determifijng tile need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.179, as amended, inclusive, find flint the District, to be established, is a houshxg district pursuant to 34..'3., Section 469. ] 74, Subd. 11 as defined below: "Housing district" means q type of tax tncrement financing district which con~'[sts cfa project, or a ]~ortion ofa projecL inte~ded fdr occupancy, in part, Oy per,'om' or families o flow.and moderate income, as defined in chapter 462A, Title ii of the National Housing Act of 1934, the National Housing ~ict of 1959, the Upited States Housing Act of 193 7, as amended, Title V of the ttousing Act of 1949, as amended, any other ~t~nilar present or future federal, ~tate, or municeal legislation, or the regulatio~s promulgated und~r any of those acts. A d~strict doe~ not qualify as' a housing district under this subdivision if th.e fair market value of the improvements which are constructed in the dB'trict for commercial uses or_/br uses other than Iow and moderate income housing consista' of more than 20percent of the total fair market value of the planned improvement~ in the development plan or agreement. The fair mark'et value of the improvements may be determined using the cost of constructiot~, cctpitalized income, 'or other appropriate method of estimating market value. 1-]ousing project mean~ aprojeet, or~ortion of aproject, that meet,, all the qualifications cfa housing district under this subdivision, whether or not actually established as a housing district. In meeting the statutory criteri~a the EDA and City rely on the following facts and findings: [] The District consists ofon'e parcel. The development will codsist of:approximately 150 units of multi-family senior rental housing and a small amount of retail [] 20% of the units will be o~cupied by person with incomes less than 50% ofmedhn income City of Chanhasscn Tax Increment Financing Plan for T*× Increment Financing Distri¢t No. I~ I 3-2 uu~. 12,2gUI ]2'bOPM EHL~R~ & ASSOCIAteS N0.1168 P. 9/31 Pursuant to 469.176 Subd. 7, th.~ District does not contain any parcel or part cfa parcel that qualified uuder the provisions of Section 273,111 or 273.112 of 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 !of the District .. Pursuant to M $'., Section 469.1'75, Subd 1, and Section 469.176, Subd. 1, the duration of the District must be indicated within the Plan. Pursuani to M.S.,-Section 469.176, Subd. lb, the duration of the District will be 25 years after receipt of tt~e first in~rement by the EDA or City (a total of 26 years). The date of receipt by the City of the first tax incre0~ent is expected to be 2004. Thus, it is estimated that the District, including any modifications of the Plan f(~r subsequent phases or other changes, would terminate after 2029, or when the Plan is satisfied. If mcremegt is received in 2003, the term of the District will be 2028, The EDA or City reserves the right to decertify t,he District prior to the legally required date. Subsection 3-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prio~ Planned Improvements Pursuant to M.$., Section 469. ] 74, ~z~bd. 7 ~dM.$,, o°~cfion 469, J 77, Subd, ], 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 2000 for taxes payable 2001[ I Pm~uant to M,a., ~?action 469 ~77, ~?ubds. J and2, the County A~ditor shall certify in each year (beginning in the payment year 2002) the amount by which the original value has increased or decreased as a result of: 1. change in tax exempt Status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to adjustmgnts, negotiated or court-ordered abatements; 4. chm~ge in. the use ofth.~ property and classification; 5. change in state law goq, erning class rates; or 6. change in connection wit[] pr~vi, ously issued building permits. In any year in which the curren, t Net Tax Capacity value of the District declines below the ONTC, no value will be captured and no tax indremen{ will be payable to the EDA or City. I The original local tax rate forithe District will be the local tax rate for taxes payable 2002, assuming the request for certification is mad, e before June 30, 2002. The Original Tax Capacity and the Original Local Tax Rate for the District appear in the table on the next page. Pursuant to M.S., Section 46~.174 Slubd. 4 and M.S., Section 469.177, Subd. J, 2, and 4, the estimated Captured Net Tax Capacity (CTC) oft~he District, within the Downtown Chanhassen Redevelopment Project Area upon completion of the ptoject, Iwill annually approximate tax increment revenues as shown in the table below. The EDA and City reqt~est 100 percent of the available increase in tax capacity for repayment of its obligations and cun-ent expendlitures, beginning in !.he tax year payable 2004. The project tax capacity listed is an estimate of values when the project is completed. City of Chm)hassen Tax {ncrcment Financing Plan For Tax h~cr¢mcm Financlng Distric[ No, 8 3-3 OCT. 12. 2001 12'51PM EHLERS & ASSOCIATES Project Estimated Tax C~paci~ upon Completion (PTC) Original Estimated Net Tax Cal~acity(ONTC) Estimated Captured Tax .[Capacity (CTC) Original Local Tax Rate ~' 167,730 10,490 157,240 1,20 NO. 1168 Pay2002 Es~rnate P, ~0/3~ Estimated Annual Tax ln.crement(CTC x Local Tax Rate) 188,688 Percent Retained by the E~DA 100% Pursuant to M.S.. Section 469!177, Subd 4, the EDA shall, after due and diligent search, accompany its request for certification to the; County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd 4, with ;a listing of all properties within the District or area of enlargement for which building permits have been iss,ued during the eighteen (1 g) months immediately preceding approval of the Plan by the municipality pursuant to ,M.$., 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 is reviewing the are.~ to beiincluded in the District to determine if any building permits have been issued during the 18 m6nths immediately preceding approval of the Plan by the CIO/. Subsection 3-9. Sources!of Revenue/Bonded Indebtedness Pubhc unprovement costs, aeq:uis~t~o% relocation, utilities, parking facilities, streets and sidewalks, and site preparation costs and other cos.ts outlihed in the Uses of Funds will be financed primarily through the annual collection of tax increments. The ED.~ or City reserves the right to use other sources of revenue legally ap- plicable to the EDA or City and the PI,an,~ including, but not limited to, special as. sessments, general property taxes, state aid for road maintenance and construction, proceeds from the sale of land, other contributions from the developer and investment income, to pay for the estimated public costs. The EDA or City reserves the right to incur bonded indebtedness or other indebtedness as a result of the Plan. As presently proposed, the pr~ojeet will be financed by a pay-as-you-go note. Additional indebtedness, including O.O. Tax Increment Bonds, may be required to finance other authorized activities. The total principal amount of bonded in~tebted~ess or other indebtedness related to the use of tax increment financing will not exceed $2,500,000 without a modification to the Pla~ pursuant to applicable statutot3, requirements. 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 m the best interest of the City. The EDA or City may also finance the activitie~ to be ~ndertaken pursuant to the Plan through lo~s from funds of the EDA I I . or City or to reimburse the developer on a pay-as-you-go basis for eligible costs paid for by a developer. The estimated sources of funds for the District are contained in the table on the next page. City of Cll*nh~en Tax[Increment Finanalng Plan for Tax [ncr,mcnt Financing Dis[tier No, 8 3-4 Obi. 12'blPM sov ,,css Or eNI s Tax Increment eSO ECT m v x,u, Loan/Note/B ond ..Proceeds ASSOCIAIES NO, 1168 TOTAL $4,900,000 $4~900~000 $2,500,000 TOTAL PROJ-gCT A-ND FINANCING tLEVENUES $7,400,000 Subsection 3-'10. Uses of Funds Currently m~der consideration/~or the District is a proposal to facilitate a senior housing project to be ow~ed by a local non-profit orgarfization and will i~xclude g,000 s.f. of retail, 90 units fol' independent living, 56 units of assisted living, and 18'. units pf memozy care The EDA a~ad City have determined that it will be necessary to provide assistanc~ to thelproject for certaia costs. The EDA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment development or redevelopment~ofthe District, this Plat~ authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of fimds associated with the District is outlined itl the following table. USES OF ~'0NDS ' TOTAL Land/Building A~quisition $1,000,000 Site lmprovemergs/Prep, aration $500,000 Public Utilities $200,000 Parking Facilities $100,000 Streets and Sidewalks $ t 10,000 Housing Improvements. $500,000 Administrative dosts (up to 10%) $490,000 Loan/Note/Bond' luterest $2,000,000 Loan/Note/Bond: Principal $2,500,000 TOTAL FINANCINI~ AND PROJECT COSTS $7,400,000 / The above budget is organized acco?ding to the OSA reporting forms. Estimated costs associated with tJ~e District are subject to change among categories without a modification to this Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the bud,'et above pursuant to the applicable statutm~, requirements. The EDA may expend fi~nds for qualified housing a..ctiv[ties outside of the District boundaries. P. 11/31 City of Chantmssen Tax ]cremen[ Financing Plan for Tax Incrcnlcnt Financing District No, 8 3.5 0CT, 12,2001 12'51PM EHLERS & ASSOCIATES N0.1168 I ~ Subsection 3-11. State Tax Increment Financing Aid (Local Contribution) The 2001 Legislature elimindted the provisions for a reduction in state tax increment financing aid (RISTIF^) or the alternative q~alifying local contribution. Subsection 3-12. Fiscal Disparities Election It is not anticipated that the Ibistrict will contain commeroial/industria] property. Therefore, thc fiscal disparities provision does not ~pply to the District. Subsection 3-t3. Business Subsidies P. 12/31 Pm-suant to M.S. Statutes 11~L993, 'Subdivision 3, the following forms of financial assistance are not considered a business subs~dy:,~ (1) a business subsidy of less than $25,000; (2) assistance that is generally available to all businesses or to a general class of similar businesses, such as a line ofbus!aess, size, location, or similar general criteria; (3) pubIic kaprovement.s 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 section ] 16J.552, subdivision 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 of the assistance is to proVide those services; (7) assistance for housin, g; (8) assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under 469.174, subdivision 23; (9) assistance for energ~ conservation; (10) tax reductions resulting from conformity with federal tax law; (l l) workers' compensation and unemployment compensation; (12) benefits derived fro~ regulation; (13) indirect benefits derived frgm assistance to educational institutions; (14) funds fi'om bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for th~ benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 19,'86, as amended through Decem bar 3 l, 1999; assistance for a collaboration between a Minnesota higher education institution and a busi~ess; assistaaace for a tax ihcrement financing soils condition district as defined under section 469.174, subdivision 19; redevelopment when the rdeipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; general changes in tax incre, ment financing law and other general tax law changes of a principally technical nature, i ' Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency~ Fm~ds fi'om dock and wharf bonds issued by a seaway pmx authority; (15) (]6) (17) (18) (19) (20) City of Chaahassen Tax lnercme~t Financing Plan for Tax Increment Financing District No, 8 3-6 ubl, 12. /t)U1 12:blFM EHLFNS & A~$OCIAIE$ NO, I168 P. 13/31 (:21) Business loans and l~oan guarantees of $75,000 or less; aad (22) Federal loan fi~nds l~rovided througt] thc United States Department of Commerce, Economic Development Admin~istratiom The EDA or City is not providit~g tax increment financing for the purpose of'economic development or job growth and therefore the provisions o£M.S., Section JJ6J. 993 to H6J. 994, which states that a local urfit of government granting financial assistance to a business for economic development or job growth purposes, including tax increment financing, must establish business subsidy criteria and approve a business subsidy agreemer~t with the business receiving,' the assistance, do not apply. Subsection 3-t4. County' Road, Costs Purst~ant to MS., 3'ection 469.1:.75, Subd. la, the county board may require the EDA or City to pay for all or paFt of tile cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgement of the co~mty, substantially increase the use of county roads requiring cons/ruction of road improvements or other todd costs a~d if the road improvemet~ts are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. In tile opinion of the EDA and City and!consultants, the proposed development outlined in this Plan will have little or no impact upon county ~oads. If the county elects to use increments to improve county roads, it must notify the EDA or City within forty-fi'~ve days of receipt of this Plan. , Subsection 3-15. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxmgjunsdmt]ons assumes that the redevelopment contemplated by the Plan would occur without the creation of the District. However, the EDA or City has determined that such development or redevelopme~)f would aot occur "but for" tax it~cremeat fi~a~cing and that, therefore, [he fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test wa§ not met: Carver County Chanhassen Chaska ISD No. 112 IMPACT ON TAX BASE 2000/2001 Estinmted Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Cap.a_ci .~_. Upon Completion to Entity Total 53,706,184 157,240 0.2928% 19,599,946 157,240 0,8022% 28,748,564 ] 57,240 0.5469% City of Cl~oniao$scn Tax ,eminent Financing Plan for Tax lncmlnel]r Financing Dis[d¢t No. $ 3-7 0CT, 12,2001 12'52PM EHLERS & ASSOCIATES N0,1168 P. 14/31 Carver CouDty City of Chanhassen Chaska ISD No. 112 Other (Met Council, Riley Pg WS#2. Transit & Mosquito Districts Total IMPACT ON TAX RATES 2000/2001 Percent P<~tential ~ pf Total CTC Taxes 0.443290 32.33% 157,240 69,703 0.289790 2 I. 14% 157,240 45,567 ' 0.608050 44.35% 157,240 95,610 0.030010 2.1.9% t 57,24_0 4~719 1.371140 100.00% 215~599 The estimates listed above display the captured tax capacity when all const-ruction is completed. The tax rate used for calculations is the 2000/Pay 2001 rate. The total net capacity for the entities listed above are based on Pay 2001 figures. The Di.strict will be certified under the actual 2001/Pay 2002 rates, which were unavailable at the time this Plan was prepared. Subsection 3-16. Supporting Documentation Pursuant to ]VZ.S. Section 469. I ~5 Sub~ Ia, claus~ 7 the Plan must contain identification and description of studies and aDalyses used to ~ake the determination set forth in MS. Section 469.175 Subd 3, clause (2). Following is a list of reports add studies on file at the City that support the authority's findings: 1. Metropolitan Council Livable Communities Application 2. City ofChanhassen A~fordable Housing Goals and Related Documents Subsection 3-17, Definitilon of Tax Increment Revenues Pursuant to 3~.S., Section 469.1174, Subd. 25~ tax increment revenues derived from a tax increment financing district include all of the folloC, ing potential revenue sources: 1. taxes paid by the captu!ed net tax capacity, but excluding any excess taxes, as computed under M.~'., Section 469.177; 2. the proceeds from the 'sale or lease of property, tangible or intaDgible, purchased by the authority with tax increments; : 3. repayments of loans m' other advances made by the authority with tax increments; and 4. interest or other investment earnings on or from tax increments. Subsection 3-a8. Modific. ations to the District In accordance with M.$., Section 469.175, Subd 4, any: I , 1. reduction or enlargem~ent of the geographic area of the Downtown Chanhassen Redevelopment Project Area or the Diitrict; 2. increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that':detezmination was not a part ofthe original plan, or to increase or decrease the amount of interest on the debt to be capitalized; City of Chanhass~n Tax ~ncrcmcnt Financinl~ Plan for T~ Increment Financing District No. 8 ~z, ZUUl I2:b2PM I:HLb. Nb & ASSOC~AIP_~ NO, 1168 P, 15/31 , I 3, increase in the pomor~ of the captured net tax capacity to be retained by the EDA or City; 4, increase in total estimated tax increment expenditures; or 5. designation of add~tio.hal property to be acquired by the EDA or City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval o£the original Plan. Pursuant to MS. Section 469.175 Subd 4(b), the geographic area of the District may be reduced, but shall not be enlarged after five years follqwing the date of certification of the original net tax capacity by/tie county auditor. Ifa housing al!strict is enlarged, the reasons and supporting facts for the determination that the addition to the district mee. ts the criteria ofM. S., Section 469.174, Subd. ]] must be documented. Tim requirements of this paragrap~ do not apply if(l) the only modification is elimination of parcel(s) from the Downtown Chanhassen RedeVelopment Project Area or the District and (2) (A) the current net tax capacity of the parcel(s) eliminated fro,m the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capae, ity or (B) the EDA agrees that, notwithstanding MS., Section 469.177, ,$'ubd. 1, the original net tax eapaci~ will be reduced by no more than tt~e 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 Downtown Chanhagsen Redevelopment Project Area or the District. Modifications to the District in the form cfa budget modification or an expansion of the boundaries will be recorded in the Plan. Subsection 349. Admin!istrat[ve Expenses In ac¢ordanc~ with ~.S., $~c~o~ 4d9.]?,~, $~bd, ]4, ~nd ~,$., 3ection 4dP.]?d, Eu&~. $, admh~istrative expenses means all expenditures of the EDA or City, other than; 1. amounts paid for the '.purchase of land; · '2. amounts paid to eontr~.etors or others providing materials and services, including architectural and engineering services, klirectly connected with the physical development of the real property i~) the project; : : 3. relocation benefits paid to o? services provided for persons residing or businesses located ~n the project; or 4. amounts used to pay principal or interest on, fund a rese~we for, or sell at a discount bonds issued pursuant to M. 5:, ~ec{ion 469.178; or 5. amounts used to pay o~ther financial obligations to the extent those obligations were used to finance costs described in secIions 1 to 3. For districts for which the reqitest for certification were made before August 1, 1979, or after June 30, 1982, administrative expenses also ificlude amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Tax increment may be used to pay any authorlzed and documented adminisU'ative ~xpense, s for the District up to but not to exceed 10 peree~t of the total tax increment expenditures autho,'rized By the Plan or the total tax increment expenditures for tho Downtown Chanhassen Redevelopment Project Area, whichever is [ess. Pursuant to M.$., 5'ection 469.176, Subd. 41~, tax i~cre~nents may be used to pay for the county's actual administrative expenses incur,red in connection with the District. Tl~e county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Ci[y of Chanbasscn Ta)~ lncrcm*0t Financing Plan for Tax [ncrzmcnt Financing District No, 8 3-9 0CT. 12.2001 12'52PM EHLERS & ASSOCIATES N0.1168 P. 16/31 i ' Pursuant to M.$., Section 469.. 177, Subd. II, the county treasurer shall deduct an amount equal to 0.25 percent of any increment distributed to the EDA or City and the county treasurer shall pay the amount deducted to the state treasurei' for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial repo~ting of tax increment financing information and the cost of examining and auditing authorities' use oftak increment financing. Subsection 3-20. Limitation ~f Increment Pursuant to M~S., Section 46"9.176, ~ubd. Ia, no tax increment shall be paid to the EDA or Ci.ty for the District after three (3) years ~om the date of certification of the Original Net Tax Capacity value of the taxable property in the DistriCt by the County Auditor unless within the three (3) year period: (a) bonds have been issued in aid of the project containing the district pursuant to M.S., Section 469.178, or any othez~ law, except revenue bonds issued pursuant to M.S.o Sections 469.152 to 469. ] 65, or (b) the EDA or City has ~cquired property within the District, or (c) the EDA or City has ~onstrficted or caused to be constructed public improvements within the District. The bonds must be issued, Ior the EDA or City must acquire property or construct or cause public improvements to be constructed by approximately November, 2004 and repros such actions to the County Auditor. 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 £or all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from t~e dare'of certification of the original net tax capacity of the tax increment financing d~strtct pursuan, t to M.S., Section 469. ] 77, no demoht~on, rehabthtatton or renovation of property or other site I~re'paration, inc{uding qualified improvement cfa street adjacent to aparcel but not installation of uti~. ity a'er. vice including sewer or water systems, has been commenced on a parcel located within aiax increment financing district by the authority or by the owner of the parcel in accordance wi¢ the tax increment financing plan, no additional tax increment may be taken from that parcel an, d the original net tax cal~acity of that parcel shall be excluded from the original net tax capacity bf the tbs increment financing district. If the authority or the owner of the parcel subsequently com~.nence~ demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement cfa street adjacent to that parcel, in accordance with the tcoc increment financing plan, the authority shall certify to the county auditor that the activity has commenced ',and the county auditor a'hall certify the net tax capacity thereof a~ most recently certified by the ~,ornmissioner of revenue and add it to the original net tax capacity of the tax increment financing c~istrict The county auditor must enforce the l~rovisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken t?lace City of Chanha~sen Ta~ In~rcmon~ Financing Plan tbr Tax Increment Financing District No. 8 3-10 uul, IZ, ZUUI IZ'bZFM kHLI-h[b & AbbGCIAIE5 NO, 1168 P, 17/31 for each parcel in the distri,ct. The evidence for aparcel m~t be submitted by February 1 of the fifth year following the year in ~vhich the parcel was cert~ed as included in the district, For purposex of this subdivision, qualified imprpvements cfa street are limited to (1) construction or opening of a new street, (2) relocation ~fa str~eet, and (3) substantialreconstruction or rebuilding of an existing street. , The EDA or City or a property 6wner ~tust improve parcels within the District by approximately Novelnber, 2005 and repm~ such actxons to,, the County Au&tOr. Subsection a-2~. Lla~ of.Tax inemrn~nt The EDA or C~ty hereby determines that It wtll use 100 percent of the captured net tax capacity of taxable property located in the Dismcti for the following purposes: l, to pay the principal afraid interest on bonds issued to finance a project; 2. to finance, or otherw~se~ pay th? cost of redevelopment of the Downtown Chanhassen Redevelopm Project Area pursuant to the M.S., Sections 469. 090 to 469.1081; 3. to pay for project costs.' as identified in the budget set forth in the Plan; 4. to finance, or otherwis~ pay £or other purposes as provided in MS., Section 469.176, Subd. 4; to pay principal and interest on any loans, advances or other payments made to or on behalf the EDA or City or for the benefi;r of the Downtown Chanhassen Redevelopment Project Area by a developer; 6. to finance or otherwis~ pay premiums and other easts for insm'ance or other security guaranteeing the payment when due bfprincipal of and interest on bonds pm'suant to the Plan or pursuant to M. 5'., Cha?ter 462C. M.S., S'eetio~m 469. J52 through 469. ] 65, and/or M.S., $'ections 469. J 78; and 7. to accumulate or maintain a reserve securing the payment when due of the pri~cipal and interest on the tax increment bonds or bonds ~ssued pursuant to M.S., Chapter 462C, M.g, Sections 469.152 through 469. ] 65, and/or M.S., Sections 469,178. These revenues shall not be u~ed to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Revenues derived from tax increment from a housing district must be used! solely to finance the cost of housing projects as defined in M.S., Section 469.174, subd. 11, The cost of public improvements directly related to the housing projects and the allocated administrative expe, nses of the EDA or City may be included in the cost cfa housing project. These revenues shall ~ot be us, ed to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M. 5;, ,S'~clion 469.176, subd. 4. Fund of said District. The ED amount as specified in a de improveinents, demolition and will be used for EDA or City ad outside fl~e District. Tax increments generated in the District will be paid by Carver County to the EDA for the Tax Increment k or City will pay to the developer(s) annually an amount not to exceed an 2eloper's agreement to reimburse the costs of land acquisition, public relocation, site preparatmn, and adm[mstratmn. Remaining ~ncrement funds mingtration (up to 10 percent) and the costs of public improvement activities Subsection 3-22. Excess," Tax Increments Pursuant to M.S., Sectio~ 4694176, Subd. 2, in any year in which the tax increntent exceeds the amount ~ecessary to pay the costs authorized by the Plan, including the amount necessary to cancel any tax levy as City of Clm~lqassen Tax Increment Financing Plan for 'Fax Increment Financing District No. 8 3-11 0CT. 12,2001 12'52PM EHLERS & ASSOCIATES NO. 1168 -P.18/31 provided in/~.$.. Section 47~..61, Subd 3, thc EDA or City shall use the e×cess amount to do any of the following: 1. prepay any outstartdi~g bonds; 2. discharge the pledge bftax increment therefor; 3. pay into an escrow a~.count dedicated to the payment of such bonds; or 4. return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their lo~al tax rates. In addition, the EDA or CitYlmay, subject to the limitations set forth heroin, choose to modify the Plan in order to finance additional p~tbli¢ costs in the Downtown Chanhassen Redevelopment Project Ar~a or the District. , Subsection 3-23. Requirements for Agreements with the Developer I I The EDA or City will review] any proposal for private development to determine its conformance with the Redevelopment Plan and wi~ applicable municipa[ ordi~xances and codes. To facilitate this effort, the following documents may b~ requested for review and approval: site plan, construction, mechanical, and electrical system drawings, lahdscaping plan, grading and storm drainage plan, siguage system plan~ and any other drawings or narrative deemed necessary by the EDA or City to demonstrate the conformance of the dewlopment with City plans a,'nd ordinances. The EDA or City may also us~ the Agreements to address other issues related to the development. Pursuant to 3~.~., Section 46~.176, Subd 5, no more than 10 percent, by acreage, of the property to be acquired irt tt~e District as set[forth in the Plan shall at any time be owned by the EDA or City as a result of acquisition with the proceeda of bonds issued pursuant to M.S., Section 469.178 to which tax increments from property acquired is pled, ged, unless prior to acquisition in excess of 10 percent of the acreage, the EDA or City concluded an agreement for the dewlopment of the property, acquired and which provides rocourse for the EDA or City should tile development not b~ completed. ' Subsection 3-24. Asses?merit Agreements Pursuant to M.S., Section 4~9! 177, ~ubd. 8, the EDA or City may enter into a written assessment agreement in recordable form with the dbvelop.br of property within the District which establishes a minimum market value of the land aud comploted iml~rovemcnts for thc duration of the District. The assessment agreement shall be presented to the asseslsor who shall review the plans and specifications for the improvements to be constructed, review the markbt valu~ previously assigned to the land upon which the improvements are to be constructed and, so long a~s the minimum market value contained in thc assessment agr~ment appears, in the judgment of the assesdor, to be a reasonable estimate, the assessor shall also certify the minimum market value agreement. ' Subsection 3-25. Administration of the District Administratio~ of the Districi will be handled by the City ~anager. Subsection 3-26. Annu,~l Disclosure Requirements Pursuant to M.S., Section 469Jl 75, ~q~bd 5, 6 and 6a the EDA or City must undertake financial reporting for I : City of Chanhassct] TaI ]ncremeht Financing Plan for Tax Increment Financing District No. 8 3-12 / all tax increment financing districts to the Office of the State Auditor, County Board, County Auditor and School Board on or before Au~gust 1 of each year. M.S., Section ~t69.175, Subd. 5 also provides that an annual statement shall be publts.'hed in anewspaper of general circulation in the City o~ or before August 15. If the City fails to make a disclSsure or submit a report containing the information required by M.S, Section 469.175 ,gubd. S and$'ubd.' 6, tl~e Office of the State Auditor will direct the County Auditor to withhold the distribution of tax increment from the District, Subsection 3-27. Reasonable Expectations As required by the Tax Increment Fjj.~m~cing 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 reasonab!y foreseeable future and that the increased market value of the site that could reasonably be expected to occqr 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 fo/- the maximum duration of the District permitted by the Plan. In making said determination, reliance has beeh placed upon written representatives made by the developer to such effects and upon EDA and City staff awaren.ess of the feasibility of developing the project site. A comparative analysis of estimated market valaes b.'oth with and without establishment of the District and the use of tax increments has been performed'as desqrtbed above. Such analysis ~s included withthe cashflow in Appeudix D, and indicates that the increafie in es}imated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the estahlishmet~t of the District and the use of tax increments. , Subsection 3-28, Other I.tirnitatlons on the Use of Tax Increment 1. G_eJn. eral Lhnitation_s. All r(~venue derived from tax increment shall be used in notre'dance with the plan. The revenues shall be used!to finn.nee, or otherwise pay the cost of redevelopment of the the Downtown Chanhassen Redevelopmeht Project Area pursuant to the M.S., S¢¢tio~, 469. 090 to 469.108]. These revenues shall not be used to circumvent existing levy lira it law. No revenues derived from tax increment shall be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularl~ for conducting the business cfa munlc~pahty, county, school district, or any other local unit of governn~ent ortho state or federal government or for a commons area used as a public park, or a facthty used for s, octal, recreational, or conference purposes. This provision shall not p1'ol~ibit the use of revenues derived from tax increments for the construction or renovation cfa parking structure or of a privately owned facthty for conference pm'poses. 2. Re,striction op Pooling; Five Year~imit. Pursuantto M.S., ,gect~on 469. J765, (1) At least 80% of the tax increment derived fron4 the District must be expended on Public Costs incurred within said district, and up to 20% of said tax ihcrem&nts may be spent on Public Costs incurred outside of the District but within the Downtown Chanhassea Redevelopment Project Area; provided that in the case cfa housing district, a housing project, ,as defined in M.S., Section 469.174, Subd. 1! is deemed to be an activity in the District, and (2) public e. osts within the District shall be limited to reimbursement of public costs paid before or within fiver years after certification of said district by the County Auditor and interest on all such unreim bursed expend itures. 3-13 CiW of Chanha-asen Tax acremcnt Financing Plan for 'fax Increment Financing District No. g I 0CT. 12.2001 12'53PM EHLER$ & ASSOCIATES N0.1168 P. 20/31 Subsection $-29. Summary The City is establishing the District to, provide an impetus for residential development and provide safe and decent life cycle housing in tl~e City~ The Tax Increment Financing Plan for the District was prepared by Ehlers & Associates, Inc., 306(. Ceutr~ Pointe Drive, Roseville, Minnesota 55113-1105, telephone (651) 697- 8500. City of Chanl~assen Tax ~crement Financing Plan for Tax Increment Financing District No. $ 3-14 12,20 )1 ll'DSPM LHLLR::::; ASSOCiAILS NO, 1168P,21/31 APPENDIX A PROJECT DESCRIPTION The District is being created! to facilitate a senior housing project to be owned by a local no~-profit organization and will include !,000 s.f. of retail, 90 units for independent living, 56 units of assisted living, and 1 g units of memory care in the Chanhassen. Contracts for this have not been entered into at the time of preparation of this Plan, but tl~e date when development is likely to occur is the Spring of. 2002. The proposed agreement with :the non-profit housing developer is to provide assistance on a pay-as-you-go basis for a period of approxitnately 5 to 10 years. The City may us~ tax increments fi'om this development to assist other affordable housing proposals including both owner-occupied or rental housing projects outside of the boundaries of Tax Incre. ment Financing District No. 8. It is not expected that business subsidy regulatory agreements will be necessary because the assistance is intended to provide affordable housing for the community. APPENDIX A-I 0CT. 12.2001 12'53PM EHLERS & ASSOCIATES N0.1168 P. 22/31 APPENDIX B MAPS bF TH.EPROJECTAREAAND THE DISTRICTS APPENDIX B-I Ual. IZ, ZUU1 EHLER:::; & ASSOCIAII:S 8-- °o.~.. NO, 1168 P, 23/31 0 0CT. 12.2001 12'54PM EHLERS & ASSOCIATES Dov~l~ov~ Chanhassen Redevelopment Project Area Cit~, of Chanhassen, Carver County, Minnesota ,.~;.=': · =~ ~: ,. ~, .... :,: ¢.-~.~'.~-';-~';~ ~ ".~2,-~' ~' ~.;.,"'"'.F ~;. ....... '~' ~ '~'~ :" ': ;~'.~[..,~'~ L · ~ ~= ~ ' '~ ', .... , ~ ~, L: ~ · ~: ~.~..:~.~.~.':,:~:,~:,~z~J~.~,. "~T~,, '~ ,.'"~' "'"' . ..'~,,='~' ~..=.~.., %,+~.w=..,.~ .~ ~f,;.'~;.,.:~..~ .... ~ ....~'~ ..... ~.7~,.=.. .,.,.,. ..= c-. = , ; ".. ., ~,.~..~ ,~ ......~ .,,~ ~;?,", .: = ,t · :~ · , .:....,...' .~'~ ,~ .....C~.J~,,,~ ~ ~ ~",~ t~ ,~. '2 ..'. ~ ...... ~ ....... .. ', . ..:.~..~.~-,. ,~ ~ -'~ ~ · ,~ ..'..; '% ..,. (= '~ . · ;.~ .~ ~w ;'?~';' ,;,~,¢._ ~ ....... ~ '....2; {~ .-.. · '" '. · "~%%.~ <3,'"f ~;" <~ · , ~ .' . ~) ....~?..~?,...,.~...... ........ . ~.~ .. .~. . . . '. ', , . { {,'- :~ ~ ..';~< ~.' ,.,. .. = :... D. 4.~'. c' ~' ~ ' .... ~ :~¥.{ ,'.:, ;,:~ NO. 1168 P, 24/31 'Fax Increment ! HbUbV~M~M~H[ Increment Financing gfttrld ' ' ' ....... ' .... I i I Redevelopmen~ Projec[A~a Iz, ZUUI IZ,~rM APPBNDIX C DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT The District encompasses all l~ropert~ and adjacent rights-of-way identified by the parcel listed below. Parcel N_u_mber 25.8680080 OW[ICl' AUSMAR DEVELOPMENT CO. LLC Ta_x.' Parc,el Descriptign Lot: 000 Block: 000 Section: 13 Township: 116 Rm~ge: 023 Additi6n Name: VILLAOES ON THE PONDS APPENDIX C-I 06T. 12.2001 12'54PM EHLERS i I & ASSOCIATES APPENDIX D ESTIMATED CASH FLOW FOR THE DISTRICT NO, 1168--P. 26/31 APPENDIX D-] OC1,12,2001 12'b4PM EHLERS & ASSOC]ATES NO. 1168---P, 27/31 CIb/of Chanhaaaen: Preab')4mtan Homaa BASIC A~UMPTION~ New HouS[ng Dis(riC't Inflm~on Rata m 0.0000% Flail DI~p, Cont~butlon Ra~io 2~.470% Tax Capad[y (~ensi~) R~e -AR~ WIDE ~TE t.379670 IT~ C~pac~X.L~en~J RAte - Cl~ 'lncre~ues in [aX rlq~, Im no{ ca pt,.,~d ~)y TIF Fulum Est. 1,200000 Estimate · could be lower B.~E TAX. CAPACI'I"Y EASE BASE MARKET PROPERTY TAX PID VALUE TYPE CAPACITY 25-§8D-OOeO 839,200 1.25% 10.490 Eat/mate after new use Total 839,200 10,490 A~er new use Page I Total PROJECT VALUE INFQRNIATIQN ProJec~ ~q, FI/ Taxes To[al Tax Development Sq, FL/ Un~.a in Par Taxes MW Capaclly Tax Market Type Unite TIF Disl~cts .Sq. Ft./Unit Unit Total Rata Value Payable Independent 77 77 $1,200,00 92,400 80,0(30 77,0[30 1.25% 6,160,000 20~4 Assisted Living 55 55 $1,200.00 66,000 80,000 55,000 1.26% 4,400,00D 2004 Diman[ia 18 16 ', $i,~(30.00 21,600 60.000 18,000 1.2~% t.440,000 2004 Relall 8,400 . _8~400_ $2,53 21,278 110 17,730 1.5%/2.% ,- _9_2_4~ 00 O Totals 20~1,~76 187~730 12,g24f000 ACTUAL TAX INCREMENT RECEIPTS WILL DEPEND SIGNIFICANTLY UPON FUTURE TAX RATES, VALUE, INFLA'I'[ON, CONSTRUCTION TIMING, E'TO. Annual Tax lnct'¢,'~ent A~IRUBI Taxes'~ SUMMAI~.Y. 18§.6§a 201,~76 Prepared by Ehlera Inc. - Pleaae review ali assumptigns, OCT. 12, 2001 12:54PM EHLERS & ASSOCIATES lO/9101 i i City of Chanhasse~: Presbylerian Hnmea N0.1168 P, 28/31 ! TAX; INCREMENT CASH FLOW Beginning Pe~od Annual Gapture¢l i $eml. Annua~ Admin Yin. Mth. Yr, Cepe~ty ( apaci~I ,..Increment 10,50% 10,490 10,490 10,490 10,490 0 ~0,490 15~,240 10,490 157,240 ~,490 1~7,24o 10.490 1~,240 I0~490 157,240 10.480 157,240 10,490 1~,24D 10,490 157240 10,490 1 ~7,~0 ~ 0,490 ~ ~7,240 ~ 0,4 g0 1~?,240 10,490 1~7,240 10,490 157,240 10,490 157,240 10,490 157,240' 10,490 157,240, 30,490 1 ~?,240' 10,490 3 ~,240 10,490 1~7,240' ~0,490 ~57,240 10.490 1~7,~0 10,490 157,2~ 10,490 187,240 10,490 157.2~ 10.490 157,240 10,4 ~0 t 57,24o, 10,490 10,490 157~2~, 10,490 157,2~ 10,480 157.2~ 10,490 157,2~ ~ 0,490 157,240 ~ 0,490 157,240~ 10,490 ~ ~,240 10,490 - 10,490 157,~0' 10,490 1 ~,240' 10,490 1~7,240' 10.4S0 ~57,240 10 ,490 157.240 10.490 157~240 10,490 157.240, 10,490 157.240. 10,490 t ~ 0,490 157240 10,490 157.240 10,490 157,240 10,490 : 157,240 10,490 , t57,240 10~490 , 10,490 157,240 TOTALS 0.0 05.01 2002 0,0 0R.01 2002 0.0 02-01 2003 0.0 08.01 2003 0.0 02-61 2004 0.5 08-01 2004 1.0 02-01 2005 1.5 08-01 2005 2.0 02-01 2000 2,5 06-01 2006 3.0 02-01 2007 3.5 08.-01 2007 4,0 02-01 2008 4.5 05.01 2008 5,0 02-01 2009 5.5 08-01 2000 6.0 02-Ol 2010 6.5 08-01 2010 7,0 02.01 2,011 7.5 09-01 2011 8.0 02-01 2012 8.5 08.01 2012 9.0 02-01 2013 0.8 08-01 20t3 10.0 02-01 2014 10,5 00.01 2014 11.0 02-01 2015 11.5 08-01 20t5 12.0 02-01 2010 12,5 08-01 2016 13.0 02-01 2017 13.5 00-01 2017 14.0 02-01 2010 14,5 08-01 2018 15,0 02-Ol 2019 15.5 08-01 2019 10.0 05-01 5020 16..5 08-01 2020 17,0 02-01 2021 17.5 08-01 2021 19.o o2.ol 2022 18.5 08-01 2022 19.0 02-01 2023 18.5 08-01 2023 20.0 02-01 2024 20.5 09-01 2024 21.0 02-01 2025 21.5 08-01 2025 22.0 02-01 2056 22,6 08-01 2026 23.0 02-01 2027 23.5 08-01 2027 24.0 02-01 2020 24.5 09-01 2029 25.0 02-01 2029 28.5 08-01 2029 project Capacity 10490 10490 10,490 10.490 187,730 167.730 167,730 167,730 167,730 167,730 167,730 167,730 167,730 167,730 167,730 167,730 167,730 167,730 167.730 167.730 167,73o 167,730 167,730 167,730 167,730 167,730 167,730 167,730 167,730 167,73o 167.730 167,730 167,730 167,730 167,730 187,730 167.730 107.730 187.730 167,730 167,730 167,730 167,730 167,730 1~7,730 167,730 167,730 167,730 167,730 167,730 167,730 167,730 167,730 167,730 167,730 PRESENT VALUE Semi-Annual C~Jrnul, Ne1 Tax NPV Increment 6.38% 0 0 0 0 0 0 0 0 O 0 0 0 0 0 94,344 -9.g06 84.438 72,169 94,344 -9,908 64,438 142,107 94,344 -9,906 $4,438 209,$92 94,344 -9,806 84,435 275,563 94.344 -g,goB 04,438 339,213 94,344 I9,~)06 84,438 400,895 94,344 -g,g06 84,438 480.671 94,344 .8,906 84,438 518.598 94,344 -9.906 84.438 874.?35 94,344 .g,906 84.438 629,137 94,344 -9,906 84,458 981,858 94,344 -~,908 84,438 732,946 94.3'~4 -9,908 84,438 782,457 94.344 -g.g08 &4,438 ~30,437 94.344. -g,go8 94,438 876,934 84,344 -e,900 84,438 921,993 94,344 -9,906 84.438 988,660 94,344 -0,908 64,438 1,007,976 84,344 -9,908 84,438 1,049.984 94,344 -9,g06 84,438 1,099,725 94,344 -9.906 84.438 1,127,237 94,344 -9,906 94.439 1.184,559 94,344 -9.906 84.438 1,200,758 94,344 -9.906 84,481~ 1,235,776 94,344 -9,906 B4.436 1,269,742 94,344 -9.906 84.438 1,302,6~8 94,344 -9.906 84.438 1,334,557 94,344 -9,906 84.438 1,358,469 94,344 -9,906 94,438 1,398,426 94,344 -9.008 64.438 1,424,457 94,344 -9,g06 84,438 1,452,~90 94.344 -9,906 84,436 1,479,054 94.344 -9,ilO§ B4,43§ 1,506,576 94.344 -9,906 04,438 1,531,679 94,344 -g,go6 84,438 t.558,691 94,344 -9,908 84.438 1.580,737 94,344 -g,gO$ 84,439 %604,039 94,344 -9,906 84,438 1,628,621 ~4,344 -9,~06 64.438 1,648,504 94,344 -9,906 84,438 1,669,711 94,344 -9.906 84.438 1,590,263 94,344 -g.g06 84.438 1,710,179 94,344 -9,908 84,436 1,729,480 94,344 -9,906 64,438 1,748,184 94,344 -9.906 84,438 1,766,300 94,344 -9.006 84,438 1,783,875 94,344 -9,906 84,438 1,800,897 94,344 -9,908 84,4:38 1,017,393 94,344 -8,906 94,438 1,833.379 94,344 .9,906 84,438 1.848.87t 94,344 .9,906 $4,438 1,863,684 94,344 .9,908 84r4~,8 1,676,433 4,605,686 -516,116 4,390,770 2,_0 _9_8~L805 -220,375 1,878~433 ,. Ending Period Yrs. Mth. Yr. 0.0 08-01 2002 0.0 02-01 2003 0,0 06-01 2003 0.0 02-01 2004 0.5 0~-01 2004 1,0 02-01 2005 1,5 08-01 2005 2.0 02-01 2006 2,5 05-01 2006 3.0 02-01 2007 3.5 08.01 2007 4,0 02-01 2008 4.5 08-01 2008 5.0 02-01 2009 5.5 08-01 2009 6.0 02-Om 2OlO 6.5 08-0~ 2010 7.0 02-01 2011 7.5 o8.ol 2011 8,0 02-01 2012 8,5 08-01 2012 9.0 02-01 2013 9,5 08-01 2013 10.0 02-01 ~014 10.5 08-01 2014 11,0 02-01 2015 11.5 06-01 2018 12.0 02-01 201§ 12,5 09-01 2016 13.0 o2-01 2017 13,5 08-01 2017 14,0 02-01 2018 14,6 09-01 2018 15.0 02-01 2019 15.5 08-01 2019 16.0 02-01 2020 16.5 08-01 2020 17.0 02-01 2021 17.5 0~-01 2021 16.0 02-01 2022~ 18.5 08-01 2022 19.0 02-01 2023 19.5 08-01 2023 20.0 02-01 2024 20.5 08-0t 2024 21.0 02-01 2025 23.5 08-01 2025 22,0 02.01 2026 22.5 09-01 2026 23.0 02-01 2027 23,6 08-01 2027 24.0 02-01 2028 24.5 08-01 2028 28.0 02-01 2028 25.5 0~-01 2029 26.0 02-01 2030 Prepared by Eh[ars ]no. - Please review ail essumP~lons, IL. ZUUI [L.~r~ EHLENb & AbbUOIAIbb APPENDIX [3 I-IOD, SI~NG QUALIFICATtO;N$ FOR THE DISTRICT N0,1168 ."x'..... ,.,~" 1':'c.[.¢L....., ' .'.ri' ~ t'..l'N'ic;iJ,t[t ItlCC:,::u 5(1,': :, ,~t',X~lu'di;.~l lt;c,~,tt::.: 1-person $26,150 $31,380 2-person i $29,900 $35,880 3-person ~ $33,600 $40,320 _ 4-person ' $37~350 $44,820 Soui'ce:Depa~¢me~t of Housing and Urban Development P, 29/31 The three options for income limits on a standard housing district are 20% of the units at 50% of median income, 40% o£the units at 60.% of median income, or 50% of the units at 80°/~ of median income. At the time a district is established, the proje'ct needs to choose one of the options and meet those requirements for the life of the district. The City elects that 20% of the units will be at 50% of the median income. APP[3NDIX E-I 0CT. 12,2001 12'55PM EHLERS & ASSOCIATES N0,1168 P. 30/31 APPENDIX F 3UT/FOR QUALIFICATIONS APPENDIX F-I 10/3101 kH/kRb & ASSOCIAIkS I Oily of Chanhes,,en: Prea~)ytarlan Hom~. B3g,200I 12,024,000I I l Difference 12,084,800I IPr~sent V~]!ue Of Tax Irlcremenl (over 25 years) 2,0¢¢,808I JVC, ue Likely l.o Occur Without TIF is LeSS Th~n; 9,9B6,9921 i I, BUT FOR ANALYSIS Current Margot Volue - Esl, N~w Market Value - Est. N0,1168 -~P, 31/31 Inc. - Please mvi,~w ~11 assumptions. CITYOF CItANI EN 690 G~v Center Drive PO Box 147 Chanhassen, Minnesota 55317 P/lone 952.93Z 1900 General Fax 952.937.5739 Engi, eering Department Fax 952.93Z9152 Building Department Fax 952.934.2524 Web Site Ovww. ci. chanhassen, mn. us MEMORANDUM TO: Mayor City Council FROM: Bruce M. DeJong, Finance Director DATE: October 29, 2001 SUBJECT: Debt Study Update The attached infoimation from Ehlers, Inc. summarizes the position of the debt service funds that are open at this time. The individual fund balances were updated after the audit was completed. The information enclosed provides an accurate picture of the total debt position of the city of Chanhassen. Mark. Ruff will be present on Thursday evening to discuss the information and its implications regarding tax levies and debt burden in the future This study identifies areas where we may accomplish'several objectives that meet both council and staff goals. The early redemption of several bond issues will save the city' money that would be paid for high interest rates. It will also require the use of general city monies up front. This money could come from several sources that we have discussed previously, but the one that stands out is to reduce the general fund balance to pay bonds that require current and future tax levies. This achieves the council goal of lowering current tax levies while spending some of the fund balance on a one-time appropriation as staff has advocated. The bonds to be paid with general fund monies would be the 1988 Fire Station and Equipment Bonds (Fund 316) and the 1989C Corporate Purpose Bonds (Fund 323). These funds would require the infusion of$418,050, but we would eliminate the 6.5% to 7.2% interest payments that would otherwise be required through the next several years. This study has also proposes to call several issues that were previously identified as having misallocated special assessments. The projects in question were bonded for in two separate issues, but the assessments have been credited to only one fund. Rather than trying to recode assessments and restate the balance sheet, we propose to close the funds that received the extra assessments and transfer the money to the funds in deficit. We could call the 1993C G.O. Improvement Bonds (Fund 331) and then use the $971,373 remaining balance to cover calling the 1992A G.O. Improvement Bonds (Fund 310). An additional $650,000 would be required to fund that transaction which staffproposes to come from the Historic Preservation Trust. The City of Chanhassen. A crowin~ community with dean lakes, aualit~,.rrhnnh, a rharmina dmtmtmtm, thri~,ina h,,ti.~rt~* ..d h~n~ttif~,l n.rbt A or~.t ~l.e~ tn I;~,~ ~,,.~ ..d ~/.,, Mayor and City Council August 18, 1999 Page 2 Finally, the 1991E G.O. Refunding issue has sufficient funds on hand to pay its remaining debt and have $56,447 in remaining balance. Staff proposes that money to go toward the closed bond fund to be used for revolving loan purposes. This study has implications for the 2002 tax levy. The city can pay down additional debt, reduce the general fund balance back to a more appropriate level and reduce next year's tax levy at the same time. By taking these steps, we can assure the taxpayers that the city is indeed being fiscally prudent. attachments MEMORANDUM TO: Bruce Dejong, City of Chanhassen FROM: Mark Ruff- Ehlers & Associates DATE: September 24, 2001 RE: Debt Study Instead of merely providing a revised levy schedule, I have included updated copies of all of the spreadsheet along with an issue by issue set of recommendations and considerations. Please review carefully and call me with a date in which we can sit down and finalize the levy schedule for 2002 and look ahead to future years. Please note that included in these runs are the G.O. debt and G.O. Improvement Debt. Debt Supported Solely by Taxes 1988 G.O. Fire Station The levy schedule has increased slightly on the issue for 2002 and 2003 due to a change in the amount of cash balance shown in the updated audit. The ending balance is shown as slightly negative, but remember that the debt projections are at 105% of actual debt service. One consideration could be to refinance the debt under a current refunding and extend the principal out several years, if the years 2002 through 2004 are seen as more critical given the uncertainty in the property tax system. Given the high interest rates, the City could also simply prepay the debt from cash balances and eliminate the levy 1989C Corporate Purpose The levy schedule has increased slightly on the issue for 2002 and 2003 due to a change in the amount of cash balance shown in the updated audit. The ending balance is shown as slightly negative, but remember that the debt projections are at 105% of actual debt service. One consideration could be to refinance the debt under a current refunding and extend the principal out several years, if the years 2002 through 2004 are seen as more critical given the uncertainty in the property tax system. Given the high interest rates, the City could also simply prepay the debt from cash balances and eliminate the levy 1998A G.O. Park We are recommending a decrease in the levy for taxes payable in 2002 due to the cash balance in the fund. The lower levy will result in temporary negative cash balances after the February 1 payment of each year, but the total levy will not need to increase over time. 2000 Lease Revenue Bonds The levy schedule is left according to the resolution. 2001 Equipment Certificates The levy schedule is left according to the resolution. Debt Supported by Special Assessments and Taxes 1991E G.O. Improvement Refunding The levy for payable 2002 can be cancelled and the debt has sufficient cash balances to call the remaining $425,000 of principal as soon as possible. We should review the resolution to determine if the prepayment can only be made on an interest payment date. Action: Full call of principal in Fall, 2001 1992A G.O. Improvement As we have discussed previously, it is our assumption that some of the assessment income which should have been received by this fund was miscoded into the 1993C fund. Therefore, calling the 1993C bonds and pledging the remaining balances and assessment income should allow the fund to be made whole atht eh end of the term of the bonds. Given high interest rates, we would also recommend a partial call of the 1992A G.O. Improvement bonds, as long as the resolution allows the City to call any of the maturities in part rather than the last maturity first and as long as the City's cash and investment schedule allows the flexibility of cash available on those dates. Action: Partial call of principal in Fall, 2001, pending review of bond resolution and city balances 1993C G.O. Improvement As discussed under the 1992A bond section, the bonds should be called in the fall of 2001 for a prepayment on February 1, 2002. The pre-payment will allow cash balances remaining in the fund to be transferred to the 1992A G.O. Improvement fund. Action: Full call of principal in Fail, 2001 1994A G.O. Refunding Based upon our recent discussions, the negative cash balance for these bonds is carried in the tax increment bonds section of the City accounting system. Therefore, no further adjustments to the levy have been made. 1994B G.O. Improvement Refunding The special assessments have all been paid for this debt and a tax levy is programmed to pay the remaining maturities. No changes from the resolution levy have been made. 1995B G.O. Improvement This bond issue had significant deficits which were mitigated by the high tax levy in 2001. The $381,874 projected tax levy could be delayed until 2004 if necessary. Action: Consider delay of 2002 levy until 2004, if necessary. 1995C G.O. Improvement This fund also appears to have not been allocated its share of special assessments due to its very high deficits. We had previously adjusted the levy from the resolution to allow for the higher tax base in 2004 to pay for a tax levy to both make up lower than expected assessment revenues and lower levies in 2001 and 2002. We would recommend that the deficits be partially paid from the available cash balances and future assessment income of the 1996B bonds. 1996B G.O. Improvement This fund is complicated by three factors. First, it appears that there was too much in assessments assigned to this fund which should have been assigned to the 1995C fund. Second, the call date is not until February 1, 2004. Therefore any cash balances cannot be made available without significant historical research or until the debt is defeased. Third, part of the income which was expected to be paid to this bond issue was approximately $2.2 million from the county agreement (along with the 1996D bonds) with on the use of"excess tax increments" from the City's pre-1979 districts. The availability of county agreement funds depends upon the actual value of the tax increment districts after property tax reform and it depends upon the City's efforts to retain tax increment from the pre-1979 district to pay outstanding interfund loans. It is generally our recommendation that the City defease this debt once a determination on the amount of value from the pre-1979 districtis made this fall. If it is demonstrated that all projected coUnty agreement funds would be necessary to pay the 1996D debt, the defeasance would allow the City to balance the bond funds by transferring adequate dollars to the 1995C fund. This action is predicated on the availability of cash given the City's investment portfolio and cash needs. Action: Consider defeasance of issue, pending analysis, in fall, 2001. 1996D G.O. Improvement Capital Appreciation These bonds were clearly intended to be paid with county agreement funds amounting to approximately $3.9M. The 'projected deficit cannot be refinanced because the bonds are not callable. If county agreement funds are not available, the levy for 2002 should be increased to cover a portion of the deficits in this fund. If county agreement funds are available, the analysis should be undertaken to take payable 2001 receipts and projected 2002 through 2004 receipts against future debt service. Action: Decide status of county agreement funds and adjust levy for 2002 accordingly. 1998B G.O. Improvement No tax levy is necessary for debt service on the bonds, but the projected ending balances are extremely high. Action: Research levels of special assessment income to determine if any coding errors occured. 1999 G.O. Improvement Slight adjustments to the levy in the later years of the bond issue were added for cash flow purposes. We do not have project number information for the special assessment income and are using projections from the original bond sale. Action: Research special assessment projects to determine actual income for 2002 and beyond. 200lB G.O. Improvement No changes to the levy were made from the resolution. After the projects are complete, the actual project numbers should be added to this study. from the desk of: Mark Ruff Executive Vice President/Director Ehlers & Associates, Inc. 3060 Centre Pointe Drive Roseville, MN 55113 Phone: (65~) 697-8505 Fax: (65~) 697-8555 E-Mail: mark@ehlers-inc, com OCT. 15,2001 9'25AM EHLERS & ASSOCIATES N0.1235 P. 2 _ I TO: FROM: DATE: EHLEiRS & ASSOCIAT[ES INC Bruce DeJong, City o~Chanhassen Mark Ruff'- Ehlers ~ Associates October 15, 2001 MEMORANDUM Calling Bonds Attached are our estimates of the amounts required to prepay the five outstanding bond issues which wc have discussed recently. To prepay the two bonds supported funds is approximately $418,000. To prepay the three bonds supported I: of funds conld be the closed bond fi several years to offset approximately The resolutions to call the bonds shou Please fax to us a copy of the appro~ finalize these procedures. s,)lcly by taxes, the requited cash outside of the existing debt service ~' assessments and taxes requires a net of $596,000, A possible source ad. There will be future special assessment receipts over the next $500,000 (future value) of the deficits. Id be adopted Jn November to allow 30 days prior to the first call date. mg resolution for each bond issues. ContaCt us When would like to from the desk of: Mark Ruff Executive Vice PresidenffDirecror Ehler$ &Associates, Inc. 3060 Centre Pointe Drive Roseville, MN 55113 Phone: (651) 697-8505 ]Vax: (651) 697-8$55 E-Mail: mark~eblers-inc.com 0 0CT. 15,2001 9'25AM EHLER$ & ASSOCIATES NO. 1235 P. 4 0 ~ 0CT. 15.20019:25AM--' EHLERS & ASSOCIATES N0.1295 P. 6 o~ ubs, i~,zuul ~,Z;AM EMLEkb & AbbUCIAIEb NO. 123b P, / ooo oo§ ~ ooooo ~ 0 0 0 ~~o oooo~ 8888oooo~o88 oooooo ~§8o 05' .~.eO 0 D ~o ~ o ~,' :~ ~ 5' 0 g g m 0 08' o o oooo~8 O~o°~ ..... oooo oooo o- oooooo oooooo o o o o o o o o o o o o ~cccccccc .... ' ~_m_mm__m~rn oooooooooooo~ oooooo oo~o~._..~=~ ~ §oo8~9~0~~ ~ ooooooooo~ 8~ ooooooooo~ 8 oooo 8 8 8 8 § 8 8 8 o o o o o o o o oooooooooo o oooooooooo oooooooooooooooo 8oo88~o 8ooo~§8§ooo ~ ~ooooo~.~-- ~moo~ !Jo-i is~tueLtl --!MO!A BU!l!elAl IXO!A 'eob Rd Z I.:8 tO08 '68 Jeqo)oo 'J~epuolAl !JO-] '>teeH :~.oelqns :luas