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HomeMy WebLinkAbout2001.07.10 PACKET CITY OF COTTAGE GROVE • ECONOMIC Secretary DEVELOPMENT AUTHORITY AGENDA TUESDAY, JULY 10, 2001 7:30 A.M. 1. Call to Order 2. Roll Call 3. Approval of June 12, 2001 Minutes 4. Business Items • A. Project Updates B. Redevelopment Update C. 2001 Proposed Budget—EDA and Economic Development Trust Fund D. TIF District 1-12 Consider Program and Plan E. 2000 EDA Annual Report F. EDA Golf Outing G. Metro East"Connections" Event H. Calendar I. Marketing Biographies J. Grant from Excel Energy 5. Miscellaneous Business Items 6. Adjourn 11111 Next Meeting Date:Tuesday,August 14, 2001, 7:30 AM. \\CG_FS2\CG_FS2_MAIN\Groups\PER_ECON\Economic Development\EDA Packets\2001 Agendas\July 10 Regular.doc a City of Cottage Grove • Memo To: Economic Development Authority Members From: Steven Barrett, Management Analyst Date: 07/05/01 Re: Project Updates Item 4A Attached is the list of active projects. Staff will provide a verbal update at the meeting. • Attachments F:\Groups\PER_ECON\Economic Development\EDA Memos\2001\July 01 Proj Update.doc I •rn N CD a) U O O O! O: co O 7 O ` V st N d y N V ,_ z z �' cd U N p U CO co td 0 L Cd N C • CD to • t,) `� M U ' N Cd N N Q 3 CD co CO N 0 \ (n N N w 7 O d N 0 W N N 0 0 N 0 U j N 0 0 Ti 0 0 t6 0 w N c 0 0 +� ` O OL0NO .' 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O O U to Co d CO O Lo •4:133 N d Co E Coa) J Z a) d (o Y E N O Q c' CO V �+ = Co y ►l) co C H O I9 co c t a C N- E E F 0° cox 8 aEiw= as W E Ce Q c 0 C coN C. 0 d :_ 0 Co N Co w 7 V co 7 - ` O N C 8 N O d o (jJ w y a Co o o 0 3 0 N _ � J U.: 0 ch '47 CD CO O O .- R N 00000000 1 0 0 0 0 0 O 111111 0 0 0 0 0 0 0 0 O` a a 0 0 o 0 o a- wwwwwww City of Cottage Grove S Memo To: Economic Development Authority Members From: Steven Barrett, Management Analyst Date: 07/05/01 Re: Redevelopment Update Item 4B Ryan Schroeder and staff will provide an update relating to redevelopment. Also note that Agenda Item 4D specifically addresses TIF District 1 — 12. • • F:\Groups\PER_ECON\Economic Development\EDA Memos\2001\July 01 Redev.doc r City of Cottage Grove • Memo To: EDA Members From: Michelle A. Wolfe,Assistant City Administrator Date: 07/05/01 Re: Proposed 2002 Budget Item 4C Attached is the proposed 2002 budget for Economic Development. As you may recall, last year we combined the Economic Development Fund and EDA budgets into one budget. In addition, there is a budget for the Economic Development Trust Fund, which is also attached. The proposed budget will be reviewed by the budget team on July 11 and by City Council in August. In terms of the Mission and Description of Activity, nothing has been changed form last year. The Major Objectives for 2002 have been updated, but are still based on the EDA Strategic Plan. The attached budget detail proposes a 3.27% increase in expenditures over the adopted 2001 budget. Salaries are projected to increase by 5.64%; this is largely because we have some newer employees who are still experiencing step pay increases in addition to annual "cost of living" adjustments. Other items of note are listed below: • There is a slight increase to postage, as we continue to increase or direct mail efforts and our mailinglistgrows. (Line item 4341) • I planned for a 5% increase in advertising costs (line item 4341). This assumes maintaining a similar advertising program as in 2001, with the publications increasing their ad fees. • Insurance was increased to $700 based on 2000 actual expenditures (line item 4350). • Dues and Subscriptions were increased slightly, primarily to provide for any potential increases in membership dues (line item 4401). • Special Events (line item 4434) was increase by $500 based on projected • 2001 EDA Golf Tournament expenses. \\CG_FS2\CG_FS2_MAIN\GROUPS\PER_ECON\Economic Development\EDA Memos\2001\July 01 Budget 2002.doc RECOMMENDED ACTION Review the proposed budgets as presented and make any recommended changes. Approve the proposed 2002 budget as presented or with any changed as discussed. Attachment • • \\CG_FS2\CG_FS2_MAIN\GROUPS\PER_ECON\Economic Development\EDA Memos\2001WuIy 01 Budget 2002.doc a • FUNCTION DEPARTMENT DIV NO ACTIVITY General Gov't Economic 285,12 EDA Development MISSION The Economic Development Authority works with its partners to encourage business and industry, and the creation of quality jobs in the City of Cottage Grove using all tools and methods that are appropriate. As we implement this mission, we will be mindful of the following guiding principles: Encourage quality commercial and industrial development that enhances the quality of life for Cottage Grove's citizens and is compatible with the City's Comprehensive Plan. Utilize sound financial practices in using incentives to attract and expand businesses in the community. Consider the use of incentives in instances where they will promote quality jobs and development for the City. Recognize the interdependence of the private and public sector in a healthy community and foster a spirit of cooperation between the two sectors. • DESCRIPTION OF ACTIVITY The Economic Development Authority is a paid group of citizens or businesspersons that provide public development in various activities to promote economic growth in the City. Activities include strategic planning, program implementation, financial program management, and industrial park development. The Economic Development Department is responsible for the administration, coordination and implementation of all activities included in the Economic Development Authority 2000-2005 Strategic Plan. Time is focused around business retention, expansion, attraction and resource management. MAJOR OBJECTIVES FOR 2002 1. Attract at least three new businesses per year to the Industrial Park. 2. Secure at least two new restaurants. 3. Complete a master plan for redevelopment (including Cottage Grove Plaza, G-Will Plaza) by the end of 2002. 4. Develop a master plan for single-family residence - $350K + - for each section of • town; a different (one) section will be completed each year. 5. Develop an annual Marketing Plan to heighten awareness of Cottage Grove in the • development community. 6. Provide ongoing support to the Economic Development Authority by coordinating meetings and events in 2002. 7. Continue to work with Industrial Park owners in developing and promoting the Cottage Grove Industrial Park. 8. Maintain the City's Economic Development WEB Page. 9. Implement business retention and expansion program. 10. Monitor changes in legislation regarding Economic Development tools and other areas that impact the City's ability to attract and retain jobs and tax base. IMPACT MEASURES Actual Actual Estimated Projected Item 1999 2000 2001 2002 Proposals prepared 40 86 40 40 Developer visits 10 25 10 10 EDA Meetings 12 14 14 Land (acres) Developed— 0 6 11.2 410 Industrial Land (acres) Developed — 3 17 Commercial Square feet constructed- 28,616 49,100 97,696 Industrial Square feet constructed- 57,749 16,000 71,577 Commercial • OUTCOME MEASURES • . 1. Number of new businesses expanding in Cottage Grove. 1997 2 1999 12 1998 12 2000 4 2001 4 2. Number of new businesses locating in Cottage Grove. 1997 4 1999 8 1998 6 2000 2 2001 3 Personnel Schedule Actual Actual Recommend Adopted Position Title 2000 2001 2002 2002 City Administrator .20 .20 .20 Assistant City .30 .30 .30 Administrator Management Analysts .54 .54 .54 Admin. Secretary .10 .10 .10 • Summary Budget Program No 9285 Six Month 1999 2000 2001 2001 2002 2002 • Actual Actual Budget Actual Recommend Adopted Revenue Taxes 59,079 59,620 135,600 Other 565,293 9,102 Interest 14,409 47,510 17,500 Loan 14,722 11,397 8,000 Miscellaneous 41.965 44.518 - Total revenue 695.468 172.147 161.100 Expenditures Personnel 49,957 63,601 72,700 Commodities 75 400 600 Contractual 39,596 68,877 86,100 Other charges Capital outlay - 714 - Total 89.628 133.592 159.400 Fund balance Beginning balance 594,789 1,337,427 1,375,982 Revenue 695,468 172,147 161,100 Expenditure 89,628 133,592 159,400 Transfer 136.798 - - Ending balance 1.337.427 1.375.982 1,377.682 1:120028 UDI Nar9285.DOC • City of Cottage Grove Department Budget Request Fund 285 Pera rate 0.0553 l:\2002 Bud\[DET1135.xis]Sheetl Department Econ Dev Authority FICA rate 0.0765 • Program 1135 Group ins W/C rate 0.004 6/24/99 Percent Over(Under) 2000 2001 2002 Prior year Object Code Description Actual Budget Detail Request Budget Actual Comments Personal Services 4100 Salaries/Wages Reg Wolfe,Asst Admin at 30% 23,100.00 Schroeder,City Admin at 20% 18,600.00 Barrett,Analyst at 27% 10,700.00 Johnson,Scott at 27% 9,700.00 Belscamper,Neil at 10% 3,600.00 Total 4100 56,579.00 62,500.00 65,700.00 4110 Overtime Total 4110 22.00 0.00 100.00 100.00 4120 Salaries/Wages PIT 1,800.00 Total 4120 394.00 1,800.00 1,800.00 4141 PERA 1,954.00 3,200.00 3,700.00 3,700.00 4142 FICA 4,452.00 4,900.00 5,200.00 5,200.00 4142 Insurance 0.00 0.00 0.00 0.00 4148 Workers Comp 200.00 300.00 300.00 300.00 • Total Personal Svcs 63,601.00 72,700.00 76,800.00 5.64% 21% Commodities 4200 Office Supplies 300.00 Total 4200 171.00 300.00 300.00 4210 Operating Supplies 300.00 Total 4210 229.00 300.00 300.00 Total Contractual Svcs 400.00 600.00 600.00 0.00% 50% Contractual Services 4300 Professional Svcs Marketing,Brochure design, 21,000.00 Aerial photos Total 4300 17,880.00 22,000.00 21,000.00 4301 Engineering Svcs 7,500.00 Total 4301 174.00 8,500.00 7,500.00 4302 Legal service 12,000.00 Total 4302 10,267.00 11,000.00 12,000.00 4305 Fees For Service • EDA Per Diem: 7 cQ$30/mtg*12 mtgs. 2,520.00 Page 1 City of Cottage Grove Department Budget ' Request 40Fund 285 Pera rate 0.0553 1:\2002 Bud\[DET1135.xls)Sheetl Department Econ Dev Authority FICA rate 0.0765 Program 1135 Group ins W/C rate 0.004 6/24/99 Percent Over(Under) 2000 2001 2002 Prior year Object Code Description Actual Budget Detail Request Budget Actual Comments E-mail Misc.as needed 3,380.00 Total 4305 4,953.00 5,900.00 5,900.00 4311 Postage Annual Report,Golf Tournament, 1,800.00 Mailings Total 4311 1,272.00 1,600.00 1,800.00 $1,217 ytd 2001 4340 Printing Annual Report 2,000.00 Marketing Brochure&Post Cards 4,500.00 Total 4340 4,270.00 6,500.00 6,500.00 . 4341 Advertising City Business 11,300.00 Minn Real Estate Journal 9,100.00 Chamber Misc. 500.00 Public Hearing Notices 500.00 Misc.Ads 1111 Tota14341 16,598.00 19,200.00 21,400.00 4350 Insurance 700.00 Total 4350 683.00 300.00 700.00 4401 Dues&Subscriptions Metro East Development 2000 City Business Sub. 100 MAEDC 250 AEDC 310 Chamber 1500 EDAM(CA&ACA @175 ea.) 350 misc 150 Total 4401 4,506.00 4,500.00 4,660.00 4403 Travel Training Asst National Conference(1500'25%) 400 Asst,State Conference(500'25%) 150 TIF Seminar 200 Mileage Reimbursement 300 Local Meetings/Seminars 400 Analyst Seminar 150 2,447.00 1,600.00 1,600.00 4434 Special Events Golf Tournament Expenses 4,700.00 est.$4616 for 2001 • Misc.Plaques,Etc. 100.00 Formus for Locl Business 500.00 Page 2 City of Cottage Grove Department Budget Request Fund 285 Pera rate 0.0553 l:\2002 Bud\[DET1135.xis]Sheetl Department Econ Dev Authority FICA rate 0.0765 Program 1135 Group ins . • W/C rate 0.004 6/24/99 Percent Over(Under) 2000 2001 2002 Prior year Object Code Description Actual Budget Detail Request Budget Actual Comments Total 4434 6,141.00 4,700.00 5,300.00 4445 Sales Tax 468.00 300.00 500.00 500.00 Total Contractual Svcs 69,659.00 86,100.00 88,860.00 3.21% 27.56% Captial Outlay 4520 Furniture and Office Equipment 0.00 Total 4520 714.00 0.00 0.00 Total Capital Outlay 714.00 0.00 0.00 #DIV/0! -100.00% Other Financing Uses: 4700 Transfers TIF aid reduction to general I Total 4700 0.00 1,600.00 0.00 Total Other Financing 0.00 1,600.00 0.00 -100.00% #DIV/0! Total Department 134,374.00 161,000.00 166,260.00 3.27% 23.73% • • Page 3 FUNCTION DEPARTMENT DIV NO ACTIVITY General Economic 12 Economic Government Development Development Trust MISSION Funds donated or accumulated into this fund are to be used for the furtherance of economic development within the City. The purpose is to enhance economic development opportunities for commercial entities desiring to locate, expand or improve commercial property within the City. DESCRIPTION OF ACTIVITY To further economic development within the City. MAJOR OBJECTIVES FOR 2002 None Personnel Schedule Actual Actual Recommend Adopted Position Title 2000 2001 2002 2002 None S Summary Budget Program No 9286 Six Month 1999 2000 2001 2001 2002 2002 Actual Actual Budget Actual Recommend Adopted Revenue Donation 375,000 394,000 Interest - 32.255 25.000 Total Revenue 375.000 426.255 25.000 Expenditure Capital Outlay - - 275.000 800.000 Total - - 275.000 800.000 Fund Balance Beginning balance 375,000 801,255 981,255 Revenue 375,000 426,255 25,000 Expenditure - - 275.000 800.000 Ending balance 375.000 801.255 551.255 I:12002BUDI Nar9286 S City of Cottage Grove Department Budget • Request Fund 286 C:\windows\TEMP\[Mileage%20and%20E Department Future Econ Development • Program 9286 6/24/99 Percent Over(Under) 2000 2001 2002 Prior year Object Code Description Actual Budget Detail Request Budget Actual Comments Commodities 4200 Office Supplies Total 4200 0.00 0.00 0.00 Total Contractual Svcs 0.00 0.00 0.00 0% #DIV/0! Capital Outlay Land acquisition Redevelopment 200,000.00 3825 ytd • Industrial Park 200,000.00 Total 400,000.00 Infrastructure Redevelopment 200,000.00 $0 ytd Industrial Park _200,000.00 Total 0.00 400,000.00 Total Capital Outlay 0.00 0.00 800,000.00 #DIV/0! #DIV/0! • Total Department 0.00 0.00 800,000.00 #DIV/01 #DIV/ol • Page 1 City of Cottage Grove O Memo To: Economic Development Authority Members From: Steven Barrett, Management Analyst J Date: 07/05/01 Re: TIF District 1-12 Program and Plan Item 4D Attached for your review are materials relating to TIF District 1-12. Specifically, the materials include a memo to City Council from Ryan Schroeder, and a description of the plan by Ehlers and Associates, Inc. 0 • \\CG_FS2\CG_FS2_MAIN\Groups\PER_ECON\Economic Development\EDA Memos\2001\July 01 TIF 1-12 program and plan.doc • Memo To: Mayor and City Co it From: Ryan R. Schroeder 1110, Subj.: Creation of Gateway Re• -' elopment District Date: July 2,2001 Enclosed please find a copy of the Tax Increment Program and Financing Plan for creation of TIF 1-12, a redevelopment district for the Gateway District. As you know,we have been working on one facet or another of this District since 1999 with the discussions of the Regal Theater redevelopment of Grove Plaza. Most recently, Council created the Gateway Redevelopment District that includes all four quadrants of the Highway 61/80' Street commercial area. Included within the district designation is the G-Will Shopping Center, Grove Plaza, Cottage Square Shopping Center,the Armory,the 80th Street business area around U.S. Bank and all of the property inside of those borders. We have been on a path to create this Redevelopment TIF District upon an expected August 15, 2001 Public Hearing and Council consideration. At the close of the most recent Minnesota Legislative Session,however,the adopted law as we understand it requires that we move up the schedule to August 1,2001 or before. Anything put in place prior to that date will be allowed to continue under existing law. Anything after will be created under a different tax code that,reportedly,will make projects such as this L one much more difficult to accomplish. In order to move up the schedule we have requested that the School District and Washington County waive their 30-day notification • and review period. At this time, in order to meet these new time constraints we are requesting the Council schedule a Public Hearing for July 26,2001. At that same meeting we expect to be offering development agreements for your approval on the Grove Plaza and 80th Street redevelopment areas. Council Action: By motion schedule a special meeting for July 26,2001 and a Public Hearing on the same date to consider creation of the TIF 1-12 Financing Plan and Program. EHLERS • June 29,2001 & ASSOCIATES INC Myra Peterson,Board Chair Washington County Board of Commissioners 14949 62"d Street North BY FAX AND BY REGULAR MAIL P.O.Box 6 Stillwater,MN 55802-0006 Re: City of Cottage Grove,Proposed Tax Increment Financing District No. 1-12 Dear Ms. Peterson: The City of Cottage Grove has initiated the process of establishing a redevelopment tax increment financing district. The TIF district will be created by the City of Cottage Grove to assist in the redevelopment and rehabilitation within the Gateway Redevelopment Area. • If the County elects to use tax increments from the District to finance county road improvements pursuant to Minnesota Statutes,Section 469.175,Subd. la,the City must be notified within 45 days of the receipt of the proposed tax increment financing plan. A copy of the proposed plan for Tax Increment Financing District No. 1-12 is enclosed for the County's review with regard to the road impacts. Please note that the City will be forwarding a copy of the tax increment financing plan to the County Board at the same time. • We would like to solicit your comments and offer to meet with you at your convenience, if you so desire.In addition,we invite you to attend the public hearing on the establishment of Tax Increment Financing District No. 1-12 on August 15,2001,at approximately 7:15 P.M.,or to direct any comments or questions that you may have to Michelle Wolfe,City of Cottage Grove,or to me at 651-697-8504. Thank you for your consideration and review of the enclosed material. Sincerely, EHLERS AND ASSOCIATES,INC. 1 dxc Shelly Eldridge Financial Advisor Acting for and on behalf of the City of Cottage Grove,Minnesota Enclosure cc: Michelle Wolfe,City of Cottage Grove Ron Batty, Kennedy&Graven,Chartered • Equal Opportunity Employer LEADERS IN PUBLIC FINANCE Charter Member of the National Association of Independent Public Finance Advisors 3060 Centre Pointe Drive, Roseville, MN 55113.1105 651.697.8500 tax 651.697.8555 www.ehlers-inc.com BY FAX AND BY REGULAR MAIL June 29,2001 4 r = E H L E R S • & ASSOCIATES INC Molly 0' Rourke,Director Susan Moore, School Board Clerk Assessment/Taxpayer Services& Elections South Washington County School Washington County District No.833 14949 62nd Street North 7362 East Point Douglas Road South P.O.Box 6 Cottage Grove,MN 55016-3025 Stillwater, MN 55802-0006 Re: The City of Cottage Grove and the Cottage Grove Economic Development Authority's("City" and "EDA") proposed establishment of Tax Increment Financing District No. 1-12,within Development District No. 1,and the adoption of the Tax Increment Financing Plan. The City of Cottage Grove will be considering the adoption of the Tax Increment Financing Plan(the"Plan") for Tax Increment Financing District No. 1-12, a redevelopment tax increment financing district (the "District")located within Development District No. 1,at a public hearing to be held at City Hall, 7516 80th Avenue South, City of Cottage Grove, on August 15, 2001 at approximately 7:15 P.M. A redevelopment • district has a maximum life of 25 years of tax increment (or a shorter period as determined by the City Council). Enclosed please find one copy of the proposed Plan for the District. The proposed tax increment financing district will enable the City of Cottage Grove to assist with the redevelopment and rehabilitation within the Gateway Redevelopment Area. The location of the District is indicated on the maps in the enclosed Plan. The Minnesota Tax Increment Financing Act at Minnesota Statues, Section 469.175,Subdivision 2 and 4, • requires that prior to the holding of a public hearing on the adoption or modification of a tax increment financing plan, the EDA must provide an opportunity to the members of the affected county and school boards to review the fiscal and economic implications of the proposed modified or new tax increment financing plan 30 days from the transmittal of the enclosed fiscal implications or until the County or School Boards have presented written comment on the proposal, whichever is less. The fiscal and economic implications of the District are found in Subsection 2.15 "Estimated Impact on Other Taxing Jurisdictions" in the Plan. We invite you to attend the public hearing to be held by the City Council on August 15,2001,beginning at approximately 7:00 P.M.or to direct any comments or questions that you may have to Michelle Wolfe,City of Cottage Grove at 651-458-2882,or to me at 651-697-8504. Thank you for your consideration in reviewing the enclosed proposal. Sincerely, EHLERS AND ASSOCIATES,INC. Shelly Eldridge,Financial Advisor Acting for and on behalf of the City of Cottage Grove,Minnesota Enclosure • Eoual Opportunity Employer LEADERS IN PUBLIC FINANCE cc: Michelle Wolfe,City of Cottage Grove Charter Member of the National Association of Independent Public Finance Advisors Ron Batty, Kennedy& Graven,Chartered 3060 Centre Pointe Drive, Roseville, MN 55113-1105 651.697.8500 fax 651.697.8555 www.ehlers-inc.com 111 As of June 29,2001 Draft for County and School District Correspondence MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 and the TAX INCREMENT FINANCING PLAN for the establishment of TAX INCREMENT FINANCING DISTRICT NO. 1-12 1111 (a redevelopment district within Development District No. 1) COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY CITY OF COTTAGE GROVE WASHINGTON COUNTY STATE OF MINNESOTA Public Hearing: August 15,2001 Adopted: This document is in draftformfor distribution to the f County and the School District. The Plan contains the estimated fiscal and economic implications ofthe proposed T1FDistrict. The City and the EDA may make minor changes to this draft document prior to the public hearing. Eit E H L E R SPrepared by: EHLERS&ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 6 ASSOCIATES • INC 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com TABLE OF CONTENTS • (for reference purposes.only) SECTION I-MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 1-1 Subsection A. Definitions 1-1 Subsection I, Development District Financing 1-1 Subsection L. Description of the Development District 1-1 SECTION II-TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-12 2-1 Subsection 2-1. Foreword 2-1 Subsection 2-2. Statutory Authority 2-1 Subsection 2-3. Statement of Objectives 2-1 Subsection 2-4. Development Program Overview 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired 2-2 Subsection 2-6. Classification of the District 2-2 Subsection 2-7. Duration of the District 2-4 Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements 2-4 Subsection 2-9. Sources of Revenue/Bonded Indebtedness 2-5 Subsection 2-10. Uses of Funds 2-6 Subsection 2-11. State Tax Increment Financing Aid (Local Contribution) 2-7 Subsection 2-12. Fiscal Disparities Election 2-7 Subsection 2-13. Business Subsidies 2-8 Subsection 2-14. County Road Costs 2-9 • Subsection 2-15. Estimated Impact on Other Taxing Jurisdictions 2-9 Subsection 2-16. Supporting Documentation 2-10 Subsection 2-17. Definition of Tax Increment Revenues 2-10 Subsection 2-18. Modifications to the District 2-11 Subsection 2-19. Administrative Expenses 2-11 Subsection 2-20. Limitation of Increment 2-12 Subsection 2-21. Use of Tax Increment 2-13 Subsection 2-22. Excess Tax Increments 2-13 Subsection 2-23. Requirements for Agreements with the Developer 2-14 Subsection 2-24. Assessment Agreements 2-14 Subsection 2-25. Administration of the District 2-14 Subsection 2-26. Annual Disclosure Requirements 2-14 Subsection 2-27. Reasonable Expectations 2-15 Subsection 2-28. Other Limitations on the Use of Tax Increment 2-15 Subsection 2-29. Summary 2-16 APPENDIX A-PROJECT DESCRIPTION A-1 APPENDIX B- MAPS OF DEVELOPMENT DISTRICT NO. 1 AND THE DISTRICT B-1 APPENDIX C- DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT C-1 APPENDIX D- ESTIMATED CASH FLOW FOR THE DISTRICT D-1 APPENDIX E - MINNESOTA BUSINESS ASSISTANCE FORM E-1 APPENDIX F- REDEVELOPMENT QUALIFICATIONS FOR THE DISTRICT F-1 APPENDIX G - BUT/FOR QUALIFICATIONS G-1 • • • SECTION I-MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 Foreword The following text represents a Modification to the Development Program for Development District No. 1. This modification represents a continuation of the goals and objectives set forth in the Development Program for Development District No. 1. Generally, the substantive changes include the modification of the Development Program for Development District No. 1 to include Tax Increment Financing District No. 1-12. For further information, a review of the Development Program for Development District No. 1, adopted January 7, 1985,and most recently modified on April 18,2001 is recommended. It is available from the City Administrator at the City of Cottage Grove. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Development District No. 1. Subsection A. Definitions (As Modified August 15, 2001) • "Tax Increment Financing District" means any Tax Increment Financing District created and established pursuant to the TIF Act within Development District No. 1. Established TIF districts within Development District No. 1 currently include Tax Increment Districts Nos. 1-1, 1-2, 1-3, 1-4, 1,5, 1-7, 1-8, 1-9, 1-10, 1-11 and 1-12 or any other districts to be established. • Subsection I, Development District Financing (As Modified August 15, 2001) Within Development District No. 1,the City has created TIF Districts No. 1-1, 1-2, 1-3, 1-4, 1-5, 1-7, 1-8, 1-9, 1-10, 1-11,and 1-12,and may create additional TIF Districts to finance development activities. These TIF Districts were created in conjunction with the establishment of Development District No. l as it was approved and is currently amended. Some of the Tax Increment Districts may have expired or been decertified. Subsection L. Description of the Development District The boundaries of Development District No. 1 are not being modified at this time. • Cottage Grove Economic Development Authority Modification to the Development Program for Development District No. 1 1-1 SECTION 11- TAX INCREMENT FINANCING PLAN • FOR TAX INCREMENT FINANCING DISTRICT NO. 1-12 Subsection 2-1. Foreword The Cottage Grove Economic Development Authority(the"EDA"),the City of Cottage Grove(the"City"), staff and consultants have prepared the following information to expedite the establishment of Tax Increment Financing District No. 1-12 ("the District"), a redevelopment tax increment financing district, located in Development District No. 1. Subsection 2-2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end,the EDA and City have certain statutory powers pursuant to Minnesota Statutes ("M.S.'), 469.090 through 469.1081, inclusive, as amended, and M.S., Sections 469.174 through 469.179, inclusive, as amended (the "Tax Increment Financing Act"or"TIF Act"), to assist in financing public costs related to this project. This Section contains the Tax Increment Financing Plan(the"Plan")for Tax Increment Financing District No. 1-12. Other relevant information is contained in the Modification to the Development Program for Development District No. 1. Subsection 2-3. Statement of Objectives The District currently consists of 42 parcels of land and adjacent and internal rights-of-way. The District • is being created to facilitate the redevelopment and renovation of the Gateway Redevelopment Area in the City of Cottage Grove. Contracts for this have not been entered into at the time of preparation of this Plan, but the date when redevelopment is likely to begin is Fall of 2001. This Plan is expected to achieve many of the objectives outlined in the Development Program for Development District No. 1. The activities contemplated in the Modification to the Development Program and the Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Development District No. I and the District. Subsection 2-4. Development Program Overview 1. Property to be Acquired- Selected property located within the District may be acquired by the EDA or City and is further described in this Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the EDA or City may sell to a developer selected properties that they may acquire within the District or may lease land or facilities to a developer. 4. The EDA or City may perform or provide for some or all necessary acquisition, construction,relocation,demolition,and required utilities and public streets work within the II/ Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-12 2-1 • District. Subsection 2-5. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of-way identified by the parcels listed below. See the map in Appendix B for further information on the location of the District. Parcel Numbers See Appendix C The EDA or City may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the EDA or City only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets,utilities and facilities; site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The EDA or City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and • related costs. Subsection 2-6. Classification of the District The EDA and City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.179, as amended, inclusive, find that the District, to be established, is a • redevelopment district pursuant to M.S., Section 469.174, Subd. 10(a)(1) as defined below: (a) "Redevelopment district"means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists: (1) parcels consisting of 70 percent of the area in the district are occupied by buildings,streets, utilities, or other improvements and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance;or (2) The property consists of vacant, unused, underused, inappropriately used, or infrequently used rail yards, rail storage facilities or excessive or vacated railroad rights-of-way; or (3) tank facilities, or property whose immediately previous use was for tank facilities, as defined in Section 115C, Subd. 15, if the tank facility: (i) have or had a capacity of more than one million gallons; (ii) are located adjacent to rail facilities;or (iii)have been removed, or are unused, underused, inappropriately used or infrequently used. (b) For purposes of this subdivision, "structurally substandard"shall mean containing defects in • structural elements or a combination of deficiencies in essential utilities and facilities, light and Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-12 2-2 • ventilation,fire protection including adequate egress,layout and condition of interiorpartitions, • or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. (c) A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, ifthe municipality finds that(I)the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property;and(2)the evidence otherwise supports a reasonable conclusion that the building is structurally substandard... (d) A parcel is deemed to be occupied by a structurally substandard building for purposes of the finding under paragraph (a) if all of the following conditions are met: (1) the parcel was occupied by a substandard building within three years of the filing of the request for certification of the parcel as part of the district with the county auditor; (2) the substandard building was demolished or removed by the authority or the demolition or • removal was financed by the authority or was done by a developer under a development agreement with the authority; (3) the authority found by resolution before the demolition or removal that the parcel was occupied by a structurally substandard building and that after demolition and clearance the authority intended to include the parcel within a district;and (4) upon filing the request for certification of the tax capacity of the parcel as part of a district, the authority notifies the county auditor that the original tax capacity of the parcel must be adjusted as provided by§469.177, subdivision 1,paragraph(h). (e) For purposes of this subdivision,a parcel is not occupied by buildings,streets, utilities,or other improvements unless 15 percent of the area of the parcel contains improvements. (f) For districts consisting of two or more noncontiguous areas, each area must qualify as a redevelopment district under paragraph(a)to be included in the district, and the entire area of the district must satisfy paragraph(a). In meeting the statutory criteria the EDA and City rely on the following facts and findings: o The District is a redevelopment district consisting of 42 parcels. ❑ An inventory shows that parcels consisting of 70 percent of the area in the District are occupied by buildings, streets, utilities and other improvements. • Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-12 2-3 • t7 An inspection of the buildings located within the District finds that more than 50 percent of the buildings are structurally substandard as defined in the TIF Act. (SeeAppendix F). Pursuant to 469.176 Subd. 7,the District does not contain any parcel or part of a parcel that qualified under the provisions of Section 273.111 or 273.112 of Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7. Duration of the District Pursuant to M.S., Section 469.175, Subd 1, and Section 469.176, Subd. 1,the duration of the District must be indicated within the Plan. Pursuant to M.S., Section 469.176, Subd. Ib,the duration of the District will be 25 years after receipt of the first increment by the EDA or City(a total of 26 years). The date of receipt by the City of the first tax increment is expected to be 2003. Thus,it is estimated that the District,including any modifications of the Plan for subsequent phases or other changes,would terminate after 2028,or when the Plan is satisfied. If increment is received in 2002,the term of the District will be 2027. The EDA or City reserves the right to decertify the District prior to the legally required date. Subsection 2-8. Original Tax Capacity,Tax Rate and Estimated Captured Net Tax Capacity Valuellncrement and Notification of Prior Planned Improvements Pursuant to M.S.,Section 469.174,Subd. 7 and M.S.,Section 469.177,Subd. 1,the Original Net Tax Capacity (ONTC)as certified for the District will be based on the market values placed on the property by the assessor in 2000 for taxes payable 2001. 411 Pursuant to M.S., Section 469.177, Subds. 1 and 2,the County Auditor shall certify in each year(beginning in the payment year 2002)the amount by which the original value has increased or decreased as a result of: 1. change in tax exempt status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to 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 connection with previously issued building permits. In any year in which the current Net Tax Capacity 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. The original local tax rate for the District will be the local tax rate for taxes payable 2001, assuming the request for certification is made before June 30,2001. The Original Tax Capacity and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. I, 2, and 4, the estimated Captured Net Tax Capacity(CTC)of the District,within Development District No. 1,upon completion of the project,will annually approximate tax increment revenues as shown in the table on the next page. The EDA and City request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2003. The project tax capacity listed is an estimate of values when the project is completed. • Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-12 2-4 Project Estimated Tax Capacity hu on Completion (PTC) 601,491• • Original Estimated Net Tax Capacity(ONTC) 343,781 Estimated Captured Tax Capacity (CTC) 257,710 Original Local Tax Rate 120.038% Pay 2001 Estimated Annual Tax Increment(CTC x Local Tax Rate) 309,350 Percent Retained by the EDA 100% Pursuant to M.S., Section 469.177, Subd. 4, the EDA shall, after due and diligent search, accompany its g P Y request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175,Subd. 4,with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18)months immediately preceding approval of the Plan by the municipality ty pursuant to M.S., Section 469.175,Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit • was issued. The EDA is reviewing the area to be included in the District to determine if any building permits have been issued during the 18 months immediately preceding approval of the Plan by the City. Subsection 2-9. Sources of Revenue/Bonded Indebtedness • Public improvement costs,acquisition,relocation,utilities,parking facilities,streets and sidewalks,and site preparation costs and other costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The EDA or City reserves the right to use other sources of revenue legally ap- plicable to the EDA or City and the Plan,including,but not limited to,special assessments,general property taxes, state aid for road maintenance and construction, proceeds from the sale of land, other contributions from the developer and investment income,to pay for the estimated public costs. The EDA or City reserves the right to incur bonded indebtedness or other indebtedness as a result ofthe Plan. As presently proposed,the project will be financed by a combination of a bond issue,pay-as-you-go notes, and interfund loans and transfers.s s. Additional indebtedness may be required to finance other authorized activities. The total principal amount of bonded indebtedness or other indebtedness related to the use of tax increment financing will not exceed $7,800,000 without a modification to the Plan pursuant to applicable statutory requirements. The City reserves the right to refund any bonds of the $7,800,000 to the extent allowed by law without additional modifications to this Plan. This provision does not obligate the EDA or City to incur debt. The EDA or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The EDA or City may also finance the activities to be undertaken pursuant to the Plan through loans from funds of the EDA or City or to reimburse the developer on a"pay-as-you-go"basis for eligible costs paid for by a developer. The estimated sources of funds for the District are contained in the table on the next page. • Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-12 2-5 . • SOURCES OF FUNDS TOTAL Tax Increment $7,782,920 Interest Revenue $17,080 PROJECT REVENUES $7,800,000 Bond Proceeds $7,800,000 Refunded Bond Proceeds $15,600,000 lnterfund Loans $7,800,000 Transfers $7,800,000 Subsection 2-10. Uses of Funds Currently under consideration for the District is a proposal to facilitate the redevelopment and renovation of the Gateway Redevelopment Area in the City of Cottage Grove. The EDA and City have determined that it will be necessary to provide assistance to the project for certain costs. The EDA has studied the feasibility • of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District,this Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. USES OF FUNDS TOTAL Land/Building Acquisition $1,000,000 Site Improvements/Preparation $1,000,000 Public Utilities $500,000 Parking Facilities $500,000 Streets and Sidewalks $500,000 Other Public Improvements $222,000 Interest $4,000,000 Administrative Costs(up to 10%) $78,000 PROJECT COSTS TOTAL 57.800.000 Bond Principal $7,800,000 Refunding Bond Principal $15,600,000 lnterfund Loans $7,800,000 Transfers $7,800,000 The above budget is organized according to the OSA reporting forms. Estimated costs associated with the District are subject to change among categories without a modification • to this Plan. The cost of all activities to be considered for tax increment financing will not exceed,without Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-12 2-6 formal modification,the budget above pursuant to the applicable statutory requirements. Pursuant to MS., Section 469.1763,Subd.2,no more than 25 percent of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside of the District but within the boundaries of Development District No. 1,(including administrative costs,which are considered to be spent outside of the District)subject to the limitations as described in this Plan. Subsection 2-11. State Tax Increment Financing Aid (Local Contribution) Pursuant to M.S., Section 273.1399, for tax increment financing districts for which certification was requested after April 30, 1990, a municipality incurs a reduction in state tax increment financing aid (RISTIFA) applied to the municipality's Local Government Aids (LGA) first and, Homestead and Agricultural Aid (HACA) second, in an amount equal to a formula based upon the equalized qualifying captured tax capacity(QCTC)of the tax increment financing district. Pursuant to M.S., Section 273.1399, Subd. 6, the EDA or City may choose an option to the LGA-HACA penalty. The District is exempt from the LGA-HACA reduction if the EDA or City elects to make a qualifying local contribution at the time of approving the tax increment financing plan. To qualify for the exemption in each year,the EDA or City must make a qualifying local contribution to the project of a certain percentage. The local contribution for a redevelopment districts is 5 percent. The maximum local contribution for all districts in the City in any year is limited to two percent of the City's net tax capacity, after which point the EDA or City must make an additional contribution equal to the lesser of(a)0.25 percent of the City's net tax capacity or(b)3 percent of tax increment revenues for that year. The amount of the local contribution must be made out of unrestricted money of the EDA or City, such as • the general fund, a property tax levy, or a federal or state grant-in-aid which may be spent for general government purposes. The local contribution may not be made, directly or indirectly,with tax increments or developer payments. The local contribution must be used to pay project costs and cannot be used for general government purposes. The EDA elects to make the annual local contribution to the project to exempt itself from the LGA- HACA penalty. The EDA or City will pay for costs of the project described in this Plan,in an amount equal to 5 percent of annual tax increment for the District,subject to the limitations described above, in any year in which such amount exceeds 2 percent of the City's net tax capacity. Such contribution may be in form of either lump sum or annual payments(in addition to tax increment payments)towards costs identified in this Plan or other costs related to that development or redevelopment. The contribution may also be made in the form of public improvements financed by the EDA or City or other unit of government with unrestricted funds. The City anticipates making its local contribution towards the construction of infrastructure and site improvements from City and EDA funds. Subsection 2-12. Fiscal Disparities Election Pursuant to M.S.,Section 469.177,Subd. 3,the EDA or City may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to M.S., Section 469.177,Subd. 3,clause a,(outside the District)are followed, the following method of computation shall apply: (I) The original net tax capacity and the current net tax capacity shall be determined before the Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-12 2-7 • application of the fiscal disparity provisions of Chapter 276A or 473F. Where the original net tax capacity is equal to or greater than the current net tax capacity,there is no captured net tax capacity and no tax increment determination. Where the original net tax capacity is less than the current net tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2) The county auditor shall exclude the retained captured net tax capacity of the authorityfrom the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the lesser of(A) the local taxing district tax rates or(B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. The EDA and City have in the past had a practice of electing clause B,or(2)as stated above. However,due to the pending legislation and probable state classification rate compression, the EDA and City will be •. electing clause A or(1)as stated above. The EDA and City reserve the right to elect clause B at a future date if and when the EDA and City deem it appropriate. The EDA will choose to calculate fiscal disparities by clause a. According to M.S., Section 469.177, Subd. 3: • (c) The method of computation of tax increment applied to a district pursuant to paragraph(a)or (b)shall remain the same for the duration of the district, except that the governing body may elect to change its election from the method of computation in paragraph (a) to the method in paragraph(b). Subsection 2-13. Business Subsidies Pursuant to M.S. Statutes 116J.993, Subdivision 3, the following forms of financial assistance are not considered a business subsidy: (1) a business subsidy of less than $25,000; (2) assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location,or similar general criteria; (3) public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) redevelopment property polluted by contaminants as defined in section 116J.552, subdivision 3; (5) assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts,provided that the assistance is equal to or less than 50%of the total cost; (6) assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) assistance for housing; • Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-12 2-8 (8) assistance for pollution control or abatement, including assistance for a tax increment financing • hazardous substance subdistrict as defined under 469.1;-74, subdivision 23; (9) assistance for energy conservation; (10) tax reductions resulting from conformity with federal tax law; (11) workers' compensation and unemployment compensation; (12) benefits derived from regulation; (13) indirect benefits derived from assistance to educational institutions; (14) funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds,and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 1986,as amended through December 31, 1999; (15) assistance for a collaboration between a Minnesota higher education institution and a business; (16) assistance for a tax increment financing soils condition district as defined under section 469.174, subdivision 19; (17) redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) general changes in tax increment financing law and other general tax law changes of a principally technical nature. (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; (21) Business loans and loan guarantees of$75,000 or less; and (22) Federal loan funds provided through the United States Department of Commerce, Economic • • Development Administration. The EDA or City is providing tax increment financing for the purpose of redevelopment economic • development or job growth and therefore the provisions ofMS.,Section 116J.993 to 116J.994,which states that a local unit of government granting financial assistance to a business for economic development or job growth purposes,including tax increment financing,must establish business subsidy criteria and approve a business subsidy agreement with the business receiving the assistance, do not apply. Subsection 2-14.County Road Costs Pursuant to MS.,Section 469.175, Subd la,the county board may require the EDA or City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will,in the judgement of the county,substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. In the opinion of the EDA and City and consultants,the proposed development outlined in this Plan will have little or no impact upon county roads. If the county elects to use increments to improve county roads,it must notify the EDA or City within forty-five days of receipt of this Plan. Subsection 2-15. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the Plan would occur without the creation of the District. However, the EDA or City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as • Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-12 2-9 • follows if the "but for"test was not met: IMPACT ON TAX BASE 2000/2001 Estimated Captured Total Net Tax Capacity(CTC) Percent of CTC Tax Capacity Upon Completion to Entity Total Washington County 198,360,350 257,710 0.1299% City of Cottage Grove 19,502,621 257,710 1.3214% ISD No. 833 65,945,244 257,710 0.3908% IMPACT ON TAX RATES 2000/2001 Percent Potential Extension Rates of Total CTC Taxes Washington County 0.260160 21.67% 257,710 67,046 City of Cottage Grove 0.274020 22.83% 257,710 70,618 1SD No. 833 0.577840 48.14% 257,710 148,915 Other 0.088360 7.36% 257,710 22,771 . Total 1.200380 100.00% 309,350 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the 2000/Pay 2001 rate. The total net capacity for the entities listed above are based on Pay 2001 figures. The District will be certified under the actual 2001/Pay 2002 rates, which were unavailable at the time this Plan was prepared. Subsection 2-16.Supporting Documentation Pursuant to M.S. Section 469.175 Subd Ia, clause 7 the Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469.175 Subd 3, clause (2). A list of applicable studies, if any,will be on file with the City prior to the public hearing. Subsection 2-17. Definition of Tax Increment Revenues Pursuant to M.S.,Section 469.174,Subd.25,tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1. taxes paid by the captured net tax capacity,but excluding any excess taxes,as computed under M.S., Section 469.177; 2. the proceeds from the sale or lease of property,tangible or intangible, purchased by the authority with tax increments; 3. repayments of loans or other advances made by the authority with tax increments; and 4. interest or other investment earnings on or from tax increments. Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-12 2-10 Subsection 2-18. Modifications to the District • In accordance with M.S., Section 469.175, Subd. 4,any: I. reduction or enlargement of the geographic area of Development District No. I or the District; 2. increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determination was not a part of the original plan,or to increase or decrease the amount of interest on the debt to be capitalized; 3. increase in the portion of the captured net tax capacity to be retained by the EDA or City; 4. increase in total estimated tax increment expenditures; or 5. designation of additional property to be acquired by the EDA or City, shall be approved upon the notice and after the discussion,public hearing and findings required for approval of the original Plan. Pursuant to M.S. Section 469.175 Subd. 4(b),the geographic area of the District may be reduced,but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a redevelopment district is enlarged,the reasons and supporting facts for the determination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. 10,paragraph (a),clauses (1)to(5),must be documented in writing and retained. The requirements of this paragraph do not apply if (1)the only modification is elimination of parcel(s)from Development District No. 1 or the District and(2) (A)the current net tax capacity of the parcel(s)eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or (B) the EDA agrees that, notwithstanding M.S.,Section 469.17Z Subd. 1,the original net tax capacity will be reduced by no more than • the current net tax capacity of the parcel(s)eliminated from the District. The EDA or City must notify the County Auditor of any modification that reduces or enlarges the geographic area of Development District No. 1 or the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the Plan. Subsection 2-19.Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, and M.S., Section 469.176, Subd. 3, administrative expenses means all expenditures of the EDA or City,other than: I. 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 M.S., Section 469.178; or 5. amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in sections 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, • Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-12 2-11 ' • and planning or economic development consultants. 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 tax increment expenditures authorized by the Plan or the total tax increment expenditures for Development District No. 1,whichever is less. Pursuant to M.S., 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. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the county treasurer shall deduct an amount equal to 0.25 percent of any increment distributed to the EDA or City and the county treasurer shall pay the amount deducted to the state 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 financing. Subsection 2-20. Limitation of Increment Pursuant to M.S., Section 469.176, Subd la, no tax increment shall be paid to the EDA or City for the District after three (3) years from the date of certification of the Original Net Tax Capacity value of the taxable property in the District by the County Auditor unless within the three(3)year period: (a) bonds have been issued in aid of the project containing the district pursuant to M.S.,Section 469.178,or any other law,except revenue bonds issued pursuant to M.S., Sections 469.152 to 469.165,or • (b) the EDA or City has acquired property within the District, or (c) the EDA or City has constructed or caused to be constructed public improvements within the District. The bonds must be issued, or the EDA or City must acquire property or construct or cause public improvements to be constructed by approximately August, 2003 and report such actions to the County Auditor. The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to M.S.,Section 469.177,no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the • Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax increment Financing District No. 1-12 2-12 original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation oi'renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certifi,the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to(1)construction or opening of a new street, (2)relocation of a street,and(3)substantial reconstruction or rebuilding of an existing street. The EDA or City or a property owner must improve parcels within the District by approximately August, 2004 and report such actions to the County Auditor. 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 cost of redevelopment of the Development District No. I pursuant • to the M.S., Sections 469.090 to 469.1081; 3. to pay for project costs as identified in the budget set forth in the Plan; 4. to finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. to pay principal and interest on any loans,advances or other payments made to or on behalfthe EDA or City or for the benefit of 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 Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165,and/or M.S., 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 M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Subsection 2-22. Excess Tax Increments Pursuant to M.S., Section 469.176, Subd. 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the Plan, including the amount necessary to cancel any tax levy as provided in M.S., Section 475.61, Subd. 3, the EDA or City shall use the excess amount to do any of the following: 1. prepay any outstanding bonds; 2. discharge the pledge of tax increment therefor; Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-12 2-13 . • 3. pay into an escrow account dedicated to the payment of such bonds; or 4. return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. In addition,the EDA or City may, subject to the limitations set forth herein,choose to modify the Plan in order to finance additional public costs in Development District No. 1 or the District. Subsection 2-23. Requirements for Agreements with the Developer The EDA or City will review any proposal for private development to determine its conformance with the Development Program and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings,landscaping plan,grading and storm drainage plan,signage system plan,and any other drawings or narrative deemed necessary by the EDA or City to demonstrate the conformance of the development with City plans and ordinances. The EDA or City may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 25 percent, by acreage, of the property to be acquired in the District as set forth in the Plan shall at any time be owned by the EDA or City as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments from property acquired is pledged,unless prior to acquisition in excess of 25 percent ofthe acreage,the EDA or City concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the EDA or City should the development or redevelopment not be completed. • Subsection 2-24.Assessment Agreements Pursuant to M.S.,Section 469.177,Subd. 8,the EDA or City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the assessor shall also certify the minimum market value agreement. Subsection 2-25.Administration of the District Administration of the District will be handled by the Acting Economic Development Director of the City of Cottage Grove. Subsection 2-26.Annual Disclosure Requirements Pursuant to M.S.,Section 469.175,Subd. 5, 6 and 6a the EDA or City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor,County Board,County Auditor and School Board on or before August I of each year. M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. 40 If the City fails to make a disclosure or submit a report containing the information required by M.S. Section Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-12 2-14 • 469.175 Subd. 5 and Subd. 6, the Office of the State Auditor will direct the County Auditor to withhold the • distribution of tax increment from the District. Subsection 2-27. Reasonable Expectations As required by the Tax Increment Financing Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Plan. In making said determination,reliance has been placed upon written representatives made by the developer to such effects and upon EDA and City staff awareness of the feasibility of developing the project site. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D,and indicates that the increase in estimated market value of the proposed development(less the indicated subtractions)exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. • Subsection 2-28.Other Limitations on the Use of Tax Increment 1. General Limitations. All revenue derived from tax increment shall be used in accordance with the Plan. The revenues shall be used to finance,or otherwise pay the cost of redevelopment of the Development District No. I pursuant to the MS., Sections 469.090 to 469.1081. These revenues shall not be used to circumvent existing levy limit law. No revenues derived from tax increment shall be used for the acquisition, construction,renovation, operation,or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district,or any other local unit of government or the state or federal government or for a commons area used as a public park, or a facility used for social,recreational,or conference purposes. This provision shall not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure or of a privately owned facility for conference purposes. 2. Pooling Limitations. At least 75 percent of tax increments from the District must be expended on activities in the District or to pay bonds,to the extent that the proceeds of the bonds were used to finance activities within said district or to pay,or secure payment of,debt service on credit enhanced bonds. Not more than 25 percent of said tax increments may be expended,through a development fund or otherwise, on activities outside of the District except to pay,or secure payment of,debt service on credit enhanced bonds. For purposes of applying this restriction,all administrative expenses must be treated as if they were solely for activities outside of the District. 3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 75 percent test set forth in paragraph(2)above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of the District, 75 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5. 4. Redevelopment District. At least 90 percent of the revenues derived from tax increment from a • Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-12 2-15 • redevelopment district must be used to finance the cost of correcting conditions that allow designation of redevelopment and renewal and renovation districts under$f.S.,Section 469.176Subd.4j. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances,pollution,or contaminants,acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of the land,the removal of hazardous substances or remediation necessary for development of the land,and installation of utilities,roads,sidewalks,and parking facilities for the site. The allocated administrative expenses of the EDA or City,including the cost of preparation of the development action response plan,may be included in the qualifying costs. Subsection 2-29. Summary The Cottage Grove Economic Development Authority is establishing the District to preserve and enhance the tax base, redevelop substandard areas, and provide employment opportunities in the City. The Tax Increment Financing Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville,Minnesota 55113,telephone(651)697-8500. • Cottage Grove Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-12 2-16 APPENDIX A • PROJECT DESCRIPTION In 1999 the City Council began working with the owners of the Grove Plaza Shopping Center on redeveloping a portion of the existing Center. Mope recently, the Council created a goal of pursuing redevelopment of the 80th Street/Highway 61 commercial district. This district,which includes properties on both the west and east sides of Highway 61 and both side of 80th and Grange, has been denoted as the "Gateway Redevelopment Area"project. The project will include the removal of many of blighted or portions of structures within the Gateway Redevelopment Area. All 365 acres in the four quadrants of Highway 61 and 80th street/.Grange Boulevard have been zoned mixed. The project will also include rehabilitation and upgrading of non-existing, undersized or over capacity utilities, including water, sanitary sewer and storm water infrastructure. The Gateway Redevelopment Area is an important, but aging, commercial district within Cottage Grove. Improvements to existing roadway lighting,traffic flow,signage and visual enhancements will improve the sense of place as part of the project. Land acquisition, soil correction,and site improvements will be part of the project components. Removal of some of the blighting influences and correction of brownfield conditions within the area will require public acquisition by the City and/or the EDA. Site improvements will include grade changes,reconstruction of parking areas, utilities, lighting and landscaping improvements withing the redevelopment project. Improvements of certain building facades are anticipated to provide continuity with the surrounding • rehabilitated and rebuilt structures. This activity will leverage streetscape improvements within the public way as well as infernal development site enhancements provided by third parties within the project. The result or the above activities will be reconstruction or rehabilitation of three of the four quadrants. • APPENDIX A_1 i . APPENDIX B MAPS OF DEVELOPMENT DISTRICT NO. I AND THE DISTRICT • • APPENDIX B_1 CITY OF COTTAGE GROVE . WASHINGTON COUNTY, MN 0 DEVELOPMENT DISTRICT NO. 1 TAX INCREMENT FINANCING DIST. NO. 1-12 1 1l LAl 1 , --------______ ______ Jo, SEE ATTACHMENT itrig , taiwit4I- n«' FOR DETAILi.S, ,AS : ►. a1 ,� tfli air 111 ,, ,,,,,,_,..„ . . , iiiii, t fk. m.iri .1 . 4 f AL.' '4.1 .111,=.11-11111,1!‘10.1111147../ . ig- 1 v mo 4 41.0-L\----- 1‘7,044 1 1 I 4.MI / 7 j ,rni., ,11* • 9----. .- d 4 .1"' Illriliiiiii _ lkiigt . „;-.-1,,, I N litht,t1 lib‘)J r Ara ,(4...._ \Nom _ .., en N7,,,,14,,,4,47iials iii \ • w ---;r E VEW ::::liE III. Au N.1111[L, lir = \, \n c. i_ ii Z'-_ i i _ i --:"'':=-`----- - - ,tt `-- 1 0 1 2 Miles :----f-- Tax Increment Financing District No. 1-12 City Boundary Development District No. 1 Boundary ..,:-.:-:.--:--:-:-:.-- •:_--.-:-.--_::--..-:-:: Mississippi River • .......popelstremseals 1 s 1.12/4...1-12 CITY OF COTTAGE GROVE WASHINGTON, MN ' • 1 DEVELOPMENT DISTRICT INC,. 1 TAX INCREMENT FINANCING DISTRICT NO. 1-12 a) m c a, Q CO a) /''' C "/� civ a(� = aQ N\ - ---14:AW-- -- . N. %% "% 80th Street ♦ O�� .� j 0 ...:1101.-""1"— --- ,- --_-... ,,._,-- _ - ,;:::_*-__:::::;?:?;_:::. L. Ali % ;---,--.--;;;;;;----- '14:--45%,---;;,-1::: ;.=_-",-;%-- , :/ i % i - /� // //, -2 \ . -,,,,, ,,,,,-,---,,, -- ,-., :1/4' ..., ...>,.......,.:>:.,,..3_,,,, 1 ' � / i; % am.\ _ ji- /\ \ N., 111 19 • e • l' • ✓ gN.- ir-7/ firL) F-N\ J44.1116,4 .t�.+eo.rnee�e<•n-imi.izeesum 600 0 600 1200 Feet • �� Tax Increment Financing District No. 1-12(A) Tax Increment Financing District No. 1-12(B) s APPENDIX C • DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT The District encompasses all property and adjacent rights-of-way identified by the parcel(s)listed below. Parcel Number Owner Market Value P2001 Tax Capacity 08-027-21-33-0015 STATE OF MINN DEPT OF TRANS $116,400 1,427 08-027-21-33-0005 CITY OF COTTAGE GROVE $2,000 0 08-027-21-33-0006 MIKE& RITA MCCANN $2,000 0 08-027-21-33-0007 KEVIN P&JULIE B SNOW $100 0 08-027-21-33-0018 STATE OF MINN DEPT OF TRANS $1,000 0 08-027-21-33-0019 MIKE& RITA MCCANN $135,000 0 • 08-027-21-33-0020 CITY OF COTTAGE GROVE $10,000 0 08-027-21-33-0021 DANIEL G CEDERSTROM $147,000 3,528 08-027-21-33-0022 CITY OF COTTAGE GROVE $100 0 08-027-21-33-0023 PARK GROVE NATIONAL BANK $120,400 2,890 • 08-027-21-33-0024 CITY OF COTTAGE GROVE $100 0 08-027-21-33-0025 CITY OF COTTAGE GROVE $20,000 0 08-027-21-33-0026 MINNESOTA STATE BLDG CORP $801,600 25,754 08-027-21-33-0028 ROBERT A &CATHY L $139,300 1,804 HOEKSTRA 08-027-21-33-0029 RUVELSON PROPERTIES $22,000 528 08-027-21-33-0030 ROBERT ALVIN KRETCHMER $70,600 706 08-027-21-33-0031 WILLIAM J. & MARY KEEFER $62,000 1,488 08-027-21-33-0032 MARK W. PARKER $74,600 1,790 08-027-21-33-0033 ROGER JENSEN $63,500 1,524 08-027-21-33-0034 MARILYN Q. STARR $72,000 1,728 08-027-21-33-0035 WILLIAM J. & MARY KEEFER $63,000 1,512 08-027-21-33-0038 CITY OF COTTAGE GROVE $500 0 • APPENDIX C-I r • Parcel Number Owner Market Value P2001 Tax Capacity 08-027-21-33-0039 KEVIN P&JULIE B SNOW& $8,900 89 08-027-21-33-0040 CITY OF COTTAGE GROVE $6,000 0 08-270-21-33-0041 EUGENE M&JOAN E STOLTZ $123,300 1,692 08-027-21-34-0006 MINNESOTA STATE BLDG CORP $153,200 3,709 08-027-21-34-0011 CITY OF COTTAGE GROVE $100 0 17-027-21-21-0004 CITY OF COTTAGE GROVE $100 0 17-027-21-21-0005 ROSE OF SHARON LUT $80,400 0 17-027-21-21-0009 ROSE OF SHARON LUT $10,000 0 17-027-21-21-0039 GROVE-RAINBOW L P $6,807,500 229,955 17-027-21-21-0040 APPLE AMERICAN LMTD PTR $178,800 4,579 MN 17-027-21-21-0042 WHITE BEAR LAKE ASSOCIATES $59,500 1,428 17-027-21-22-0014 CITY OF COTTAGE GROVE $100 0 • 17-027-21-22-0015 ROSE OF SHARON LUT $1,799,000 0 17-027-21-22-0016 ROSE OF SHARON LUT $40,000 0 17-027-21-22-0025 CITY OF COTTAGE GROVE $100 0 17-027-21-23-0003 CITY OF COTTAGE GROVE $96,200 0 18-027-21-11-0011 CARRIAGE WEST $1,739,700 57,650 18-027-21-11-0012 STATE OF MINN DEPT OF TRANS $100 0 18-027-21-11-0019 STATE OF MINN DEPT OF TRANS $100 0 18-027-21-11-0020 STATE OF MINN DEPT OF TRANS $100 0 Amk APPENDIX C-2 4 APPENDIX D ESTIMATED CASH FLOW FOR tHE DISTRICT • • APPENDIX D-1 City of Cottage Grove•Tax Increment District No 1-13('A'Election) • • CITYOF COTTAGE GROVE,MINNESOTA . TAX INCREMENT FINANCING DISTRICT 1-13 Grove Plaza Redevelopment Pro,!ect T.I.F.CASH FLOW ASSUMPTIONS-LOCAL MATCH Interest Rate: 6.000% Tax Extension Rate: 833/swwf 120.038% P2001 Fiscal Disparities Ratio: 28.9521% P2001 First Year Increment: 2003 BASE VALUE INFORMATION Total Tax Market Value Capacity See Appendix C 10,823,300 343,781 Total 343,781 PROJECT VALUE INFORMATION Type of Tax Increment District: Redevelopment Number of Bldgs: 3 Estimated Market Value per Bldg: 5,941,100 Total New Market Value: 17,823,300 Class Rate: C/I Prefered $150,000 2.40% Class Rates for • over $150.000 3.40% Taxes Payable Tax Capacity per unit: 200,497 2001 1 Bldg built in 2001 Tax Capacity 200,497 1 Bldg built in 2002 Tax Capacitl 200,497 1 Bldg built in 2003 Tax Capacitl 200,497 • • Prepared by: Ehlers and Associates,Inc.(For Discussion Purposes Only) 06/29/01 Page 1 City of Cottage Grove-Tax Increment District No 1-13('A'Election) 4 CITYOF COTTAGE GROVE,MINNESOTA TAX INCREMENT FINANCING DISTRICT 1-13 . Grove Plaza Redevelopment Project TAX INCREMENT CASH FLOW Base Project Captured Semi-Annual Admim. Semi-Annual' Local PERIOD BEGINNING Tax Tax Tax Gross Tax and OSA at Net Tax Contribution PERIOD ENDING Yrs. Mth. Yr. Capacity Capacity Capacity Increment 10.25% Increment 5.00% Yrs. Mth. Yr. 0.0 08-01 2001 343,781 343,781 0 0 0 0 0 0.0 02-01 2002 0.0 02-01 2002 343,781 343,781 0 0 0 0 0 0.0 08-01 2002 0.0 08-01 2002 343,781 343,781 0 0 0 0I 0 0.0 02-01 2003 0.0 02-01 2003 343,781 200,497 0 0 0 0 0 0.0 08-01 2003 0.0 08-01 2003 343,781 200,497 0 0 0 0 0 0.0 02-01 2004 0.5 02-01 2004 343,781 400,994 57,213 34,339 (3,520) 30,819 1,541 0.5 08-01 2004 1.0 08-01 2004 343,781 400,994 57,213 34,339 (3,520) 30,819 1,541 1.0 02-01 2005 1.5 02-01 2005 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 1.5 08-01 2005 2.0 08-01 2005 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 2.0 02-01 2006 2.5 02-01 2006 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 2.5 08-01 2006 3.0 08-01 2006 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 3.0 02-01 2007 3.5 02-01 2007 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 3.5 08-01 2007 4.0 08-01 2007 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 4.0 02-01 2008 4.5 02-01 2008 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 4.5 08-01 2008 5.0 08-01 2008 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 5.0 02-01 2009 . 5.5 02-01 2009 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 5.5 08-01 2009 6.0 08-01 2009 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 6.0 02-01 2010 6.5 02-01 2010 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 6.5 08-01 2010 7.0 08-01 2010 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 7.0 02-01 2011 7.5 02-01 2011 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 7.5 08-01 2011 8.0 08-01 2011 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 8.0 02-01 2012 8.5 02-01 2012 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 8.5 08-01 2012 9.0 08-01 2012 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 9.0 02-01 2013 9.5 02-01 2013 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 9.5 08-01 2013 0 10.0 08-01 2013 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 10.0 02-01 2014 10.5 02-01 2014 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 10.5 08-01 2014 11.0 08-01 2014 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 11.0 02-01 2015 11.5 02-01 2015 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 11.5 08-01 2015 12.0 08-01 2015 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 12.0 02-01 2016 12.5 02-01 2016 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 12.5 08-01 2016 13.0 08-01 2016 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 13.0 02-01 2017 13.5 02-01 2017 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 13.5 08-01 2017 14.0 08-01 2017 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 14.0 02-01 2018 14.5 02-01 2018 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 14.5 08-01 2018 15.0 08-01 2018 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 15.0 02-01 2019 15.5 02-01 2019 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 15.5 08-01 2019 16.0 08-01 2019 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 16.0 02-01 2020 16.5 02-01 2020 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 16.5 08-01 2020 17.0 08-01 2020 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 17.0 02-01 2021 17.5 02-01 2021 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 17.5 08-01 2021 18.0 08-01 2021 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 18.0 02-01 2022 18.5 02-01 2022 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 18.5 08-01 2022 19.0 08-01 2022 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 19.0 02-01 2023 19.5 02-01 2023 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 19.5 08-01 2023 20.0 08-01 2023 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 20.0 02-01 2024 20.5 02-01 2024 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 20.5 08-01 2024 21.0 08-01 2024 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 21.0 02-01 2025 21.5 02-01 2025 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 21.5 08-01 2025 22.0 08-01 2025 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 22.0 02-01 2026 22.5 02-01 2026 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 22.5 08-01 2026 23.0 08-01 2026 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 23.0 02-01 2027 23.5 02-01 2027 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 23.5 08-01 2027 24.0 08-01 2027 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 24.0 02-01 2028 24.5 02-01 2028 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 24.5 08-01 2028 25.0 08-01 2028 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 25.0 02-01 2029 25.5 02-01 2029 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 25.5 08-01 2029 • 26.0 08-01 2029 343,781 601,491 257,710 154,675 (15,854) 138,821 6,941 26.0 02-01 2030 Totals 7,802,426 (799,749) 7,002,677 350,132 Present Values 3,292,580 (337,489) 2,955,090 147,7541 Prepared by: Ehlers and Associates,Inc.(For Discussion Purposes Only) 06/29/01 Page 2 • APPENDIX E MINNESOTA BUSINESS ASSISTANCE FORM (MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT) • • APPENDIX E_ APPENDIX F • REDEVELOPMENT QUALIFICATIONS POR THE DISTRICT To be added to prior to the public hearing • . • APPENDIX F_1 • • APPENDIX G BUT/FOR QUALIFICATIONS But For Analysis Current Market Value-Est. 10,823,300 New Market Value-Est. 17,823,300 Difference 7,000,000 Present Value of Tax Increment 3,292,580 Difference 3,707,420 Value Likely to Occur Without T1F is Less Than: 3,707,420 • • APPENDIX G-1 J F City of Cottage Grove • Memo To: EDA Members _ � ( From: Michelle Wolfe Date: 07/06/01 Re: Addendum to Item 4D: TIF District 1-12-Review Program and Plan At the June 12 EDA meeting, the EDA adopted a resolution recommending that the City Council call a public hearing for creation of TIF District 1-12. The Public Hearing was to be held on August 15, 2001. As you can read in the correspondence prepared by City Administrator Ryan • Schroeder, recent action at the legislature led to the City moving up the time frame for creation of this district. The public hearing and consideration of the program and plan is now scheduled for a special meeting of the City Council on July 26. A copy of the draft program and plan, which was sent to the School District and Washington County for review, is included in your packet. As per the original schedule, the EDA should consider the program and plan at the July 10, 2001 meeting. REQUESTED ACTION Attached is a resolution for your review (as well as an updated schedule). The requested action at this meeting is to consider the program and plan for TIF District 1-12, and then to approve the attached resolution. Attachment • \\CG_FS2\CG_FS2_MAIN\Groups\PER_ECON\Economic Development\EDA Memos\2001\July 01 TIF 1-12#2.doc • COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY • CITY OF COTTAGE GROVE WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1, ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1-12 (WITHIN DEVELOPMENT DISTRICT NO. 1), AND ADOPTING THE TAX INCREMENT FINANCING PLAN THEREFOR. WHEREAS, it has been proposed by the Board of Commissioners (the "Board") of the Cottage Grove Economic Development Authority (the "EDA") and the City of Cottage Grove (the "City") that the EDA adopt a modification to the Development Program for Development District No. 1 and establishment Tax Increment Financing District No. 1-12 (within Development District No. 1) and adopt a Tax Increment Financing Plan therefor(collectively,the "Program Modification and Plan"),all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090 through 469.1081, and Sections 469.174 to 469.179, inclusive, as amended (the "Act"), all as reflected in the Program Modification and Plan and presented for the Board's consideration; and WHEREAS, the EDA has investigated the facts relating to the Program Modification and Plan • and has caused the Program Modification and Plan to be prepared;and WHEREAS, the EDA has performed all actions required by law to be performed prior to the adoption of the Program Modification and Plan. The EDA has also requested the City Planning Commission to provide for review of and written comment on Program Modification and Plan and that the Council schedule a public hearing on the Program Modification and Plan upon published notice as required by law. NOW,THEREFORE,BE IT RESOLVED by the Board as follows: 1. The EDA hereby finds that Tax Increment Financing District No. 1-12 is in the public interest and is a "redevelopment district" under Minnesota Statutes, Section 469.174, subd. 10 (a)(1), and finds that the adoption of the proposed Program Modification and Plan rely in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State of Minnesota which is already built up and that the adoption of the proposed Program Modification and Plan will help provide employment opportunities in the State and in the preservation and enhancement of the tax base of the City and the State because it will discourage commerce and industry from moving their operations to another state or municipality and thereby serves a public purpose. 2. The EDA further finds that the Program Modification and Plan will afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development or redevelopment of the project area by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible. 3. Conditioned upon the approval thereof by the City Council following its public hearing S thereon, the Program Modification and Plan, 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 Clerk. r 4. Upon approval of the Program Modification and Plan by the City Council, the staff, the EDA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Program Modification and Plan and for this purpose to negotiate, draft, prepare and present to this Board for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. Approval of the Program Modification and Plan does not constitute approval of any project or a Development Agreement with any developer. 5. Upon approval of the Program Modification and Plan by the City Council, the City Clerk is authorized and directed to forward a copy of the Program Modification and Plan to the Minnesota Department of Revenue pursuant to Minnesota Statutes 469.175, subdivision 2. 6. The City Clerk is authorized and directed to forward a copy of the Program Modification and Plan to the Washington County Auditor and request that the Auditor certify the original tax capacity of the District as described in the Program Modification and Plan, all in accordance with Minnesota Statutes 469.177. Approved by the Board of Commissioners of the Cottage Grove Economic Development Authority this 10th day of July, 2001. Chair • ATTEST: Secretary • SCHEDULE OF EVENTS COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY OF COTTAGE GROVE FOR THE MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE ESTABLISHMENT OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-12 (a redevelopment district) As of July 6,2001 June 6,2001 City Council calls for public hearing on the modification to the Development Program for Development District No. 1 and the establishment of the Tax Increment Financing Plan for Tax Increment Financing District Nos. 1-12. June 12,2001 EDA requests that the City Council call for a public hearing. June 14,2001 Project information, property identification numbers, and maps sent to Ehlers and Associates for drafting documentation. June 29,2001 Project information submitted to the County Board for review of county road impacts and Fiscal/economic implications received by School Board Clerk and County Auditor. July 10,2001 EDA considers the Program Modification and Plan. July 11,2001 Ehlers confirms with the City whether building permits have been issued on the property • to be included in the TIF District. July 11,2001 Date of publication of hearing notice and map [South Washington County Bulletin publication deadline:July 6, 2001 at 11:00 A.M.] July 23,2001 Planning Commission reviews Program Modification and Plan to determine if they are in compliance with City's comprehensive plan. July 26,2001 City Council holds public hearing at 7:15 p.m. on the modification to the Development Program for Development District No. 1 and the establishment of the Tax Increment Financing Plan for Tax Increment Financing District No. 1-12, and passes resolution approving the Program Modification and Plan. [Council packet information sent by July 19, 2001] By August 1,2001 Ehlers certifies the District with county and state. *The TIF Plan will be forwarded to the County Board 45 days prior to the public hearing. The County Board, by law, has 45 days to review the plan to determine if any county roads will be impacted by the development. Please be aware that the County Board could claim that tax increment should be used for county roads,even after the public hearing. S City of Cottage Grove S Memo To: EDA Members From: Scott Johnson, Management Analyst Date: 6/27/01 Re: Annual Report d The Annual Report and "2000 Highlights" have been mailed to everyone on the EDA mailing list. The reports were also distributed to all City Department Heads and City Commissions. The EDA ordered 800 "2000 Highlight" inserts for $786.00. • A copy of the Annual Report and Highlights is attached to your EDA Packet. • Document2 'City of Cottage Grove Memo To: EDA Members From: Scott Johnson Date: 6/29/01 Re: EDA Golf Outing 4 I Currently, there are 75 people signed up to play in this year's EDA golf outing. We currently have seven organizations signed up for hole sponsorships. The hole sponsors include: • Cottage Grove Chamber of Commerce Opus Northwest, LLC Welsh Companies Kraus Anderson Construction Knutson Construction Xcel Energy TKDA Engineers Architects Planners On Friday, June 29, 2001 I spoke to a number of area developers and businesses about hole sponsorships in this year's event. Most of the businesses I spoke to will either sponsor a hole or send representatives to golf. We are currently working on the last mailer to remind people about the golf outing and to attract more participants. • G:\Economic Development\EDA Memos\2001\July 01 golf outing.doc City of Cottage Grove Memo To: EDA Members From: Michelle A. Wolfe,Assistant City Administrator Date: 06/25/01 Re: Metro East"Connections" Event /L / I met with Arnie Wetterlin to begin planning for the "Connections" event to be held in Cottage Grove. She explained that Metro East Development Partnership began these events last year after their private sector members requested a method for increased networking opportunities. • The Cottage Grove event will be held in October. We can pick the date. Typically, they are held from 1:00 — 3:00 in the afternoon. Usually there is a presentation, followed by a bus tour. The audience at previous Connections events has been heavily real estate, but sometimes also some developers and bankers. The attendance averages between 30 —40 people. Metro East takes care of the publicity. This includes a mailer and e-mail to all Metro East members and notification to the Organization of Commercial Realtors. If we desire, we can also send an invitation to our own mailing list. Metro East will take the RSVP's and make up the nametags. The City will supply refreshments and arrange for a bus tour. Things to consider/decide include the following: 1. Date 2. Location — City Hall or River Oaks? 3. Topics to Include in Presentation: Comp Plan, Maps of Available Land, Wakota Bridge/Highway 61, Interceptor 4. Sites to include on the tour. (Arnie suggests including the Industrial Park, available sites for office/commercial, and executive housing.) Please provide any suggestions you may have at this time, and staff will continue planning the event. • G:\Economic Development\EDA Memos\2001\July 01 Connections.doc i • City of IVASEVILLE Minnesota METRO EAST DEVELOPMENT PARTNERSHIP COMMUNITY CONNECTIONS Thursday, June 28, 2001 1:00 a.m. - 3:00 p.m. Roseville Skating Center, Fireside Room Civic Center Drive (off County Road C at Lexington Ave) AGENDA 1111 City of Roseville Redevelopment Efforts Featuring the Twin Lakes Business Park Registration - 1:00 Welcome & Opening Remarks - 1:15 Summary of Roseville's Redevelopment Efforts & the Twin Lakes Business Park - 1:30 Bus Tour - 2:00 Return the Skating Center - 3:00 ity of„Cottage Grove • Memo To: Economic Development Authority Members From: Steven Barrett, Management Analyst Date: 07/02/01 Re: Calendar of Upcoming Events Item 4H Chamber Board Meeting July 12 EDA August 14 MEDP Golf Tournament August 13 Hastings CountryClub • 9 @ 9 City Budget Review Meetings August 8 and 22 EDA Golf Tournament August 21 MEDP "Connections" October—TBA i F:\Groups\PER_ECON\Economic Development\EDA Memos\2001\July 01 Calendar.doc • ity of Cottage Grove Memo To: Economic Development Authority Members From: Steven Barrett, Management Analyst Date: 07/05/01 Re: Marketing Biographies Item 41 Attached are the marketing biographies of the City's elected officials and staff. The intent is to include these biographies in our marketing materials to showcase our collective experience and highlight our diversity of backgrounds, which affords us the • opportunity to understand issues that are unique to potential clients. The last remaining item is the biography of Glen Kleven. The relevant items pertaining to his biography can hopefully be filled in by the time the EDA meets. • F:\Groups\PER_ECON\Economic Development\EDA Memos\2001\July 01 Marketing Biographies.doc Sand Shiely, Mayor, member of the EDA40 Sandyhad served on the CityCouncil since 1995,becomingMayor in 2001, the same Y year she began her second stint on the EDA during which she is serving as the Vice President. Prior to her Council terms she spent many years working to the benefit of the public beginning as a Presidential Intern within the Kennedy Administration and continuing through five years of service on the Cottage Grove Planning Commission. An educator with the South Washington County School District the past twenty years Sandy also was an owner operator of a local retail operation for nine years during which she was a charter member of the then Cottage Grove Business Association. She has a Bachelors degree in English, History and Political Science. Jim Wolcott, Councilmember, President of the EDA Jim has served on the City Council since 1992, the last two years as Council representative on the EDA. He was elected President of that board for 2001. Prior to his Council terms he spent nine years on the Planning Commission and two years on the Public Works Commission. Jim served 27 years in the military achieving the rank of State Command Sergeant Major. For the past 30 years Jim has been in the insurance business owning an Insurance Agency within the community since 1971 A past member of the Cottage Grove Jaycees he is also a long time member of the local Chamber. He previously worked in engineering for IBM. • Rod Hale, Councilmember Rod has served on the City Council on and off since 1971 for a total of twelve years at this point over that period of time. He has also served on the Washington County Parks and Open Space Commission and the cottage Grove City Commissions of Parks, Economic Development and Cable Television Public Access. Rod is recently retired from a career as an educator for the South Washington County School District serving most recently as the Director of Community Education for the District. He has Bachelors and Masters degrees in Business. Cheryl,Kohls, Councilmember Cheryl has served on the City Council since 1997 serving as Mayor Pro Tem during 2000. She has also served two years on the Planning Commission. Cheryl currently is employed in Product Engineering for the 3M Corporation. Prior to that she has spent twenty years in engineering,project management and sales for midsize to multinational corporations including Koch Refining and Cenex/Land 0' Lakes. She has a Bachelors degree in Mechanical Engineering. • Pat Rice, Councilmember Pat has served on the City Council since 1999 currently serving as Mayor Pro Tern. He has also served three years on the Planning commission, 3 years on the Public Works Commission and 4 years on the South Washington Watershed District. Pat is currently employed as a Circulation Manager for the St. Paul Pioneer Press. Prior to that he spent three years teaching and coaching at St. Agnes High School. He has a Bachelors degree in Physical Education. Fred Luden, member of the EDA Fred has been a member of the EDA since 1997. An employee of 3M the past 29 years Fred has spent the past 5 years as Director at the 3M Cottage Grove Center. Prior to that he spent 24 years in manufacturing operations at 3M. During that time Fred served as Plant Manager at 3M facilities in Boston Massachusetts, Chicago Illinois, and Springfield Missouri. He has also been active in the Chamber of Commerce serving the past three years as its President. He has a Bachelors degree in Mechanical Engineering and Industrial Operations Management. Dick Pederson, member of the EDA Dick has been a member of the EDA for most of its existence serving as its President for the first 5 years. Serving Cottage Grove as its Mayor from 1988 through 1991 he has • also been active in the Cottage Grove Area Chamber of Commerce, currently sitting on its Executive Committee. He also was on the first Executive Committee of the Metro East Development Association. Recently retired Dick was the Job Placement Coordinator for the Minnesota Department of Economic Security for 17 years. He also had been with a major national food retailer and served in a staff position for the 7th District US Congressman for 6 years. He has taken course work toward a Baccalaureate degree in Industrial Relations. Glen Kleven, member of the EDA Glen has been a member of the EDA since . He also served years on the Cottage Grove Planning Commission. Glen is employed by the Minnesota Department of Revenue as a . Prior to that he spent years in the industry the past years with . He has a degree in Gerard Weingartner,member of the EDA Gerry has been a member of the EDA since 1987 serving for the past 14 years as its Secretary Treasurer. He has also been active in the Cottage Grove Area Chamber of Commerce and has served on its Board of Directors and is a Past President. Gerry has owned and operated Gerard Weingartner DDS PA for the past 25 years. He has a DDS degree and a Fellowship in the Academy of General Dentistry. \\CG FS2\CG FS2 MAIN\USERS\RSCHROED\Council and EDA Bios.doc • 3 Ryan Schroeder, City Administrator Employed by the City of Cottage Grove since 1997, Ryan is responsible for coordination of municipal operations for the City of Cottage Grove. Ryan has been involved in economic development, redevelopment and housing projects in both the public and private sectors since 1982. Prior to his current position he was employed by five other Minnesota cities in management and development positions. His experience includes development of several hundred thousand square feet of office and retail, and over 2 million square feet of manufacturing projects. He has a Bachelors and Masters degree in Urban and Regional Studies. Michelle Wolfe, Assistant City Administrator Employed by the City of Cottage Grove since, 1996 Michelle is currently responsible for Marketing, Economic Development Authority board coordination and tax increment processing. With over a decade of Human Resources Management experience and with continued responsibilities in that area for the City. Michelle is also a resource for Labor Force availability and personnel attraction/retention issues. Prior to her current position Michelle was employed by the two Chicago suburbs of Lisle and Naperville for over eight years working on commuter rail, rapid transit development,thoroughfare planning, development impact analysis, electric utility issues, technology and capital improvement planning,budget preparation and human resources. Michelle has a Bachelors and a Masters Degree in Public Administration. • Kim Lindquist, Community Development Director Employed by the City of Cottage Grove since 1996, Kim is responsible for all land use planning, regulatory and inspection functions of the City. The consulting engineering team also reports to her position with the City. Prior to her current position Kim had ten years of urban planning experience primarily with two other Twin Cities area suburbs gaining experience with project management, tax increment and development coordination. A certified member of the American Institute of Certified Planners Kim has a Bachelors Degree in Political Science and a Master of Science in Urban and Regional Planning. Les Burshten, Public Works Director Employed by the City of Cottage Grove since 1987, Les is responsible for Street,Park, Utility, and Public Facility construction and maintenance. Les has almost 30 years of experience in both the public and private sectors in construction and construction management. Prior to his current position Les was employed for fifteen years by a large metro area paving contractor rising through the ranks to serve in the Vice President position. Les has a Civil Technology degree with a civil engineering emphasis. • John McCool, Senior Planner Employed by the City of Cottage Grove since 1988, John assists in the review of all development proposals and planning applications relating to land use and zoning. Prior to his current position John had seven years of urban planning experience in the areas of subdivision, development and site plans in addition to Capital Improvements planning, mapping and zoning review. A certified member of the American Institute of Certified Planners, John has a Bachelors degree in Geography. John Burbank, Associate Planner Employed by the City of Cottage Grove since 1993, John assists in the review of all development proposals and planning applications relating to land use and zoning and serves as our GIS technician. Prior to his current position John worked in landscaping, packaging/production and sales. A certified member of the American Institute of Certified Planners, John has a Bachelors degree in Graphic Design and Geography. Steve Barrett, Management Analyst Employed by the City of Cottage Grove since 1999, Steve currently assists with general economic development activities including maintaining our data base of available land, leaseable space, and real estate and developer contacts. He has responsibilities in general administration and human resources affording the opportunity to bring those skills to commercial clients. Prior to his current position Steve served as a real estate attorney with a major retailer in addition to a stint in private practice. Steve has a Bachelors degree in Political Science, a Juris Doctor degree and a Master of Arts in Public Administration. Scott Johnson, Management Analyst Employed by the City of Cottage Grove since 2001, Scott currently assists with marketing,processing and various other economic development activities. He is the point person for the annual EDA Business appreciation events; new business ground breakings and other business promotion activities. Prior to his current position Scott worked for the Minnesota State Senate. He has a Bachelors degree in Political Science and is currently working toward a Masters Degree in Public Administration. 41110 • • Bob LaBrosse, Chief Building Official Employed by the City of Cottage Grove since 1993, Bob has been the Chief Building Official (CBO) since 1998. As the CBO Bob coordinates the plan review and inspection process for commercial, industrial and residential construction. Prior to his inspection positions with Cottage Grove Bob spent eleven years in the construction industry as a union carpenter and a Field Service Director for a major residential exterior remodeling firm. Ron Hedberg, Finance Director Employed by the City of Cottage Grove since 2000,Ron is responsible for all accounting, billing and investment functions of the City, its agencies and enterprises including the EDA. With over fourteen years of public fund accounting experience he has broad experience in tax increment financing and development accounting and finance. Ron is a licensed Certified Public Accountant and is a Certified Economic Development Finance Professional through the National Development Council. Ron has a Bachelors degree in • Accounting. Jerry Bourdon, BRAA, Consulting Engineer Under contract with the City of Cottage Grove since , Jerry Bourdon currently • serves as the City Engineer on development projects as the lead engineer for the firm Bonestroo,Rosene, Anderlik&Associates. Jerry has twenty-eight years of experience in municipal engineering the last ten of which he has served in his present capacity. Within the Engineering team is also Angela Popenhagen (civil engineer with Cottage Grove for eight years), Tom Thompson(civil engineer with Cottage Grove for five years, and Dave Hanson (construction manager with twenty-four years of experience). \\CG_FS2\CG_FS2_MAIN\USERS\RSCHROED\Biographies.doc 4. r 1G *City:of Cottage Grove Menlo To: Economic Development Authority Members From: Steven e Barrett, Management Analyst Date: 07/05/01 Re: Grant from Excel Energy Item 4J City staff recently received a verbal commitment for a $2,000 grant from Excel Energy to assist us in carrying out our direct mail campaign. Attached is a letter from EDA President Wolcott requesting the assistance. S S F:\GROUPS\PER_ECON\Economic Development\EDA Memos\2001\July 01 Excel Energy Grant.doc 4 ti City of Cottage Grove CD Minnesota • 7516 80th Street South/Cottage Grove,Minnesota 55016-3195 651.458-2800 Fax 651.458-2897 www.cottage-grove.org TDD 651458-2880 June 4,2001 Colette Jurek Manager,Community and Local Government Relations Xcel Energy 3000 Maxwell Avenue Newport,MN 55055 Dear Colette, The City of Cottage Grove"Growth Partners"industrial development recruitment program has been extremely successful since its creation in 1998.In that period of time our industrial park has transitioned from a "Green Acres"undeveloped land parcel to one which is now the proud home of Renewal by Andersen,CCE Technologies,Advance Corporation,Tradehome Shoe Stores,and a new United States Postal Annex. Our print ad and postcard mailer program has received numerous accolades from the development community.This program has attracted the attention of the Minnesota Department of Trade and Economic Development,many developers not previously pursuing opportunities within this part of the metro area, and business owners and executives. • In order to continue our successful program we need your help! Due to rising costs of postage,printing and the ads themselves our budget of$19,200 will be insufficient to continue our program at the same level this year that has proven successful over the past two years.As one of our growth partners we respectfully request funding assistance from Xcel Energy to help us continue on our current successful path.Funding assistance in the amount of$2,000 will allow us to maintain our current program.A grant of$5,000 would allow us to extend the program with an additional"post card"mailer that has proven to generate the most commentary within the development community. NSP and now Xcel Energy has always been a positive part of the development team in Cottage Grove.As we continue to compete for business growth over the coming years this partnership and our collaborative efforts will become increasingly important to our joint success.We will need to continue to work closely to provide infrastructure and access to energy for our burgeoning commercial and industrial base.Your additional assistance at this time will be extremely helpful in furthering our development and customer growth for both Xcel Energy and the City of Cottage Grove. On behalf of the Cottage Grove Economic Development Authority I appreciate your consideration of our request. Should you have any questions or require additional information please contact City Administrator Ryan Schroeder at(651)458-2822 or Assistant City Administrator Michelle Wolfe at(651)458-2882. Thank you. Respectfully Submitted, , Jim Wolcott,President Cottage Grove EDA • Enclosures IftlKC-6YPeK't Fte3IV°c 1 , • City of Cottage Grove ,4111 Economic Development Authority Annual Report ,..., ,. ...,:„. ,-.,.....-_,,,:„..„.,-.:. „.-,, , ,.7.,,: i . . „...,:,, ,.......,,,,L. .,., . . ... . . . . . .... ....,-..„:„....,_,,,,,,..-±„.....:; ., ..y.,,, • , .,-; ..:::,.;'-;:-•...----,:-.:.,',; , -it-i.--, -,. . * .Jr ��s. a,r r , -.,'..';.',----,•,,,- ,i _.7"...T. - t r r Y " \'''N' 4 .,.' .4n �'-• Wa�.� [ , r. q ',w > `, ''' �L6;4 . M - fi H pt,r -" r 1 s . 9 , et re ©Photo by Bordner Aerials • City of Cottage Grove • 7516 80th Street South • Cottage Grove, Minnesota 55016 Phone (651) 458-2800 Fax (651) 458-2897 www.cottage-grove.org Our Mission 0 ur , The Cottage Grove Economic Successfully become one of the first IP Development Authority works with communities mentioned as a choice its partners to encourage business business location. and industry, and create quality jobs using all the tools and methods that are appropriate. As we implement this mission, we renewal are mindful of these guiding I principles: 1. Encourage quality commercial . . and industrial development, t'* R, . t ,, ''. , which enhances the quality of " al. r ei r, life for our citizens, and is .�,.± y „ �� compatible with the City's _ ' Comprehensive Plan. x . . ,. .�11.4, .�..__ Renewal by Andersen 2. Utilize sound financial practices in using incentives to attract "Cottage Grove was selected after an extensive search and expand businesses in the because it offered the best overall features a construction ready site, good truck access and a strong • community. labor pool." 3. Consider and use incentives in Charles Schmidt, Senior Vice President, Andersen Corp. instances where they will promote quality jobs and Become a community that development for the City. enthusiastically supports economic 4. Recognize the interdependence development as essential to improving of the private and public the quality of life in the Cottage Grove sectors in a healthy community, community. and foster a spirit of cooperation between the two Our City actively works to balance and diversify our sectors. improving stock, explore new opportunities for improving access to the Mississippi River, and preserve the history and heritage of the region. ... Live, Work, and Play • 20W HIGHLIGHTS • Over $3.5 million in infrastructure investment by the City to provide enhanced utilities and roadway improvements to industrial and commercial clients • Created industrial economic development and redevelopment tax increment districts • Total market value on all properties in 2000 • exceeded $1.2 billion. This is an increase of over 8% from 1999. • Over 145 new homes were built in 2000. The typical value for new housing in the exciting West Draw Neighborhood exceeds $275,000. • Facilitated eight new business enterprises with twelve more business expansions including new facilities for CCE Technologies, a new United States Postal Service Logistics facility, the new River Oaks Golf Course banquet facility, and continued expansion of the 3M Cottage Grove • Campus. From the Mayor . . . 2001 City Council The last year of the millennium was extremely exciting with the accomplish- Honorable Mayor ment of all of our major initiatives. We are pleased to report our labor of the Sandy Shiely • past few years is bearing a bountiful harvest in 2001. Council Member In 2000, the Economic Development Authority and the City Council each Rod Hale played important roles in realizing a number of important infrastructure and development projects. Many of these 2000 projects will be completed during Council Member 2001. Our primary focus has been to put the resources, staff and policy board Cheryl Kohls competencies in place to ensure a smooth development process. This has helped our commercial and industrial clients succeed. The process was implemented by the completion of a new EDA strategic plan adopted by the Council Member City Council. The development process goal was furthered by construction of Pat Rice high-grade infrastructure within our Jamaica Avenue commercial and industrial district. Our goal was also accomplished by providing activities that allowed Council Member us to open up two sections of the industrial park for future development. Jim Wolcott This resulted in manufacturing projects ready for spring construction. 2001 EDA In 2000 we worked with our established partnerships to improve this Jim Wolcott, President community and the larger southeastern metropolitan area. One such partnership is the Wakota Bridge Coalition to which we have been members Glen Kleven ' the past several years. This collaboration of area business and governmental Fred Luden representatives will result in the $206 million highway 61/494 reconstruction Dick Pederson I with the bid process for the first phases beginning Spring 2002. The project Sandy Shiely doubles the size of the 494 freeway north of Cottage Grove within the cities of Gerard Weingartner Newport, South St. Paul and Woodbury. The project will also create a new • freeway section from Cottage Grove to St. Paul. Staff Contacts Also in 2000, the municipally owned and award-winning River Oaks Golf Ryan Schroeder Course opened its brand new banquet facility. The facility was the site of our City Administrator annual developers meeting. The golf outing, sponsored in 2000 by: Xcel 651.458-2822 Energy; Kraus-Anderson Construction;Amcon Construction; KKE Architects; rschroed@cottage-grove.org P.A.S.Associates; Southview Bank; Bonestroo, Rosene,Anderlik, & Associates; Ehlers and Associates; and the Cottage Grove Area Chamber of Michelle Wolfe Commerce, is just one sign of the importance we place on relationship building Assistant City Administrator and service to our business customers. The event emphasizes our efforts to 651.458-2882 establish and build growth partnerships. Our efforts have resulted in a diverse mwolfe@cottage-grove.org economic base, fiscal stability, and prosperity for this community. Our many partnerships make it possible for us to progress towards our goals. Steve Barrett We pledge to continue to take the steps necessary to enhance our economic Management Analyst base. The opportunity for future job and business growth within the City of 651.458-2883 Cottage Grove and its neighboring communities is bright in 2001. sbarrett@cottage-grove.org Sincerely, Scott Johnson Management Analyst � �� 651.458-2833 sjohnson@cottage-grove.org Sandra Shiely Mayor of Cottage Grove , Neil Belscamper Fla/ EDA Secretary 651.458-2878 nbelscam@cottage-grove.org r Goals 0 Create an identity for the City that is positive and proud, supporting a high standard of living and quality of life. P. ' MMO'. ginpliplip, ; Attract new industries that bringan enhanced tax base, quality jobs, and 0 a, new capital into the region. - \- �. t Each year we host the Annual Cottage Grove EDA :i Golf Tournament, attracting numerous individuals - .', .i(* , , in the development community in an effort to market the City of Cottage Grove as a place to do '`t `� business.Tournament sponsors include Xcel - _ x A Energy (formerly NSP), Kraus-Anderson .«. - Construction, AMCON Construction, KKE Architects, P.A.S. Associates, Southview Bank, kos Bonestroo, Rosene, Anderlik and Associates, Ehlers and Associates, and the Cottage Grove r w Area Chamber of Commerce. Support existing businesses and River Oaks Golf Course, home of the Annual Cottage Grove EDA Golf Tournament encourage their continued growth 1 and prosperity. elnfluence local, regional, and state issues critical to business site location decisions and overall business climate. _ - _ s _ ' -_ a.--_c.... 4....,,,,,,‘, ..... a3 . 3M Cottage Grove ' "Our investment in capital, as well as The new six lane freeway along the training and equipment, helps us Wakota Bridge Corridor will replace the maintain our leadership position and three intersections off Highway 61. These positions us for future growth. • improvements will place our Industrial Annually, 3M has invested more than Park within a five-minute drive of Highway $30 million in our Cottage Grove 494/694. location." Fred Luden, Site Manager, 3M Cottage Grove's Economic Development Partners • Cottage Grove Area Chamber of Commerce The Chamber works with the City to attract new businesses and retain existing businesses. The Chamber is part of our site team. Metro East Development Partnership Metro East serves companies looking for locations by distributing a Site Request for Proposal to its member communities. Frequently, the prospect company will visit a selected group of communities through the coordinated efforts of Metro East. Xcel Energy Economic Development The Industrial Park is served by Xcel Energy electric and gas utilities. The company assists the City in marketing Cottage Grove as a business location, and has brought prospective companies to the area for site tours. Economic Development Authority Appointed by the City Council, the EDA guides the City's economic development • activities. The EDA is responsible for implementing the business retention and attraction programs, and coordinating the marketing plan. , 1 tee. 't vgi- Ig f ak y 4 CCE Technologies, Inc. breaks ground on their new • facility in the Cottage Grove Industrial Park I