CR 93-121 Amendment TIF 2-7
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Council Report 93-121
July 15, 1993
AMENDMENT TIF DISTRICT 2-7
(THERMOTECH)
PrOD sed Action.
Staff recommends the adoption of the following motion: IIMove to approve
Council Resolution 93-74 amendina Tax Increment Financina Plan for Tax
Increment Financina District 2-7 (Thermotech Inc. Proiectl."
overview
On June 15, 1993, the Council approved Resolution 93-51 creating TIF
District 2-7 on the Thermotech Inc. property located at 1202-5th str et
South.
At the end of the 1993 Legislative session, a bill was passed which will
allow Districts such as 2-7 (Economic Development Districts) to collect
nine years of increment rather than eight. The Council has until August 1,
1993 to amend District 2-7 to allow for the collection of one extra year of
increment. The current Tax Increment law provides that such an amendment
does not fall within the category of "modificationll to the plan, therefor
no formal public hearing or comment is required.
The action as recommended by staff will approve an amendment to TIF
District 2-7 which will allow the collection of Tax Increments in this
district for a total of nine years. The first increment is scheduled to be
collected in 1995. The additional year of increment will help cover costs
associated with the potential public/private improvements which have been
discussed as part of this project.
SUDDortina Information
o Amended Tax Increment Plan
o Resolution No. 93-74
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4ItPaul T. steinman
Community Development specialist
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Council Report 93-121
Amend TIF District 2-7
Page 2
Alternatives
The Council has the following alternatives regarding this issue:
1) Approve Council Resolution No. 93-74 as recommended by staff.
2) continue for additional information. The implications of this
alternative would be that the amendment as recommended by staff,
could not be added after August 1, 1993. Under this scenario, TIF
District 2-7 would collect eight years of increment rather than
nine
CITY OF HOPKINS
Hennepin county, Minnesota
RESOLUTION NO: 93-74
RESOLUTION AMENDING TAX INCREMENT FINANCING
PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 2-7
(THERMOTECH INC. PROJECT)
WHEREAS, the Housing and Redevelopment Authority in and for the
City of Hopkins, Minnesota (the "Authority") and the City Council for
the city of Hopkins, Minnesota (the "city") by resolution have created
Tax Increment Financing District No. 2-7 (the "District") through the
adoption of a Tax Increment Financing Plan for the District (the
"Plan"); and
WHEREAS, section V.E. of the Plan provides that tax increment
generated from the District may be collected for a period of eight (8)
years from the receipt of the first tax increment; and
WHEREAS, the 1993 Minnesota Legislature amended Minnesota
Statutes section 469.176 Subd. l(b) to provide that economic
development tax increment financing districts may extend for a term of
not more than 11 years from the date of approval of the District or 9
years from the date of receipt of the first tax increment from the
District; and
WHEREAS, it was the intent of both the Authority and City at the
time of.creation of the District to avail itself of the maximum term
permitted by law for collection of tax increment from such a district;
and
WHEREAS, the City and the Authority desire to amend the Plan to
provide for a term limit consistent with the maximum term permitted by
Minnesota law; and
WHEREAS, such an amendment does not fall within the category of
modifications set forth in Minnesota Statutes section 469.175, Subd.
4, which require a formal modification of the Plan after public
hearing and comment.
NOW, THEREFORE, BE IT HEREBY RESOLVED, by the city Council of the
City of Hopkins, that the Plan is hereby amended to provide that the
District will terminate no later than 9 years from the receipt of the
first tax increment from the District or 11 years from approval of the
District, whichever is earlier, and that City staff are hereby
authorized and directed to file a copy of this resolution amending the
Plan with the proper county and state offices.
Adopted this 20th day of July, 1993.
Charles D. R depenning, Mayor
ATTEST:
James A. Genellie, City CI rk
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MODIFICATION OF REDEVELOPMENT PROJECT NO.1
AND
TAX INCREMENT FINANCING PLAN NO. 2-7
FOR
TAX INCRE:MENT FINANCING DISTRICT NO. 2-7
(THERMOTEC INC. PROJECT)
CITY OF HOPKINS
HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF HOPKINS, MINNESOTA
JUNE 1993
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TABLE OF CONTENTS
Paqe
MODIFICATION OF REDEVELOPMENT PROJECT NO. ~.......... ~
I . BACKGROUND. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~
II. MODIFICATION INTENT............................. ~
III. PUBLIC PURPOSE.................................. ~
IV. PUBLIC FACILITIES TO BE CONSTRUCTED.. ........... 1
TAX INCREMENT FINANCING ............................. 3
1.
A.
B.
INTRODUCTION
Project Description
Development Program
3
3
3
II. STATEMENT OF OBJECTIVE ......................... 4
III. TAX INCREMENT FINANCING DISTRICT #2-7..... ...... 4
IV. STATUTORY AUTHORITY AND DISTRICT ELIGIBILITY AS
AN ECONOMIC DEVELOPMENT DISTRICT................
A.
B.
C.
V.
A.
B.
C.
D.
E.
F.
G.
Economic Development................. ......
Economic Necessity ........................
Conformance with General Plans ............
1" zoning Regulations ..................................
2. Land Use Plan.........................
FINANCING PLAN
Estimated Public Development Cost .........
~ . Budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Source of Revenue and Tax Increment
Calculation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1. Tax Increment Calculation ............
2. Economic Adjustment Factor............
3. Cumulative Tax Increment Calculation..
4. Bonded Debt. . . . . . . . . . . . . . . . . . . . . . . . . . .
5 . Payment of Bonds .....................
6. Security for Bonds....................
Captured Tax Capacity Value ...............
Excess Tax Increments .....................
Duration of the District ............ ......
Election as to Increment ........... .......
Estimated Impact on Other Tax Jurisdictions
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VI. TAX INCREMENT FINANCING REQUIREMENTS ........... 10
A.
B.
C.
D.
E.
F.
G.
H.
Limitation on Administrative Expenses .....
Project Administration and Maintenance ....
Limitation on Duration of Districts .......
Limitation on Qualification of Property
Tax Increment District ....................
Limitation on the Use of Tax Increment ....
County Costs ..............................................
Annual Disclosure Requirements ............
Modifications of Financing District .......
EXHIBITS
A Tax Increment Financing District Map
B TIF District 2-7 Legal Description
C Private Development Plans
D Impact on Taxing Jurisdictions
E Tax Increment Cash Flow
F Economic Adjustment Factor
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MODIFICATION OF REDEVELOPMENT PROJECT NO. 1
I . BACKGROUND
The City of Hopkins ("City") and City of Hopkins Housing and
Redevelopment Authority ("Authority") in November 7, 1989
reorganized and modified its Redevelopment Project Area in a
document entitled "Reorganization and Modification of
Redevelopment Projects and Tax Increment Districts (including
Tax Increment Financing Plan for Tax Increment Financing
District No. 2-2)". That document is included in this
modification by reference.
The proj ect was modified again in October of 1992. The
modification expanded the Redevelopment Project Area No. 1 to
include the area previously identified as Redevelopment
Project Area No.2. That document was entitled "Modification
of Redevelopment Project No. 1 and Tax Increment Financing
Plan No. 2-6 for Tax Increment Financing District No. 2-6",
dated October 1992 and is included in this modification by
reference.
II. MODIFICATION INTENT
The City and Authority intend to establish Tax Increment
Financing District No. 2 -7 within the proj ect boundaries. The
original plan provide for the establishment of additional tax
increment financing plans within the redevelopment proj ect
area. The TIF Plan will provide for the expenditure of public
funds to assist a private local industry expand, as detailed
in the attached Tax Increment Financing District 2-7 Plan.
The City will utilize currently available redevelopment area
funds and economic development account funds. The collection
of future tax increments from the proposed development to pay
for the project.
III. STATEMENT OF PUBLIC PURPOSE AND OBJECTIVES
The public goals and objectives put forth in the original plan
are applicable and consistent as a guide for the proposed
development. The public goals and obj ectives remain unchanged
from the original plan.
IV. PUBLIC FACILITIES TO BE CONSTRUCTED
Public facilities to be constructed within Redevelopment
Project NO.2. include, in addition to any facilities
specified in Redevelopment Project Plans previously approved:
renovation of Mainstreeti Excelsior Avenue Streetscapei County
Road 3 and Eleventh Avenue improvements; undergrounding of
utilitiesi and miscellaneous public improvements.
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The Thermotec Inc. project will require that certain watershed
improvements be made to Nine Mile Creek designed to increase
the creek flow rate. The work will reduce the floodplain
elevation. The reduced floodplain elevation will permit
Thermotec Inc. to expand its existing facility on land what
was previously within the floodplain. Watershed improvements
are hereby added to the list of public facilities to be
constructed with public funds.
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TAX INCREMENT FINANCING PLAN
FOR
TAX INCREMENT FINANCING DISTRICT 2-7
I. INTRODUCTION
The Authority proposes to capture the increase in tax capacity
valuation and the resulting increase in real property taxes on
improvements within the following described Tax Increment
District No. 2-7 as authorized in Minnesota Statutes Sections
469.174 to 469.179 (the TIF Act) .
A. Project Description
Thermotec Inc. proposes to expand its existing
manufacturing facility by adding an additional 50,000
square feet of manufacturing space. This project cannot
move forward until certain improvements are made to the
Nine Mile Creek watershed. The creek needs to be
improved to increase the creek flow rate. The Nine Mile
Creek runs through the subject property. A portion of
the property is below the floodplain elevation, hence
development is restricted. The proposed improvements
will remove the site from the floodplain restrictions.
The Authority will use tax increments generated from the
proposed development to pay for a major portion of the
estimated $850,000 watershed improvements.
The development site is located south of 5th Street South
and north along the Soo Line Railroad at 14th Avenue
South.
B. Development Program
1. Public Activities
The City and Authority will make improvements to
the Nine Mile Creek watershed to increase the flow
rate. All plans will be approved and activities
inspected by the Nine Mile Creek Watershed
District. The public improvements will cost
approximately $850,000.
2. Private Development
Thermotec Inc. will construct a 50,000 square foot
manufacturing facility at an approximate
development cost of $2,000,000. The Authority may
assist the private development cost with up to
$550,000 in eligible tax increment development
costs. See Exhibit B, Proposed Development Plans.
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3. Contracts Entered Into
The Authority intends to enter into a development
agreement with Thermotec Inc. The agreement will
commit Thermotec Inc. to develop an approximately
50,000 square foot manufacturing facility with
certain guarantees. The Authority may expend tax
increments generated by Tax Increment Financing
District No. 2 -2 and 2 -7 on eligible TIF
expenditures associated with the project.
I I. STATEMENT OF OBJECTIVE
The actions set forth in this Tax Increment Financing Plan
seek to achieve the beneficial program objectives identified
in the Redevelopment Program.
Specific Objectives sought to be accomplished by this Tax
Increment Financing Plan are:
A. Assist and encourage local industries to remain in the
City and expand in place.
B.
Facilitate the
property by
improvements.
use of currently vacant and under-used
the provision of adequate public
C. Increase the tax base of the State.
D. Increase the employment base of the State.
III. TAX INCREMENT FINANCING DISTRICT NO. 2-7
The Tax Increment Financing District No. 2-7 (TIF District) is
comprised of two contiguous parcels.
PID #
Building
Present Current Owner
25-22722-23-0032
Yes Aid Association for Lutherans
25-22722-23-0005
No Menasha Corporation
The TIF District No. 2-7 is within Redevelopment project Area
No. 2 and expanded Redevelopment Project Area No.2. See
Exhibit A, Tax Increment District No. 2-7 Map. See Exhibit B,
TIF District Legal Description for the legal description of
the TIF District 2-7.
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IV. STATUTORY AUTHORITY AND DISTRICT ELIGIBILITY AS AN ECONOMIC
DISTRICT
A. Eoonomio Development Distriot
The District is an "Economic Development District"
pursuant to Minnesota Statutes I Chapter 469.174,
Subdivision 12. That section of the Act defines an
economic development district as any project not meeting
the requirements found in the definition of redevelopment
district mined underground space development district or
housing district, but which the City finds to be in the
public interest because:
1.
It will discourage commerce,
manufacturing from moving their
another state or municipality.
industry,
operation
or
to
2. It will result in increased employment in the
State.
3. It will result in preservation and enhancement of
the tax base of the State.
B. Eoonomic Necessity
The proposed development would not be economically
feasible without participation of the Authority through
the use of tax increment financing. The Authority and
Developer explored other funding sources, none of which
were of sufficient magnitude to support the pUblic costs
nor available within the required time period. The
Developer and their financial consultant have notified
the Authority that it would not be economically feasible
for the Developer to pay for the watershed improvements.
Such analysis is on file at City Hall. Therefore, in the
opinion of the Authority, the proposed private
development would not reasonably be expected to occur
solely through private investment within the reasonably
foreseeable future and therefore, the Authority elects to
use tax increment financing pursuant to the TIF Act to
finance part of the project cost.
C. Conformanoe with General PIan
1. Zoning Regulations
The project site is currently zoned 1-2, General
Industrial. The proposed land use is consistent
with this zoning designation.
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2. Land Use Plan
The Hopkins Planning Commission on May 25, 1993
found the proposed plan to be in conformance with
the City's Comprehensive Plan.
v. FINANCING PLAN
A. Estimated Public Development Cost
The following costs estimate the Authority's
expenses with regards to its participation in the
Nine Mile Creek-Thermotec Inc. Project:
1. Budget
Watershed Improvements
Developer Assistance
Capitalized Interest
Administration
$ 850,000
550,000
90,000
50,000
TOTAL BUDGET
$1,540,000
The items of cost and the costs thereof shown above
are estimated to be necessary based upon the
qualified appraisers, consultants, legal and cost
information now available. It is anticipated that
the items of cost and the costs thereof shown in
each category above may decrease or increase, but
that the total project cost will not exceed the
amount shown above.
The total administrative expense is defined in
Minnesota Statutes Section 469.176, Subd. 3 of the
TIF Act and is estimated to be $50,000 which amount
does not exceed 10% of the total tax increment
expenditures.
B. Source of Revenue and Tax Increment Calculation
The Authority proposes to capture the tax increments
generated by the proposed industrial project within TIF
District 2 -7. Surplus Redevelopment proj ect No. 1
project funds may also be used to finance in part the
project expenses.
1. Tax Increment Calculation
It is estimated that the proposed facility will
have an estimated market value of $2,000,000
generating approximately $124,300 in annual taxes.
Taxes were computed as follows:
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REAL ESTATE TAX ESTIMATE (Thermotec Inc. Addition)
Project Value
Tax Capacity Value
Net Tax Increment
Tax Capacity Rate
$2,000,000
92,000
124,300
1.35141
2. Economic Adjustment Factor
Economic Development TIF projects require that the
original tax capacity value be adjusted annually by
the average percent increase in tax capacity
valuation during the previous five years. The
County Assessor has determined that the annual
factor will be 1.0014.
3. Cumulative Tax Increment Calculation
Exhibit C demonstrates the computation for the
annual tax increment available for eligible project
expenses.
4.
Bonded Debt
.
The public redevelopment cost of the Project may be
financed by the issuance of general obligation Tax
Increment Bonds (the "Bonds"). The Bonds would be
issued by the Authority. The Bonds would be issued
under authority of Minnesota Statutes, Section
469.174 to 469.179 of the TIF Act. The amount of
tax increment bonds would not exceed $1,540,000.
The Authority may issue a tax increment revenue
note to finance the public redevelopment costs.
5.
Payment of Bonds
The principal of and interest on the Bonds to be
issued by the Authority to finance the public
redevelopment costs of the Project will be payable
primarily from the tax increments to be received by
the Authority with respect to the district. In
addition, such principal and interest will be paid
from certain proceeds of the Bonds (capitalized
interest) and interest earnings thereon; and, to
the extent necessary, from certain monies required
to be provided by the Developer of the property in
the district pursuant to the development contract.
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6.
Security for Bonds
e
The Bonds will be general obligations of the City
to which its full faith and credit and unlimited
taxing powers will be pledged. The Bonds and the
interest coming due will be payable primarily from
tax increments to be derived from the Project by
the City. All tax increments will be pledged and
appropriated to the payment of the Bonds and
interest thereon due.
C. Captured Tax Capacity Value
It is estimated that the "Captured Tax Capacity Value" of
all taxable property in the Project, upon completion of
the development of the TIF District No. 2-7 in accordance
with this Plan, will be $92,000.
Total Estimated Tax Capacity Value
at Completion
- Frozen Base
$170,613
78,613
Estimated Captured Tax Capacity
Value
$ 92,000
D. Excess Tax Increments
The Authority shall use excess tax increments, if any, in
the following manner in the order determined by the
Authority:
1. Prepay any outstanding tax increment note or bond.
2. Discharge the pledge of tax increments.
3. Return the excess amount to the County Auditor who
shall distribute the excess amount to the
municipality, county and school district in which
the tax increment financing district is located, in
direct proportion to their respective tax capacity
rates.
4. Amend the TIF District Plan and/or Redevelopment
Area Plan.
E.
Duration of the District
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It is estimated
existence until
obligation to
that the District will remain in
June 2004, or until the Authority's
pay the project expenses has been
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discharged in accordance with the resolution authorizing
the issuance of the debt.
In no event will the TIF District exist more than nine
years from the receipt of the first increment, which is
expected to be in 1995. It is estimated that the tax
increment financing district, including any modifications
or changes, will terminate June 2004.
F. Election as to Increment
The Authority finds it necessary to receive 100~ of the
captured Tax Capacity Value, to produce sufficient tax
increment to fund project expenses in the least amount of
time.
G. Fiscal Disparities
The City elects pursuant to Section 419.175, Subd. 3,
paragraph a for the calculations of fiscal disparities
provisions of Chapter 473 F. The original net tax
capacity and the current net tax capacity shall be
determined before the application of the fiscal disparity
provisions of Chapter 473 F.
H. Estimated Impact on Other Tax Jurisdictions
The taxing jurisdictions within which the District is
located will continue to receive taxes as if no new
development were to occur with the current tax capacity
valuation neither increasing nor decreasing. The City
assumes that there would be no impact because the project
would not occur without the assistance sought. The
Authority will receive all taxes derived from the
increased tax capaci ty valuation above the adj usted base.
This precludes the jurisdictions from receiving tax
increases due to the Project, inflation, other than base
inflation, or other development of the taxable property
in the District. As Exhibit D indicates, this property
comprises a very small portion of the tax capacity value
of these jurisdictions.
The tax capacity value of the taxable property within the
District will be frozen at its original tax capacity
value through 2004. At that point, the taxing
jurisdictions will begin to receive taxes on the full tax
capacity value of the property. The amount each
jurisdiction will receive annually during the duration of
the District will vary with changes in the tax capacity
rate. Exhibit D further describes the impact the
proposed project will have on the taxing jurisdictions.
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VI. TAX INCREMENT FINANCING REQUIREMENTS
A. Limitation on Administrative Expenses
In accordance with Minnesota Statutes, Section 469.174,
Subd. 14 and Minnesota Statutes, Section 469.176, Subd.
3, administrative expenses means all expenditures of an
Authority other than amounts paid for the purchase of
land or amounts paid to contractors and engineering
services, directly connected with the physical
development of the real property in the district,
relocation benefits paid to or services provided for
persons residing or business located in the district or
amounts used to pay interest on, fund a reserve for, or
sell at a discount bonds issued pursuant to Section
469.178. Administrative expenses include amounts paid
for services provided by bond counsel, fiscal
consultants, and planning for economic development
consultants. No tax increment shall be used to pay any
administrative expenses for a project which exceeds ten
percent of the total tax increment expenditures
authorized by the tax increment financing plan or the
total tax increment expenditures for the project,
whichever is less.
B. Project Administration and Maintenance of Tax
Increment Account
Administration of the tax increment financing economic
development district will be handled by the Office of the
Community Development.
The tax increment received as a result of increases in
the tax capacity value of the tax increment financing
district will be maintained in a special account separate
from all other municipal accounts and expended only upon
sanctioned municipal activities identified in the
financing plan.
C. Limitation on Duration of Tax Increment
Financing Districts
No tax increment shall be paid to an Authority for a tax
increment financing district after three years from the
date of certification of the original net tax capacity of
the taxable real property in the district by the County
Auditor, unless within the three year period (1) bonds
have been issued in aid of the project containing the
district pursuant to Section 469.178, or any other law,
except revenue bonds issued pursuant to Sections 469.152
to 469.165, or (2) the Authority has acquired property
within the district, or (3) the Authority has constructed
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or caused to be constructed public improvements within
the district. The City may therefore issue bonds, or
acquire property, or construct or cause public
improvements to be constructed by 1996 or the office of
the County Auditor may dissolve the tax increment
financing district.
D. Limitation on Qualification of Property Tax
Increment District Not Subject to Improvement
Pursuant to Minnesota Statutes, Section 469.176, Subd. 6,
"if, after four years from the date of certification of
the original net tax capacity of the tax increment
financing district..., no demolition, rehabilitation or
renovation of property or other site 'preparation
including qualified improvement of a street adjacent to
a parcel but not installation of utility service
including sewer or water systems, has been commenced on
a parcel located within the tax increment financing
district by the Authority or by the owner of the parcel
in accordance with the tax increment financing plan, no
additional tax increment may be taken from the parcel and
the original net tax capacity value of that parcel shall
be excluded from the original net tax capacity value of
the tax increment financing district. If the Authority
or the owner of the parcel subsequently commences
demolition, rehabilitation or renovation or other site
preparation on that parcel including qualified
improvement Of a street adjacent to that parcel, in
accordance with the tax increment financing plan, the
Authority shall certify to the County Auditor that the
activity has commenced, and the County Auditor shall
certify the tax capacity value thereof as most recently
certified by the Commissioner of Revenue and add it to
the original net tax capacity of the tax increment
financing district. The evidence for a parcel must be
submitted to the County Auditor by February 1 of the
fifth year following the year in which the parcel was
certified as included in the district.
E. Limitation on the Use of Tax Increment
All revenues derived from tax increment shall be used in
accordance with the tax increment financing plan. The
revenues shall be used to finance or otherwise pay public
redevelopment costs pursuant to Minnesota Statutes,
Sections 469.124 to 469.134. These revenues shall not be
used to circumvent existing levy limit 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
regularly for conducting the business of a municipality,
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F.
e
G.
county, school district, or any other local unit of
government or the State or Federal government. This
provision shall not prohibit the use of revenues derived
from tax increments for the construction or renovation of
a parking structure, a common area used as a public park
or a facility used for social, recreational or conference
purposes and not primarily for conducting the business of
the municipality.
County Costs
1. Tax increments may be used to pay for the county's
actual administrative expenses under Sections
469.174 to 469.179. The County may require payment
of those expenses by February 15 of the year after
the year in which the expenses are incurred. The
amount of these payments is not required to be set
forth in the tax increment financing plan for the
project. To obtain payment for actual
administrative costs, the County Auditor must
submit to the authority a record of costs incurred
by the County Auditor related to administration of
the authority's tax increment financing districts.
2. Tax increments may be used to pay county road costs
as provided in Section 469.175, Subdivision l(a).
Annual Disclosure Requirements
Pursuant to Minnesota Statutes, Section 469.175, Subd. 6,
an Authority must file an annual disclosure report for
all tax increment financing districts. The report shall
be filed with the School Board, County Board and the
State Auditor's Office. The report shall include the
following information:
1. The original tax capacity value of the district;
2. The captured tax capacity value of the district,
including the amount of any captured tax capacity
value shared with other taxing districts;
3. The outstanding principal amount of bonds issued or
other loans incurred to finance project costs in
the district;
4. For the reporting period and for the duration of
the district, the amount budgeted under the tax
increment financing plan, and the actual amount
expended for, at least, the following categories:
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a. Acquisition of land and buildings through
condemnation or purchase;
b. Site improvements or preparation costs;
c. Installation of public utilities or other
public improvements;
d. Administrative costs, including the allocated
cost of the authority;
5. For properties sold to developers, the total cost
of the property to the Authority and the price paid
by the Developer;
6.
The amount of
those reported
on behalf of
located in the
tax exempt obligations,
under clause (3) I that
private entities for
district.
other than
were issued
facilities
The annual disclosure report is designed to be a two-way
medium of information dissemination for both the office
of the County Auditor and the City. Should the Auditor
want additional information, such information should be
requested prior to submission of the annual
disclosure report by the City. Similarly, the City
Council may utilize the annual disclosure report as a
means for requesting information from the office of the
County Auditor. The City must also file the annual
report to the Minnesota Commissioner of Revenue as
required under Minnesota Statutes, Section 469.175, Subd.
6. (a) .
H. Modifioations of the Tax Inorement Finanoing
Distriot
In accordance with Minnesota Statutes, Section 469.175,
Subd. 4, any reduction or enlargement of the geographic
area of the Project or tax increment financing district,
increase in amount of bonded indebtedness to be incurred,
including a determination or capitalized interest on debt
of that determination as not part of the original plan,
or to increase or decrease the amount of interest on the
debt to be capitalized, increase in the portion of the
captured tax capacity value to be retained by the City,
increase in total estimated tax increment expenditures or
designation of additional property to be acquired by the
City shall be approved upon the notice and after the
discussion, public hearing and findings required for
approval of the original plan. The geographic area of a
tax increment financing district may be reduced, but
shall not be enlarged after five years following the date
B
of certification of the original gross tax capacity value
by the County Auditor. The tax increment financing
development district may therefore be expanded until
approximately June 1998.
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EXHIBI~ B
PID# 25-117-22-23-0032
PID# 25-117-22-23-0005
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EXHIBI:r D
IMPAC:r ON :rAXING JURISDIC:rION
IN THE :rAX INCREMEN:r FINANCING DISTRIC:r NO. 2.7
IN REDEVELOPMEN:r DIS:rRIC:r NO. 2
BY
THERMO:rEC INC. EXPANSION
HOPKINS, MINNESO:rA
1992-93 % of Total
Total Tax Tax Capacity
Capacity Increased * Available
Jurisdiction Valuation Tax Capacity %Of Total For Normal Growth
City of Hopkins 15,158,442 92,000 0.6 99.4
School
District 270 72,725,368 92,000 0.12 99.88
School
District 287 612,941,252 92,000 0.01 99.99
Hennepin
_ounty 951,896,305 92,000 .009 99.991
*Frozen tax ~apacity = 78,613
ES:rIMA:rED :rAX CAPACI:ry RA:rE IMPAC:r
ANNUAL TAX INCREMENT=$124,300
Distribution of
1992-93 Percent Tax Increment Potential
Capacity of Total to Individual Tax Capacity
Jurisdiction Rate Capacity Jurisdiction Impact of TIF
City of Hopkins 26.356 19.50 $ 24,239 .159
School
District 270 65.183 48.23 59,950 .082
School
District 287 1. 095 0.81 1,007 .0001
Hennepin County 35.839 26.51 32,952 .003
Miscellaneous 6.668 4.93 6,128
135.141 100.00 $124,300
EXHIBIT D
,... -.~ ..
EXHIBIT E
THERMOTEC INC. ADDITION
TAX INCREMENT CASH FLOW ESTIMATE
LGA - HACA Net Tax
Adiustment Increment
Gross Tax Present Present
Year Increment Actual Value Value Value @ 3 %
1992-93 0 0 0 0 0
1993-94 0 0 0 0 0
1994-95 $124,300 $ 43,500 $ 41,300 $ 80,800 $ 76,162
10'5-96 124,300 43,500 39,809 80,800 73,943
1996-97 124,300 43,500 38,649 80,800 71,790
1997-98 124,300 43,500 37,523 80,800 69,700
1998-99 124,300 43,500 36,430 80,800 67,670
1999-00 124,300 43,500 35,369 80,800 65,700
2000-01 124,300 43,500 34,339 80,800 63,780
2001-02 124,300 43,500 33,339 80,800 61,930
2002-03 124,300 43,500 32,369 80,800 60,150
-------- -------- -------- -------- --------
TOTAL $1,118,700 $391,500 $328,830 $737,200 $610,825
~, ... .
EXHIBIT F
THERMOTEC INC. PROJECT
TIF DISTRICT 2-7
ECONOMIC DEVELOPMENT TAX INCREMENT DISTRICT ADJUSTMENT FACTOR
Average Percent Increase Determination
A.
B.
c.
D.
E.
F.
G.
H.
I.
Establishment Date
June 1993
Base Year Assessment Date
January 2, 1993
Base Year Market Value
1,735,000
Fifth Preceding Year
Assessment Date
1988
Fifth preceding Year
Market Value
1,723,000
Five Year Market Value
Increase (C - E)
12,000
Five Year Total Increase
Ratio (F divided by E)
.007
Five Year Average Increase
Ratio (G divided by 5)
.0014
Annual Base Year Adjustment
Factor (1.000 + H)
1. 0014
TIF District 2-7 Market Values by PIN Number
1988
1993
PIN 25-11722-23-0032
1,650,500
72,500
1,662,500
72,500
PIN 25-11722-23-0005
SUB-TOTAL
1,723,000
1,735,000
16