HomeMy WebLinkAboutEDA June 20, 2000
/ ''\ CITY of ANDOVER
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Economic Development Authority Meeting - Tuesday, June 20, 2000 agenda
Call to Order -7:00 PM Bookmark
Name
Approval of Minutes minutes
ni",,"~~ion Iterns
1. Authorize the Call of Certain Outstanding General Obligation Tax callbond
Increment Bonds, Series 1993B.
2. Approve Modifications to Development District No. 1 and TIF District 1-1. tif
~J Adjournment
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CITY OF ANDOVER
REQUEST FOR EDA ACTION
DATE: June 20 2000
AGENDA SECTION ORIGINATING DEPARTMENT
Approval of Minutes City Clerk
~~)Y
ITEM NO.
Approval of Minutes
The Economic Development Authority is requested to approve the following minutes:
May 9, 2000 Regular EDA Meeting
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CITY OF ANDOVER
REQUEST FOR ECONOMIC DEVELOPMENT AUTHORITY ACTION
"
/ DATE: lune 20.2000
AGENDA SECTION ORIGINA TING DEPARTMENT
Finance
Discussion Jim Dickinson
ITEM NO.
Authorize the Call of Certain Outstanding General Obligation Tax Increment
Bonds, Series 1993B
REQUEST:
The Andover Economic Development Authority is requested to recommend approval of the calling of
certain General Obligation Tax Increment Bonds, Series I993B to the City Council.
BACKGROUND:
At the March 16,2000 Andover Economic Development Authority meeting, staffwas authorized to
... initiate the process to prepay General Obligation Tax Increment Bonds, Series I993B bonds maturing on
/ or after August 1,2001.
The Finance Department has discussed the process with our Financial Advisor and Bond Counsel. The
approval of the attached resolution will get the ball rolling to call the bonds. Also attached is the March
16,2000 Request For Economic Development Authority Action which will provide documentation of
how this request was initiated.
If you have any questions please do not hesitate in contacting me at 767-5110.
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EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF ruE CITY OF
ANDOVER, MINNESOTA
HELD: ,2000
Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City
of Andover, Anoka County, Minnesota, was duly held at City Hall on , 2000 at
o'clock _.m. for the purpose, in part, of authorizing the call of certain outstanding General Obligation Tax
Increment Bonds, Series 1993B.
The following members were present:
And the following were absent:
Councilmember introduced the following resolution and moved its adoption:
RESOLUTION NO.
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. RESOLUTION AUTHORIZING ruE CALL OF CERTAIN OUTSTANDING
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1993B
WHEREAS:
1.01. The City has issued $520,000 General Obligation Tax Increment Bonds, Series 1993B
(the "Series 1993B Bonds") to finance project costs within Development District No. I and, in connection
with the issuance of the Series 1993B Bonds, established a General Obligation Tax Increment Bonds,
Series 1993B Debt Service Fund (the "Debt Service Fund").
1.02. As of March 10,2000, the cash balance in the Debt Service Fund was $231,850.01 and
the City anticipates an additional $9,379.99 be deposited in the Debt Service Fund by July 31, 2000. The
remaining outstanding balance of principal and interest due on the Series 1993 Bonds is $241,230.00.
Consequently, the balance in the Debt Service Fund will be in excess of the remaining outstanding
principal and interest requirements of the Series 1993B Bonds on August 1,2000.
1.03. The Series 1993 Bonds maturing in the years 2001 through 2003, aggregating $165,000
in principal amount, are subject to redemption on August 1,2000, and on any day thereafter, at a price of
par plus accrued interest.
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NOW, THEREFORE, be it resolved by the City of Andover, Minnesota, as follows:
1.01. This Council hereby determines that there exists sufficient money in the Debt Service
Fund established by Resolution No. 161-93 duly adopted by the Council on July 20, 1993, to prepay on
August I, 2000, $165,000 aggregate principal amount of Series 1993 Bonds maturing in the years 2001
through 2003.
1.02. U.S. Bank Trust National Association, in St. Paul, Minnesota (formerly, First Trust
National Association), the bank at which principal and interest are payable, is hereby authorized and
directed to cause the Notice of Redemption attached hereto as Exhibit A to be given in accordance with the
provisions of Resolution No. 161-93.
1.03. No further action shall be required of the Council to complete prepayment of the Series
1993B Bonds.
The motion for the adoption of the foregoing resolution was duly seconded by Councilmember
, and upon vote being taken thereon, the following voted in favor thereof:
,
; and the following voted against the same:
Whereupon the resolution was declared duly passed and adopted.
Dated: ,2000.
City Clerk
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STATE OF MINNESOTA)
) ss.
COUN1Y OF ANOKA )
I, the undersigned, being the duly qualified and acting City Clerk of the City of Andover,
Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of
minutes ofa meeting of the City Council held on the date therein indicated with the original minutes
, thereof on file in my office and that the same is a full, true and correct transcript thereof insofar as said
minutes relate to Resolution No.
WITNESS my hand officially this _ day of June, 2000.
City Clerk
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EXHffiIT A
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1993B
CITY OF ANDOVER, ANOKA COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Andover, Anoka County,
Minnesota, there have been called for redemption and prepayment on
August I, 2000
those outstanding bonds of the City designated as General Obligation Tax Increment Bonds, Series 1993B,
dated August 1,1993, having stated maturity dates in the years 2001 through 2003 and totaling $165,000 in
principal amount. The bonds are being called at a price of par plus accrued interest to August 1,2000, on
which date all interest on the bonds will cease to accrue. Holders of the bonds hereby called for
redemption are requested to present their bonds for payment, at U.S. Bank Trust National Association
(formerly, First Trust National Association), 180 East Fifth Street, 3n1 Floor-Bond Drop Window, or ifby
mail, to P.O. Box 64 II I, in St. Paul, Minnesota 55 164-0 II I, on or before August 1,2000.
Dated: ,2000.
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BY ORDER OF THE CITY COUNCIL
CITY OF ANDOVER, MINNESOTA
/s/ Vicki Vo1k. Clerk
Important Notice: Under the Interest and Dividend Compliance Act of 1983, 31 % will be withheld if tax
identification is not properly certified.
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1 CITY OF ANDOVER
REQUEST FOR ECONOMIC DEVELOPMENT AUTHORITY ACTION
DATE: March 16.2000
AGENDA SECTION ORIGINATING DEPARTMENT
Finance
Discussion Jim Dickinson
ITEM NO.
General Obligation Tax Increment Bonds, Series 1993B
REQUEST:
The Andover Economic Development Authority is requested to authorize staff to initiate the process to
prepay Bonds maturing on or after August I, 2001 for General Obligation Tax Increment Bonds, Series
1993B.
BACKGROUND:
After detailed research of the bond sale resolutions it appears that the resolution for the 1993B Bonds
, has some restrictive language as to the use of the increment allocated to that Bond's Debt Service Fund.
, / Some of the restrictions are:
I. The investment of the dollars deposited into the account cannot be invested at higher yields
than the rate of the bonds.
2. The dollars allocated to the Debt Service Fund cannot be reallocated if a surplus of funds is
determined.
The Cash balance for the 1993B GO TIF Bonds Debt Service Fund as of March 10,2000 is $231,850.01
with $241,230.00 of Principal and Interest payments remaining. With the 2000 increment allocation, the
Debt Service Fund will have a Cash balance sufficient to payoff the Bonds.
Section 1.04. Optional Redemption of Resolution 161-93 "A Resolution Awarding The Sale Of
$520,000.00 General Obligation Tax Increment Bonds, Series 1993B; Fixing Their Form and
Specifications; Directing Their Execution and Delivery; and Providing For Their Payment" states that
"The City may elect on August I, 2000 and on any day thereafter to prepay Bonds maturing on or after
August I, 200 I. Redemption may be in whole or in part of the Bonds subject to prepayment. If
redemption is in part, those Bonds remaining unpaid which have the latest maturity will be prepaid
first.... Prepayments will be at a price of par plus accrued interest."
With the limitations placed on the Debt Service Funds I think it would be prudent to prepay the Bonds,
\ and any costs associated with prepayment would be offset by forgoing future paying agent fees and
/ administrative costs.
If you have any questions please do not hesitate in contacting me at 767-5110.
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CITY OF ANDOVER
REQUEST FOR ECONOMIC DEVELOPMENT
AUTHORITY ACTION
DATE June 20, 2000
AGENDA ITEM ORIGINATING DEPARTMENT
Community Development
Consider Modifications to
Development District No. 1 David L. Carlberg
and TIF District No.1 Community Development Director
The Economic Development Authority (EDA) is requested to consider and approve the
modifications to Development District No.1 and Tax Increment Financing District No. I-
I. This action by the EDA must take place after the City Council officially holds a public
hearing and approves said modifications. The Council will then forward the
modifications to the EDA for approval. Therefore, the EDA meeting will be left or held
open so the EDA can take action on the attached resolution immediately after Council
action.
ANDOVER ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF ANOKA
STATE OF MINNESOTA
RES. NO. PDA- -00
A RESOLUTION ADOPTING MODIFICATIONS TO THE DEVELOPMENT
PROGRAM FOR DEVELOPMENT DISTRICT NO.1 AND MODIFICA nONS TO
THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING
DISTRICT NO. 1-1.
WHEREAS, it has been proposed that the Board of Commissioners (the "Board") ofthe
Economic Development Authority (the "EDA") for the City of Andover (the "City")
adopt Modifications to the Development Program for Development District No.1 and
adopt modifications to the Tax Increment Financing Plan for Tax Increment Financing
District No. 1-1, (collectively, the "Modifications"), all pursuant to and in conformity
with existing law, including Minnesota Statutes, Sections 469.090 through 469.1081, and
Sections 469.174 to 469.179, inclusive, as amended, all as reflected in the Modifications
and presented for the Board's consideration; and
WHEREAS, the EDA has investigated the facts relating to the Modifications and has
caused the Modifications to be prepared; and
WHEREAS, the proposed developments as described in the Modifications, in the opinion
of the EDA, would not reasonably be expected to occur solely through private investment
within the reasonable foreseeable future and, therefore, the use of tax increment financing
is deemed necessary; and
WHEREAS, the EDA has performed all actions required by law to be performed prior to
the adoption of the Modifications, including but not limited to, notification of Anoka
County and School District No. 11 having taxing jurisdiction over the property to be
included in Tax Increment Financing District No 1-1, a request for review of and
comment on the Modifications by the City Planning and Zoning Commission, and a
public hearing held by the City Council on June 20, 2000 following published notice as
required by law.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners ofthe
Andover Economic Development Authority as follows:
1. The EDA hereby finds that Tax Increment Financing District No. 1-1 as
modified herein is in the public interest and is a "redevelopment district"
under Minnesota Statutes, Section 469.174, subd. 10 (a)(1) and fmds that the
adoption of the proposed Modifications will advance the EDA's and City's
objectives of encouraging development within Development District No.1.
2. The EDA ratifies and affirms the findings and public purpose contained in the
City Council resolution adopting the Modifications.
3. Conditioned upon the approval thereof by the City Council following its
public hearing thereon, the Modifications, as presented to the EDA on this
date, are hereby approved and adopted and shall be placed on file in the office
of the City Clerk.
4. Upon approval of the Modifications 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 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 does not constitute approval of any project or a
Development Agreement with any developer.
5. Upon approval of the Modifications by the City Council, the City
Administrator is authorized to forward a copy of the Modifications to the
Minnesota Department of Revenue pursuant to Minnesota Statutes 469.175,
subdivision 2.
6. The City Clerk is authorized and directed to forward a copy of the
Modifications to the Anoka County Auditor, all in accordance with Minnesota
Statutes 469.177.
Approved by the Board of Commissioners of the Andover Economic Development
Authority this ~ day of June, 2000.
ATTEST: CITY OF ANDOVER
Michael Knight, Secretary J. E. McKelvey, President
MODIFICATION TO
TAX INCREMENT FINANCING PLAN
for
TAX INCREMENT FINANCING DISTRICT NO. 1-1
(a redevelopment district)
within
DEVELOPMENT DISTRICT NO.1
ANDOVER ECONOMIC DEVELOPMENT AUTHORITY
CITY OF ANDOVER
Public Hearing on the Modification: June 20, 2000
Modification Adopted:
Prepared by:
e EHLERS
& ASSOCIATES INC
3060 Centre Pointe Drive Roseville, MN 55113-1105
651.697.8506 fax 651,697.8506 www.ehlers-inc.com
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TABLE OF CONTENTS
(for reference purposes only)
MUNICIPAL ACTION TAKEN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . ]-1
SECTION I.
DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. I . . . . . . . .. . . . . . . . ]-3
Subsection 1. 1. Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1-3
Subsection 1.2. Statement and Finding of Public Purpose. . . . . . . . . .. .., . .. . . . , . . . . . . . .. . . . . . . .. 1-4
Subsection 1.3. Statutory Authority. . . . . . . . . . . . .. ,. . . . . . . . . . . .. ... . . . . . . . .. . . . . ... . . . . . . .. 1-4
Subsection 104. Statement of Objectives ................................................... 1-5
Subsection 1.5. Estimated Public Costs and Supportive Data................................... 1-5
Subsection 1.6. Environmental Control .............,.....,................................ 1-8
Subsection 1.7. Proposed Reuse ofPropertv ....................................,........... 1-9
Subsection 1.8. Administration and Maintenance of the Development District. ..................... 1-9
Subsection 1.9, Rehabilitation ..................................................,........ 1-9
Subsection 1.1 O. Relocation ............................................................. 1-9
Subsection 1.11. Boundaries of the Development District. . . . . . . . . . . . . . . , . . . . . . . , . . . . . . . . . . . . .. 1-9
Subsection 1.12. Parcels to be Acquired or Which mav be Acquired in Whole or in Part Within the
Development District ........................................,.................. 1-10
SECTION II
TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO.
I-I ......................;.................................................. 2-1
Subsection 2.1. Statement of Obiectives ................................................... 2-1
Subsection 2.2. Development Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1
Subsection 2.3. Parcels to be Included in Tax Increment Financing District No ..........,.. . .......2-1
Subsection 2.4. Parcels in Acquisition ..........,..,..................",....... '" ' . . . . . . . . 2-1
Subsection 2.5. Development Activity in the Development District for which Contracts have been Signed
. .. .. . ......... . . ... ...... .. . .. .... ....,..... . . .... . .. , .. ...... . ...,.. . .., . ...2-2
Subsection 2.6. Other Specific Development Expected to Occur within the Development District, .. . . . . 2-2
Subsection 2.7. Estimated Cost of Proiect ....................,..........,.....,............ 2-2
Subsection 2.8. Estimated Amount of Bonded Indebtedness. . . . . . . . . . . . . . .. .. . . . , . , . . .. . . . . . . . . 2-2
Subsection 2.9. Sources of Revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , , . . . . . . . . 2-2
Subsection 2.10. Estimated Original and Captured Assessed Values and Estimate of Tax Increment ....2-2
Subsection 2.11 Mill Rate ....... ... .. . .. ... ... ., ....... ... .. .... ... ... .. . . , . . .. . . .. .. ..2-2
Subsection 2.12. Tax Increment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . 2-2
Subsection 2.13. Capitalized Interest. .... ..... ...... ............ . ... .. . ...... . .. . .. . ... ....2-3
Subsection 2.14. Investment Interest Rate ......,.................................,......... 2-3
Subsection 2.15. Type of Tax Increment Financing District.... ..... .... .. ... . ... . .. ... . ... ....2-3
Subsection 2.16. Duration of Tax Increment Financing District No. ]-1. ................... .......2-3
Subsection 2.17. Estimated Impact on Other Taxing Jurisdictions. ....................... . . . . . . . . 2-3
Subsection 2.18 Tax Increment Financing Account for Tax Increment Financing District No. I-I. ..... 2-4
Subsection 2.19. Modification of Tax Increment Financing District No.I-1 and/or Tax Increment Financing
Plan ..,...,............,............,..........,.........,.,........,. . . . . . . . . 2-4
APPENDIX A
BOUNDARY MAPS OF DEVELOPMENT DISTRICT NO.1 AND
TAX INCREMENT FINANCING DISTRICT NO. I-I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. A-I
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Items to be deleted by the 2000 Modifications are shown with ~t.;k,out.
Items to be added by the 2000 Modifications are shown with double
underline, with the exception of new or revised tables.
MUNICIPAL ACTION TAKEN
Based upon the statutory authority described in the Development Program attached hereto, the
public purpose findings by the City Council and for the purpose of fulfilling the City's development
objectives as set forth in the Development Program, the City Council has created, established and
designated Development District No. I pursuant to and in accordance with the requirements of
Minnesota Statutes. Section 472A.OJ 469.]26.
The following municipal action was taken in connection therewith;
July 29,1986: The Development Program for Development District No. I was adopted by the City
Council.
September 2, 1986: The Development Program for Development District No. ] was modified by the City
Council.
September] 5, 1987: The Development Program for Development District No.1 was modified by the
City Council.
April 5, 1994: The Development Program for Development District No.1 was transferred by the City
Council to the Andover Economic Development Authority (nEDA").
February 21,1995: The Development Program for Development District No.1 was modified by the EDA
to reflect increased geographic area and increased project costs.
September ]9,1995: The Development Program for Development District No.1 was modified to
increase authorized public costs, increase maximum bonded indebtedness and identify additional parcels
for potential acquisition.
June 20. 2000: The Development Program for Development District No. I was modified bv the EDA to
reflect increased public costs (Subsection 1.5) and technical and clarifying changes in Subsections 1.1.
1.3. 1.8. 1.10. 1.12.
The following municipal action was taken with regard to the Tax Increment Financing Districts located
within Development District No. ]:
Tax Increment Financing District No. ] -]:
July 29, 1988: The Tax Increment Financing Plan for Tax Increment District No.1 was adopted by the
City Council.
September 2, 1986: The Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 was
modified by the City Council.
City of Andover Development Program for Development District No. ] I-I
September 15,1987: The Tax Increment Financing Plan for Tax Increment Financing District No. 1-1
was modified by the City Council.
April 5, 1994: The Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 was
transferred by the City Council to the Andover Economic Development Authority ("EDA").
February 21, 1995: The Tax Increment Financing Plan for Tax Increment Financing District No.1-I was
modified by the EDA to reflect increased geographic area and increased project costs within
Development District No.1.
September 19, 1995: The Tax Increment Financing Plan for Tax Increment Financing District No.1-I
was modified to increase authorized public costs, increase maximum bonded indebtedness and identify
additional parcels for potential acquisition.
June 20. 2000: The Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 was
modified to reflect increased exoenditures. increased maximum bonded indebtedness. and general
revisions to reflect current statutory references and orovisions.
Tax Increment Financing District No. 1-2:
September 2,1986: The Tax Increment Financing Increment Financing Plan for Tax Increment Financing
District No. 1-2 was adopted by the City Council.
April 5, 1994: The Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 was
transferred by the City Council to the Andover Economic Development Authority ("EDA").
February 21,1995: The Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 was
modified by the EDA to reflect increased geographic area and increased project costs within
Development District No. I.
CilY of Andover Development Program for Development District No.1 ]-2
SECTION I.
DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. I
Subsection 1.1. Definitions. The tenns defined below shall, for purposes of this Development
Program, have the meanings herein specified, unless the context otherwise specifically requires:
"City" means the City of Andover, a municipal corporation and political subdivision of the State of
Minnesota.
"Comprehensive Plan" means the City's Comprehensive Plan which contains the objectives,
policies, standards and programs to guide public and private land use, development, redevelopment and
preservation for all lands and water within the City.
"Council" means the City Council of the City, also referred to as the governing body. (See
"Governing Body" below).
"County" means the County of Anoka, Minnesota.
"Development District Act" means the statutory provisions of Minnesota Statues, CL"ph-, 472A,
Sections 469.124 through 469.134 as amended and supplemented.
"Development District" means Development District No. I in the City, which is created and
established hereto pursuant to and in accordance with the Development District Act, and is
geographically described in Section I, Subsection l.ll. of the Development Program. The Development
District serves as the Proiect area for the purposes of Minnesota Statutes. Section 469. I 74. Subdivision 8.
"Development Program" means this Development Program for Development District No.1,
initially adopted by the Council on July 29, 1986. As defined in Minnesota Statues, Sc.c.tiou 4721.02,
S a'vJ;, ;,;uu S Section 469.125. Subdivision 3, a development program is a statement of objectives of the
City for improvement of a development district which contains a complete statement as to the public
facilities to be constructed within the district, the open space to be created, the environmental controls to
be applied, the proposed reuse of private property and the proposed operations of the district after the
capital improvements within the district have been completed.
"EDA" means the Economic Development Authority for the City of Andover operating pursuant to
Minnesota Statutes. Sections 469.090 through 469.1081
"Governing Body" means the duly elected City Council as defined in Minnesota Statutes Section
472A.02, subdivision 10.
"Mull;c;pal I,idu~h ;al D" ,dOPU1"Ut Act" Iu""u, tile; ,t"tutU1Y pI U, ;~;UU~ uf],I;uu",ota Stdtu,,~,
Chapt"l 474, a~ aUl<.uJel
"MUIl;";paJ;f:)" Ul"aU~ aliy city, 110\\","1 OI~alJ;L"J a, Jd"iu<.J ;'i ],i;uue;,uta Statut-.5, S....Gt;Oli
472.02, ,uLd;, ;S;uu 2.
"State" means the State of Minnesota
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"Tax Increment Bonds" means any general obligation or revenue tax increment bonds issued and
City of Andover Development Program for Development District No. I 1-3
to be issued by the City to finance the public costs associated with Development District No. I as stated
in the Development Program and in the Tax Increment Financing Plan for each Tax Increment Financing
District within Development District No.1. The term "Tax Increment Bonds" shall also include any
obligations issued to refund the Tax Increment Bonds.
"Tax Increment Financing District" means any tax increment financing district presently
established or to be established in the future within Development District No.1.
"Tax Increment Financing Act" means the statutory provisions of Minnesota Statutes, Sections
273.71 tlHvu"h 273.78469.174 through 469.1791 inclusive, as amended.
"Tax Increment Financing Plan" means the respective Tax Increment Financing Plan for each Tax
Increment Financing District located within the, rloj"'-t Al e,a Develooment District No.1.
Subsection 1.2. Statement and Finding of Public Purpose. The City Council (the "Council") of the
City of Andover (the "City") determines that there is a need for development and redevelopment within
the corporate limits of the City in Development District No.1 (the "Development District") to provide
employment opportunities, to improve the tax base and to improve the general economy of the State. It is
found that the area within the Development District is potentially more useful and valuable than is being
realized under existing development, is less productive than is possible under this program and, therefore,
is not contributing to the tax base to its full potential.
Therefore, the City has determined to exercise its authority to develop a program for improving the
Development District ofthe City to provide impetus for private development, to maintain and increase
employment, to utilize existing potential and to provide other facilities as are outlined in the
Development Program adopted and modified by the City.
-
The Council has also determined that the proposed development would not occur solely through
private investment in the foreseeable future; that the tax increment financing plans proposed herein are
consistent with the Development Program; and that the tax increment financing plans will afford
maximum opportunity, consistent with the sound needs of the municipality as a whole, for the
development or redevelopment of the Development District by private enterprise.
The Council finds that the welfare of the City as well as the State of Minnesota requires active
promotion, attraction, encouragement and development of economically sound industry and commerce to
carry out its stated public purpose objectives.
Subsection 1.3. StatutorY Authoritv. The Council determines that it is desirable and in the public
interest to establish, develop and administer a Development Program for the Development District in the
City to implement its Development District Plan, pursuant to the provisions of Cha}Jt", 472A, as
a.l,c,Jlde,J, V[M;llll",ota Statuk~ (the llDevelopment District Act":).
Funding of the necessary activities and improvements in the Development District shall be
accomplished through tax increment financing in accordance with M;H1Jc,~ota Statu!"'" S"..,t;vllS 27J.71 tv
27J.78, ;1Jd.:lS;, c" (the llTax Increment Financing Act") and through the use of industrial revenue bonds
pursuant to the provisions of Chapter 474, as amended, of Minnesota Statutes (the "Municipal Industrial
Development Act").
The City has designated a specific area within the corporate limits of the City as the Development
City of Andover Development Program for Development District No. ) 1-4
District as authorized by Section 472A.OJ 469.126 of the Development District Act which is hereby
amended as outlined in this document. Within the Development District, the City plans to uud...[ah t""o
(2) l,-,d("vGlvl-'uJ~ul J;;:)ll ;\..b a.s t) fh;,S of La^- ~U,,",l '-'lHlwut ~.ua.lJ\...~.lJ::; J;;:,Ll ~\""b l...;:,laLl;;:,lH...d pUl'suaul tv Slwlwt;vu
27J.7J, SaLJi, ;';VH 10, v[ [1.(. TaA 111\:', ..HI....t Ad has established three tax increment financing districts.
Subsection 1.4. Statement of Objectives. The Council determines that the establishment of the
Development District will provide the City with the ability to achieve certain public purpose goals not
otherwise obtainable in the foreseeable future without City intervention in the normal development
process. The public purpose goals include: restoration and improvement of the tax base and tax revenue
generating capacity of the Development District; increased employment opportunities; realization of
comprehensive planning goals; removal of blighted conditions; revitalization of the property within the
Development District to create an attractive, comfortable, convenient, and efficient area for
industrial, commercial, and related uses.
The City and Council seek to achieve the following Development Program objectives:
1. Promote and secure the prompt development of certain property in the Development District,
which property is not now in productive use or in its highest and best use, in a manner consistent with the
City's Comprehensive Plan and with a minimum adverse impact on the environment, and thereby
promote and secure the development of other land in the City.
2. Promote and secure additional employment opportunities within the Development District and
the City for residents of the City and the surrounding area, thereby improving living standards, reducing
unemployment and the loss of skilled and unskilled labor and other human resources in the City.
3. Secure the increase of commercial property subject to taxation by the City, Independent School
District No. 11, Anoka County, and the other taxing jurisdictions in orDer to better enable such entities to
pay for governmental services and programs required to be provided by them.
4. Provide for the financing and construction of public improvements in and adjacent to the
Development District, necessary for the orderly and beneficial development of the Development District
and adjacent areas of the City.
5. Promote the concentration of new desirable residential, commercial, office, and other
appropriate development in the Development District so as to maintain the area in a manner compatible
with its accessibility and prominence in the City.
6. Encourage local business expansion, improvement, and development, whenever possible.
7. Create a desirable and unique character within the Development District through quality land
use alternatives and design quality in new and remodeled buildings.
8. Encourage and provide maximum opportunity for private redevelopment of existing areas and
structures which are compatible with the Development Program.
Subsection 1.5. Estimated Public Costs and Supportive Data. The estimated costs of the public
improvements to be made within the Development District and financed by tax increments will be
/ derived from the tax increment financing districts within the Development District.
City of Andover Development Program for Development District No. I 1-5
(AS ORIGINALLY ADOPTED July 29,1986)
(Tax Increment Financing District No. I-I)
Land Acquisition $2,000,000
Relocation 1,000,000
Demolition 10,000
Improvements Including:
soil correction, sewer & water,
sanitary sewer, street lighting,
curb and gutter 1,000,000
Removal of Hazardous Waste 1,000,000
Professional Services
Estimated project costs for legal assistance, planning,
design, engineering, appraisals, marketing,
bond issuance costs, and other project services 1,000,000
Discount 95,000
Interest on Bonds Prior to Receipt of Tax Increment
To Fully Fund Principal and Interest 1,019,281.50
Less: Interest Income Earned
I During the Capitalized Interest
Period - Assume 6% Interest Rate 97,469.53
Total Amount of Bonds to be Sold , 4,810,000
Administrative Expense 264,000
AS MODIFIED FEBRUARY 21,1995
The estimated costs of public improvements to be made within the Development District and financed by
tax increments derived from tax increment financing districts within the Development District are modified
to include the following:
Public Improvements, including sewer and water
trunk lines to be located north of Crosstown
Boulevard and adjacent to the Andover Public
Utilities Building and park property. $1,000,000
City of Andover Development Program for Development District No.1 1-6
AS MODIFIED SEPTEMBER 19, 1995
The capital and administration costs identified in the Development Program and the Tax Increment
Financing Plans for Tax Increment Financing Districts Nos. I-I and 1-2 are amended to reflect the
following budget increases:
Land acquisition and site improvements $3,000,000
Public improvements and public facilities 11,400,000
Administration expense and costs of issuance 1.600.000
Total project costs and maximum principal of
bonds to be issued $16,000,000
As part of the 2000 Modifications. the budget for District No. 1- I has been configured to match the
current annual reporting requirements. The column for each budget modification contains the
expenditures added to the budget. The Bond interest pavments added through the 2000 Modifications is
not a new expense. but a recognition of the interest related to the principal authorized in 1995. The
modified budget appears in the following table.
Original TIF 2/95 9/95 2000 Total
Uses of Funds Plan Modification Modification Modification Budget
Land/building acquisition 2,000,000 2,000,000 2,000,000 6,000,000
Site improvements- 1,010,000 1,000,000 2,000,000 4,010,000
preparation
Installation of public 1,000,000 5,000,000 0 6,000,000
utilities
Parking facilities 0 0 0
Streets and sidewalks 0 1,000,000 6,400,000 0 7,400,000
Public park facilities 0 0 0
Social, recreational, 0 0 0
conference
Interest reduction payments 0 0 0
Bond principal payments 4,810,000 16,000,000 0 20,810,000
Bond interest payments 3,800,000 12,000,000 15,800,000
Loan principal payments 0 0
Loan/note interest 0 0
payments
Administrative costs 264,000 1,450,000 0 1,714,000
Other Relocation 1,000,000 0 1,000,000
Discount 95,000 150,000 0 245,000
State Auditor Fee 0 0 0
Total Uses of Funds 13,979,000 1,000,000 32,000,000 16,000,000 62,979,000
The amounts above include expenditures to be made outside of District No. 1-1 and within the
Development District subiect to the limitations of the Tax Increment Financing Act.
City of Andover Development Program for Development District No.1 1-7
Supportive Data for Estimated Costs of
Improvements for the Development District
Under the Development Program
It was necessary to make certain assumptions regarding income, costs and timing of the tax
increment financing district. These assumptions are based on discussions with City and County staff and
the developers.
Item Basis for Estimate
Acquisition, Improvements, Estimated by City
Demolition, Relocation
Professional Services Estimated by City Attorney, Bond Counsel and
Financial Consultant
(AS MODIFIED SEPTEMBER 2,1986)
(Tax Increment Financing District No. 1-2)
Land Acquisition* $450,000
Public Improvements 450,000
Credit Support Expense (e.g., Letter of Credit Fees) 4,404.75
Signal Light 65,000
Professional Services
Estimated project costs for legal
assistance, planning, design engineering,
appraisals, marketing, bond issuance costs,
and other project services 45,375
Discount 20,500
Interest on Bonds Prior to Receipt
of Tax Increment to Fully Fund
Principal and Interest 86,322.50
Less: Interest Income Earned
During the Capitalized Interest
Period - Assumes 6% Interest Rate (4,500.23)
Total Amount of Bonds to be Sold $1,300,000
Bonds Sold at this Time 1,025,000
Administrative Expense 91,500
* As part of the developer's responsibility, he will assure that the following public improvements are
included in the site preparation: Grading, Fill, Drainage and Soil Tests; Traffic Engineering; Curbs and
Gutters; Basic Landscaping; Street Lighting; Parking Lot Lighting; Parking Lot; Directional Signal;
Fence; Sidewalks; Public Toilets; Fire Protection; Exterior Building Lighting.
City of Andover Development Program for Development District No. I 1-8
SUPPORTIVE DATA FOR ESTIMATED COSTS OF
IMPROVEMENTS FOR TIlE DEVELOPMENT DISTRICT
UNDER THE DEVELOPMENT PROGRAM
It was necessary to make certain assumptions regarding income, costs and timing of the tax
increment financing district. These assumptions are based on discussions with City and County staff and
the developers.
ITEM BASIS FOR ESTIMATE
ACQUISlTlON, IMPROVEMENTS,
DEMOLITION, RELOCATION Estimated by Developer
PROFESSIONAL SERVICES Estimated by City Attorney, Bond Counsel and
Financial Consultant
Subsection 1.6. Environmental Control. The proposed economic development in the Development
District does not present significant environmental concerns. All municipal actions, public improvements
and private development shall be carried out in a manner consistent with existing environmental
standards.
Subsection 1.7. Proposed Reuse of Property. The public improvements needed to bring about the
new development include acquisition of land, site improvements, and general improvements. The
Development Program does not contemplate the acquisition of private property until such time as a
private developer presents an economically feasible program for the reuse of that property. It shall be the
intent of the City to negotiate the acquisition of property whenever necessary. Appropriate restrictions
regarding the reuse and redevelopment of property shall be incorporated into any land sale contract to
which the City is a part.
Subsection 1.8. Administration and Maintenance of the Development District. Maintenance and
operation of the public improvements will be the responsibility of the Administrator of the City who shall
serve as Administrator of the Development District. The powers, duties and responsibilities ofthe
Administrator are spelled out in the Administrative Guide for the Administration of the Development
Program for the Development District, attached hereto as Appendix A. Each year the Administrator will
submit to the Council the maintenance and operation budget for the following year.
The Administrator will administer the Development District pursuant to the provisions of Section
472A.10 469. I 31 of the Development District Act; provided, however, that such powers may only be
exercised at the direction of the Council. No action taken by the Administrator pursuant to the
above-mentioned powers shall be effective without authorization by the Council.
Subsection 1.9. Rehabilitation. Owners of properties within the Development District will be
encouraged to rehabilitate their properties to confonn with the applicable state and local codes and
ordinances, as well as any design standards. Owners of properties who purchase property within the
Development District from the City may be required to rehabilitate their properties as a condition of sale
ofland. The City will provide such rehabilitation assistance as may be available from federal, state or
local sources.
City of Andover Development Program for Development District NO.1 1-9
Subsection 1.10. Relocation. The City accepts its responsibility for providing for relocation
pursuant to Section 4 72A. 12 469.133 of the Development District Act.
Subsection 1.11. Boundaries of the Development District.
A. Boundaries of the Development District as established Julv 29. 1985.
PIN 34 32 24 44 0006 PIN 34 32 24 44 0008 PIN 34 34 24 44 0007
PIN 34 32 24 44 0005 PIN 34 322444 0004 PIN 34 32 2444 0003
PIN 34 32 24 44 0002 PIN 34 32 24 44 0001 PIN 35 32 24 22 0001
PIN 35322421 0001 PIN 35 32 24 230001 PIN 35 32 24 24 0001
PIN 353224 120001 PIN 34 32 24 430001 PIN 34 32 24 43 0002
PIN 34 32 24 43 0004 PIN 34 32 24 41 0001 PIN 34 32 24 41 0002
PIN 34 32 24 41 0005 PIN 34 32 24 41 0004 PIN 34 32 24 410010
PIN 34322441 0011 PIN 34 32 24 41 0008 PIN 34 32 24 41 0007
PIN 34 32 24 41 0006 PIN 34 32 24 31 0003 PIN 34 32 24 34 0001
PIN 34 32 24 33 000 I PIR 34 32 24 42 0006 PIN 34 32 24 42 0005
PIN 34 32 24 42 0004 PIN 34 32 24 42 0001 PIN 34 32 24 42 0003
PIN 34 32 24 42 0002 PIN 34 32 24 42 0007 PIN 34 32 24 42 0008
PIN 34 32 24 42 0009 PIN 34 32 24 42 0010 PIN 3432 24 24 0003
PIN 34 32 24 240001 PIN 34 32 24 24 0003 PIN 34 32 24120001
PIR 34 32 24 13 0001 PIN 34 32 24 13 0002 PIN 34 32 24 11 0001
PIN 34 32 24 140001 PIN 34 32 24 140002 PIN 34 32 24 140003
PIN 34 32 24 32 0001 PIR 34 32 24 32 0002 PIN 34 32 24 32 0003
I
PIN 34 3224320004 PIN 34 32 24 31 0004 PIN 34 32 24 31 0005
PIN 34 32 24 31 0006 PIN 34 32 24 31 0013 PIN 34 32 24 31 0007
PIN 34 32 24 31 0008 PIN 34 32 24 31 0009 PIN34322431 0011 _
PIN343224310010 PIN 35 3224 I I 0001 PIN 35 32 24 140002
PIN 263224320003 PIN 26 32 24 32 0004 PIN 33 32 24 42 0001
PIN 33 32 24 43 0033 PIN 33 322441 0001 PIN 33 3224440001
PIN 33 3224440002 PIN 34 32 24 23 0002 PIN 34 32 24 23 0003
B. Boundaries of the Development District as modified September 2. 1985.
All of Blocks I, 2, 3, and 4, ANDOVER COMMUNITY SHOPPING CENTER, according to the
plat on file in the office of the County Recorder, Anoka County, Minnesota EXCEPT Lot I, Block 2, and
also EXCEPT that part of Lot I, Block 3 described as follows:
Comm'encing at the northeast corner of said Lot I, Block 3; thence South, assumed bearing, along
the east line thereof 196.00 feet to the point of beginning of the land to be described; thence South
254.46 feet; thence South 5 I degrees 25 minutes 23 seconds West 129.99 feet; thence North 89
degrees 49 minutes 12 seconds West 166.00 feet to a point in the west line of said Lot 1; thence
North 00 degrees 10 minutes 48 seconds East, along said west line, a distance of335.00 feet;
thence East 266.57 feet to the point of beginning.
C. Boundaries of the Development District as modified September 15,1 987.
PIN 34 32 24 32 0004
City of Andover Development Program for Development District No.1 1-10
D. Boundaries of the Development District as modified February 21. 1995.
The boundaries of the Development District are expanded to include the area designated on the attached
map labeled Exhibit I-D.
Subsection 1.12. Parcels to be Acquired or Which mav be Acquired in Whole or in Part Within the
Development District.
AS ORIGINALLY ADOPTED ON JULY 29, 1986
Tax Increment Financing District No. 1-1
PIN 34 32 24 42 0004 PIN 34 32 24 31 0003 PIN 34 32 24 42 0005
PIN 34 32 24 42 0002 PIN 34 32 24 42 0006 PIN 34 32 24 42 0008
PIN 34 32 24420009 PIN 34 3224420001 PIN 34 32 24 32 0003
PIN 34 32 24140001 PIN 34 32 24 42 0007 PIN 34 32 24 31 0005
PIN 34 322431 0006 PIN 34 32 24 42 0010 PIN 34 32 24 31 0007
PIN 34 32 24 31 0008 PIN 34 32 24 32 0002 PIN 34 32 24 310011
PIN 34 32 24 310010 PIN 34 32 24 31 0004 PIN 34 32 24 310013
PIN 34 32 24 31 0009
AS MODIFIED ON SEPTEMBER 2, 1986
Tax Increment Financing District No. 1-2
Lot 2, Block 3, Andover Community Shopping Center
AS MODIFIED FEBRUARY 21,1995
This Subsection is amended to include all parcels as illustrated on Exhibit I-D.
AS MODIFIED SEPTEMBER 19,1995
In addition" the City intends to acquire the following property:
34-32-24-31-0012 34-32-24-31-0022 34-32-24-31-0003
34-32-24-42-0006 34-32-24-42-0001 34-32-24-42-0004
34-32-24-42-0005 34-32-24-42-0010 34-32-24-32-0005
34- 32- 24- 32-0006 34-32-24-3 I -0014 34-32-24-31-0017
34-32-24-31-0018 34-32-24-31-0015 34-32-24-31-0008
34-32-24-3 I -00 16 34-32-24-42-0003 34-32-24-42-0007
34-32-24-42-0002 34-32-24-14-0001 34-32-24-42-0008
34-32-24-42-0009
The City reserves the right to acquire any other property located within Development District No.1.
/
City of Andover Development Program for Development District No.1 I-ll
SECTION II
TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. I-I
Subsection 2.1. Statement of Obiectives. See Section I, Development Program for the
Development District, Subsection 1.4, Statement of Objectives.
Subsection 2.2. Development Program. See Section I, Development Program for the Development
District, Subsections 1.2 through 1.1 2.
Subsection 2.3. Parcels to be Included in Tax Increment Financing District No. I -I. The following
parcels located in the City of Andover, County of Anoka, State of Minnesota:
PIN 34 32 24 33 0001 PIN 34 32 24 42 0007 PIN 34322431 0007
PIN 34 32 24 42 0004 PIN 34 32 24 42 0010 PIN343224310011
PIN 343224420002 PIN 34 32 24 32 0005 PIN 333224420001
PIN 34 3224420009 PIN 34 32 24 31 0004 PIN 333224440001
PIN 34 32 24 24 000 I PIN 34 32 24 310016 PIN 34 32 24 23 0003
PIN 34 32 24 140001 PIN 34 32 24 310017 PIN 34 32 24 42 0003
PIN 3432 24 31 0006 PIN 34 32 24 31 0009 PIN 34 32 24 41 0001
PIN 34 32 24 31 0008 PIN 33322441 0001 PIN 34 32 24 41 0002
PIN 34 32 24 310010 PIN 34 32 2423 0002 PIN 34 322441 0003
PIN 33 32 24 43 0033 PIN 34 32 24 34 0001 PIN 34322441 0004
PIN 33 3224440002 PIN 34 32 2442 0005 PIN 34 32 24 41 0006
PIN 34 32 24 31 0003 PIN 34 32 2442 0008 PIN 34322424 0002
PIN 34 32 24 42 0006 PIN 34 32 24 32 0003 PIN 34 32 24 31 0014
PIN 34 32 24 420001 PIN 34 32 24 31 0005 PIN 34 32 24 3 I 0012
PIN343224310015 -
AS MODIFIED ON SEPTEMBER 15,1987
Adding
PIN 34 32 24 32 0004
FURTHER INFORMATION REGARDING THE IDENTIFICATION OF THE PARCELS TO BE
INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. ] -I CAN BE OBTAINED FROM
THE OFFICE OF ruE CLERK-TREASURER.
Subsection 2.4. Parcels in Acquisition. The City may acquire and reconvey anv of the parcels
identified in Section I, Subsection 1.12 of the Development P,rogram as O,;g,;"ally aJupt..d Jaly 29, 1986
As the City acquires said parcels, the Tax Increment Financing Plan for Tax Increment Financing District
No. I-I will be modified to reflect the acquisitions of said parcels.
The following are conditions under which properties not designated to be acquired may be
acquired at a future date:
(I) The City may acquire property by gift, dedication, condemnation or direct purchase from
willing sellers in order to achieve the objectives of the tax increment financing plan; and
(2) Such acquisitions will be undertaken only when there is assurance of funding to finance the
acquisition and related costs.
City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. ).1 2-1
Subsection 2.5. Development Activity in the Development District for which Contracts have been
Signed. The following contracts have been entered into by the City and the persons named below:
[Contracts entered into by the City will be inserted in this Subsection as they are consummated.]
Subsection 2.6. Other Specific Development Expected to Occur within the Development District.
[As specified development is expected to occur, it will be inserted in this Subsection.]
Subsection 2.7. Estimated Cost ofProiect. See Subsection 1.5 of the Development Program for
estimated costs associated pith the Development District.
Subsection 2.8. Estimated Amount of Bonded Indebtedness. It is anticipated that $4,810,000 of
bonded indebtedness will be incurred with respect to this portion of the Development District. The
September 1995 Plan Modifications added $16.000,000 to this amount creating a maximum bonded
indebtedness of$20.810.000.
This provision does not obligate the City to incur debt. The City will issue bonds or incur other
debt onlv upon the determination that such action is in the best interest of the City. The City may also
finance the activities to be undertaken pursuant to the Plan through loans from funds of the City or to
reimburse the developer on a "pav-as-vou-gO" basis for eligible costs oaid for by a developer.
Subsection 2.9. Sources of Revenue. Public improvement costs, acquisition and other costs
outlined in the Estimated Cost of Project (Subsection 2.7 above) will be financed through the annual
collection of tax increments as described below.
The City reserves the right to use other sources of revenue legallv aoplicable to the City and the
Plan. including. but not limited to. special assessments. general prooerty taxes. state aid for road
maintenance and construction. proceeds from the sale of land. other contributions from the developer.
other City and/or EDA funds. interfund loans. and investment income. to oay for the estimated public
costs.
Subsection 2.10. Estimated Original and Captured Assessed Values and Estimate of Tax
Increment. The most recent assessed value (the original assessed value) of Tax Increment Financing
District No.1-I is estimated to be $80,560.
The estimated captured assessed value of Tax Increment Financing District No. I-Ion January 1,
1989 is estimated to be $6,836,840.
The 1987 original assessed value of PIN 34 32 24 32 0004, upon its inclusion into Tax Increment
Financing District No. 1-1 as modified September 15, 1987, is $10,512. The future estimated value of
this parcel upon completion of the proposed improvement is estimated to be $2,130,048. The captured
assessed value is estimated to be $2,119,536.
Subsection 2.1 I Mill Rate. The mill rate is 102.02 I.
Subsection 2.12. Tax Increment. Tax increment has been at approximately $697,50 I assuming a
static mill rate and a increased by zero percent (0%) compounded annually.
City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. ]-1 2-2
Subsection 2.13. Caoitalized Interest. Capitalized interest will cover interest payments on the
Bonds prior to receipt of tax increment to fully fund the principal of and interest on the Bonds.
Subsection 2.14. Investment Interest Rate. Investment Interest is assumed at six percent (6%). This
is the estimated rate at which unspent but obligated funds will earn interest as well as any surplus tax
increment funds within any given year. This rate is contingent upon rates paid on savings and upon
arbitrage considerations.
Subsection 2.15. Tvoe of Tax Increment Financing District. Tax Increment Financing District No.
I-I is, pursuant to Minnesota Statutes Section 273.73, Subdivision lOa redevelopment district as defined
below:
(2) 70 percent of the parcels in the district are occupied by buildings, streets, utilities or other
improvements and 20 percent of the buildings are structurally substandard and an additional 30
percent ofthe buildings are found to require substantial renovation or clearance in order to remove
such existing conditions as: inadequate street layout, incompatible uses or land use relationships,
overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not
suitable for improvement or conversion, or other identified hazards to the health, safety and
general well being of the community.
Subsection 2.16. Duration of Tax Increment Financing District No, I-I. The duration of Tax
Increment Financing District No. 1-1 is expected to be twenty-five (25) years from the receipt of the first
tax increment. The date of receipt of the first tax increment will be July, 1988. The first tax increment
was received bv the City was 1989. The maximum duration of District No. I-I is 2014.
Subsection 2.17. Estimated Imoact on Other Taxing Jurisdictions. The estimated impact on other
taxing Jurisdictions assess construction would have occurred without the creation of Tax Increment
Financing District No. I-I. If the construction is a result of tax increment financing, the impact is $0 to
other entities. Notwithstanding the fact that the fiscal impact on the other taxing Jurisdictions is $0 due to
the fact that the financing would not have occurred without the assistance of the City, the following
estimated impact of Tax Increment Financing District No. 1-1 would be as follows if the "but for" test
was not met:
IMPACT ON TAX EASE
Original Future Captured District
Assessed Assessed Assessed %of
Entity Tax Base Value Value Value Entitv
Andover $ 56,325,20 I 80,560 6,9 17,400 6,836,840 12.14%
Anoka County 1,202,403,543 80,560 6,917,400 6,836,840 .5%
I.S.D. #11 595,908,940 80,560 6,917,400 6,836,840 1.15%
IMP ACT ON MILL RATE
Current Potential Entity
Entity Mill Rate Tax Increment
Andover 14.485 $ 99,032
Anoka County 28.738 196,477
LS.D. #11 55.740 381,085
Other 3.058 20.907
TOTAL 102.021 $697.501
City of Andover Tax lncrement Financing Plan for Tax Increment Financing District No. I.) 2-3
The inclusion of PIN 34 32 24 32 0004 into Tax Increment District No. 1-1 will have minimal
Impact on the other taxing jurisdictions. See Subsection 2.10 above.
The 2000 modifications are not the result of a pending development proiect. Therefore. it is
difficult to accurate Iv estimate the additional tax capacitv that mav be captured bv District No. 1-1 as a
result of the modifications. The following table illustrates the estimated fiscal and economic
implications from $10.000.000 in additional estimated market value. The actual implications will vary
according to the value and the number of development proiects,
Taxing Entity 1999/2000 Total Estimated Percent of CTC
Net Tax Capacity Captured Tax to Entity Total
Capacity
Anoka County 166,4 78,361 338,500 0.20%
I.S.D. No. 11 107,286,469 338,500 0.32%
City of Andover 14,722,272 338,500 2.30%
Taxing Entity 1999/2000 Tax Percent of Total Estimated Potential
Extension Rate Captured Tax Taxes
Capacity
Anoka County 30.8610% 28.53% 338,500 104,464
I.S.D. No. ] 1 51.7920% 47.88% 338,500 175,316
City of Andover 22.7350% 21.02% 338,500 76,958
Other 2.7850% 2,57% 338,500 9,427
108.1730% 100.00% 366,166
Subsection 2.18 Tax Increment Financing Account for Tax Increment Financing District No.
1-1. The tax increments received with respect to payment of principal and interest for bonds issued for
improvements made within Tax Increment Financing District No. I-I will be segregated by the City in a
special account or accounts (the "Tax Increment Account") on its official books and records or as
otherwise established by resolution of the City to be held by a trustee or trustees for the benefit of holders
of the Bonds.
Subsection 2.19. Modification of Tax Increment Financing District No.1-I and/or Tax Increment
Financing Plan. As of July 29, 1986, no modifications to Tax Increment Financing District No. I -lor the
Tax Increment Financing Plan therefore have been made.
AS MODIFIED SEPTEMBER 2,1986.
Pursuant to the adoption of the modification of the Development Program for Development
District No, I, Tax Increment Financing District No.1 is hereby modified to reflect an enlargement of the
geographic area and increased project costs of Development District No.1 as outlined in Section I,
Subsections 1.11 and 1.5, respectively, of the Development Program and is redesignated as Tax
Increment Financing District No. 1-1.
Cily of Andover Tax Increment Financing Plan for Tax Increment Financing District No. I~l 2-4
AS MODIFIED SEPTEMBER 15,1987.
Pursuant to the adoption of the modification of the Development Program for Development
District No. I, Tax Increment Financing District No. I -I is hereby modified to reflect an enlargement of
the geographic area of Tax Increment Financing District No.I-1 and Development District No.1 as
outlined in Section I, Subsection 1. 11 of the Development Program.
AS MODIFIED FEBRUARY 21,1995
Pursuant to the adoption of the modification of the Development Program for Development
District No.1, Tax Increment Financing District No. 1-1 is hereby modified to reflect an enlargement of
the geographic area and increased project costs within Development District No.1 as outlined in Section
I, Subsections 1.5., 1.11., and 1.12.
AS MODIFIED JUNE 20, 2000
The Development Program for Development District No. I and the Tax Increment Financing
Plan for Tax Increment Financing District No. 1-1 are modified to authorized increased project costs
(Subsections 1.5 and 2.7), increase the maximum bonded indebtedness (Subsection 2.8) and clarify the
parcels that may be acquired (Subsection 2.4), The 2000 Modifications make technical and clarifying
changes in Subsections 1.1, 1.3, 1.8, 1.1 0, 1.12,2,9,2.16, and 2.17. These modifications do not enlarge
the geographic area of the Development District or the Tax Increment Financing District,
City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. }.1 2-5
APPENDIX A
BOUNDARY MAPS
DEVELOPMENT DISTRICT NO.1 AND TIF DISTRICT NO. 1-1
. , t , , . . . . I . . I . t , . . I . I . . . . I . . . . , . . . t . t , t I . . . , , . . , .
: f : i j : : : ; : : ; i ; ; : : I ; : ; : ; f : ; t' ::: i if; : i i I : I j : : i : t ;
.: I ' I i:d ~~ ! r--\. \L- Ll !II-U i- ,;, . ; II 11111I
~::::; :' 11' f f.-::'.t: I. I \ I .___ _m 1-,. . . '. : !! ~ ~
.-.= \ IJ II : I ~V ' \:-' . _ ' :." : ~ ............,,,, . c-!',?"'. ~'~
.-- .1c !7- r'" - ..... '. ,.,..; I.!
..- I I! I ! I U \ Ihti I~ :,.i __ _ . .i.. .,. ~ __:'i r.:- . I 1"1 iJt \
-.- 7~ I I~ ~ IIfr= L' . ffI[ ~ In: I' ~ ..:
::=" r ;' ;c'--L H+.' ! " I U )T',1;; ~.!-;;
:::: ~:..,..\.h'~\ ----lUl! ! jhNT'l-ri _' *.1;,-- ---. -- : :._~-~ ~ ~~i~
-'-, ~ i!i.d J I "~..! C:::I I j m::P :l . /; l . ~~~.;'. ~ ~
:.=-jK~'1 ~ '~~I~ - -; :J: ,,' ~ (----..:~: ""--<~
::= I. ; t _ H:t.': ;~ ....... d . : .' : . 'r : \' : ~ :.: ':, .
. ---- .-.. . ___J..... _ _ ....,... __ ____-,___ ____
-::=. : / 'If I I; , . i' I '
'.-.' " I j': r- \ I1 /', f-. '.
-- . I .., I. I,
..- ~ . I I ,:: r' --/.1--.:",,~ - .----;---.. .. .,'
--- 1 .!l.:: ' a f' ) I / I I . .', '. ~
-.- f t I I, 1_. . I ;. ,..
~:.-= ~l ; j"--~~---+-..I ;,' .-- Uh ---!-t---"'-~~~~ ~ :-~~ /
::=H f-J : i :i C ...... I ,I :/ \:~~_ ' ~, .
:-:::: I / ~ ~ . '; , "fl.w' ~ . I ~ Y "'-. ~ Ii-I~:;
- . I r: : ~ :t=t3/l \c!"1.!..
..- ...i. en i . . __ (. . . uu ..........
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