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HomeMy WebLinkAboutEDA - June 7, 2011 Sl\NDbVE~ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.ANDOVERMN,GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING June 7, 2011 6:00 p.m. Conference Rooms A & B 1. Call to Order - 6:00 p.m. 2. Approval of Minutes (May 17, 2011 Regular; May 17, 2011 Closed) 3. Development District/TIF District Plan Modifications 4. Monument Entrance Committee Update 5. Progress Report 6. TIP District & EDA Budget Update - Administration 7. Closed Session - Parkside at Andover Station Negotiations Update 8. Other Business 9. Adjournment C I T Y o F @ NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755.8923 . WWW.CLANDOVER.MN.US TO: Economic Development Authority CC: Jim Dickinson, City Administrator FROM: Michelle Hartner, Deputy City Clerk SUBJECT: Approval of Minutes DATE: June 7, 2011 INTRODUCTION The following minutes were provided by Stafffor EDA approval: May 17, 2011 Regular May 17,2011 Closed DISCUSSION The minutes are attached for your review. ACTION REQUIRED The EDA is requested to approve the above minutes. Respectfully submitted, ~~ Michelle Hartner Deputy City Clerk Attach: Minutes , 1 2 3 4 5 ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING 6 MAY 17, 20ll-MINUTES 7 8 9 A Meeting of the Andover Economic Development Authority was called to order by President Mike 10 Gamache, May 17, 2011, 6:02 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, 11 Andover, Minnesota. 12 13 Present: Commissioners Sheri Bukkila, Don Jacobson, Mike Knight, Julie 14 Trude (arrived at 6:05 p.m.), Robert Nowak and Joyce Twistol 15 Absent: None 16 Also present: Executive Director, Jim Dickinson 17 City Planner, Courtney Bednarz 18 Director of Public Works/City Engineer, Dave Berkowitz 19 20 21 22 APPROVAL OF MINUTES 23 24 April 19, 2011 Regular Meeting: Correct as written. 25 26 Motion by Jacobson, Seconded by Bukkila, approval of the minutes as presented. Motion carried 27 unanimously (Twistol absent). 28 29 April 19, 2011 Closed Meeting: Correct as written. 30 31 Motion by Bukkila, Seconded by Jacobson, approval of the minutes as presented. Motion carried 32 unanimously (Twistol absent). 33 34 APPROVE ELECTRONIC SIGN QUOTES-AWARD CITY HALL SIGN REPLACEMENT 35 36 Mr. Dickinson reviewed the five quotes. He recommended the EDA award DeMars Signs as the 37 low quote. 38 39 Motion by Jacobson, Seconded by Knight to award the low quote to DeMars Signs. Motion 40 carried unanimously. 41 42 MONUMENT ENTRANCE/ELECTRONIC SIGNS UPDATE 43 44 Mr. Dickinson indicated staffhas been in contact with Anoka County to use their right-of-way 45 for the placement of monument entrance and electronic reader board signs. The County will 46 request a license agreement with the City for use of the right-of-way. 47 48 Commissioner Nowak asked what kind of license agreement is the County requesting. Mr. Andover Economic Development Authority Meeting Minutes -May 17, 2011 Page 2 1 Dickinson indicated the license agreement is for the use of the property, accepting liability and 2 maintenance of the property. There is no fee requested from the County. 3 4 Commissioner Trude reviewed sign materials and color samples. 5 6 Commissioner Trude reviewed pictures of different signs throughout the community. She 7 indicated the sign companies are recommending the two monument signs on Bunker Lake 8 Boulevard measure 11 feet for the entire width and 9 feet for the sign on Round Lake Boulevard. 9 10 Commissioner Trude suggested waiting on the electronic reader boards at Hanson and Bunker 11 Lake Boulevards and Crosstown and Bunker Lake Boulevards until the installation is complete 12 of the electronic reader board at City Hall. The EDA concurred. 13 14 Commissioner Trude stated the sign committee wants approval to move forward with the 15 monument signs. She would like to see the 3 monument signs constructed at the same time. 16 17 Commissioner Knight asked about the base ofthe sign sitting directly on the ground. Mr. 18 Dickinson stated the city will be prepping the site for the sign and there will be low maintenance 19 landscaping around the base. 20 21 Commissioner Knight asked if the cost of the electronic reader board at City Hall includes 22 training ofthe program. Mr. Dickinson indicated it does. 23 24 Mr. Dickinson stated they will need to go out for quotes on the monument sign project. 25 26 Motion by Knight, Seconded by Nowak, the approval to put together a design for the 3 27 monument entrance signs and to seek quotes. Motion carried unanimously. 28 29 EDA ACTIVITY - PROJECT STATUS REPORT 30 31 Mr. Dickinson updated on the following: 32 33 Dynamic Sealing Technologies, Inc. - Dynamic Sealing has submitted building plans to the 34 Building Department. Mr. Berkowitz updated on the soil correction at the site. 35 36 2011 Special EDA Events - The golf event is June 15th. As oftoday there are 9 paid teams, 37 more are coming. 38 39 Site Design/or Parking Lot at Andover Station North - The project is moving along. Material 40 from the Dynamic Sealing soil correction project will be used to back fill the curb. 41 42 Andover Station Area Medians - Based on direction from the EDA last year, Public Works will 43 be maintaining the medians in the Andover Station area. The first pass has been completed on 44 Martin and Jay Streets. The medians on Bunker Lake Boulevard have been mowed. Staffis Andover Economic Development Authority Meeting Minutes -May 17, 2011 Page 3 I working on organizing garbage clean up in the Bunker Lake Boulevard area. The County 2 requires lane closure on both sides when work is being done in the medians. 3 4 www.MetroMSP.orJ! and City Website - This is an on going concept. 5 6 Redevelopment Ideas - Staff is working through the development district and tax increment plan 7 update. There will be a public hearing before the City Council on June 7, 2011. 8 9 TIF DISTRICT & EDA BUDGET UPDATE 10 11 Mr. Dickinson indicated the Environmental Reserve funds identified in the TIF cash flow are 12 being used for the soil correction located on the Dynamic Sealing property. 13 14 DISCUSS COMMERCIAL BROKER RFQ'S 15 16 Mr. Dickinson stated to date only one RFQ has been received. The broker indicated the property 17 is priced appropriately, but suggested offering incentives to move the property in the current 18 market. 19 20 Commissioner Trude stated it is about networking and the City's network is not as large as a 21 broker's network. 22 23 OTHER BUSINESS 24 25 There was none. 26 27 Motion by Jacobson, Seconded by Knight, to recess the meeting to a closed session to discuss 28 Parkside at Andover Station Negotiations. Motion carried unanimously. 29 30 The EDA recessed at 6:41 p.m. to go into a closed session. 31 32 The EDA reconvened at 6:59 p.m. from the closed session. 33 34 Motion by Jacobson, Seconded by Bukkila, to adjourn. Motion carried unanimously. The meeting 35 adjourned at 6:59 p.m. 36 37 Respectfully submitted, 38 39 40 Michelle Hartner, Recording Secretary @) 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755.5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US TO: Economic Development Authority CC: Jim Dickinson, City Administrator FROM: Courtney Bednarz, City Plann~ SUBJECT: Development District/TIF District Plan Modifications DATE: June 7, 2011 INTRODUCTION As the Economic Development Authority (EDA) moves toward the completion oftax increment districts established to enable the redevelopment of property near the closed landfill site, there are additional opportunities to build value and eliminate blighted housing within the established development district. DISCUSSION As a result, the (EDA) is proposing to modify the development program and tax increment financing plan to add parcels for potential future acquisition and to clarify budgets. The attached overview and TIF Plan provide the history, objectives and budget for tax increment financing activities in the city. The proposed changes to the plan are shown in bold font as well as Exhibit B; the map of potential parcels for acquisition on the last page of the document. The boundary represented on this map encompasses much of the oldest housing in the city. When opportunities arise, the city may choose to purchase and redevelop properties to help maintain the overall quality and livability of the city's housing stock. Planning Commission Recommendation The Planning Commission reviewed the proposed modifications at their May 24th meeting. The Commission found the modifications consistent with the Comprehensive Plan. The minutes from the meeting are attached. ACTION REQUESTED The EDA is asked to consider the proposed modifications to the TIF Plan. A resolution is attached for approval by the EDA if it is determined that the modifications are acceptable. Attachments Resolution TIF District Overview TIF Plan Planning Commission Minutes ti:~' e arz ANDOVER ECONOMIC DEVELOPMENT AUTHORITY CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.1, A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-1 (COUNTY NO. F9), AND A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-2 (COUNTY NO. G1). WHEREAS, it has been proposed by the Board of Commissioners (the "Board") of the Andover Economic Development Authority (the "EDA") and the City Council of the City of Andover (the "City") that the EDA adopt a Modification to the Development Program for Development District No.1 (the "Development Program Modification") and Modifications to the Tax llcrement Financing Plans (the "TIP Plans") for Tax llcrement Financing District Nos. 1-1 and 1-2 (the "TIP Districts") which are referred to collectively herein as the "Modifications", all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090 to 469.1082 and Sections 469.174 to 469.1799, inclusive, as amended (the "Act"), 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 EDA has performed all actions required by law to be performed prior to the adoption of the Modifications. The EDA has also requested that the City Council schedule a public hearing on the Modifications upon published notice as required by law. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: 1. The EDA hereby reafftrms the original findings for the TIP Districts, each established as a redevelopment district. 2. The Modifications are being completed to clarify the budget of the TIP Districts, and to give budgetary and legal authority to the City to acquire additional parcels within Development District No.1. The City is not modifying the boundaries or extending the term of the TIP Districts. 3. The EDA further finds that the Modifications will afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development or redevelopment of Development District No.1 by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible. 4. 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, established and adopted and shall be placed on file in the office of the City Administrator. 5. Upon approval of the Modifications by the City Council, the City Administrator is authorized and directed to forward a copy of the Modifications to the Anoka County Auditor, the ------..---- -- -..------ -- Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. Approved by the Board of Commissioners of the Andover Economic Development Authority this 7th day of June, 2011. EDA President ATTEST: Secretary (Seal) 11I-'77'--11 ~ . ti"i:J j~:r~ , \( Tax Increment Financing District Overview City of Andover Development District No.1 and Tax Increment Financing District Nos. 1-1 and 1-2 - 2011 Modifications The following summary contains an overview of the basic elements of the Modification to the Development Program for Development District No. 1 and the modifications to the Tax Increment Financing Plans for Tax Increment Financing District No. 1-1 (County No. F9) and Tax Increment Financing District No. 1-2 (County No. G 1). More detailed information on each of these topics can be found in the complete Development Program Modification and Tax Increment Financing Plan Modifications. Proposed Action: Modification to the Development Program for Development District NO.1: . Modifying to give budgetary and legal authority to the City to acquire additional parcels within Development District No. 1 Modifications to the Tax Increment Financing Plans for Tax Increment Financing District Nos. 1-1 and 1-2: . Modifying to give budgetary and legal authority to the City to acquire additional parcels within Development District No.1 . Clarifying the budget ofthe TIP Districts . The modifications do not enlarge the geographical area of the TIP Districts' or extend the term of the TIP Districts Type of TIF Both are redevelopment districts District: Maximum The modifications do not change the term of the TIP Districts. Duration: The frrst increment for TIP District No. 1-1 was received in 1987. It is estimated that the District would terminate on or before December 31,2012. The frrst increment for TIP District No. 1-2 was received in 1989. It is estimated that District would terminate on or before December 31,2014. ~ ~. "~ EHLERS ,~~ ~*f(~:'C . lEADERS IN PUBLIC FINANCE , 9\NDbVE~ TAX INCREMENT FINANCING DISTRICT NOS. 1-1 AND 1-2AND DEVELOPMENT DISTRICT NO.1 @ . l,l!;) !,Ell:! "" ... Locetion Ma;::. 11 LEGEND 11II m;eetlncaf,:;o .' Q t.C:S.I?3;~JS LJ F~' o Walt!r J ~ CI~'Lirr.its ~ As of May 9,2011 m Draft for Public Hearing ~ :'J;:I."':1:-8'i :..'"'I~"",~",'" ";:'~'i"<'.';l"' 'I' .....,.. ~;"-:"""-%' "1<<-'.' ,'t.",' ,,''''' MODIFICA TION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.1 and the MODIFICA TIONS TO THE TAX INCREMENT FINANCING PLANS for TAX INCREMENT FINANCING DISTRICT NO. 1-1 (COUNTY NO. F9) and TAX INCREMENT FINANCING DISTRICT NO. 1-2 (COUNTY NO. G1) both redevelopment districts located within DEVELOPMENT DISTRICT NO.1 ~NDbVE~ ANDOVER ECONONUC DEVELOPMENT AUTHOIDTY CITY OF ANDOVER ANOKACOUNTY STATE OF MINNESOTA TIF District No. 1-1 Adopted: July 29,1986 TIF District No. 1-2 Adopted: September 2, 1986 Public Hearing on the Modifications: June 7, 2011 Modifications Adopted: EHLERS Prepared by: EHLERS & ASSOCIATES, INC, 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 LEADERS IN PUBLIC FINANCE 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com TABLE OF CONTENTS (for reference purposes only) MUNICIPAL ACTION TAKEN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i SECTION I. DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRlCT NO. 1 ................1-1 Subsection 1.1. Definitions...................................................... 1-1 Subsection 1.2. Statement and Finding of Public Pw:pose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-2 Subsection 1.3. StatutoI)' Authoritv .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-2 Subsection 1.4. Statement of Objectives ........................................... 1-2 Subsection 1.5. Estimated Public Costs and Supportive Data ........................... 1-3 Subsection 1.6. Environmental Control. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-6 Subsection 1.7. Proposed Reuse ofPropertv ........................................ 1-6 Subsection 1.8. Administration and Maintenance of the Development District. ............. 1-7 Subsection 1.9. Rehabilitation. .. . .... .... .. ..... ... .. . .. .. . . ... . . . . .. . ... ...... .1-7 Subsection 1.10. Relocation... .... . .. .. .... ... .. ... ..... ...... .... . . . . . ... . .. . . . 1-7 Subsection 1.11. Boundaries of the Development District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-7 Subsection 1.12. Parcels to be Acquired or Which mav be ACquired in Whole or in Part Within the Development District ............................................ 1-8 SECTION II. TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRlCTNO. I-I ................................2-1 Subsection 2.1. Statement ofObiectives ...........................................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 Activitv 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 ofProiect .......................................... 2-2 Subsection 2.8. Estimated Amount of Bonded Indebtedness. . . . . . . . . . . . . . . . . . . . . . . . . . . ..2-3 Subsection 2.9. Sources of Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-4 Subsection 2.10. Estimated Original and Captured Assessed Values and Estimate of Tax Increment ..................................................... 2-4 Subsection 2.11. Mill Rate ......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5 Subsection 2.12. Tax Increment . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5 Subsection 2.13. Capitalized Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5 Subsection 2.14. Investment Interest Rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5 Subsection 2.15. Type of Tax Increment Financing District. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5 Subsection 2.16. Duration of Tax Increment Financing District No.1-I. .................. 2-6 Subsection 2.17. Estimated Impact on Other Taxing Jurisdictions. .. . . . . . . . . . . . . . . . . . . . . . 2-6 Subsection 2.18. Tax Increment Financing Account for Tax Increment Financing District No.1-I. ................................................2-8 Subsection 2.19. Modification of Tax Increment Financing District No.1-1 and/or Tax Increment Financing Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-8 Subsection 2.20. Administrative Expenses. ......................................... 2-8 Subsection 2.21. Use of Tax Increment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-9 Subsection 2.22. Excess Increments. ............................................. 2-10 SECTION III. TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRlCTNO. 1-2 .. .. ... . . . . . . .... .. .... . ... .. ...3-1 Subsection 3.1. Statement ofObiectives. .. ... ... . . ..... . .. . . . . . . . ......... . ..... ...3-1 Subsection 3.2. Development Program. ............................................3-1 Subsection 3.3. Parcels to be Included in Tax Increment Financing District No.1-2. ......... 3-1 Subsection 3.4. Parcels in Acquisition. ............................................3-1 Subsection 3.5. Development Activitv In the Development District for which Contracts have been Signed. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1 Subsection 3.6. Other Specific Development Expected to Occur within the Development District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-2 Subsection 3.7. Estimated Cost ofProiect. .......................,..................3-2 Subsection 3.8. Estimated amount of Bonded Indebtedness. ..... . . . . . . . . . . . . . . . . . . . . . . . 3-2 Subsection 3.9. Sources of Revenue. ..............................................3-3 Subsection 3.10. Estimated Original and Captured Assessed Values and Estimate of Tax Increment. .. ..... . . .. . ........... . .. . . ... .. . . ... . .. . . ...... ...3-3 Subsection 3.11. Mill Rate. ..................................................... 3-4 Subsection 3.12. Tax Increment. .................................................3-4 Subsection 3.13. Capitalized Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-4 Subsection 3.14. Investment Interest Rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-4 Subsection 3.15. Tvpe of Tax Increment Financing District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-4 Subsection 3.16. Duration of Tax Increment Financing District No. 1-2. .................. 3-5 Subsection3.17. Estimated Impact on Other Taxing Jurisdictions. .......................3-5 Subsection 3.18. Tax Increment Financing Account for Tax Increment Financing District No. 1-2. ................................................ 3-6 Subsection 3.19. Modification of Tax Increment Financing District No. 1-2 and/or Tax Increment Financing Plan. ....:................................... 3-6 Subsection 3.20. Administrative Expenses. ......................................... 3-7 Subsection 3.21. Use of Tax Increment. . . . .. . .. .. . . . . ..... .. . .. ........... .. ... . . ..3-7 Subsection 3.22. Excess Increments. ..............................................3-8 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 offulfiIIing the City's development objectives as set forth in the Development Program, the City Council has created, established and designated Development District No.1 pursuant to and in accordance with the requirements of Minnesota Statutes, Section 469.126. The following municipal action was. taken in connection therewith; July 29, 1986: The Development Program for Development District No.1 was adopted by the City Council. September 2, 1986: The Development Program for Development District No.1 was modified by the City Council. September 15, 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 ("EDA"). 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 19, 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. 1 was modified by 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. November 17, 2009: The Development Program for Development District No.1 was modified to clarifY the budgets and duration ofTIF District Nos. 1-1 and 1-2. June 7, 2011: The Development Program for Development District No.1 was modified to add parcels for acquisition to Tax Increment Financing Districts No. 1-1 and No. 1-2 and to clarifY the budgets. The following municipal action was taken with regard to the Tax Increment Financing Districts located within Development District No.1: Tax Increment Financing District No. 1-1: July 29, 1986: 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. September 15, 1987: The Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 was modified by the City Council. City of Andover Municipal Action Taken i 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. 1-1 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. 1-1 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 expenditures, increased maximum bonded indebtedness, and general revisions to reflect current statutory references and provisions. November 17, 2009: The Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 was modified to clarifY the budget and duration. June 7, 2011: The Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 was modified to add parcels for acquisition and to clarify the budget. 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. 1. November 17, 2009: The Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 was modified to clarifY the budget and duration. June 7, 2011: The Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 was modified to add parcels for acquisition and to clarify the budget. Tax Increment Financing District No. 1-3: October 7, 1997: The Tax Increment Financing Increment Financing Plan for Tax Increment Financing District No. 1-2 was adopted by the City Council. Tax Increment Financing District No. 1-4: September 21,2004: The Tax Increment Financing Increment Financing Plan for Tax Increment Financing District No. 1-2 was adopted by the City Council. City of Andover Municipal Action Taken ii --- SECTION I. DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.1 Subsection 1.1. Definitions. The terms 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 ofthe 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 Statutes, Sections 469.124 through 469.134 as amended and supplemented. "Development District" means Development District No.1 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 1.11. of the Development Program. The Development District serves as the Project area for the purposes of Minnesota Statutes, Section 469.174, 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 Statutes, 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 469.1082. "Governing Body" means the dilly elected City Council as defined in Minnesota Statutes, Section 472A.02, subdivision 10. "State" means the State of Minnesota "Tax Increment Bonds" means any general obligation or revenue tax increment bonds issued and to be issued by the City to fmance 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 fmancing .district presently established or to be established in the future within Development District No. 1. City of Andover Development Program for Development District No.1 1-1 "Tax Increment Financing Act" means the statutory provisions of Minnesota Statutes, Sections 469.174 through 469.1799 inclusive, as amended. "Tax Increment Financing Plan" means the respective Tax Increment Financing Plan for each Tax Increment Financing District located within Development 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 improvingthe Development District of the 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 fmds 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 obj ectives. Subsection 1.3. Statutory Authority. 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 Minnesota Statutes. Funding of the necessary activities and improvements in the Development District shall be accomplished through tax increment financing in accordance with Minnesota Statutes, and through the use of industrial revenue bonds pursuantto 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 ofthe City as the Development District as authorized by Section 469.126 of the Development District Act which is hereby amended as outlined in this document. Within the Development District, the City 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 ofthe property within the Development District to create an attractive, comfortable, convenient, and efficient area for industrial, commercial, and related uses. City of Andover Development Program for Development District No.1 1-2 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 Deyelopment District No.1 1.3 (AS ORIGINALLY ADOPTED July 29, 1986) Tax Increment Financing District No. 1-1 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 Eamed 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 fmancing 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 (AS MODIFIED SEPTE1\1BER 19, 1995) The capital and administration costs identified in the Development Program and the Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 1-1 and 1-2 are amended to reflect the following budget increases: City of Andover Development Program for Development District No.1 1-4 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. 1-1 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 payments 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 T1F 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 subject to the limitations of the Tax Increment Financing Act. 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. City of Andover Development Program for Development District No.1 1-5 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 RaJe (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. 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. City of Andover Development Program for Development District No.1 1-6 ITEM BASIS FOR ESTIMATE ACQUISITION, IMPROVEMENTS, DEMOLITION, RELOCATION Estimated by Developer PROFESSIONAL SERVICES Estimated by City Attorney, Bond Counsel and Financial Consultant (AS MODIFIED NOVEMBER 17, 2009) The Development District budget equals all the budgets of all tax increment fmancing plans adopted and any future tax increment financing plans adopted. 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 Develooment 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 of the 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 469.13 I ofthe 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 conform 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 of land. The City will provide such rehabilitation assistance as may be available from federal, state or local sources. Subsection 1.10. Relocation. The City accepts its responsibility for providing for relocation pursuant to Section 469.133 of the Development District Act. City of Andover Development Program for Development District No. I 1-7 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 32 24 44 0004 PIN 34 32 24 44 0003 PIN 34 32 24 44 0002 PIN 34 32 24 44 0001 PIN 353224220001 PIN 35 322421 0001 PIN 35 32 24 23 0001 PIN 353224240001 PIN 353224120001 PIN 34 32 24 43 0001 PIN 34 32 24 43 0002 PIN 34 32 24 43 0004 PIN 34 32 24 410001 PIN 343224410002 PIN 343224410005 PIN 34 32 24 410004 PIN 34 32 24 410010 PIN 343224410011 PIN 34 32 24 410008 PIN 34 32 24 410007 PIN 343224410006 PIN 34 32 24 31 0003 PIN 34 32 24 34 0001 PIN 34322433 0001 PIR 34 32 24 42 0006 PIN 34 32 24 42 0005 PIN 34 32 24 42 0004 PIN 343224420001 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 34 32 24 24 0003 PIN 34 32 24 24 0001 PIN 34 32 24 24 0003 PIN 34 32 24 120001 PIR34 32 24 13 0001 PIN 34 32 24 13 0002 PIN 34 32 24 11 0001 PIN 343224 140001 PIN 34 32 24 140002 PIN 343224 140003 PIN 343224320001 PIR 34 32 24 32 0002 PIN 34 32 24 32 0003 PIN 34 32 24 32 0004 PIN 34 32 24 31 0004 PIN 34 32 24 31 0005 PIN 34 32 24 31 0006 PIN 34 32 24 310013 PIN 34 32 24 31 0007 PIN 343224310008 PIN 34 32 24 31 0009 PIN 34 32 24 310011 PIN 343224310010 PIN 35 32 24 11 0001 PIN 353224 140002 PIN 26 32 24 32 0003 PIN 26 32 24 32 0004 PIN 333224420001 PIN 33 3224 43 0033 PIN 333224410001 PIN 33 3224440001 PIN 33 32 24 44 0002 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 1,2,3, and 4, ANDOVER COMMUNITY SHOPPING CENTER, according to the plat on file in the office of the County Recorder, Anoka County, Minnesota EXCEPT Lot 1, Block 2, and also EXCEPT that part of Lot 1, Block 3 described as follows: Commencing at the northeast comer of said Lot 1, 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 51 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 15.1987. PIN 34 32 24 32 0004 D. Boundaries of the Development District as modified FebruaJ)' 21. 1995. The boundaries of the Development District are expanded to include the area designated on the attached map labeled Exhibit I-D. eily of Andover Development Program for Development District No. 1 1-8 Subsection 1.12. Parcels to be Acquired or Which may be Acquired in Whole or in Part Within the Development District. (AS ORlGINALL Y 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 24 42 0009 PIN 34 32 24 42 0001 PIN 34 32 24 32 0003 PIN 343224140001 PIN 34 32 24 42 0007 PIN 34 32 24 31 0005 PIN 34 32 24 31 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 343224310011 PIN 343224310010 PIN 34 32 24 31 0004 PIN 343224310013 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 34-32-24-31-0014 34-32-24-31-0017 34-32-24-31-0018 34-32-24-31-0015 34-32-24-31-0008 34-32-24-31-0016 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. (AS MODIFIED JUNE 7, 2011) In addition the City may acquire the property found in Appendix B, generally an area in the southwest portion of the City bounded by 149'h Avenue on the north, Hanson Boulevard on the east and 7th Avenue on the west. The City reserves the right to acquire any other property located within Development District No.1. Cily of Andover Development Program for Development District No.1 1-9 SECTION II. TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-1 Subsection 2.1. Statement ofObiectives. See Section I, Development Program for the Development District, Subsection 1.4, Statement of Objectives. (AS MODIFIED NOVEMBER 17, 2009) The City desires to continue redevelopment and development of blighted and underdeveloped property in the City. The Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 is being modified in order to clarifY the budget and statutory duration. (AS MODIFIED JUNE 7, 2011) The City desires to continue redevelopment and development of blighted and underdeveloped property in the City. The Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 is being modified to add parcels for acquisition and to clarify the budgets. Subsection 2.2. Development Program. See Section I, Development Program for the Development District, Subsections 1.2 through 1.12. Subsection 2.3. Parcels to be Included in Tax Increment Financing District No.1-I. The following parcels located in the City of Andover, County of Anoka, State of Minnesota: PIN 34 32 24 330001 PIN 34 32 24 42 0007 PIN 34 32 24 31 0007 PIN 34 32 24 42 0004 PIN 34 32 24 42 0010 PIN 34 32 24 310011 PIN 34 32 24 42 0002 PIN 34 32 24 32 0005 PIN 333224420001 PIN 34 32 24 420009 PIN 34 32 24 310004 PIN 333224440001 PIN 34 32 24 24 0001 PIN 34 32 24 310016 PIN 34 32 24 23 0003 PIN 34 32 24 140001 PIN34322431 0017 PIN 34 32 24 42 0003 PIN 34 32 24 31 0006 PIN 34 32 24 31 0009 PIN 34 32 24 41 0001 PIN 34 32 24 31 0008 PIN 333224410001 PIN 34 32 24 410002 PIN 343224310010 PIN 34 32 24 23 0002 PIN 34 32 24 410003 PIN 33 3224 43 0033 PIN 343224340001 PIN 343224410004 PIN 33 32 24 44 0002 PIN 34 32 24 42 0005 PIN 343224410006 PIN 34 32 24 31 0003 PIN 34 32 24 42 0008 PIN 34 32 24 24 0002 PIN 34 32 24 42 0006 PIN 34 32 24 32 0003 PIN 34 32 24 310014 PIN 34 32 24 42 0001 PIN 34 32 24 31 0005 PIN 34322431 0012 PIN 343224310015 (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. 1-1 CAN BE OBTAINED FROM THE OFFICE OF TIffi CLERK-TREASURER. City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-1 Subsection 2.4. Parcels in Acquisition. The City may acquire and reconvey any of the parcels identified in Section I, Subsection 1.12 of the Development Program. As the City acquires said parcels, the Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 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: (1) 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. (AS MODIFIED JUNE 7, 2011) In addition the City may acquire the property found in Appendix B, generally an area in the southwest portion of the City bounded by 149th Avenue on the north, Hanson Boulevard on the east and 7th Avenue on the west. The City reserves the right to acquire any other property located within Development District No.1. Subsection 2.5. Development Activitv 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.] (AS MODIFIED NOVEMBER 17, 2009) Contracts for development that have been entered into to date include: 1. Andover Limited Partnership, dated September 2, 1986. Under the contract, the developer was required to provide for the construction of 105,000 square foot shopping mall. The project is completed. Subsection 2.6. Other Specific DevelO1;>ment 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 City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-2 . (AS MODIFIED NOVEMBER 17, 2009) The EDA and the City have studied the feasibility of the development and redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for costs of certain eligible expenses. The estimate and clarification of public costs and uses of funds with the District is outlined in the table below. USES OF FUNDS TOTAL . LandlBuilding $9,790,000 Site Improvements $7,010,000 Public Utilities $9,000,000 Streets Improvements $10,400,000 Administration $1.800.000 PROJECT COST TOTAL $38,000,000 Interest $4.000.000 .= PROJECT AND INTEREST COSTS TOTAL $42,000,000 The above budget represents the total costs being authorized, which includes all prior budgeted amounts, and is organized according to the Office of the State Auditor (OSA) reporting forms. It is estimated that the costs of improvements, including administrative expenses which will be paid or financed with tax increments will equal $42,000,000 total project costs as is presented in the budget above. The above budget does not include non tax increment sources of revenues which have historically been included in the financial reporting for the District. Estimated capital and administrative costs in the table on the previous page are subject to change among categories by modification of the TIF Plan without the hearings and notice required for the initial TIF Plan, so long as the total capital and administrative costs do not exceed the total listed above. City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-3 (AS MODIFIED JUNE 7, 2011) USES OF FUNDS TOTAL Land/Building (including relocation) $16,790,000 Site Improvements $6,010,000 Public Utilities $3,000,000 Streets and Sidewalks $10,400,000 Administration $1.800.000 PROJECT COST TOTAL $38,000,000 Interest $4.000.000 . PROJECT AND INTEREST COSTS TOTAL $42,000,000 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. (AS MODIFIED NOVEMBER 17, 2009) The City may issue bonds, as defined in the Tax Increment Financing Act, secured in whole or in part with tax increments from Tax Increment Financing District No. 1-1 in the maximum principal amount of $12,000,000. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only 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 "pay-as-you-go" basis for eligible costs paid 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. (AS MODIFIED NOVEMBER 17, 2009) The costs outlined in the Estimated Cost of Projects will be fmanced primarily through the annual collection oftax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. Additional indebtedness may be required to fmance other authorized activities. The total principal amount of notes to be issued, including a general obligation (GO) T1F bond, or other indebtedness related to the use of tax increment fmancing, will not exceed $12,000,000 without a modification to the TIF Plan pursuant to applicable statutory requirements. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-4 -- ---- - -- ------ - - ~ upon the determination that such action is in the best interest of the City. The City may also finance the ac- tivities to be undertaken pursuant to the TIF Plan through loans from funds of the City or to reimburse the developer on a "pay-as-you-go" basis for eligible costs paid for by a developer. The estimated sources offunds for the District are contained in the following table: SOURCES OF FUNDS TOTAL Tax Increment $42,000,000 (AS MODIFIED JUNE 7, 2011) The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District may be financed through the combination of pay-as-you-go notes, interfund loans and bonds. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The total estimated tax increment revenues for the District are shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $39,000,000 Interest $3.000.000 Total $42,000,000 Subsection 2.1 O. 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. 1-1 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 ofthe proposed improvement is estimated to be $2,130,048. The captured assessed value is estimated to be $2,119,536. . . City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-5 - ----- (AS MODIFIED NOVEMBER 17, 2009) Pursuant to MS, Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; 3. Change due to adjustments, negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value ofthe District declines below the ONTC, no value will be captured and no tax increment will be payable to the EDA or City. Pursuant to MS., Section 469.174 Subd. 4 and MS., Section 469,177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Development District No.1, will annually approximate tax increment revenues as shown in the table below. The Project Tax Capacity (pTC) listed is the actual values used for taxes payable in 2009. Project Estimated Tax Capacity upon Completion (PTC) $2,044,050 Original Estimated Net Tax Capacity (ONTC) $139,601 Estimated Captured Tax Capacity (CTC) $1,904,449 Original Local Tax Rate 0.85767 Pay 2009 Estimated Annual Tax Increment (CTC x Local Tax Rate) $1,633,389 Percent Retained by the EDA 100% (AS MODIFIED JUNE 7, 2011) Project Estimated Tax Capacity upon Completion (pTC) $1,784,718 Original Estimated Net Tax Capacity (ONTC) $152,140 Estimated Captured Tax Capacity (CTC) $1,632,578 Original Local Tax Rate 1.06401 Pay 2011 Estimated Annual Tax Increment (CTC x Local Tax Rate) $1,737,079 Percent Retained by the EDA 100% Subsection 2.11. Mill Rate. The mill rate is 102.021. Subsection 2.12. Tax Increment. Tax increment has been at approximately $697,501 assuming a static mill rate and a increased by zero percent (0%) compounded annually. Subsection 2.13. Capitalized Interest. Capitalized interest will cover interest payments on the Bonds City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-6 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. Tvpe of Tax Increment Financing: District. Tax Increment Financing District No. 1-1 is, pursuant to Minnesota Statutes Section 273.73, Subdivision 10 a redevelopment district as defmed 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 of the 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.1-I. The duration of Tax Increment Financing District No. 1-1 is expected to be twenty-five (25) years from the receipt ofthe first tax increment. The date of receipt of the first tax increment will be July, 1988. The first tax increment was received by the City was 1989. The maximum duration of District No. 1-1 is 2014. (AS MODIFIED NOVEMBER 17, 2009) Pursuant to MS., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of the District must be indicated within the TIF Plan. Pursuant to MS., Section 469.176, Subd. 1 b, the duration of the District will be 25 years after receipt ofthe first increment by the EDA or City (a total of26 years of tax increment). The date of receipt by the City of the first tax increment was 1987. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2012, or when the TIP Plan is satisfied. The EDA or City reserves the right to decertify the District prior to the legally required date. Subsection 2.17. Estimated Impact 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.1-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 BASE Original Future Captured District % Entitv Tax Base Assessed Value Assessed Value Assessed Value of Entity Andover 56,325,201 80,560 6,917,400 6,836,840 12.14% Anoka County 1,202,403,543 80,560 6,917,400 6,836,840 .5% LS.D. #11 595,908,940 80,560 6,917,400 6,836,840 1.15% City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-7 IMPACT ON MILL RATE Current Potential Entity Entity Mill Rate Tax Increment Andover 14.485 $99,032 Anoka County 28.738 196,477 LSD. #11 55.740 381,085 Other 3.058 20.907 TOTAL 102.021 $697,501 The inclusion of PIN 343224320004 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 project. Therefore, it is difficult to accurately estimate the additional tax capacity that may be captured by 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 projects. Taxing Entity 1999/2000 Total Estimated Percent of CTC Net Tax Capacity Captured Tax to Entity Total Capacity Anoka County 166,478,361 338,500 0.20% LS.D. No. II 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 LS.D. No. 11 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 (AS MODIFIED NOVEMBER 17, 2009) IMPACT ON TAX BASE Pay 2009 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Completion to Entity Total Anoka County 313,126,954 1,904,449 0.6082% City of Andover 28,032,781 1,904,449 6.7937% Anoka-Hennepin ISD # II 26,040,929 1,904,449 7.3133% City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-8 IMPACT ON TAX RATES Pay 2009 Percent Potential Extension Rates of Total CTC Taxes Anoka County 0.320780 37.40% 1,904,449 610,909 City of Andover 0.321810 3752% 1,904,449 612,871 Anoka-Hennepin ISD # 11 0.182630 2129% 1,904,449 347,810 Other 0.032450 3.78% 1.904.449 61.799 Total 0.857670 100.00% 1,633,389 The estimates listed above display the captured tax capacity as of 2009. The tax rate used for calculations is the actual Pay 2009 rate. The total net capacity for the entities listed above are based on actual Pay 2009 figures. (AS MODIFIED JUNE 7, 2011) IMPACT ON TAX BASE Pay 2011 Estimated Captured Total Net Tax Capacity (CTC) Percent of cTC Tax Caoacitv Upon Com{lletion to Entitv Total Anoka County 264,429,170 1,632,578 0.6174% City of Andover 22,917,073 1,632,578 7.1239% Anoka-Hennepin ISD # 11 21,321,775 1,632,578 7.6569% IMPACT ON TAX RATES Pay 2011 Percent Potential Extension Rates of Total CTC Taxes Anoka County 0.412840 38.80% 1,632,578 673,994 City of Andover 0.384090 36.10% 1,632,578 627,057 Anoka-Hennepin ISD # 11 0.239990 22.56% 1,632,578 391,802 Other 0.027090 2.55% 1.632.578 44.227 Total 1.064010 100.00% 1,737,079 The estimates listed above display the captured tax capacity as of 2011. The tax rate used for calculations is the actual Pay 2011 rate. The total net capacity for the entities listed above are based on actual Pay 2011 figures. Subsection 2.18. Tax Increment Financing Account for Tax Increment Financing District No.1-I. The tax increments received with respect to payment of principal and interest for bonds issued for improvements made within Tax Increment Financing District No. 1-1 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. City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-9 , Subsection 2.19. Modification of Tax Increment Financing: District No.l-l 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 SEPTEl\1BER 2, 1986) Pmsuant to the adoption of the modification of the Development Program for Development District No.1, 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, ofthe Development Program and is redesignated as Tax Increment Financing District No. 1-1. (AS MODIFIED SEPTEl\1BER IS, 1987) Pmsuant to the adoption ofthe 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 of Tax Increment Financing District No.1-1 and Development District No.1 as outlined in Section I, Subsection 1.11 of the Development Program. (AS MODIFIED FEBRUARY 21, 1995) Pmsuant to the adoption ofthe 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. I 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.1 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, 1.10, 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. (AS MODIFIED NOVEl\1BER 17, 2009) Subsection 2.20. Administrative Expenses. In accordance withMS., Section 469.174, Subd. 14, administrative expenses means all expenditures of the EDA or City, other than: . 1. Amounts paid for the purchase ofland; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the project; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the project; or 4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to MS., Section 469.178; or City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-10 5. Amounts used to pay other fmancial obligations to the extent those obligations were used to fmance costs described in clauses (1) to (3). For districts for which the request for certification were made before August 1, 1979, or after June 30,1982, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to MS, Section 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by MS., Section 469.174, SuM 25, clause (1), from the District, whichever is less. Pursuant to MS., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subj ect to the percentage limits of M.S., Section 469.176 Subd. 3. The county may require payment of those expenses by February 15 ofthe year following the year the expenses were incurred. Pursuant to MS., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the EDA or City and the County Treasurer shall pay the amount deducted to the State Treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment fmancing. This amount may be adjusted annually by the Commissioner of Revenue. (AS MODIFIED NOVEMBER 17, 2009) Subsection 2.21. Use of Tax Increment. The EDA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project; 2. To finance, or otherwise pay the capital and administration costs of the Development District No.1 pursuant to the MS., Sections 469.090 to 469.1082; 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance, or otherwise pay for other purposes as provided in MS., Section 469.176, Subd. 4' , 5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the EDA or City or for the benefit of the Development District No.1 by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to MS., Chapter 462C. MS, Sections 469.152 through 469.165, and/or MS., Sections 469.178; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to MS, Chapter 462C, MS., Sections 4@152 through 469.165, and/or MS., Sections 469,178. These revenues shall not be used to circumvent any levy limitations applicable to the EDA or City nor for other purposes prohibited by MS., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Anoka County to the City for the Tax Increment City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-11 Fund of said District. (AS MODIFIED NOVEMBER 17, 2009) Subsection 2.22. Excess Increments. Excess increments, as defmed in MS., Section 469.176, Subd. 2, shall be used only to do one or more ofthe following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The EDA or City must spend or retum the excess increments under paragraph (c) within nine months after the end of the year. In addition, the EDA or City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in the Development District No. 1 or the District. City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-12 SECTION III. TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-2 Subsection 3.1. Statement ofObiectives. See Section I, Development Program for the Development District, Subsection1.4, Statement of Objectives. (AS MODIFIED NOVEMBER 17, 2009) The City desires to continue redevelopment and development of blighted and underdeveloped property in the City. The Tax Increment Financing Plan for TIF 1-2 is being modified in order to clarify the budget and statutory duration. (AS MODIFIED JUNE 7, 2011) The City desires to continue redevelopment and development of blighted and underdeveloped property in the City. The Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 is being modified to add parcels for acquisition and to clarify the budget. Subsection 3.2. Development Program. See Section I, Development Program for the Development District, Subsections 1.2 through 1.12. Subsection 3.3. Parcels to be Included in Tax Increment FinancinQ: District No.1-2. The following parcels located in the City of Andover, County of Anoka, State of Minnesota: All of Blocks 1,2,3, and 4, ANDOVER COMMUNITY SHOPPING CENTER, according to the plat on file in the office of the County Recorder, Anoka County, Minnesota EXCEPT Lot 1, Block 2, and also EXCEPT that part of Lot 1, Block 3 described as follows: Commencing at the northeast corner of said Lot 1, 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 51 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 of33 5 .00 feet; thence East 266.57 feet to the point of be ginning. FURTHER INFORMATION REGARDING THE IDENTIFICATION OF THE PARCELS TO BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 1-2 CAN BE OBTAINED FROM THE OFFICE OF THE CLERK-TREASURER. Subsection 3.4. Parcels in Acquisition. The City may acquire and reconvey the parcels identified in Section I, Subsection 1.12 of the Development Program as originally adopted July 29, 1986. As the City acquires said parcels, the Tax Increment Financing Plan for Tax Increment Financing District No.I-2 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: (1) 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 City of Andover Tax Increment Financing Plan for Tax ~ncrement Financing District No. 1-2 3-1 (2) Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. (AS MODIFIED JUNE 7, 2011) In addition the City may acquire the property found in Appendix B, generally an area in the southwest portion of the City bounded by 149'h Avenue on the north, Hanson Boulevard on the east and 7th Avenue on the west. The City reserves the right to acquire any other property located within Development District No. 1. Subsection 3.5. 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.] (AS MODIFIED NOVENffiER 17, 2009) Contracts for development that have been entered into to date include: 1. Andover Limited Partnership, dated September 2, 1986. Under the contract, the developer was required to provide for the construction of 105,000 square foot shopping mall. The project is completed. Subsection 3.6. 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 3.7. Estimated Cost ofProiect. See Subsection 1.5 of the Development Program for estimated costs associated with the Development District. (AS MODIFIED NOVENffiER 17, 2009) The EDA and the City have studied the feasibility ofthe development and redevelopment of property in and around the District. To facilitate the establisJunent and development orredevelopment ofthe District, this TIF Plan authorizes the use of tax increment financing to pay for costs of certain eligible expenses. The estimate and clarification of public costs and uses of funds with the District is outlined in the following table. City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 3-2 ---- USES OF FUNDS TOTAL Land/Building $7,000,000 Street Improvements $10,000,000 Administration $800.000 PROJECT COST TOTAL $17,800,000 Interest $3.000.000 PROJECT AND INTEREST COSTS TOTAL $20,800,000 The above budget represents the total costs being authorized, which includes all prior budgeted amounts, and is organized according to the Office of the State Auditor (OSA) reporting forms. It is estimated that the costs of improvements, including administrative expenses which will be paid or financed with tax increments will equal $20,800,000 total project costs as is presented in the budget above. The above budget does not include non tax increment sources of revenues which have historically been included in the financial reporting for the District. Estimated capital and administrative costs in the table above are subject to change among categories by modification of the TIF Plan without the hearings and notice required for the initial TIF Plan, so long as the total capital and administrative costs do not exceed the total listed above. (AS MODIFIED JUNE 7, 2011) USES OF FUNDS TOTAL Land/Building (including relocation) $7,000,000 Site Improvements $1,000,000 Public Utilities $1,000,000 Street Improvements $8,000,000 Administration $800,000 PROJECT COST TOTAL $17,800,000 Interest $3,000,000 PROJECT AND INTEREST COSTS TOTAL $20,800,000 Subsection 3.8. Estimated amount of Bonded Indebtedness. It is anticipated that $1,300,000 of bonded indebtedness will be incurred with respect to this portion of the Development District. At the present time $1,025,000 of bonded indebtedness will be incurred. (AS MODIFIED NOVEl\1BER 17, 2009) The City may issue bonds, as defined in the Tax Increment Financing Act, secured in whole or in part with City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 3-3 C tax increments from Tax Increment Financing District No. 1-2 in the maximum principal amount of $9,300,000. Subsection 3.9. Sources of Revenue. Public improvement costs, acquisition and other costs outlined , in the Estimated Cost of Project (Subsection 3.7 above) will be financed through the annual collection of tax increments as described below. (AS MODIFIED NOVEMBER 17, 2009) The costs outlined in the Estimated Cost of Projects will be financed primarily through the annual collection of tax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. Additional indebtedness may be required to finance other authorized activities. The total principal amount . of notes to be issued, including a general obligation (GO) TIF bond, or other indebtedness related to the use of tax increment fmancing, will not exceed $9,300,000 without a modification to the TIF Plan pursuant to applicable statutory requirements. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest ofthe City. The City may also finance the ac- tivities to be undertaken pursuant to the TIF Plan through loans from funds ofthe City or to reimburse the developer on a "pay-as-you-go" basis for eligible costs paid for by a developer. The estimated sources of funds for the District are contained in the following tables. SOURCES OF FUNDS TOTAL Tax Increment $20,800,000 (AS MODIFIED JUNE 7, 2011) The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District may be financed through the combination of pay-as-you-go notes, interfund loans and bonds. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest ofthe City. The total estimated tax increment revenues for the District are shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $20,000,000 Interest $800,000 Total $20,800,000 City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 3-4 Subsection 3.10. 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. 1-2 is estimated to be $66,720. The estimated captured assessed value of Tax Increment Financing District No. 1-2 on January 1, 1988 is estimated to be $1,439,160. (AS MODIFIED NOVEMBER 17, 2009) Pursuant to MS., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries ofthe district; 3. Change due to adjustments, negotiated or court-ordered abatements; 4. Change in the use ofthe property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the EDA or City. Pursuant to MS., Section 469.174 SuM 4 and MS., Section 469.177, SuM 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Development District No.1, will annually approximate tax increment revenues as shown in the table below. The Project Tax Capacity (PTC) listed is the actual values used for taxes payable in 2009. Project Estimated Tax Capacity upon Completion (pTC) $258,368 Original Estimated Net Tax Capacity (ONTC) $4,542 Estimated Captured Tax Capacity (CTC) $253,826 Original Local Tax Rate 0.85613 Pay 2009 Estimated Annual Tax Increment (CTC x Local Tax Rate) $217,308 Percent Retained by the EDA 100% (AS MODIFIED JUNE 7, 2011) Project Estimated Tax Capacity upon Completion (pTC) $234,858 Original Estimated Net Tax Capacity (ONTC) $4,542 Estimated Captured Tax Capacity (CTC) $230,316 Original Local Tax Rate 1.06401 Pay 2011 Estimated Annual Tax Increment (CTC x Local Tax Rate) $245,059 Percent Retained by the EDA 100% City of Andover Tax Increment Financing Plan for Tax: Increment Financing District No. 1-2 3-5 Subsection 3.11. Mill Rate. The mill rate is 102.021. Subsection 3.12. Tax Increment. Tax increment has been at approximately $146,825 assuming a static mill rate and a increased by zero percent (0%) compounded annually. Subsection 3.13. Capitalized 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 3.14. 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 increment funds within any given year, This rate is contingent upon rates paid on savings and upon arbitrage considerations. Subsection 3.15. Type of Tax Increment Financing District. Tax Increment Financing District No. 1-2 is, pursuant to Minnesota Statutes Section 273.73, Subdivision 10 a redevelopment district as defined below: (3) "Less than 70 percent ofthe parcels in the district are occupied by buildings, streets, utilities or. other improvements, but due to unusual terrain or soil deficiencies requiring substantial filling, grading or other physical preparation for use at least 80 percent of the total acreage of such land has a fair market value upon inclusion in the redevelopment district which, when added to the estimated cost of preparing the land for development, excluding costs directly related to roads as defined in Section 150.01 and local improvements as described in Section 429.021, subd. 1, clauses 1 to 7,11 and 12, and Section 430.0 1, if any, exceeds its anticipated fair market value after completion of said preparation; provided that no parcel shall be included within a redevelopment district pursuant to this paragraph (3) unless the authority has concluded an agreement or agreements for the development of at least 50 percent of the acreage having the unusual soil or terrain deficiencies, which agreement provides recourse for the authority should the development not be completed. Subsection 3.16. Duration of Tax Increment Financing: District No. 1-2. The duration of Tax Increment Financing District No. 1-2 is expected to be twenty-five (25) years from the receipt ofthe first tax increment. The date of receipt ofthe first tax increment will be July, 1988. (AS MODIFIED NOVEMBER 17, 2009) Pursuant to MS., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of the District must be indiCated within the TIF Plan. Pursuant to MS., Section 469.176, Subd. 1 b, the duration of the District will be 25 years after receipt of the first increment by the EDA or City (a total of26 years of tax increment). The date of receipt by the City of the first tax increment was 1989. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2014, or when the TIP Plan is satisfied. The EDA or City reserves the right to decertify the District prior to the legally required date Subsection 3.17. Estimated Impact on Other Taxing Jurisdictions. The estimated impact on other taxing jurisdictions assumes construction would have occurred without the creation of Tax Increment Financing District No. 1-2. 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. 1-2 would be as follows if the "but for" test was not met: City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 3-6 IMP ACT ON TAX BASE Original Future Captured District % Entity Tax Base Assessed Value Assessed Value Assessed Value of Entity Andover 56,325,201 66,720 1,505,880 1,439,160 2.56% Anoka County 1,202,403,543 66,720 1,505,880 1,439,160 .12% LS.D. #11 595,908,940 66,720 1,505,880 1,439,160 .24% IMPACT ON MILL RATE Current Potential Entity Entity Mill Rate Tax Increment Andover 14.485 $20,846 Anoka County 28.738 41,359 LSD. #11 55.740 80,219 Other 3.058 4.401 TOTAL 102.021 $146,825 (AS MODIFIED NOVEMBER 17, 2009) IMPACT ON TAX BASE Pay 2009 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Completion to Entity Total Anoka County 313,126,954 253,826 0.0811% City of Andover 28,032,781 253,826 0.9055% Anoka-Hennepin ISD # 11 16,094,654 253,826 1.5771% IMPACT ON TAX RATES Pay 2009 Percent Potential Extension Rates of Total CTC Taxes Anoka County 0.320780 37.47% 253,826 81,422 City of Andover 0.324840 37.94% 253,826 82,453 Anoka-Hennepin ISD # 11 0.182630 21.33% 253,826 46,356 Other 0.027880 3.26% 253.826 7.077 Total 0.856130 100.00% 217,308 The estimates listed above display the captured tax capacity as of 2009. The tax rate used for calculations is the actual Pay 2009 rate. The total net capacity for the entities listed above are based on actual Pay 2009 figures. City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 3-7 , (AS MODIFIED JUNE 7, 2011) IMPACT ON TAX BASE Pay 2011 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Cal}acitv Upon Comoletion to Entity Total Anoka County 264,429,170 230,316 0.0871% City of Andover 22,917,073 230,316 1.0050% Anoka-Hennepin ISD # 11 21,321,775 230,316 1.0802 % IMPACT ON TAX RATES Pay 2011 Percent Potential .Extension Rates of Total CTC Taxes Anoka County 0.412840 38.80% 230,316 95,084 City of Andover 0.384090 36.10% 230,316 88,462 Anoka-Hennepin ISD # 11 0.239990 22.56% 230,316 55,274 Other 0.027090 2.55% 230.316 6.239 Total 1.064010 100.00% 245,059 The estimates listed above display the captured tax capacity as of 2011. The tax rate used for calculations is the actual Pay 2011 rate. The total net tax capacity for the entities listed above are based on actual Pay 2011 figures. Subsection 3.18. Tax Increment Financing Account for Tax Increment Financing District No. 1-2. The tax increment received with respect to payment of principal and interest for bonds issued for improvements made within Tax Increment Financing District No. 1-2 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 ofthe Bonds. Subsection 3.19. Modification of Tax Increment Financing: District No. 1-2 and/or Tax Increment Financing Plan. As of September 2, 1986, no modifications to Tax Increment Financing District No. 1-2 or the Tax Increment Financing Plan therefore have been made. (AS MODIFIED FEBRUARY 21, 1995) Pursuant to the adoption ofthe modification of the Development Program for Development District No.1, Tax Increment Financing District No. 1-2 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 NOVEMBER 17, 2009) Subsection 3.20. Administrative Expenses. In accordance with MS., Section 469.174, Subd. 14, administrative expenses means all expenditures of the EDA or City, other than: City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 3-8 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the project; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the project; or 4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to MS., Section 469,178; or 5. Amounts used to pay other fmancial obligations to the extent those obligations were used to fmance costs described in clauses (1) to (3). For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to MS., Section 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by MS., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. Pursuant to MS., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits of M.S., Section 469.176 Subd.3. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to MS., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the EDA or City and the County Treasurer shall pay the amount deducted to the State Treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment fmancing. This amount may be adjusted annually by the Commissioner of Revenue. (AS MODIFIED NOVEl\1BER 17, 2009) Subsection 3.21. Use of Tax Increment. The EDA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project; 2. To finance, or otherwise pay the capital and administration costs of the Development District No.1 pursuant to the MS., Sections 469.090 to 469.1082; 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance, or otherwise pay for other purposes as provided inMS., Section 469.176, Subd. 4' , 5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the EDA or City or for the benefit of the Development District No.1 by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to MS., Chapter 462C MS., Sections 469.152 through 469,165, and/or MS., Sections 469,178; and City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 3-9 7. To accumulate or maintain a reserve securing the payment when due ofthe principal and interest on the tax increment bonds or bonds issued pursuant to MS, Chapter 462C, MS, Sections 469.152 through 469,165, and/or MS., Sections 469,178. These revenues shall not be used to circumvent any levy limitations applicable to the EDA or City nor for other purposes prohibited by MS., Section 469,176, Subd. 4. Tax increments generated in the District will be paid by Anoka County to the City for the Tax Increment Fund of said District. (AS MODIFIED NOVE11BER 17, 2009) Subsection 3.22. Excess Increments. Excess increments, as defined in MS., Section 469.176, Subd. 2, shall be used only to do one or more ofthe following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The EDA or City must spend or return the excess increments under paragraph (c) within nine months after the end of the year. In addition, the EDA or City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in the Development District No. 1 or the District. City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 3-10 APPENDIX A BOUNDARY MAPS OF DEVELOPMENT DISTRICT NO.1 AND TAX INCREMENT FINANCING DISTRICT NOS. 1-1 AND 1-2 APPENDIX A-I 9\c , T Y 0 ,~Tax Increment Financing District 1-1 NDOVE Project Name: AndoverStation ~~Y~J~~ ~ #9' \.>./') ~II II II ITT\\ 1.12J .,..--.. 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" L b ..j', ~ Q w.~ ~ - 00,0 r.' r= "") II I m=L lH Ern K ---II' 111-\ It---< r r ~ Ib Ie- f~?" ~ 1 r t-H' ,U l fJ 11 If- ~ ~ ~ ~ -.:\\j ~~g;1:;r "" ~ ,- / '" C ~f- m: c~ ~ to: ~ ~ u. r== -'~ "'1 " "!lit ~ _ Xj- "'" ,"'" " \t-- " cir \ r; W rT rr in JC::::r ,l,.<Z--, ~ W _L ~ -i i- ~ f- ~ r == f- - -l- G ~\V I Hll U- L. 11)1; f-i:: ~ s r-- :ff-1 IY N\ f- ~ "'% l\\" . ~ : IT ~ (~ HI~ iIIi! q Ll If: ~ I.:' c ~ ~ ( I I I :~"iC;;!i~"f"0:';"'?;"i';';"iiiii;;-:J!~gk . t gj T tJ:D: "'" IIJ, 's-~:fiANDOVER:~ll1f\1~, - ~ ~ '-- n I ,;!,""';"""""",'" '0,--,C'''''' M"Jfjh . J:Wl:[- Ililffil ----c l "" ~ d~,9:\(E~g~~E~J,;;;y ~~ :,.;.,- O":'+~DISIRIC:n.'1:"~~"" -'-L b ~;"''"... .1< ';:'~ ,~, - ' d!"" '~J.. ~~, " "V rEB -~f .,..L IA I ~~~iiiffiIl 00 ~TIII ,-dJ<:rr' 1J!!l! IJJJ "' J1,(\l ev,; ~ ~ ' . \I I . PARCELS FOR ,!!!lIifj;=, ~ , ACQUISITION. ~ ,,;,i . ~ ",mJ - )l'~ ~ .' .. m It u ~ ~.~~ I \ 'O_~ <<> - ' . ~" II diC:b o ANDOVER DEVELOPMENT DISTRICT 1 N D BOUNDARY OF PARCELS FOR ACQUISITION w-\r' s -- Regular Andover Planning and Zoning Commission Meeting Minutes - May 24, 2011 Page 2 REVIEW PROPOSED ADOPTION OF A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.1 AND THE PROPOSED ADOPTION OF THE MODIFICATION TO THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT DISTRICT NOS. 1-1 AND 1-2, BOTH REDEVELOPMENT DISTRICTS. Mr. Dickinson, noted as the Economic Development Authority (EDA) moves towards the completion of tax increment districts that have facilitated the redevelopment of property near the closed landfill site building community market value and removing blight, the EDA is now looking at additional opportunities not originally planned for and continue to build value and eliminate blight within the established development district. Staff reviewed the location ofthe development district and TIF districts 1-1 and 1-2. Mr. Dickinson noted that TIF District 1-1 expires in 2012, while TIF District 1-2 expires in 2014. The City needs to consider what else needs to be accomplished in the community. The EDA has interest in acquiring blighted housing west of Crosstown Boulevard and east of Crosstown Drive and seek other blighted housing within a designated area. Mr Dickinson showed a map depicting that general area of the City and development district. Mr. Dickinson reviewed the tax increment district information further with the Commission. Chairperson Daninger clarified what action was required from the Planning Commission this evening. Mr. Dickinson stated staff was seeking review by the Planning Commission if the modifications are consistent with the City's Comprehensive Plan. Commissioner Olsen questioned if the TIF district timelines would be extended through the proposed modifications. Mr. Dickinson stated the timelines would remain the same and the district would not be extended beyond the 25 year framework. He noted both districts were debt free with positive increment available for redevelopment activities. Commissioner Olsen inquired if the City would be using eminent domain to acquire blighted housing. Mr. Dickinson did not feel this would be necessary as the City would approach willing sellers, but Mr. Dickinson did qualify that it still is a tool available to the City. Commissioner Holthus felt different portions of the housing stock within the City would align better with the Comprehensive Plan than others. Mr. Bednarz stated the proposed area for potential acquisition for blighted housing would be the area up for review against the goals and objectives ofthe Comprehensive Plan. Commissioner Holthus asked if any commercial businesses would be proposed for redevelopment in this area. Mr. Dickinson indicated acquisition of commercial property was not being proposed at this time. Regular Andover Planning and Zoning Commission Meeting Minutes - May 24, 2011 Page 3 Commissioner Kirchoff questioned if any properties would be rezoned through acquisition. Mr. Dickinson stated the City would acquire the parcels and then likely work with a developer to create a mixed use development. The City would have to meet basic developmental criteria through the Met Council. Any changes to the Comprehensive Plan would be reviewed by the Planning Commission. Chairperson Daninger inquired how the new district would change the current boundaries ofTIF districts 1-1 and 1-2. Mr. Dickinson stated no new district is being created, the boundaries would remain intact but dollars created by development within the current districts could be expended throughout the proposed acquisition area. Chairperson Daninger questioned who developed the potential acquisition area boundary. Mr. Dickinson explained this was reviewed by the EDA and recommended by staff. Commissioner Olsen questioned if the City would need to bond for proposed housing acquisitions over the next several years. Mr. Dickinson stated the City could bond, but did not feel this would be necessary given the positive cash flow in the TIF districts and the limited time frame. Commissioner Holthus explained one ofthe main goals within the Comprehensive Plan was to maintain and enhance the quality of life to Andover residents. She felt the proposed modifications met this requirement and aligned with the five year housing plan. She further reviewed the goals offering support for the proposed modifications to the TIF plan. Commissioner Holthus asked what advantage the City would have if using a developer to create a housing proposal from the acquired blighted sites. Mr. Dickinson stated the limited timeframe available to the City may not allow this to happen. However, ifthis did occur, the City could choose to provide a subsidy for the development and assist with City utilities and infrastructure. Motion by Kirchoff, seconded by Holthus, to recommend approval, finding the proposed modifications to be consistent with the Comprehensive Plan. Motion carried on a 4-ayes, O-nays, 3-absent (Cleveland, Gudmundson, Walton) vote. Mr. Bednarz stated that this item would be before the Council as a public hearing at the June 7, 2011 City Council meeting. I Sl\NDbVE~ 6) 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: President and Commissioners FROM: Jim Dickinson, Executive Director SUBJECT: Monument EntrancelElectronic Sign Update DATE: June 7, 2011 INTRODUCTION The EDA is requested to receive a presentation from the Executive Director at the meeting. DISCUSSION On May 17th the EDA approved the low quote of DeMars Signs for the City Hall Reader Board Replacement Project. A Watch Fire sign is generally a 4-6 week order. RelatIve to the monument entrance signs and other electronic reader board signs (intersection of Bunker & Hanson and intersection of Crosstown Blvd. & Bunker). City Staff has been in contact with the County on using their right-of-way for placement of monument & electronic signs. The City will need to enter into license :;tgreements with the County for each location. Staff has also made contact with the Sonsteby family about a monument entrance sign placement on their property, discussions were positive. It is also anticipated the EDA Sign Committee may have some updates at the meeting. ACTION REOUESTED R ceive a presentation and provide direction to staff. @ 1685 CROSSTOWN BOULEVARD N.W, . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN,US TO: EDA President and Board FROM: Jim Dickinson, Executive Direct<;lr SUBJECT: EDA Activity - Project Status Report DATE: June 7, 2011 INTRODUCTION This memo provides a brief update of all EDA activities. Further details will be provided at the meeting. DISCUSSION Dynamic Sealing Technologies, Inc. - Dynamic Sealing has submitted for a building permit review, construction is expected within the month. City Engineering has coordinated the soil correction work necessary for the building site; staff is waiting on soil tests to determine what will need to be done with the soil piles from the excavation. 2011 Special EDA Events - The 2011 EDA golf event is on June 15, 2011. As of the writing of this staff report, we have 19 paid teams with a few more yet to come. We also have eleven hole sponsors, with a few more yet to come. The first outdoor concert at the pond at Andover Station was held on June 1 st. Oak View Middle School provided the entertainment, attendance was about 140. The next scheduled events are: June 23rd Erin Rogue (Irish folk band) 7:00-9:00 p.m. July 21st The Blue Drifters (Bluegrass) 7:00-9:00 p.m. Site Design for Parking Lot - Staff has prepared a design drawing for the driveway/parking lot for the site next to the ball field. The project was officially ordered by the City Council at the May 3rd City Council meeting. This driveway/parking lot is budgeted forEDA construction in the summer of2011. Andover Station Area Medians - Pursuant to EDA action last year, Public Works will be maintaining the medians in the Andover Station Area. Relative to the Bunker Lake Boulevard median, staff is coordinating the prairie establishment with Prairie Restorations Incorporated. www.MetroMSP.orf? and City Website - Staff continues to monitor the EDA's land sales information on the MetroMSP website sponsored by Anoka County. We have also shown information on other commercial or industrial lands that are for sale in Andover on both the www.metromsp.org and the city planning department's website. Potential Restaurants - Staff continues to pursue prospects for EDA owned land and the Moose & Co. site. Redevelopment Ideas - Staff has coordinated the process to modify the Development District and Tax Increment Plans. A meeting was held with the City Planning and Zoning Commission (May 24th), an agenda item scheduled on the June ih Andover EDA meeting and a public hearing before the City Council also on June 7th. ACTION REOUESTED Receive a brief presentation. 2 S'\NDbVE~ @ 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: President & Commissioners FROM: Jim Dickinson, Executive Director Andover Economic Development Authority SUBJECT: TIF District & EDA Budget Update - May 2011 DATE: June 7, 2011 INTRODUCTION The EDA is requested to receive a brief Tax Increment Financing (TIF) District Cash Flow and EDA Budget update. DISCUSSION The Executive Director will use the attached TIF Cash Flow Analysis as the basis for the TIF District financial update and to facilitate discussion. The Executive Director will also review with the EDA the 2011 EDA Fund budget - May 2011. ACTION REOUESTED Receive a presentation and provide direction to staff. 5~ o(Omo<o(O<o 8 ~ ~~&~r;~~~ T"'" !::~~ ~g~~a;;;;o; T"'" ~Q~ ~~~~qqq ~ .2i N~~ ~~~ - e (3 fA. ~ ~ co _ c:;;- M o ~...... ...... 1-1.1...- q o~ -;;>=~ ~ ~ ~ E (1) "'_ r-: II) 0 ......... ...... Q) ~ it ~ gJ rn I- 0 ~ c ~ ~ .2 =~ 19: g g; ~.~ --- - t::g- g g ~ ~ ~< "5 qo~q 0>_ Os:: o [g~~ ffi 0:3 ~ t:. t:.:!. q ~ ~ X ...... 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U ~ .~ 0 0 ~ ~ ~ tn Co ~;:~~~~~ :u ~;:~~~~~ :s ~ ~?:3?:3?:3?:3?:3?:3 ~ ~?:3~~~~~ ~ '" '" C ~ ~ CITY OF ANDOVER Budget Worksheet - 2011 EDA 2110-46500 Account Actual Actual Actual Actual Budget May YTD Number Description 2007 2008 2009 2010 2011 2011 Charges for Services 54370 Tax Increment Administration F 162,553 173,096 181,416 199,403 165,400 Charges ror Services 162,553 173,096 181,416 199,403 165,400 Investment Income 56910 Interest Earned 8,174 14,670 7,959 8,222 6,000 60 56920 Valuation Adjustment 4,016 (1,283) 1,527 1,077 Investment Income 12,190 13,387 9,486 9,299 6,000 60 Miscellaneous Revenue 58100 Refunds & Reimbursements 11 ,253 1,693 2,487 547 2,884 Miscellaneous Revenue 11 ,253 1,693 2,487 547 2,884 Total Revenues 185,996 188,176 193,389 209,249 171,400 2,944 Salaries & Benefits 60,725 79,811 84,380 100,556 102,468 39,562 Departmental 61005 Supplies. General 493 802 1,021 546 2,000 491 61105 R & M Supplies - General 1,202 247 61130 R & M Supplies - Landscape 11 ,226 4,093 1,924 10,000 61310 Meals! Lodging 700 45 61315 Continuing Education 250 100 200 1,500 61320 Annual Dues! Licenses 14,630 750 765 915 800 575 61405 Postage 784 319 1,061 506 1,000 285 61410 Transportation! Mileage 1,205 1,839 1,943 1,800 2,200 750 Departmental 28,588 7,903 4,790 7,093 18,200 2,393 Operating 62005 Electric 7,134 5,172 8,000 62100 Insurance 2,239 2,190 2,537 4,738 5,250 2,873 62200 Rentals 2,563 82 62210 Computer Services 1,500 1,545 1,600 1,600 1,600 1,600 Operating 3,739 3,735 11,271 14,073 14,850 4,555 Professional Services 63005 Professional Services 1,965 1,550 5,656 3,464 5,200 6,888 63010 Contractual Services 17,236 12,533 14,244 17,046 79,000 2,106 63015 Attorney 619 1,810 2,000 63025 Publishing 947 816 25 988 2,500 229 63100 R & M Labor - General 3,282 1,950 . 63200 Inspections 156 23 35 23 Professional Services 23.586 17,491 21,770 21,521 88,700 9,223 Capital Outlay 65300 Improvements - Shelter 4,836 Total Expenditures 116,638 108,940 122,211 143,243 224,218 60,56 Net Increase (Decrease) in FB 69,358 79,236 71,178 66,006 (52,818) (57,625) Fund Balance Beginning 181,058 250,416 329,652 400,830 466,836 466,836 Ending 250,416 329,652 400,830 466,836 414,018 409,211