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HomeMy WebLinkAbout1998.05.12 EDA PACKET Secretary • CITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY AGENDA Tuesday, May 12, 1998 7:30 A.M. • 1. Call to Order 2. Roll Call 3. Approval of April 14, 1998 Minutes • 4. Business Items A. Metro East Development Partnership Update—David Piggott, Executive Director, MEDP B. Review of Plan for TIF 1-9 C. Comprehensive Plan—Commercial Mapping Project D. Development Tour and Golf Tournament E. 3M 50th Anniversary Display Booth 5. Miscellaneous Business Items • 6. Adjourn F:\OROUPS\PER_ECONUCEB\EDA Packets\98agenda\May.doc City of Cottage Grove • Memo To: Economic Development Authority Members ,� From: Kirstin Barsness, Economic Development Dir Date: 05/05/98 Re: Metro East Development Partnership Update David Piggott, Executive Director of Metro East will be joining us Tuesday morning. Mr. Piggott is visiting all the Economic Development Organizations within Metro East's Membership Area and providing them with an update on MEDP's activities for 1998. A copy of Metro East's Annual Report is enclosed for your personal reference. • • NCG FS11SYS\GROUPSIPER ECON\KEBIEDA Packets\98pcket\Metro East Memo-May 5.doc City of Cottage Grove • Memo To: Economic Development Authority Members ittar) From: Kirstin Barsness, Economic Development Dir Date: 05/06/98 Re: Review of TIF Plan for TIF District 1-9 INTRODUCTION The Economic Development Authority is required to review the TIF Plan for establishing TIF District 1-9. After finding if the Plan meets the EDA's and City's development objectives, a Resolution adopting the Plan is required. 111 DISCUSSION The proposed tax increment district is soley related to the manufacturing project the EDA and staff have been pursuing. Due to timing constraints, the public process is beginning prior to the location decision by the company. Should the company decide not to locate in Cottage Grove, the City can decide to either not hold the Public Hearing for the new TIF District or to not certify the TIF District. Per statuatory requirements, copies of the TIF plan have been sent to Washington County and Independent School District 833. Public comment will be received at the Public Hearing scheduled for June 3, 1998 at the City Council meeting. ACTION REQUIRED The necessary documents, TIF Plan and Resolution have been attached for your review. Should the EDA find the TIF Plan reflective of local development goals, then the Resolution approving the TIF Plan should be passed. • F:VGROUPS\PER_ECON\KEB\EDA Packets\98pcket\TIF Memo-May 98.doc MAY 06 '98 10:52AM EHLERS & ASSOCIATES P.4/5 COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY CITY OF COTTAGE GROVE WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. RESOLUTION ADOPTING THE MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1; AND ESTAABLISHING WITHIN DEVELOPMENT DISTRICT NO. 1 TAX INCREMENT FINANCING DISTRICT NO. 1.9 AND ADOPTING THE RELATED TAX INCREMENT FINANCING PLAN THEREFOR. WHEREAS, it has been proposed that the Board of Commissioners (the "Board") of the Economic Development Authority(the "FDA)" for the City of Cottage Grove(the "City")adopt the Modification to the Development Program for Development District No. 1 and establish Tax Increment Financing District No. 1-9 and adopt the Tax Increment Financing Plan therefor, (collectively, the "Program and Plan"), all pursuant to and in conformity with existing law, including Minnesota Statutes, Sections 469.124 through 469.134, Sections 469.090 to 469.1081, and Sections 469,174 to 469.179,inclusive,as amended, all as reflected in the Program and Plan and presented for the Board's consideration; and WHEREAS, the EDA has investigated the facts relating to the Program and Plan and has caused the Program and Plan to be prepared; and • WHEREAS,the proposed developments as described in the Program and Plan,in the opinion of the EDA, would not reasonably be expected to occur solely through private investment within the reasonable foreseeable future and, therefore,the use of tax increment financing is deemed necessary; and WHEREAS,the EDA has performed all actions required by law to be performed prior to the adoption of the Program and Plan, including but not limited to,notification of Washington County and School District No. 833 having taxing jurisdiction over the property to be included in Tax Increment Financing District No. • 1-9,a request for review of and written comment on the Program and Plan by the City Planning Commission, and a request that the Council schedule a public hearing on the Program 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. 1-9 is in the public interest and is an "economic development district" under Minnesota Statutes, Section 469.174, subd. 12,and finds that the adoption of the proposed Program and Plan will advance the EDA's and City's objectives of encouraging development within Development District No. 1. 2. Conditioned upon the approval thereof by the City Council following its public hearing thereon, the Program 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. • 3. Upon approval of the Program 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 and Plan and for this purpose to negotiate, draft, prepare and present to this Board for its consideration all further plans, N 1M1NNSOTAICOTGROV\T1F1.916PA RES MAY 06 '98 10:52AM EHLERS & ASSOCIATES P.5/5 resolutions, documents and contracts necessary for this purpose. Approval of the Program and Plan does not 1111 constitute approval of any project or a Development Agreement with any developer. 4. Upon approval of the Program and Plan by the City Council, the Economic Development Director is authorized to forward a copy of the Program and Plan to the Minnesota Department of Revenue pursuant to Minnesota Statutes 469.175, subdivision 2, 5. The City Clerk is authorized and directed to forward a copy of the Program and Plan to the Washington County Auditor and request that the Auditor certify the original tax capacity of District No. 1-9 as described in the Program and Plan, ail in accordance with Minnesota Statutes 469.177. Approved by the Board of Commissioners of the Cottage Grove Economic Development Authority this day of , 1998. Chair ATTEST: • Secretary • NlMINNSOTA\COTGRov\TIF1.91EDA RES City of Cottage Grove • Memo To: Economic Development Authority Members From: Kirstin Barsness, Director of Economic Development Date: 05/07/98 Re: Comprehensive Plan/Commercial Mapping Project INTRODUCTION At the last EDA meeting there was extensive discussion concerning the possible configuration of additional commercial property in the vicinity of the Cottage View S Drive-In. The EDA requested maps to be sent with the May packet so that each member could draw how the commercial area could potentially develop. Roads and access points were the main focus of the discussion and the key items that should be depicted on the maps. DISCUSSION Included in your packet is a map for your use. Please draw on the base map how you would like to see commercial development occur (which areas along/near the Drive- In site should be zoned or designated for future commercial use). In addition, mark where the road network should be and the main accesses to the commercial area. Each EDA member will present their development scenario and then together a consensus will be reached. The end product will be recommended to the Planning commission as part of their Comprehensive Plan review process. ACTION REQUIRED Authority members should bring completed maps to Tuesday's meeting and share their concepts. • \VCG FS1\SYS\GROUPS\PER ECON\KEB\EDA Packets\98pcket\Comp Plan-Mapping Memo-May 5.doc City of Cottage Grove • Memo To: Economic Development Authority Members • From: Kirstin Barsness, Economic Development Di a/Pi Date: 05/06/98 Re: Development Tour and Golf Tournament INTRODUCTION It is time again to begin planning for the Annual Development Tour Event. Staff has secured the date of Tuesday, August 25, 1998 from River Oaks. DISCUSSION • Staff is seeking a small subcommittee to assist in ironing out the details. If you are interested please indicate so at Tuesday's meeting. \\CG FS1lSYS\GROUPS\PER ECON\KEB\EDA Packets\98pcket\Golf Memo-May 98.doc , . .7 III City of Cottage Grove Memo *03 To: Economic Development Authority Members From: Kirstin Barsness, Economic Development Dir • Date: 05/07/98 Re: 3M 50th Anniversary Display Booth INTRODUCTION June 13, 1998 marks the celebration of 3M's 50th Anniversary in Cottage Grove. • Included in the festivities is a display area where organizations have been invited to have a table/booth. The City of Cottage Grove is sharing an area with the Great Grove Get Together which is being held the same weekend. DISCUSSION The display table is an opportunity for the City to distribute and receive information from residents and visitors. There is some desire to have a partial economic development theme and staff is searching for ideas. One concept under development is to have a survey which residents can complete and be eligible for a prize drawing, such as a golf package at River Oaks. The survey can focus on labor force questions, retail/restaurant desires and other information the City wishes to gather. If you are interested in staffing the table or have suggestions for other display items, please let staff know Tuesday morning. III \\CG FS1\SYS\GROUPS\PER_ECON\XEB\EDA Packets\98pcket\3M Memo-May 98.doc . Draft as of May 4, 1998 . Draft for fiscal implications correspondence TAX INCREMENT FINANCING PLAN for the establishment of TAX INCREMENT FINANCING DISTRICT NO. 1-9 (an economic development district) within DEVELOPMENT DISTRICT NO. 1 • " `` City of Cottage Grove Minnesota COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY CITY OF COTTAGE GROVE WASHINGTON COUNTY STATE OF MINNESOTA Public Hearing: June 3, 1998 Adopted: Prepared by: EHLERS &ASSOCIATES, INC. 3060 Centre Pointe Drive Roseville,Minnesota 55113-1105 Phone: (612)697-8500 Fax: (612)697-8555 E-mail: info@ehlers-inc.com Web Site: www.ehlers-inc.com TABLE OF CONTENTS (for reference purposes only) • • SECTION I-MODIFICATION TO THE PROJECT PLAN FOR DEVELOPMENT DISTRICT NO,;1 1-1 Foreword . 1-1 Subsecti 'A. ,,; Definitions 1-1 Subs nl; Development District Financing 1-1 Su e on L. Description of the Development District 1-1 bsetion C. Development Activities AND/OR Projects to be Financed 1-2 S TION II- TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-9 r 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. Project Plan Overview 2-1 Subsection 2-5. Legal Description of Property in Tax Increment Financing District No. 1-9 2-2 Subsection 2-6. Classification of Tax Increment Financing District No. 1-9 2-2 Subsection 2-7. Original Tax Capacity and Tax Rate 2-3 Subsection 2-8. Estimated Captured Net Tax Capacity Value/Increment 2-4 Subsection 2-9. Property To Be Acquired 2-4 Subsection 2-10. Uses of Funds 2-4 Subsection 2-11. Sources of Revenue/Bonded Indebtedness 2-5 Subsection 2-12. Definition of Tax Increment Revenues 2-6 Subsection 2-13. Duration of Tax Increment Financing District No. 1-9 2-6 • Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions 2-6 Subsection 2-15. Modifications to Tax Increment Financing District No. 1-9 2-7 Subsection 2-16. Administrative Expenses 2-8 Subsection 2-17. Limitation of Increment 2-8 Subsection 2-18. Use of Tax Increment 2-9 Subsection 2-19. Notification of Prior Planned Improvements 2-10 Subsection 2-20. Excess Tax Increments 2-10 Subsection 2-21. Requirements for Agreements with the Developer 2-10 Subsection 2-22. Assessment Agreements 2-11 Subsection 2-23. Administration of Tax Increment Financing District No. 1-9 2-11 Subsection 2-24. Financial Reporting Requirements 2-11 Subsection 2-25. Municipal Approval and Public Purpose 2-13 Subsection 2-26. Fiscal Disparities Election 2-14 Subsection 2-27. Other Limitations on the Use of Tax Increment 2-14 Subsection 2-28. State Tax Increment Financing Aid 2-15 Subsection 2-29. County Road Costs 2-16 Subsection 2-30. Economic Development and Job Creation 2-16 Subsection 2-31. Summary 2-16 0 • APPENDIX A -BOUNDARY MAPS OF DEVELOPMENT DISTRICT NO. I AND TAX INCREMENT FINANCING DISTRICT NO. 1-9 A-I APPENDIX B -LEGAL DES``CRIPTION OF PROPERTY TO BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 1-9 B-1 APPENDIX C- z°4- TTMATED CASH FLOW FOR TAX INCREMENT FINANCING DISTRICT NO. I- ,' C-1 APPS DIXI-MINNESOTA BUSINESS ASSISTANCE FORM (TNNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT) D-1 SECTION I V:,, MODIFICATION TO THE PROJECT PLAN FOR DEVELOPMENT DISTRICT NO. I Foreword The following text represents a Modification to the Project Plan for Development District No. 1. This modification represents a continuation of the goals and objectives set forth in the Project Plan for Development District No. 1. Generally, the substantive changes include modifying the boundaries of Development District No. 1 as specified below. • For further information,a review of the Project Plan for Development District No. 1,adopted January 7, 1985, is recommended. It is available from the Economic Development Director 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 (Modified whatever we put) "Tax Increment Financing District" means any Tax Increment Financing District Created and established pursuant to the TIF Act within Development District No. 1. Previuosly 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 and 1-9 or anty other districts to be established. SubsectionIt Development District Financing (Modified etc) 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,and 1-9, and may create additional TIF Districts to finance development activities. Theses TIF Districts were created in conjunction with the establishement of Development District No. 1 as it was approved and is currently ammended. • Subsection L. Description of the Development District (Modified etc?) City of Cottage Grove Modification to the Project Plan for Development District No. I I-1 Subsection C. Development Activities AND/OR Projects to be Financed • • • City of Cottage Grove Modification to the Project Plan for Development District No. 1 1-2 ' SECTION II • TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-9 Subsection 2-1. Foreword The City of Cottage Grove("City"), the Cottage Grove Economic Development Authority(the "EDA"), staff and consultants have the following information to expedite the establishment of Tax Increment Financing District No. 1-9("District No. 1-9"), an economic development tax increment financing dislocated in Development District No. 1. Subset ion 1 . Statutory Authority thin th City,there exist areas where public involvement is necessary to cause development to occur. To did; the City and EDA have certain statutory powers pursuant to Minnesota Statutes("M.S."), Sections i 469.124 through 469.134,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 District No. 1-9. Other relevant information is contained in the Modification to the Project Plan for Development District No. 1. Subsection 2-3. Statement of Objectives District No. 1-9 currently consists of a portion 1 parcel of land and adjacent and internal rights-of-way. District No. 1-9 is created to facilitate construction of a manufacturing facility in the City of Cottage Grove. This plan • is expected to achieve many of the objectives outlined in the Modification to the Project Plan for Development District No. 1. The activities contemplated in the present Modification to the Project Plan and the Tax Increment Financing Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of District No. 1-9 and Development District No. 1. Subsection 2-4. Project Plan Overview 1. Property to be Acquired - Selected property located within District No. 1-9 may be acquired by the City or EDA and is further described in this Plan. 2. Relocation-Complete relocation services 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 City or EDA may sell to a developer selected properties that they may acquire within District No. 1-9 or may lease land or facilities to a developer. 4. The City or EDA may perform or provide for some or all necessary acquisition, construction,relocation,demolition, and required utilities and public streets work within District No. 1-9. . 5. The City proposes infrastructure facilities within District No. 1-9 , no additional open space within District No. 1-9, no environmental controls specific to District No. 1-9, proposed reuse City of Cottage Grove Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 2-1 • of private property as an manufacturing facility,and continued operation of Development District . No. 1 after the capital improvements within Development District No. 1 have been completed. • Subsection 2-5. Legal Description of Property in Tax Increment Financing District No. 1-9 District No. 1-9 encompasses all property and adjacent rights-of-way identified by the parcel listed below. Please see the map in Appendix B for further information on the location of District No. 1-9. Parcel Numbers f A 30 acre portion in the Southeast corner of parcel 21-027-21-33-0001 Subsectin'2 6. Classification of Tax Increment Financing District No. 1-9 e Citand EDA, 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 District No. 1-9,to be established, is an economic development district pursuant to M.S., Section 469.174, Subd. 12 as defined below: "Economic development district"means a type of tax increment financing district which consists of any project, or portions of a project, not meeting the requirements found in the definition of redevelopment district, renewal and renovation district, soils condition district,mined underground space development district, or housing district, but which the authority finds to be in the public interest because: (1) it will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality;or (2) it will result in increased employment in the state; or (3) it will result in preservation and enhancement of the tax base of the state. District No. 1-9 is in the public interest because it will meet the statutory requirements from clause 1, 2 and • 3. Pursuant to M.S., Section 469.176, Subd. 4(c) Revenue derived from tax increment from an economic development district may not be used to provide improvements,loans,subsidies,grants,interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities(determined on the basis of square footage)are used for a purpose other than: (1) the manufacturing or production of tangible personal property,including processing resulting in the change in condition of the property; (2) warehousing, storage,and distribution of tangible personal property,excluding retail sales; (3) research and development related to the activities listed in items (1)or(2); (4) telemarketing if that activity is the exclusive use of the property; (5) tourism facilities; (6) qualified border retail facilities; or (7) space necessary for and related to the activities listed in items(1)to(6) The facilities in District No. 1-9 meet the conditions of Purposes 1, 2,and space necessary for and related to the activities listed in items 1 and 2. Pursuant to M.S., Section 469.176, Subd. 7, (a) The authority may request inclusion in a tax increment financing district and the county auditor may certify the original tax capacity of a parcel or a part of a parcel that qualified under the provisions of Section 273.111 or 273.112 or chapter 473H for taxes payable in any • City of Cottage Grove Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 2-2 of the five calendar years before the filing of the request for certification only for(1) a district in which 85 1111 percent or more of the planned buildings and facilities (determined on the basis of square footage) are a qualified manufacturing facility or a qualified distribution facility or a combination of both; or(2) a qualified housing district as defined In Section 273.1399. Subd. 1, (b) (1)A distribution facility means buildings and other improvements to.real property that are used to conduct activities in at least each of the following categories: V (i) t,,o st9re or�warehouse tangible personal property; (ii) io, ,.e rders for shipment,mailing,or delivery; I) .o epare personal property for shipment, mailing, or delivery; and v) o ship,mail or deliver property. (2 Ainanufacturing facility includes space used for manufacturing or producing tangible personal property, . _including processing resulting in the change in condition of the property, and space necessary for and related to the manufacturing activities. (3) To be a qualified facility, the owner or operator of a manufacturing or distribution facility must agree to pay and pay 90 percent or more of the employees of the facility at a rate equal to or greater than 160 percent of the federal minimum wage for individuals over the age of 20. Subsection 2-7. Original Tax Capacity and Tax Rate 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 District No. 1-9 is based on the market values placed on the property by the assessor • in 1997 for taxes payable 1998. Pursuant to M.S., Section 469.177, subd. 1(f), the ONTC will be increased each year by a factor of which represents the average percentage increase in the estimated market value of all property in District No. 1-9 during the five year period before certification of District No. 1-9(assessment years 1992 through 1997),not including the increase in market value that is attributable to new construction,extension of sewer,water,roads, other public utilities,or plattingof the land. It is estimated that the County Auditor will increase the ONTC or 9.27 percent each year over the life of District No. 1-9,based on estimates from assessment years 1992 through 1997. The actual increase will be determined by the County Auditor. 1992/93 1997/1998 Increase % Increase Avg. Annual EMV EMV Increase $83,700 $122,500 $38,800 46.36% 9.27% Pursuant to M.S., Section 469.177, Subds. 1 and 2,the County Auditor shall certify in each year(beginning in the payment year 1999)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. O City of Cottage Grove Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 2-3 In any year in which the current Net Tax Capacity value of District No. 1-9 declines below the ONTC, no value will be captured and no tax increment will be payable to the City or EDA. • The original local taxtate4tirThstrict No. 1-9 will be the local tax rate for taxes payable 1998. The Original Tax Capay and the Original Local Tax Rate for District No. 1-9 appear in the table below. F,. Original Tax Capacity Value $4,830 Percent Retained by City 100% ¢F '; Original Local Tax Rate 120.457% Subsection 2-8. Estimated Captured Net Tax Capacity Value/Increment Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity(CTC)of District No. 1-9,within Development District No. 1, upon completion of the project,will annually approximate tax increment revenues as shown in the table below. The City and EDA request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures,beginning in the tax year payable 2000. The project tax capacity listed is an estimate of values when the project is completed. Project Estimated Tax Capacity upon Completion of Project(PTC) 362,425 Original Estimated Net Tax Capacity(ONTC) 4,830 Estimated Captured Tax Capacity(CTC) 357,595 Estimated Annual Tax Increment (CTC x Local Tax Rate) $430,748 Subsection 2-9. Property To Be Acquired The City or EDA may acquire any parcel within District No. 1-9 including interior and adjacent street rights of way. 1. Any properties identified for acquisition will be acquired by the City or EDA only in order to accomplish one or more of the following: storm sewer improvements;provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. 2. The following are conditions under which properties not designated to be acquired may be acquired: The City or EDA 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 2-10. Uses of Funds Currently under consideration for District No. 1-9 is a proposal to facilitate construction of a manufacturing • City of Cottage Grove Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 2-4 facility for Anderson Windows. Contracts for this have not been entered into at the time of preparation of this . plan,but the date when development is likely to occur is June 1998. The City and EDA have determined that it will be necessary to provide assistance to the project for certain costs. The City has studied the feasibility of the development or redevelopment of property in and around District No. 1-9. To facilitate the establishment and development of District No. 1-9, 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 District No. 1-9 is outlined in the following table. gi Uses of Funds Total kms' Land Acquisition $1,394,000 ,,,,1 Public Public Utilities 623,000 Street and Sidewalk 200,000 Interest 931,000 Project Area Expenses 377,600 Administrative Costs (up to 10%) 377,600 State Auditor Fee @ .25% 9,440 TOTAL $3,912,640 In addition to the budget listed above,tax increment may be used to pay for interest and capitalized interest on any for of indebtedness incurred in connection with activities in Development District No. 1. Estimated costs associated with District No. 1-9 are subject to change. The cost of all activities to be considered for tax increment financing will not exceed,without formal modification,the budget above pursuant to the applicable • statutory requirements. Pursuant to M.S., Section 469.1763, Subd. 2, no more than 20 percent of the tax increment paid by property within District No. 1-9 will be spent on activities related to development or redevelopment outside of District No. 1-9 but within the boundaries of Development District No. 1, (including administrative costs, which are considered to be spent outside of District No. 1-9) subject to the limitations as described in this Plan. Subsection 2-11. Sources of RevenueBonded Indebtedness Public improvement costs, acquisition, site preparation costs, and other costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City or EDA reserves the right to use other sources of revenue legally applicable to the Modification to the Project Plan 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 City or EDA reserves the right to incur bonded indebtedness or other indebtedness as a result of the Plan. As presently proposed,the project will be financed by a bond issue and interfund loans from other City funds. 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 $3,000,000 without a modification to the Plan pursuant to applicable statutory requirements. This provision does not obligate the City or EDA to incur debt. The City or EDA will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The City or EDA may also finance the activities to be undertaken pursuant to the Plan through loans from funds of the City. Ill City of Cottage Grove Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 2-5 The estimated sources of funds for District No. 1-9 are contained in the table below. , • Sources of Funds Total • Tax`Increment $3,776,015 fond Proceeds 2,000,000 terfund loans 785,000 ii - Interest 5,000 Local Contribution 377,225 Proceeds from Land Sale 1 TOTAL $6,943,241 Subsection 2-12. 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. Subsection 2-13. Duration of Tax Increment Financing District No. 1-9 • Pursuant to M.S., Section 469.175, Subd. 1, and M.S., Section 469.176, Subd. 1, the duration of District No. 1-9 must be indicated within the Plan. Pursuant to M.S., Section 469.176, Subd. 1(b), the duration of District No. 1-9 will be 9 years from the date of receipt of the first increment by the City or EDA or 11 years from the date of approval of the Plan,whichever is less. The date of receipt by the City of Cottage Grove of the first tax increment will be approximately 2000. Thus, it is estimated that District No. 1-9, including any modifications of the Plan for subsequent phases or other changes,would terminate after 2009,or when the Plan is satisfied. The City or EDA reserves the right to decertify District No. 1-9 prior to the legally required date. Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes construction which would have occurred without the creation of District No. 1-9. If the construction is a result of tax increment financing,the impact is $0 to other entities, until the end of the district when additional tax base is available for general taxation. Notwithstanding the fact that the fiscal impact on the other taxing jurisdictions is $0 due to the fact that the construction would not have occurred without the assistance of the City or EDA, the following estimated impact of District No. 1-9 would be as follows if the "but for" test was not met: • City of Cottage Grove Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 2-6 IMPACT ON TAX BASE 1997/1998 Estimated Captured Total Net Tax Capacity(CTC) Percent of CTC Tax Capacity Upon Project Completion to Entity Total Washington County 134,014,830 357,595 0.2668% I.S.D. No. 833 9 42,279,157 357,595 0.8458% City of Cottag trove 14,183,008 357,595 2.5213% IMPACT ON TAX RATES 1997/1998 Percent Potential Extension Rates of Total CTC Taxes Washington County 0.285460 23.70% 357,595 102,079 I.S.D. No. 833 0.568030 47.16% 357,595 203,125 City of Cottage Grove 0.264960 22.00% 357,595 94,748 S. Washington Watershed 0.028940 2.40% 357,595 10,349 Other 0.057180 4.75% 357,595 20,447 Total 1.204570 100.00% 430,748 • The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the final 1997/Pay 1998 rate. The total net capacity for the entities listed above are based on final Pay 1998 figures. District No. 1-9 will be certified under the actual 1997/1998 rates, which were certified at the time this Plan was prepared. Subsection 2-15. Modifications to Tax Increment Financing District No. 1-9 In accordance with M.S., Section 469.175, Subd. 4, any: 1. reduction or enlargement of the geographic area of Development District No. 1 or District No. 1-9; 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 City or EDA; 4. increase in total estimated tax increment expenditures; or 5. designation of additional property to be acquired by the City or EDA, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original plan. The geographic area of District No. 1-9 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. The requirements of this paragraph do not apply if(1)the only modification is elimination of parcel(s)from Development District No. • 1 or District No. 1-9 and(2)(A)the current net tax capacity of the parcel(s)eliminated from District No. 1-9 City of Cottage Grove Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 2-7 equals or exceeds the net tax capacity of those parcel(s)in District No. 1-9's original net tax capacity or(B) the City agrees that, notwithstanding M.S., Section 469.177, 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 District No. 1-9. 1111 The City or EDA must notify the County Auditor of any modification that reduces or enlarges the geographic area of District No. 149 or Development District No. 1. Modifications to Tax Increment Financing District No. 1-9 in the form of diet modification or an expansion of the boundaries will be recorded in the Plan. Subsection el6.„Igdministrative Expenses In ac • %'" ith M.S., Section 469.174, Subd. 14, and M.S., Section 469.176, Subd. 3, administrative ex==nses ;eans all expenditures of the City or EDA,other than: ;."' . amounts paid for the purchase of land or 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 district; 2. relocation benefits paid to or services provided for persons residing or businesses located in the district; or 3. amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178. Administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Tax increment may be used to pay any authorized and documented administrative expenses for District No. 1-9 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 District No. 1-9. 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 0.1 percent of any increment distributed to the City or EDA 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 2-17. Limitation of Increment Pursuant to M.S., Section 469.176, Subd. 1(a),no tax increment shall be paid to the City or EDA for District No. 1-9 after three(3)years from the date of certification of the Original Net Tax Capacity value of the taxable property in District No. 1-9 by the County Auditor unless within the three(3)year period: (a) bonds have been issued pursuant to M.S., Section 469.178, or in aid of a project pursuant to any other law, except revenue bonds issued pursuant to M.S., Sections 469.152 to 469.165, or (b) the City or EDA has acquired property within District No. 1-9,or (c) the City or EDA has constructed or caused to be constructed public improvements within . City of Cottage Grove Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 2-8 • District No. 1-9. • The bonds must be issued, or the City or EDA must acquire property or construct or cause public improvements to be constructed by approximately June, 2001. a The tax increment pledgedto the payment of bonds and interest thereon may be discharged and may be terminated if sufficient suffici,qtfrids have been irrevocably deposited in the debt service fund or other escrow account held in trust ft allcutstanding bonds to provide for the payment of the bonds at maturity or redemption date. :,t Pu t to ection 469.176, Subd. 6: if lifter four years from the date of certification of the original net tax capacity of the tax incement financing district pursuant to M.S., Section 469.177no demolition, rehabilitation tion or tF enovation of proprhor other sitePreParation, 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 original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the 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... 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 City or EDA or a property owner must improve parcels within District No. 1-9 by approximately June, 2002. Subsection 2-18. Use of Tax Increment The City or EDA hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in District No. 1-9 for the following purposes: 1. to pay the principal of and interest on bonds used to finance a project; 2. to finance, or otherwise pay the cost of redevelopment of the Development District No. 1 pursuant to the M.S., Sections 469.090 to 469.1081; 3. to pay for project costs including as identified in the budget; 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 the City or EDA or for the benefit of Development District No. 1 by the developer; 6. to finance or otherwise pay premiums and other costs for insurance,credit enhancement, or other security guaranteeing the payment when due of principal and interest on tax increment bonds or bonds issued pursuant to the Plan or pursuant to M.S., Chapter 462C and M.S., Sections 469.152 through 469.165, or both; and 7. to accumulate or maintain a reserve securing the payment when due of the principal and City of Cottage Grove Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 2-9 interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C and M.S., Sections 469.152 through 469.165,or both. • These revenues shall-not:be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited byfrI.S., Section 469.176, Subd. 4. f Subsection 249./Notification of Prior Planned Improvements The rty ED shall, after due and diligent search, accompany its request for certification to the County Auditor or its of District No. 1-9 enlargement with a listing of all properties within District No. 1-9 or area of enlargement for which building permits have been issued during the eighteen(18)months immediately pcedir}g approval of the Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original value of District No. 1-9 by the value of improvements for which a building permit was issued. Pursuant to M.S., Section 469.177,Subd. 4,the City has reviewed the area to be included in District No. 1-9 and found no parcels for which building permits have been issued during the 18 months immediately preceding approval of the Plan by the City. Subsection 2-20. 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 City or EDA shall use the excess amount to do any of the following: 1111 1. prepay any outstanding bonds; 2. discharge the pledge of tax increment therefor; 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 City or EDA may,subject to the limitations set forth herein,choose to modify the Plan in order to finance additional public costs in District No. 1-9 or Development District No. 1. Subsection 2-21. Requirements for Agreements with the Developer The City or EDA will review any proposal for private development to determine its conformance with the Project Plan 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 City or EDA to demonstrate the conformance of the development with city plans and ordinances. The City or EDA 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 10 percent,by acreage,of the property to be acquired in District No. 1-9 as set forth in the Plan shall at any time be owned by the City or EDA 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,without the City or EDA having,prior to acquisition in excess of 10 percent of • City of Cottage Grove Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 2-10 the acreage,concluded an agreement for the development of the property acquired and which provides recourse for the City or EDA should the development not be completed. Subsection 2-22. ssessment Agreements Pursuant to M.S., Sec ioNi69.177, Subd. 8,the City or EDA may enter into an agreement in recordable form with the developet birtjerty within District No. 1-9 which establishes a minimum market value of the land and completed i pro'ents for the duration of District No. 1-9. The assessment agreement shall be presented .Theeasesessor who shall review the plans and specifications for the improvements constructed, review the"tt• ket value previously assigned to the land upon which the improvements are to be constructed and, so long • ''the minimum market value contained in the assessment agreement appears,in the judgment of the assessor,to be a reasonable estimate,the assessor may certify the minimum market value agreement. Itis the intent of the City or EDA to enter into such an agreement. Subsection 2-23. Administration of Tax Increment Financing District No. 1-9 Administration of District No. 1-9 will be handled by the Economic Development Director of the City of Cottage Grove. Subsection 2-24. Financial Reporting Requirements A. Filing with State Auditor, County Auditor, County Board and School Board: Pursuant to M.S., Section 469.175, Subd. 5, the City or EDA must file an annual disclosure report for all tax increment financing districts, including District No. 1-9. The report shall be filed with the County Board, County Auditor, School Board, and the State Auditor on or before July 1 of each year. The report to be filed by the City or EDA shall include the following information: 1. the amount and source of revenue in the tax increment account; 2. the amount and purpose of expenditures from the account; 3. the amount of any pledge of revenues, including principal and interest, on any outstanding bond indebtedness; 4. the original net tax capacity of District No. 1-9; 5. the captured net tax capacity retained by the City or EDA; 6. the captured net tax capacity shared with other taxing districts; 7. the tax increment received; and 8. any additional information necessary to demonstrate compliance with the tax increment financing plan. B. Newspaper Statement: 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 showing: 1. the tax increment received and expended in that year, 2. the original net tax capacity, 3. captured net tax capacity, 4. amount of outstanding bonded indebtedness, 5. the amount of District No. 1-9's increment paid to other governmental bodies, 6. the amount paid for administrative costs, 7. the sum of increments paid, directly or indirectly, for activities and improvements located outside of District No. 1-9,and 8. any additional information the City or EDA deems necessary. City of Cottage Grove Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 2-11 C. State Auditor filing for District No. 1-9: Pursuant to M.S., Section 469.175, Subd. 6,the City or EDAIll must annually submit to the State Auditor, on or before July 1, a financial report which shall: 1. provide for full disclosure of the sources and uses of the public funds in District No. 1-9; 2. permitcomparison and reconciliation with the City and EDA's accounts and financial reports; 3. , n t auditing of the funds expended on behalf of District No. 1-9 or that is funded in part of hole through the use of a development account funded with tax increments from other increment districts or with public money; and 4 consistent with generally accepted accounting principles. T "financial report must also include the following: i .J' 1. the original net tax capacity of District No. 1-9; 2. the captured net tax capacity of District No. 1-9,including the amount of any captured net tax capacity shared with other taxing districts; 3. the amount budgeted under the Plan, and the actual amount expended for, at least, the following categories (for the reporting period and for the duration of District No. 1-9): a. acquisition of land and buildings through condemnation or purchase; b. site improvements or preparation costs; c. installation of public utilities, parking facilities, streets, roads, sidewalks, or other similar public improvements; d. administrative costs,including the allocated cost of the city; e. public park facilities, facilities for social, recreational, or conference purposes, or other similar public improvements; and 4. the total costs of the property to the City or EDA and the price paid the developers (for • properties sold to developers); 5. the amount of increments rebated or paid to developers or property owners for privately financed improvements or other qualifying costs, other than those reported under clause(3), that were issued on behalf of private entities for facilities located in District No. 1-9. D. State Auditor filing for all Tax Increment Financing Districts: Pursuant to M.S., Section 469.175, Subd. 6a,the City or EDA must also annually report to the State Auditor before or on July 1 of each year the following amounts for the entire City: 1. the total principal amount of nondefeased bonds that are outstanding at the end of the previous calendar year; and 2. the total annual amount of principal and interest payments that are due for the current calendar year on: (i)general obligation tax increment financing bonds and (ii)other tax increment financing bonds; and for each tax increment financing district within the City: 1. the type of tax increment financing district; 2. the date on which the district is required to be decertified; 3. the amount of any payments and the value of in-kind benefits,such as physical improvements and the uses of building space,that are financed with revenues derived from increments and are provided to another governmental unit(other than the municipality)during the preceding calendar year; • City of Cottage Grove Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 2-12 • 4. the tax increment revenues for taxes payable in the current calendar year; II 5. whether the tax increment financing plan or other governing document permits increment revenues to be expended outside of each district; and 6. any additional information that the State Auditor may require. Copies of this report inust also be provided to the county and school district boards. Subsection 2.25.et Municipal Approval and Public Purpose At -, Th ofittnci 4ts supporting the findings for the adoption of the Tax Increment Financing Plan for District No. -A, .r -fired pursuant to M.S., Section 469.175, Subd. 3 are as follows: /it,., ending that the District No. 1-9 is an economic development district as defined in M.S., Section litti--., 469.174, Subd. 12. Tax Increment Financing District No. 1-9 is a contiguous geographic area within the City's Development District No. 1, delineated in the Plan, for the purpose of financing economic development in the City through the use of tax increment. District No. 1-9 consists of a portion of Development District No. 1 not meeting requirements for other types of tax increment financing districts,which is in the public interest because it will facilitate construction of a manufacturing and warehousing facility which will discourage commerce,industry,or manufacturing from moving their operations to another state or municipality;it will increase employment in the state,and preserve and enhance the tax base of the state. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be II! 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 District No. 1-9 permitted by the Plan. Due to the high cost of development on the parcel including the cost of land acquisition and financing the proposed improvements,this project is feasible only through assistance,in part,from tax increment financing. A comparative analysis of estimated market values both with and without establishment of Tax Increment Financing District No. 1-9 and the use of tax increments has been performed as described above. If all development which is proposed to be assisted with tax increment were to occur in District No. 1-9,the total increased market value would be up to$10,217,000. The present value of tax increments from District No. 1-9 is estimated to be$2,635,427. It is the Council's finding that no development with a market value of greater than $7,581,573 would occur without tax increment assistance in this district within 9 years. This finding is based upon evidence from general past experience with the high cost of land acquisition and public improvements in the general area of District No. 1-9 (see Cashflow in Appendix D). 3. Finding that the Tax Increment Financing Plan for District No. 1-9 conforms to the general plan for the development or redevelopment of the municipality as a whole. The Plan was reviewed by the Planning Commission on May 25, 1998. The Planning Commission • found that the Plan conforms to the general development plan of the City. City of Cottage Grove Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 2-13 4. Finding that the Tax Increment Financing Plan for District No. 1-9 will afford maximum opportunity, • consistent with the sound needs of the City as a whole,for the development of Development District . No. 1 by private enterprise. The project to. assisted by District No. 1-9 will result in increased employment in the City and the State of Minnesota,increased tax base of the State, and add a high quality development to the City. Additional findings asset forth in the Authorizing Resolution of the City. Subscticf i 2-2k Fiscal Disparities Election wisuantUo M.S., Section 469.177, Subd. 3, clause b,the City or EDA must calculate fiscal disparities ng thfollowing method of computation: (b)The following method of computation applies to any economic development district for which the request for certification was made after June 30, 1997, and to any other district for which the governing body, by resolution approving the tax increment financing plan pursuant to M.S., Section 469.175, subd. 3, elects: (1) The original net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial-industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than1110 the current 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 authority from 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 less 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. Subsection 2-27. 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. 1 pursuant to the M.S., 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. This provision shall not prohibit the use of revenues derived from tax increments for the construction or • City of Cottage Grove Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 2-14 • renovation of a parking structure, a commons area used as a public park or a facility used for social, IIIrecreational or conference purposes and not primarily for conducting the business of the municipality. 2. Pooling Limitations."At least 80 percent of tax increments from District No. 1-9 must be expended on activities Distnct No. 1-9 or to pay bonds,to the extent that the proceeds of the bonds were used to finance act , es within said district or to pay, or secure payment of, debt service on credit enhanced' ds. Tot more than 20 percent of said tax increments may be expended, through a deve ment nd or otherwise, on activities outside of District No. 1-9 except to pay, or secure pa the debt service on credit enhanced bonds. For purposes of applying this restriction, all J""adtiunis "five expenses must be treated as if they were solely for activities outside of District No. 1-9. 3.^v` > ve Year Limitation on Commitment of Tax Increments. Tax increments derived from District No. s/, 1.9 shall be deemed to have satisfied the 80 percent test set forth in paragraph(2)above only if the r - 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 District No. 1-9, 80 percent of said tax increments that remain after expenditures permitted under said five year rile 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. Subsection 2-28. State Tax Increment Financing Aid 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 District No. 1-9. 0 Pursuant to M.S., Section 273.1399, Subd. 6, the City or EDA may choose an option to the LGA-HACA penalty. District No. 1-9 is exempt from the LGA-HACA reduction if the City or EDA elects to make a qualifying local contribution at the time of approving the Plan. To qualify for the exemption in each year, the City or EDA must make a qualifying local contribution to the project of a certain percentage. The local contribution for an economic development district is 10 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 City or EDA 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 City or EDA, 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 City elects to make the annual local contribution to the project to exempt itself from the LGA- HACA penalty. The City or EDA will pay for costs of the project described in this Plan,in an amount equal to 10 percent of annual tax increment for District No. 1-9, 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. The contribution may also be made in the form of public improvements financed by the City or EDA or other unit of government with unrestricted funds. IP City of Cottage Grove Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 2-15 Subsection 2-29. County Road Costs Pursuant to M.S., Section 469.175, Subd. Ia, the county board may require the City or EDA to pay for all or 410 part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgement of thecounty;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 i nproyement plan or other county plan. In the opinion of e City and EDA and consultants,the proposed development outlined in this Plan will have little1or no mpactlipon county roads. If the county elects to use increments to improve county roads, it must notify the.City,or EDA within thirty days of receipt of this Plan. Subsection 2-30. Economic Development and Job Creation To the extent applicable, the City or EDA agrees to comply with M.S., Section 116J.991,which states that a business receiving state or local government assistance for economic development or job growth purposes, including tax increment financing, must create a net increase in jobs in Minnesota within two years of receiving assistance and meet wage level goals(See Appendix E). Subsection 2-31. Summary The City of Cottage Grove is establishing District No. 1-9 to preserve and enhance the tax base, and provide employment opportunities in the City. The Tax Increment Financing Plan for District No. 1-9 was prepared by Ehlers&Associates, Inc., 3060 Centre Pointe Drive,Roseville,Minnesota 55113-1105,telephone (612) 697-8500. • City of Cottage Grove Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 2-16 APPENDIX A • BOUNDARY MAPS OF DEVELOPMENT DISTRICT NO. l AND TAX INCREMENT FINANCING DISTRICT NO. 1-9 APPENDIX A-1 icy ,` O d.gzg• ai M �v'LI A* . 1 • I ,,y42' 0 ;/.e/27` .11; 0g 0 mc1 1 / i1111nu-rimi 1111 ri/�-�1 1 c Qf _ � i •up c 41:12 all _ /1111111L_'�Ili 11111i I _ _ ci +-� C /� 11 fl�glllllll 11/� E Nbki rJ _ ;�)1 "$ ti g it c N E > V c �� 1�1 t 1'Il %'. s� t-��� yips V nX . . -Z ' g ea ---( CF- • •• / / h i , gr\ _, t ' ati 9Nrr,lo4a1r; H nv ,/ „ „ 2..mmomom'rum mos z la • • lil 47 e,. . 8N �14- .� . 'i 11 • • le/ / z_ ci d C O. sic gr>>y - �� N 4 0 4 /‘(**, eg ,,, / ‘ / ° / 1 t . ,5": ' / 0 tdi i A ili! t i id s"/ s/1111l111>f11P�/1ll1�/% yr ibb• MUH MAD r AI/mr.a I!" mi lir ♦.., Rini.. !W,' -=— ��� Il j I\% 1 iii II ilii $ ���All Willa II " " 4 a"- •P" tali zran in 1 . .1..� / 'ill 11 gi.�. IA i4�WIWI //t11t1i 111111 � ��'��i%Iliiu: au ig 11/11/111 , •k_�� i li !lif11i , MAY. -04' 98 (MON) 14:02 CITY OF COTTAGE GROVE TEL:6124582897 P. UU2 0 ie , ' . _ j . z ____:-\,.. i 1 - Il. -' •— 4 I .__mss . t y ! ;~�0 � k cam=' -• 1- �_ �I S �1 it .`,• 11'� _ 1 s t:,4 r a 1 ��, allill ' y I `�4. fir., I! -7Osi‘ .. .t :a0 • • _ 'r � �>.�. . .. &.a �.ems _ II -fir -`I ♦ .rY - 01/•••••• aft, - -r•.• Av..- , . I Li''. 1 °I.. ...r. — dill dP . L,"•7/ 4 Q—'1,-7-771::,.7 Virr./.6.-.1u'''' 71, __ , ' ' # ( - T' - • , ...__ . r .. i71../ __,; • _} .. , �_ — - _ `• �, M , 16•01•46.• 1�,~ Tax Increment Financing District No. 1-9 t , .` / it„,,'-'1- '. 1=•:. •••=•••=•••• -••. "--–..jaZ t iine..,), , I I1 i I 1 it %. nu ri.L.,_,..__A, ...._ it nil i '12 • ::1. ''' •-.....j - ' 0 a I • I 41114411N; i -- ' ` - 1 es ... .:::. . C:\ !1 .__........ City of Cottage Grove • Development District No. 1 • 0 APPENDIX B • LEGAL,DESCRIPTION OF PROPERTY TO BE INCLUDED IN S TAX INCREMENT FINANCING DISTRICT NO. 1-9 District No. 1-9 encompasses all property and adjacent rights-of-way identified by the parcel listed below. Parcel Numbers `II A 30 acre portion in the Southeast corner of parcel 21-027-21-33-0001 a I APPENDIX B-1 APPENDIX C • ESTIMATED CASH FLOW FOR TAX INCREMENT FINANCING DISTRICT NO. 1-9 • • • APPENDIX C-1 05/04/98 City of Cottage Grove-Tax Increment District No.1-9 Page I T.I.F.CASH FLOW ASSUMPTIONS-LOCAL MATCH Inflation Rate: 0.0000% Present Value Rate 5.500% Tax Extension Rate: 1.204570 Pay 1998 Fiscal Disparities Ratio: 0.286723 Pay 1998 BASE VALUE INFORMATION Base Market Class Tax . Classification Value' Rate Capacity • portion of 21-027-21-33-0001 C/I Prefered 183,000 2.45% 4,830 Pay 1998 TOTAL 183,000 4,830 'Base Market Value is full market value no green acres exclusion PROJECT VALUE INFORMATION Total Total Total Year Year Taxes Tax Capacity" Market Value Started Payable 1 parcel 6 C/I Prefered 436,566 362,425 10,400,000 1998 2000 TOTAL 436,566 362,425 10,400,000 Class rates for C/I prefered calculated at$150,000 0 2.45,remainder at 3.5% ORIGINAL TAX CAPACITY INFLATION RATE Market Amount Percent Gross Net Value Used Used Value Value Parcel Values 5 Years Ago(Pay 93) 83,700 83,700 100.00% 83,700 83,700 Parcel Values Current(Pay 98) 122,500 122,500 100.00% 122,500 122,500 38 800 Original Tax Capacity Inflation Rate: 109.27% TAX INCREMENT CASH FLOW Base Project Fiscal Disp Captured Semi-Annual Admim. Semi-Annual Future Present Local Match PERIOD BEGINNING Tax Tax Tax Tax Gross Tax at Net Tax Value Tax Value Tax at PERIOD ENDING Yrs. Mth. Yr. Capacity Capacity Capacity Capacity Increment 10.25% Increment Increment Increment 10.00% Yrs. Mth. Yr. 0.0 02-01 1998 4,830 4,830 0 0 0 0 0 0 0 0 0.0 08-01 1998 0.0 08-01 1998 4,830 4,830 0 0 0 0 0 0 0 0 0.0 02-01 1999 0.0 02-01 1999 5,278 5,278 0 0 0 0 0 0 0 0 0.0 08-01 1999 0.0 08-01 1999 5,278 5,278 0 0 0 0 0 0 0 0 0.0 02-01 2000 0.0 02-01 2000 5,767 362,425 102,262 254,396 153,219 (15,705) 137,514 137,514 120,071 15,307 0.5 08-01 2000 0.5 08-01 2000 5,767 362,425 102,262 356,658 214,810 (22,018) 192,792 330,306 283,903 21,460 1.0 02-01 2001 1.0 02-01 2001 6,302 362,425 102,109 356,123 214,488 (21,985) 192,503 522,809 443,111 21,427 1.5 08-01 2001 1.5 08-01 2001 6,302 362,425 102,109 356,123 214,488 (21,985) 192,503 715,312 598,057 21,427 2.0 02-01 2002 2.0 02-01 2002 6,886 362,425 101,941 355,539 214,136 (21,949) 192,187 907,499 748,610 21,392 2.5 08-01 2002 2.5 08-01 2002 6,886 362,425 101,941 355,539 214,136 (21,949) 192,187 1,099,686 895,133 21,392 3.0 02-01 2003 3.0 02-01 2003 7,524 362,425 101,758 354,901 213,751 (21,909) 191,842 1,291,528 1,037,478 21,354 3.5 08-01 2003 3.5 08-01 2003 7,524 362,425 101,758 354,901 213,751 (21,909) 191,842 1,483,369 1,176,013 21,354 4.0 02-01 2004 4.0 02-01 2004 8,222 362,425 101,558 354,203 213,331 (21,866) 191,465 1,674,834 1,310,576 21,312 4.5 08-01 288- 4.5 08-01 2004 8,222 362,425 101,558 354,203 213,331 (21,866) 191,465 1,866,298 1,441,537 21,312 5.0 02-01 8, 5.0 02-01 2005 8,984 362,425 101,340 353,441 212,872 (21,819) 191,053 2,057,351 1,568,719 21,266 5.5 08-01 286 5.5 08-01 2005 8,984 362,425 101,340 353,441 212,872 (21,819) 191,053 2,248,404 1,692,497 21,266 6.0 02-01 2006 6.0 02-01 2006 9,817 362,425 101,101 352,608 212,370 (21,768) 190,602 2,439,006 1,812,678 21,216 6.5 08-01 2006 6.5 08-01 2006 9,817 362,425 101,101 352,608 212,370 (21,768) 190,602 2,629,608 1,929,643 21,216 7.0 02-01 2007 7.0 02-01 2007 10,728 362,425 100,840 351,697 211,822 (21,712) 190,110 2,819,718 2,043,184 21,161 7.5 08-01 2007 7.5 08-01 2007 10,728 362,425 100,840 351,697 211,822 (21,712) 190,110 3,009,828 2,153,685 21,161 8.0 02-01 2008 8.0 02-01 2008 11,722 362,425 100,555 350,703 211,223 (21,650) 189,573 3,199,401 2,260,925 21,101 8.5 08-01 2008 8.5 08-01 2008 11,722 362,425 100,555 350,703 211,223 (21,650) 189,573 3,388,973 2,365,295 21,101 9.0 02-01 2009 Totals 3,776,015 (387,042) 3,388,973 3,388,973 Present Values 2,635,427 (270,131) 2,365,295 2,365,295 377,225 But For Analysis Current Market Value-Est. 183,000 New Market Value-Est. 10,400,000 Difference 10,217,000 Present Value Of Tax Increment 2,635,427 Difference 7,581,573 Value Likely to Occur Without TIF is Less Than: 7,581.573 PLEASE NOTE: ORIGINAL TAX CAPACITY INFLATION RATE IS AN ESTIMATE-FINAL NUMBER TO BE ESTABLISHED CALCULATIONS ASSUME FISCAL DISPARITIES RATIO,FROZEN TAX RATE,AND STATE CLASSIFICATION AT PAY 1998 FOR LIFE OF DISTRICT 11 Prepared by Ehlers/Publicorp Inc. PLAN 1-9 APPENDIX D MINNESOTA BUSINESS ASSISTANCE FORM • (MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT) APPENDIX D-1 r`\�•1 N E S p T9 Cab Trade & Economic • Development February 27, 1998 To all Minnesota state and local government agencies: As you know, state and local governments are increasingly responding to the need to be more accountable with taxpayer dollars. This is especially true in the areas of economic development and business assistance. The legislatively-created Corporate Subsidy Reform Commission reviewed many of Minnesota's business subsidies and concluded that the reporting mechanisms should be improved to enhance accountability. The Department of Trade and Economic Development(DTED) created the Minnesota Business Assistance Form in 1995 to assist state and local agencies in meeting the accountability measures contained in M.S. 116J.991. The form has been modified this year to respond to the Commission's recommendations. M.S. 1161.991 requires a business receiving state or local government assistance to create a net increase in jobs in Minnesota within two years of receiving assistance. The law also requires the business to meet wage level and job creation goals established by the funding agency. Until the wage and job goals are achieved, each government agency that works with these businesses is mandated to annually report the goals and any progress toward these goals to DTED. If the goals are not achieved, the business must repay the assistance to the governmental agency at the terms negotiated in the assistance agreement. • "Business assistance" refers to any business grant or loan using state or local dollars in excess of $25,000 or any new business activity within a tax increment district. While not defined in statute, our interpretation is that this would include grants, loans, interest subsidies, tax increment financing(TIF) or any other public monies directly benefitting a business and given for economic development or job growth purposes. Please use the enclosed Minnesota Business Assistance Form for each business assistance agreement signed between July 1, 1995 and December 31, 1997. All financial assistance agreements signed during this period should be reported by April 15, 1998 regardless when the assistance was awarded, unless a form has been submitted indicating that the business has met the established wage and job creation goals. Moreover, each year you will receive a new form from DTED to be completed and returned. Each year's form should be submitted until all wage and job goals have been achieved. Please mail or fax your completed form(s)to DTED before April 15, 1998. The form does not need to be submitte if assistance has not been provided to a business. Sincerely, Jay Nov Commissioner 1110 iOO Metro Square, 121 7th flare fast. Saint Paul, Minnesota 11101-'146 I'S 612•207-1 201 •8O0•617•t8 18 • lax 612-2 )6-477! • 111, 11)1)8(111-(i';.31 1 t\u‘ .dlcd.statt,_mn.us -Trade&- 1998 Minnesota Business Assistance Form* II Economic (Please return by April 15, 1998) • Development Please type or print in dark ink. 1.Funding government agency name 2.Contact name 3.Agency street address 4.City 5.Zip code 6.Phone number(area code) 8.Type of government agency City _County _Regional _State 7.Fax number(area code) _Other(Please indicate) 9.Name of business receiving assistance 10.Industry of recipient(SIC code) 11.Type of assistance(e.g.loan,TIF,grant,infrastructure,etc.) 12.Name of TIF district(if applicable) 13.Date of business 14.Date assistance first 15.Date project(building/ 16.Dollar value of business assistance agreement provided machinery/etc.)was assistance placed in service For assistance agreements signed between July 1, 1995 and December 31,1997,complete boxes 17 through 20 or boxes 21 through 24.For all agreements signed during 1998 and future years,the information in boxes 21 through 24 will be required. 17.Job creation goals for business receiving assistance 18.Average hourly wage level goals for business receiving • assistance 19.Actual jobs created since business received assistance 20.Actual average hourly wage paid to employees hired since business received assistance Goals of business receiving assistance:(Please indicate Actual performance since project placed in service:(Please number of employees at each wage level and indicate the indicate number of employees at each wage level and indicate corresponding benefit level.) the corresponding benefit level.) 21.Job Creation Hourly Wage 22.Hourly Value 23.Job Creation Hourly Wage 24.Hourly Value Level of Voluntary Level of Voluntary Full-time Part-time (excl.benefits) Benefits($) Full-time Part-time (excl.benefits) Benefits($) less than$7.00 less than$7.00 $7.00 to$7.99 $7.00 to$7.99 1 $8.00 to$9.99 $8.00 to$9.99 $10.00to$11.99 $10.00 to$11.99 $12.00 and higher $12.00 and higher If necessary,please attach additional documents. 1 If necessary,please attach additional documents. 25.Last date actual wage and job creation levels documented 26.Date this Minnesota Business Assistance Form completed 27.Have all wage and job goals been achieved? U Yes-do not submit future forms for this project. ❑No-please submit this form in 1999. * This form replaces all previous forms. Please complete one form for each business assistance agreement your agency signed between July 1,1995 and December 31, 1997 which provided$25,000 or more in public funds. II A form should be submitted annually for each assistance agreement until a submitted form indicates that all wage and job creation goals have been achieved Do not submit this form if your agency has not agreed to provide assistance to a business since July 1, 1995. (over) +114NES07- cc)mos Trade &=- • Economic Development Please send completed form annually by April 15 to: Minnesota Business Assistance Form—AEO Minnesota Department of Trade and Economic Development Analysis and Evaluation Office 500 Metro Square 121 East 7th Place St. Paul, Minnesota 55101 or fax report to: (612)215-3841 For information,call: (612)297-2335 or 1-800-657-3858 Minnesota Statutes 116J.991: A business that receives state or localgovernment assistance for economic development or job growth purposes must create a net increase in jobs in Minnesota within two years of receiving the assistance. The government agency providing the assistance must establish wage level and job creation goals to be met by the business receiving the assistance. A business that fails to meet the goals must repay the assistance to the government agency. Each government agency must report the wage and job goals and the results for each project in achieving those goals to the department of trade and economic development. The department shall compile and publish the results of the reports for the previous calendar year by June 1 of each year. The reports of the agencies to the department and the compilation report of the department shall be made available to the public. For the purposes of this section, "assistance" means a grant or loan in excess of$25,000, or tax increment financing. • 'fl ki • • 0 ,,a: • ;x • 'ui ! ;'ti' ,4 i t -7 's,1•'4•4/1. ,11F S i ,. ti :l, 1;S f ,'3: -�;.f '{�%hb '. et:' 1` .iF f, v, �:, 'i:; • .•::•-••••••,,',g'; .9;z,' °xX. ,,,., : ,. -„;i ,( ~yw ,,a+ !a _(. „;,p: kart,y,:„;,'x v r>, '. xr.r y,.,t 4..A r i'.... 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' i �:kt�(�'� =. 7. r F 1:" 0 15-. 1 y ,: ..... 4 C l Sli sl ii�: 11 • V l' p'.. 1 �x,' "�01"�.`��I � ��� � iii $li.gii t `i ° � •��1! �li�,'s13a13�• i "w s 5;xls II i�'s!1i I I ,�,1� r_1�,��$iI� � ♦ '���'`*,t �� '•k�." !_��--� E _ � / /% i'I.,`' j Vs�i�¢1 •\ f 1 t1\0I ,ll p= f • e. 11 El ,:'�' 12';' °3 1 f! I,'e ^i 3• a ....o: h 41kr ,d a,��1 • / ..Gi .. V,: :f-,-.1.. =i y' ^ i S '1 # •6 ein. q-)bv fw A„-.. t fi 1 C.1%,11 Ht �'` .;‘14.,......, »,S�'1N !In ; 1 i i 1997 ANNUAL REPORT - f d METRO EAST DEVELOPMENT PARTNERSHIP t �J i 1 _ ti A partnership with over 100 public and private sector members • committed to strengthening the economy of the greater Saint Paul Metro East Region. REPORT FROM THE CO-CHAIRS 1998 EXECUTIVE COMMITTEE & MEDP STAFF III To The Membership: 1 ^ ^ CO-CHAIR,PRIVATE CO-CHAIR,PUBLIC yy 7 was a bellwether year for the Metro East Tanya 13e11 Mayor Norm Coleman Development Partnership(MEDP). In response to a 1996 CB COMMERCIAL CITY OF SAINT PAUL survey of the membership, MEDP undertook a major restructuring of its goals, refocused and refined its VICE-CHAIR,PRIVATE VICE-CHAIR,PUBLIC activities,and made a commitment to accountability. The Craig Bollum Mayor Tom Egan board of directors worked to make MEDP an investor FIRST BANK N.A. CITY OF EAGAN friendly organization with quantifiable goals and documentable results. TREASURER EXECUTIVE DIRECTOR Jeffrey Ruehle David J. Piggott MEDP established four firm goals for the organization. NORWEST BANK MEDP 1 The intent was to provide the staff and volunteers with a MINNESOTA,N.A. clear direction for the organization, while providing investors with an opportunity for input and a device for measurement. We believe that these goals reflect the Lee Bennett Commissioner Myra Peterson changing nature of economic development and position THE ST. PAUL COMPANIES WASHINGTON COUNTY MEDP as a leader in the profession. Larry Dowell Ken Stabler First, we are committed to the continued expansion of SAINT PAUL AREA NORTHERN STATES POWER both the tax and employment base of the three county CHAMBER OF COMMERCE COMPANY 4 region. Second, we have made a firm commitment to offering our investors the opportunity to participate in Mary Fahey Craig Waldron . MEDP projects so they may see a return on their FAIRVIEW HOSPITAL& CITY OF OAKDALE investment. Third,MEDP remains steadfast in the belief HEALTHCARE SYSTEMS 1 that regional partnerships are the best way to participate in economic development. Finally,the board recognizes Mayor Jay Kimble Paul Way + the continued need to maintain and improve the CITY OF STILLWATER FIRSTAR BANK I organizations' relationship with its investors. Dick Hanson Mayor Duane Zaun In 1997 we met or exceeded nearly all of our goals. 3M CITY OF LAKEVILLE Successful projects resulted in over$108 million in new capital investment, impacting over 2,500 jobs. We had # 89 new prospects and responded to nearly 300 total requests for business assistance. Over 30 investors were STAFF directly involved in our projects, and the region and organization were prominently featured in two business EXECUTIVE DIRECTOR BUSINESS DEVELOPMENT publications. David J. Piggott SPECIALIST (612)265-2760 Lori A. Strand Equally important, we added 11 new members, saw (612)265-2763 1 revenues rise, and finished the year under budget. We 1 were able to combine program success with prudent MANAGER,BUSINESS OFFICE MANAGER fiscal management. With these accomplishments in 1997, DEVELOPMENT Roberta C.Jones-Doering we are well positioned for greater success in 1998. Deborah J.Barkley (612)265-2761 + (612) 265-2762 Craig Waldron Richard Hanson Note: • 1997 Public Sector Co-Chair 1997 Private Sector Co-Chair Phone numbers will be in effect after February 17, 1998. FINANCIAL OVERVIEW • Preliminary Balance Sheet for Period Ending December 31, 1997 ASSETS CURRENT ASSETS Cash - General $ 84,568 Prepaid Expenses 4,655 TOTAL CURRENT ASSETS 89,223 OFFICE EQUIPMENT, at cost 53,722 Less Accumulated Depreciation (25,296) NET OFFICE EQUIPMENT 28,426 TOTAL ASSETS $117,648 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable 1,129 Accrued Pension 7,733 IIIAccrued Expenses 3,745 Deferred Dues Revenue 25,550 TOTAL CURRENT LIABILITIES 38,157 NET ASSETS 79,491 TOTAL LIABILITIES AND NET ASSETS $117,648 1998 Preliminary Budget MEDP In-Kind Contributors: REVENUE Minnesota Technology Memberships $ 329,000 Northern States Power Company Interest 7,000 Olsen,Thielen,&Company, Ltd. Other Income 3,000Saint Paul Area Chamber of Commerce In-Kind Contributions 30,000 Saint Paul Pioneer Press 1 TOTAL $369,000 MEDP Affiliations: 1 EXPENSES Advantage Minnesota Personnel $ 210,000 BOMA-Saint Paul I Operations 71,000 The Collaborative Administration 14,000 EDAM Programs 36,000 NAIOP Capital Expenditures 2,000 Organization of Commercial Realtors 11 III In Kind Contributions 30,000 Saint Paul/Metro East Development Corporation TOTAL $363,000 TC Web i I METRO EAST DEVELOPMENT PARTNERSHIP 1998 MEMBERSHIP LISTING • LOCAL GOVERNMENT/CHAMBERS! Saint Paul Port Authority KPMG Peat Marwick, LLP Western Bank DEVELOPMENT CORPORATIONS City of Shoreview Land O'Lakes,Inc. REAL ESTATE/CONSTRUCTION/ City of Arden Hills DEVELOPMENT City of Stillwater Lethert,Skwira,Schultz and City of Burnsville Company Adolfson&Peterson,Inc. Stillwater Area Economic City of Cottage Grove Development Loucks&Associates,Inc. Airlake Industrial Park Dakota County HRA St.Paul BOMA Minnesota Mutual Life Bor-Son Construction Dakota County Partnership Saint Paul/Metro East Northern States Power Company CB Commercial Development Corporation City of Eagan Olsen,Thielen,& Commercial Real Estate City of Vadnais Heights Company,Ltd. Services,Inc. City of Farmington Washington County Progressive Rail Corporate Real Estate,Inc. City of Forest Lake City of West St.Paul The St.Paul Companies,Inc. DLR Group City of Hastings White Bear Township Saint Paul Pioneer Press Edina Realty,Inc. City of Lake Elmo City of Woodbury State Farm Insurance First Industrial Trust City of Lakeville Realty,Inc. Tushie-Montgomery& City of Mahtomedi CORPORATE/SMALL BUSINESS Associates,Inc. Kellison Company City of Maplewood 3M US West Communications KOLL Management City of Mounds View Advanced Resources for Wilkerson,Guthmann+ Kraus-Anderson . Development,Inc. Johnson,Ltd. Construction Company City of New Brighton Andersen Corporation McGough Construction City of North Saint Paul FINANCE Company,Inc. Ashland Inc. City of Oakdale Eastern Heights Bank Oakdale Crossing Bonestroo,Rosene,Anderlik Progress Plus/Cities of &Associates First Bank N.A. Opus Corporation South Saint Paul and Inver Grove Heights Briggs&Morgan Firstar Bank Ryan Construction of Minnesota,Inc. Ramsey County Dakota Electric Association Heritage National Bank Stahl Construction Company City of Rosemount District Energy St.Paul Liberty State Bank Tobin Real Estate Company City of Roseville Doherty,Rumble&Butler Midway National Bank United Properties City of Saint Paul Ecolab Inc. Norwest Bank Minnesota,N.A. Wellington Management,Inc. Saint Paul Area Chamber Fortis Premier Bank of Commerce Welsh Companies H.B.Fuller Company Signal Bank Wispark Corporation _ 1 Metro East Development Partnership First National Bank Building • 332 Minnesota Street,Suite N-205 Saint Paul,MN 55101 Phone: (612)224-3278 Fax:(612)223-5484 Web Page:www.medp.org Email: meteast@medp.org City of Cottage Grove 4 Memo To: Kim Lindquist, Community Development Director_. From: Kirstin Barsness, Economic Development Dire �r`�` " Date: 05/20/98 Re: Land Use Recommendations for Comprehensive Plan The Economic Development Authority has been involved in the Comprehensive Plan review process for the pass several months. Their main focus has been to evaluate the land use component, especially as it relates to future commercial and industrial land use. It was determined that the community has sufficient industrial property, but the • commercial inventory was deemed to be very restricted and in need of expansion. EDA members completed two separate exercises which centered on identifying additional areas within the city for potential commercial land use designation. The results were discussed and the following recommendations developed. • The area east of the current Menards store to County Road 19, including the Drive-in Theater site, should be designated commercial. • A strip of land from the intersection of Highway 61 and County Road 19 north to 90th Street should be preserved for future commercial development. Not limited strictly to retail, but also for office development needs. • Neighborhood commercial centers/nodes should be designated for convenience shopping. Suggestions include the future Hinton—Tower connection, Jamaica and 70th Street, County Road 19 and 70th Street, and a location in the West Draw neighborhood. • The Langdon neighborhood has great potential to serve as a commercial hub due to its central location within the city. The general philosophy of the Economic Development Authority members is that it is easier to designate property now for commercial development and change it in the future, then to try and claim property in the future for this purpose. This same • philosophy prevails with the River Crossing concept. It would be prudent to incorporate the concept into the 2000 Comprehensive Plan and begin discussions. It may be potentially difficult later to decide that the crossing needs to be constructed and consequently not be prepared to make it happen. Please forward these comments to the Planning Commission for their consideration. Members of the EDA or staff would welcome the opportunity to answer any questions on our recommendations. • 110