HomeMy WebLinkAbout2015-12-21 PACKET 06.3.STAFF REPORT CASE: CP2015-057
ITEM: 6.3
PUBLIC MEETING DATE: 12/21/15 TENTATIVE COUNCIL REVIEW DATE: 1/6/16
APPLICATION
APPLICANT: City of Cottage Grove
REQUEST: TIF District 1-16 is proposed for the construction of a 38,400 square foot
warehouse and a 43,560 square foot green house for Gardenworld within
the Cottage Grove Business Park.
SITE DATA
LOCATION:
ZONING:
GUIDED LAND USE:
Southeast corner of Hemingway Avenue and Min Street
1-2, Industrial
Industrial
LAND USE OF ADJACENT PROPERTIES: CURRENT
GUIDED
NORTH:
Industrial
Industrial
EAST:
Industrial
Industrial
SOUTH:
Agricultural
Industrial
WEST:
Industrial
Industrial
SIZE: N/A
DENSITY: N/A
RECOMMENDATION
Adopt Planning Commission Resolution No. PC2015-002 finding that
the proposed TIF District No. 1-16 is in confor,nance with the City of
Cottage Grove Future Vision 2030 Comprehei Sive Plan.
cottage COTTAGE GROVE PLANNING HVISION
p- J Grove
•'eR PoJe andPrOSPetlIV Mee[
Planning Staff Contact: Robin Roland, Finance Director; 651-458-2832; rroland(a)cottage-prove. org
Application Accepted:. 60 -Day Review Deadline:
City of Cottage Grove Planning Division • 12800 Ravine Parkway South • Cottage Grove, MN 55016
Planning Staff Report
TIF District 1-16 (Gardenworld)
Case CP2015-057
December 21, 2015
Proposal
The City of Cottage Grove and the Cottage Grove Economic Development Authority (EDA) are
considering the creation of a new Tax Increment Financing (TIF) District. The EDA approved
creation of the district on December 8, 2015; the City Council will hold the public hearing on
January 6, 2016.
Minnesota Statutes require that the Planning Commission review the new district for conformance
to the City's Comprehensive Plan. If the Commission finds the changes to the TIF district are
consistent with the Plan, the attached resolution should be adopted and forwarded to the City
Council.
TIF District 1-16 (Gardenworld) is proposed for the construction of a 38,400 square foot ware-
house/office and a 43,560 square foot greenhouse within the Cottage Grove Business Park.
Gardenworld is currently located in St. Paul and wants to expand their business. A map of the
proposed district and the TIF plan are included with this item.
The proposed district would capture tax capacity resulting from the development of the property
for a period of nine years. The proceeds (tax increment) would be used to reimburse the City's
expenses for supporting infrastructure and land costs related to the project.
Analysis
The Cottage Grove Future Vision 2030 Comprehensive Plan includes the following elements
which impact the creation of TIF districts:
Community Vision
• Guiding Principle: Increase Employment. Adding jobs in the city allows more residents
to work in Cottage Grove and spurs overall economic activity. Areas of new industrial and
commercial development are proposed, which will generate new employment in the City.
Land Use
• The proposed TIF District 1-16 is located in the area designated and zoned for industrial
uses consistent with the Comprehensive Plan.
• Goal: Existing residential, commercial and industrial areas will continue to be
maintained and revitalized. Policy 2.9 "The City and Economic Development Authority
will use available resources to meet redevelopment needs."
Planning Staff Report— Case CP2015-057
TIF District 1-16 (Gardenworld)
December 21, 2015
Page 2 of 2
Recommendation
Given the information provided above, TIF District 1-16 (Gardenworld) would conform to the
Comprehensive Plan by adding jobs and continuing to maintain and revitalize an existing industrial
area. Staff therefore recommends that the Planning Commission adopt the attached resolution
finding that the district is in conformance with the City of Cottage Grove Future Vision 2030
Comprehensive Plan.
Prepared by:
Robin Roland
Finance Director
Attachments:
— Map of Proposed District
— TIF Plan
CITY OF COTTAGE GROVE
COUNTY OF WASHINGTON
STATE OF MINNESOTA
RESOLUTION NO. PC2015-002
RESOLUTION OF THE CITY OF COTTAGE GROVE PLANNING COMMISSION
FINDING THAT A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR
DEVELOPMENT DISTRICT NO. 1 AND A TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 1-16 (GARDENWORLD)
CONFORM TO THE GENERAL PLANS FOR THE DEVELOPMENT AND
REDEVELOPMENT OF THE CITY
WHEREAS, the Cottage Grove Economic Development Authority (the "EDA") and
the City of Cottage Grove (the "City") have proposed to adopt a Modification to the
Development Program for Development District No. 1 (the "Development Program
Modification") and a Tax Increment Financing Plan for Tax Increment Financing District
No. 1-15 (the "TIF Plan") and have submitted the Program and the Plan (the Development
Program Modification and the TIF Plan are referred to collectively herein as the "Program
and Plan") to the City Planning Commission (the "Commission") pursuant to Minnesota
Statutes, Section 469.175, Subd. 3, and
WHEREAS, the Commission has reviewed the Program and Plan to determine
their conformity with the general plans for the development and redevelopment of the City
as described in the comprehensive plan for the City.
NOW, THEREFORE BE IT RESOLVED by the City of Cottage Grove Planning
Commission that the Program and Plan conform to the general plans for the development
and redevelopment of the City as a whole.
Passed this 21 st day of December 2015.
Ken Brittain, Chair
ATTEST:
Wayne Johnson, Secretary
F
As ofDeeember 14, 2015
Draft for Planning Commission
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. 1-16 Gardenworld
(an economic development district)
within
Development District No. 1
Cottage Grove Economic Development Authority
City of Cottage Grove
Washington County
State of Minnesota
Public Hearing: January 6, 2016
Adopted:
lw"d6 Prepared by: fax: Roseville,
ASSOCIATES,306 e1Minnesota 651697850065169755�hle Zinc co 5
Table of Contents
(for reference purposes only)
Section 1 - Modification to the Development Program
for Development District No. 1 ............................................. 1-1
Foreword............................................................. 1-1
Section 2 - Tax Increment Financing Plan
for Tax Increment
Financing District No. 1-16 .................................
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 and First Year of Tax Increment of the District ...........
2-3
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/Bonds to be Issued ......................
2-5
Subsection 2-10.
Uses of Funds ...........................................
2-5
Subsection 2-11.
Fiscal Disparities Election ..................................
2-6
Subsection 2-12.
Business Subsidies .......................................
2-7
Subsection 2-13.
County Road Costs .......................................
2-8
Subsection 2-14.
Estimated Impact on Other Taxing Jurisdictions .................
2-8
Subsection 2-15.
Supporting Documentation ............................ . ...
2-10
Subsection 2-16.
Definition of Tax Increment Revenues .......................
2-10
Subsection 2-17.
Modifications to the District ................................
2-10
Subsection 2-18.
Administrative Expenses ..................................
2-11
Subsection 2-19.
Limitation of Increment ...................................
2-12
Subsection 2-20.
Use of Tax Increment ....................................
2-12
Subsection 2-21.
Excess Increments ......................................
2-13
Subsection 2-22.
Requirements for Agreements with the Developer ..............
2-13
Subsection 2-23.
Assessment Agreements .................................
2-14
Subsection 2-24.
Administration of the District ...............................
2-14
Subsection 2-25.
Annual Disclosure Requirements ...........................
2-14
Subsection 2-26.
Reasonable Expectations .................................
2-14
Subsection 2-27.
Other Limitations on the Use of Tax Increment .................
2-15
Subsection 2-28.
Summary ..............................................
2-15
Appendix A
Project Description...................................................... A-1
Appendix B
Map 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
Findings Including But/For Qualifications ...................................... F-1
Section 1 - 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 establishment of Tax
Increment Financing District No. 1-16 (Gardenworld).
For further information, a review of the Development Program for Development District No. 1, adopted
January 7, 1985, is recoimnended. 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.
Cottage Grove Economic Development Authority
Modification to the Development Program for Development District No. 1 1-1
Section 2 - Tax Increment Financing Plan
for Tax Increment Financing District No. 1-16 (Gardenworld)
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. 1-16 Gardenworld (the "District"), an economic development 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
redevelopmentto occur. To this end, the EDA and City have certain statutory powers pursuant to Minnesota
Statutes ("M.S.'9, Sections 469.090 to 469.1082, inclusive, as amended, and M.S., Sections 469.174 to
469.1794, 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 "TIF Plan") for the District. 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 one parcel of land and adjacent and internal rights-of-way. The District is
being created to facilitate the construction of an approximately 40,000 square foot warehouse, 6,000 square
foot office space, and 43,560 square foot greenhouse in the City. Please see Appendix A for further District
information. The EDA will be entering into an agreement with Gardenworld and development is likely to
occur in 2016. This TIF 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 TIF 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. 1 and the District.
Subsection 2-4. Development Program Overview
1. Property to be Acquired -Selected property located within the District maybe acquired by
the EDA and is further described in this TIF 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 may sell to a developer selected properties that it may acquire
within the District or may lease land or facilities to a developer.
4. The EDA may perform or provide for some or all necessary acquisition, construction,
relocation, demolition, and required utilities and public street work within the District.
5. The City proposes both public and private infrastructure within the District. The proposed
Cottage Grove Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 1-16 (Gardenworld) 2-1
reuse of private property within the District will be for a manufacturing and warehouse
facility, and there will be continued operation ofDevelopment District No. I after the capital
improvements within Development District No. 1 have been completed.
Subsection 2-6. Description of Property in the District and Property To Be Acquired
The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the
parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information
on the location of the District.
The EDA 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 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. The EDA may acquire property by gift, dedication, condemnation or direct purchase
from willing sellers in order to achieve the objectives of this TIF 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 469.1794, as amended, inclusive, find that the District, to be established, is an
economic development district pursuant to MS., Section 469.174, Subd 12 as defined below:
"Economic development district" means a type of tax increment financing district which consists ofany
project, or portions of a project, which the authority finds to be in the public interest because:
(1) it will discourage commerce, industry, or manufacturingfr•om 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 preservalion and enhancement of the tax base of the state.
The District is in the public interest because it will meet the statutory requirement from clause 3.
Pursuant to MS., Section 469.176, Subd. 4c, 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; or
(5) Tourism facilities;
(6) Space necessary for and related to the activities listed in items (1) to (5)
In meeting the statutory criteria the EDA and City rely on the following facts and findings:
Cottage Grove Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 1-16 (Gurdenworld) 2-2
The facilities in the District meet the conditions of Purposes 1, 2, and 6.
The District is being created to assist in the construction of a manufacturing (green house) and warehouse
facility for Gardenworld. The proposed facility will be used for manufacturing and warehousing items for
their landscape and household plant nursery business and related activities.
Pursuant to MS. 469.176, Subd. 7(a), the EDA and City may request inclusion in the 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 AIS. Sections 273.111, 273.112, or 273.114 or Chapter 473Hfor taxes payable in any of the
five calendar years before filing of the request for certification only for:
(1) a district in which 85 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) ahousing district.
(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:
(i) to store or warehouse tangible personal property;
(ii) to take orders for shipments, mailing, or delivery;
(iii) to prepare personal property for shipment, mailing, or delivery; and
(iv) to ship, mail, or deliver property.
(2) A manufacturing facility includes space used for manufacturing or producing tangible personal
property, including processing resulting in the change of 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 amanufacturing 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.
The District does contain a portion of a parcel that qualified ruder the provisions of M.S. Sections 273.111„
273.112, or 273.114 or Chapter 473Hfor taxes payable in any of the five calendar years before the filing of
the request for certification of the District. The facility assisted by the District is a manufacturing facility and
the developer has agreed 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. Duration and First Year of Tax Increment of the District
Pursuant to M.S., Section 469.175, Subd. 1, andMS., Section 469.176, Subd. ],the duration of the District
must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b., the duration of the
District will be 8 years after receipt of the first increment by the EDA. The date of receipt by the EDA of the
first tax increment is expected to be 2018. Thus, it is estimated that the District, including any modifications
of the TIF Plan for subsequent phases or other changes, would terminate after 2026, or when the TIF Plan
is satisfied. If increment is received in 2017, the term of the District will be 2025. The EDA reserves the right
to decertify the District prior to the legally required date.
Cottage Grove Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 1-16 (Gardenworld) 2-3
Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity
Value/Increment and Notification of Prior Planned Improvements
Pursuant to MS., Section 469.174, Subd. 7andMS, Section 469.177, Subd. ],the Original Net Tax Capacity
(ONTO) as certified for the District will be based on the market values placed on the property by the assessor
in 2015 for taxes payable 2016.
Pursuant to MS., Section 469.177, Subds. I and 2, the County Auditor shall certify in each year (beginning
in the payment year 2018) the amount by which the original value has increased or decreased as a result of:
1. Change in tax exempt status of property;
2. Reduction or enlargement of the geographic boundaries of the district;
3. Change due to adjustments, negotiated or court-ordered abatements;
4. Change in the use of the property and classification;
5. Change in state law governing class rates; or
6. Change in previously issued building permits.
In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no
value will be captured and no tax increment will be payable to the EDA.
The original local tax rate for the District will be the local tax rate for taxes payable 2016, assuming the
request for certification is made before June 30, 2016. The ONTC and the Original Local Tax Rate for the
District appear in the table below.
Pursuant to MS., Section 469.174 Subd 4 and M.S., Section 469.177, SUM 1, 2, and 4, the estimated
Captured Net Tax Capacity (CTC) of the District, within Development District No. 1, upon completion of
the projects within the District, will amorally approximate tax increment revenues as shown in the table
below. The EDA requests 100 percent ofthe available increase in tax capacity for repayment of its obligations
and current expenditures, beginning in the tax year payable 2018. The Project Tax Capacity (PTC) listed is
an estimate of values when the projects within the District are completed.
Project Estimated Tax Capacity upon Completion (PTC)
$92,314
Original Estimated Net Tax Capacity (ONTO)
$4,650
Fiscal Disparities Contribution
$30,902
Estimated Captured Tax Capacity (CTC)
$56,762
Original Local Tax Rate
1.12327 Pay 2015
Estimated Annual Tax Increment (CTC x Local Tax Rate)
$63,760
Percent Retained by the EDA
100%
Tax capacity includes a 3% inflation factor for the duration of the District. The tax ca city included in this
chart is the estimated tax capacity of the District in year 9. The tax capacity of the llistrret in year one is
estimated to be $46,450.
Pursuant to M.S., Section 469.177, Subd. 4, the EDA shall, after a due and diligent search, accompany its
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
Cottage Grove Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 1-16 (Gardemvorld) 2-4
TIF Plan by the municipality pursuant to MS., 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 City has reviewed the area to be included in the District and found no parcels for which building
permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the
City.
Subsection 2-9. Sources of Revenue/Bonds to be Issued
The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax
increments. The EDA reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As
presently proposed, the projects within the District will be financed by a either a bond issue, pay-as-you-go
note or interfund loan/transfer. Any refunding amounts will be deemed a budgeted cost without a formal TIF
Plan Modification. This provision does not obligate the EDA to incur debt. The EDA will issue bonds or
incur other debt only upon the determination that such action is in the best interest of the EDA.
The total estimated tax increment revenues for the District are shown in the table below
SOURCES OF FUNDS
TOTAL
Tax Increment
$487,033
Interest
$48,703
TOTAL
$535,736
The EDA may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from
the District in a maximum principal amount of $436,247. Such bonds may be in the form of pay-as-you-go
notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded
indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval.
Subsection 2-10. Uses of Funds
Currently under consideration for the District is a proposal to facilitate the construction of an approximately
40,000 square foot warehouse, 6,000 square foot office space, and 43,560 square foot greenhouse in the City.
The EDA has determined that it will be necessary to provide assistance to the project(s) for certain District
costs, as described. 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 TIF 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 table on the
following page.
Cottage Grove Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 1-16 (Gardenworld) 2-5
USES OF TAX INCREMENT FUNDS
TOTAL
Land/Building Acquisition
$50,000
Site hnprovements/Preparation
$200,000
Utilities
$80,000
Other Qualifying Improvements
$57,544
Administrative Costs (up to 10%)
$48,703
PROJECT COST TOTAL
$436,247
Interest
12M489
PROJECT AND INTEREST COSTS TOTAL
$535,736
The total project cost, including financing costs (interest) listed in the table above does not exceed the total
projected tax increments for the District as shown in Subsection 2-9.
Estimated capital and administrative costs listed above are subject to change among categories by
modification of the TIF Plan without hearings and notices as required for approval of the initial TIF Plan, so
long as the total capital and administrative costs combined do not exceed the total listed above. Further, the
EDA may spend up to 20 percent of the tax increments from the District for activities (described in the table
above) located outside the boundaries of the District but within the boundaries of the Project (including
administrative costs, which are considered to be spend outside the District), subject to all other terms and
conditions of this TIF Plan.
Subsection 2-11. Fiscal Disparities Election
Pursuant to MS., Section 469.177, Subd. 3, the EDA may elect one of two methods to calculate fiscal
disparities. If the calculations pursuant to M.S., Section 469.177, Subd. 3, clause b, (within the District) are
followed, the following method of computation shall apply:
(1) The original net lax capacity shall be determined before the application of the fiscal disparity
provisions of Chapter 276,1 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 MS.; Section
276,1.06, subdivision 7 or M.S., Section 473F.08, subdivision 6. Where the original net tax
capacity is equal to orgreaterlhan the current net tax capacity, there is no captured tax capacity
and no tax increment determination. Where the original tax capacity is less than 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 anyportion thereofwhich the authority has
designated, in its tax increment financing plan, to share with the local taxing districts is tine
retained captured net tax capacity of the authority.
(2) The county auditor shall exclude the retained captured net tax capacity ofthe authorityfrom the
net tax capacity ofthe 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
ofthe authority as well as the net tax capacity ofthe local taxing districts. The tax generated by
Cottage Grove Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 1-16 (Gardemvorld) 2-6
the extension ofthe less of (A) the local taxing district tax rates or (B) the original local tax rale
to the retained captured net tax capacity of the authority is the tax increment of the authority.
The RDA will choose to calculate fiscal disparities by clause b.
According to M.S., Section 469.177, Subd 3:
(c) The method ofcornputation oftax increment applied to a distrietpursuant to paragraph (a) or
(b) shall remain the saine,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 2-12. Business Subsidies
Pursuant to MS., Section 116.1.993, Subd. 3, the following forms of financial assistance are not considered
a business subsidy:
(1) A business subsidy of less than $150,000;
(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 inMS., Section 116J.552, Subd 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;
(8) Assistance for pollution control or abatement, including assistance for a tax increment financing
hazardous substance subdistrict as defined under M.S., Section 469.174, Subd. 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 MS., Section
469.174, Subd. 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;
Cottage Grove Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 1-16 (Gardcmvorld) 2-7
(21) Business loans and loan guarantees of $150,000 or less;
(22) Federal loan funds provided through the United States Department of Commerce, Economic
Development Administration; and
(23) Property tax abatements granted under MS,, Section 469.1813 to property that is subject to
valuation under Minnesota Rules, chapter 8100.
The EDA will comply with M.S., Sections 116J.993 to 1161.995 to the extent the tax increment assistance
under this TIF Plan does not fall under any of the above exemptions.
Subsection 2-13. County Road Costs
Pursuant to M.S., Section 469.175, Subd. _1a, the county board may require the EDA 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 judgment 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.
If the county elects to use increments to improve county roads, it must notify the EDA within forty-five days
of receipt of this TIF Plan. In the opinion of the EDA and consultants, the proposed development outlined
in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan was not forwarded to
the county 45 days prior to the public hearing. The EDA is aware that the county could claim that tax
increment should be used for county roads, even after the public hearing.
Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions
The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF
Plan would occur without the creation of the District. However, the EDA 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
follows if the "but for" test was not met:
IMPACT ON TAX BASE
Preliminary
Estimated Captured
2015/Pay 2016
Tax Capacity (CTC)
Total Net
Upon Completion
Tax Capacity
Washington County 279,157,332
56,762
City of Cottage Grove 28,000,985
56,762
ISD No. 833 93,984,883
56,762
Cottage Grove Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 1-16 (Gardenworld)
Percent of CTC
to Entity Total
0.0203%
0.2027%
0.0604%
2-a
The estimates listed above display the captured tax capacity when all construction is completed. The tax rate
used for calculations is the actual Pay 2015 rate. The total net capacity for the entities listed above are based
on actual Pay 2015 figures. The District will be certified under the actual Pay 2016 rates and figures, which
were unavailable at the time this TIF Plan was prepared.
Pursuant to MS. Section 469.175 Subd. 2(b):
(1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be
generated over the life of the District is $487,033;
(2) Probable impact of the District on city provided services and ability to issue debt. An impact of the
District on police protection is not expected. The City police department does track all calls for
service including property -type calls and crimes. With any addition of new residents or businesses,
police calls for service will be increased. New developments add an increase in traffic, and additional
overall demands to the call load. The City does not expect that the proposed development, in and of
itself, will necessitate new capital investment.
The probable impact ofthe District on fire protection is not expected to be significant. Typically new
buildings generate few calls, if any, and are of superior construction.
The impact of the District on public infrastructure is expected to be minimal. The development is
not expected to significantly impact any traffic movements in the area. The current infrastructure for
sanitary sewer, storm sewer and water will be able to handle the additional volume generated from
the proposed development. Based on the development plans, there are no additional costs associated
with street maintenance, sweeping, plowing, lighting and sidewalks. The development in the District
is expected to contribute an as yet undetermined amount in sanitary sewer (SAC) and water (WAC)
connection fees.
The probable impact of any District general obligation tax increment bonds on the ability to issue
debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any
general obligation debt issued in relation to this project, therefore there will be no impact on the
City's ability to issue future debt or on the City's debt limit.
(3) Estimated amount of tax increment attributable to school district levies. It is estimated that the
amount of tax increments over the life of the District that would be attributable to school district
levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions
remained the same, is $154,682;
Cottage Grove Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 1-16 (Gardenworld) 2-9
IMPACT ON TAX RATES
Pay 2015
Percent
Potential
Extension Rates
of Total
CTC
Taxes
Washington County
0.301857
26.87%
56,762
17,134
City of Cottage Grove
0.415914
37.03%
56,762
23,608
ISD No. 833
0.356750
31.76%
56,762
20,250
Other
0.048758
4.34%
56,762
22,768
Total
1.123278
100.00%
63,760
The estimates listed above display the captured tax capacity when all construction is completed. The tax rate
used for calculations is the actual Pay 2015 rate. The total net capacity for the entities listed above are based
on actual Pay 2015 figures. The District will be certified under the actual Pay 2016 rates and figures, which
were unavailable at the time this TIF Plan was prepared.
Pursuant to MS. Section 469.175 Subd. 2(b):
(1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be
generated over the life of the District is $487,033;
(2) Probable impact of the District on city provided services and ability to issue debt. An impact of the
District on police protection is not expected. The City police department does track all calls for
service including property -type calls and crimes. With any addition of new residents or businesses,
police calls for service will be increased. New developments add an increase in traffic, and additional
overall demands to the call load. The City does not expect that the proposed development, in and of
itself, will necessitate new capital investment.
The probable impact ofthe District on fire protection is not expected to be significant. Typically new
buildings generate few calls, if any, and are of superior construction.
The impact of the District on public infrastructure is expected to be minimal. The development is
not expected to significantly impact any traffic movements in the area. The current infrastructure for
sanitary sewer, storm sewer and water will be able to handle the additional volume generated from
the proposed development. Based on the development plans, there are no additional costs associated
with street maintenance, sweeping, plowing, lighting and sidewalks. The development in the District
is expected to contribute an as yet undetermined amount in sanitary sewer (SAC) and water (WAC)
connection fees.
The probable impact of any District general obligation tax increment bonds on the ability to issue
debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any
general obligation debt issued in relation to this project, therefore there will be no impact on the
City's ability to issue future debt or on the City's debt limit.
(3) Estimated amount of tax increment attributable to school district levies. It is estimated that the
amount of tax increments over the life of the District that would be attributable to school district
levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions
remained the same, is $154,682;
Cottage Grove Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 1-16 (Gardenworld) 2-9
(4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of
tax increments over the life of the District that would be attributable to county levies, assuming the
county's share of the total local tax rate for all taxing jurisdictions remained the same, is $130,866;
(5) Additional information requested by the county or school district. The City is not aware of any
standard questions in a county or school district written policy regarding tax increment districts and
impact on county or school district services. The county or school district must request additional
information pursuant to M.S. Section 469.175 Subd 2(b) within 15 days after receipt of the tax
increment financing plan.
No requests for additional information from the county or school district regarding the proposed
development for the District have been received.
Subsection 2-15. Supporting Documentation
Pursuant to M.S. Section 469.175, Subd. I (cr), clause 7 the TIF 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 (b)(2) and the findings are required in the resolution approving the District. Following is a list of
reports and studies on file at the City that support the EDA and City's findings:
• A list of applicable studies will be listed here prior to the public hearing.
Subsection 2-16. 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 MS.,
Section 469.177;
2. The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was
purchased by the authority with tax increments;
3. Principal and interest received on loans or other advances made by the authority with tax increments;
4. Interest or other investment earnings on or from tax increments;
5. Repayments or return of tax increments made to the Authority under agreements for districts for
which the request for certification was made after August 1, 1993; and
6. The market value homestead credit paid to the Authority under M.S., Section 273.1384.
Subsection 2-17. Modifications to the District
In accordance with MS, Section 469.175, Subd. 4, any:
1. Reduction or enlargement of the geographic area of the District, if the reduction does not meet the
requirements of M.S., Section 469.175, Subd 4(e);
2. Increase in amount of bonded indebtedness to be incurred;
3. A determination to capitalize interest on debt if that determination was not a part of the original TIF
Plan;
4. Increase in the portion of the captured net tax capacity to be retained by the EDA;
5. Increase in the estimate ofthe cost of the District, including administrative expenses, that will be paid
or financed with tax increment from the District; or
6. Designation of additional property to be acquired by the EDA,
Cottage Grove Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 1-16 (Gardemvorld) 2-10
shall be approved upon the notice and after the discussion, public hearing and findings required for approval
of the original TIF Plan.
Pursuant to MS., Section 469.175 Subd. 4(), 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 an economic development 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 12 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 the District and (2) (A) the current net tax capacity of the
parcel(s) eliminated from the District equals or exceeds the nettax capacity of those parcel(s) in the District's
original net tax capacity or (B) the EDA agrees that, notwithstanding MS., 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 the District.
The EDA must notify the County Auditor of any modification to the District. Modifications to the District
in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan.
Subsection 2-18. Administrative Expenses
In accordance with MS., Section 469.174 Subd. 14, administrative expenses means all expenditures of the
EDA, other than:
1. Amounts paid for the purchase of land;
2. Amounts paid to contractors or others providing materials and services, including architectural and
engineering services, directly connected with the physical development of the real property in the
District;
3. Relocation benefits paid to or services provided for persons residing or businesses located in the
District;
4. Amounts used to pay principal or interest on, fiend a reserve for, or sell at a discount bonds issued
pursuant to MS., Section 469.178; or
5. Amounts used to pay other financial obligations to the extent those obligations were used to finance
costs described in clauses (1) to (3).
For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982,
and before August 1, 2001, administrative expenses also include amounts paid for services provided by bond
counsel, fiscal consultants, and planning or economic development consultants. Pursuant to MS., Section
469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative
expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures
authorized by the TIF Plan or the total tax increments, as defined by M.S., Section 469.174, Subd. 25, clause
(1), from the District, whichever is less.
For districts for which certification was requested after July 31, 2001, no tax increment may be used to pay
any administrative expenses for District costs which exceed ten percent of total estimated tax increment
expenditures authorized by the TIF Plan or the total tax increments, as defined in M.S., Section 469.174, Subd.
25, clause (1), from the District, 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 and are not subject to the percentage limits
of M.S., Section 469.176, Subd. 3. The county may require payment of those expenses by February 15 of the
year following the year the expenses were incurred.
Cottage Grove Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 1-16 (Gardenworld) 2-11
Pursuant to MS., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36
percent) of any increment distributed to the EDA and the County Treasurer shall pay the amount deducted
to the State Commissioner of Management and Budget 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. This amount maybe adjusted annually
by the Commissioner of Revenue.
Subsection 2-19. Limitation of Increment
The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District
maybe 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./bur years from the dale of cerlifcalion of the original net tax capacity of the lax
incre»rerit.frrrancingdistr•ictpurszmnttoM.S., Section 469.177, no demolition, rehabilitation
or renovation ofproper•ly or other site preparation, including qualified improvement of
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 incrementfinancing district
by the authority or by the owner ofthe 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 lax
increment financing district. If the authority or the owner of the parcel subsequently
commences demolition, rehabilitation or renovation or other sitepreparation on thatpareel
including qualified improvement ofa street adjacenl to thatparcel, in accordance with tlae
tax increnrentfrnancingplan, the authorhyshall certi, to the county auditor that the activity
has commenced and the county auditor shall certi� the net tax capacity thereof as most
recently certified by the commissioner ofrevenue and add it to the original net tax capacity
of?Ire tux incr•ementf nancing district The county auditor must enforce the provisions of this
subdivision. The authority must submit to the county auditor evidence that tlae required
activity has taken place for each parcel in the district. The evidence for a parcel must be
submitted by February I of the fifh year following the year in which the parcel ivas 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 neiv street, (2) relocation of a street,
and (3) substantial reconstruction or rebuilding ofan existing street,
The EDA or a property owner must improve parcels within the District by approximately January 2020 and
report such actions to the County Auditor.
Subsection 2-20. Use of Tax Increment
The EDA hereby determines that it will use 100 percent of the captured net tax capacity of taxable property
located in the District for the following proposes:
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. 1 Pursuant
to M.S., Sections 469.090 to 469.1082;
3. To pay for project costs as identified in the budget set forth in the TIF Plan;
Cottage Grove Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 1-16 (Gardenworld) 2-12
4. To finance, or otherwise pay for other purposes as provided in MS., Section 469.176, Subd. 4;
5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the
EDA or 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 TIF Plan or pursuant to
M.S., Chapter 462C. MS., 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 MS., Chapter 462C, M.S., Sections 469.152
through 469.165, and/orMS, 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.
Tax increments generated in the District will be paid by Washington County to the EDA for the Tax
Increment Fund of said District. The EDA will pay to the developer(s) annually an amount not to exceed an
amount as specified in a developer's agreement to reimburse the costs of land acquisition, public
improvements, demolition and relocation, site preparation, and administration. Remaining increment funds
will be used for EDA administration (up to 10 percent) and for the costs of public improvement activities
outside the District.
Subsection 2-21. Excess Increments
Excess increments, as defined in M.S., Section 469.176, Subd. 2, shall be used only to do one or more of the
following:
1. Prepay any outstanding bonds;
2. Discharge the pledge of tax increment for any outstanding bonds;
3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or
4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in
proportion to their local tax rates.
The EDA must spend or return the excess increments under paragraph (c) within nine months after the end
of the year. In addition, the EDA may, subject to the limitations set forth herein, choose to modify the TIF
Plan in order to finance additional public costs in Development District No. 1 or the District.
Subsection 2-22. Requirements for Agreements with the Developer
The EDA 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 to demonstrate the conformance of the
development with City plans and ordinances. The 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 the District as set forth in the TIF Plan shall at any time be owned by the EDA as a result of
acquisition with the proceeds of bonds issued pursuant to MS., Section 469.178 to which tax increments from
property acquired is pledged, unless prior to acquisition in excess of 10 percent of the acreage, the EDA
concluded an agreement for the development of the property acquired and which provides recourse for the
Cottage Grove Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 1-16 (Gardemvorld) 2-13
EDA should the development not be completed.
Subsection 2-23. Assessment Agreements
Pursuant to M.S., Section 469.177, Subd. 8, the EDA may enter into a written assessment agreement in
recordable form with the developer of property within the District which establishes a minimum marketvalue
of the land and completed improvements for the duration of the District. The assessment agreement shall be
presented to the County 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 County Assessor shall also certify the minimum
market value agreement.
Subsection 2-24. Administration of the District
Administration of the District will be handled by the EDA Executive Director
Subsection 2-25. Annual Disclosure Requirements
Pursuant to M.S., Section 469.175, Subds. 5, 6, and 6b the EDA must undertake financial reporting for all tax
increment financing districts to the Office of the State Auditor, County Board and County Auditor on or
before August 1 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.
If the City fails to make a disclosure or submit a report containing the information required by MS., Section
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 2-26. Reasonable Expectations
As required by the TIF 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 marketvalue ofthe 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 TIF Plan. In making said determination,
reliance has been placed upon written representation made by the developer to such effects and upon EDA
and City staff awareness of the feasibility of developing the project site(s) within the District. 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.
Cottage Grove Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 1-16 (Gardenworld) 2-14
Subsection 2-27. Other Limitations on the Use of Tax Increment
General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF
Plan. The revenues shall be used to finance, or otherwise pay the cost of redevelopment of the
Development District No. 1 pursuant to M.S., Sections 469.090 to 469.1082. Tax increments may not be
used to circumvent existing levy limit law. No tax increment may 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 does not prohibit the use of revenues derived from tax
increments for the construction or renovation of a parking structure.
2. Pooling Limitations. At least 80 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 20 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 80 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, 80 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.
Subsection 2-28. Summary
The Cottage Grove Economic Development Authority is establishingthe Districtto preserve and enhance the
tax base, and provide employment opportunities in the City. The TIF Plan for the District was prepared by
Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, telephone (651) 697-
8500.
Cottage Grove Economic Development Authority
Tax Increment Financing Plan for Tax Increment Financing District No. 1-16 (Gardemvorld) 2-15
Appendix A
Project Description
Gardenworld intends to acquire 9 acres of land in order to construct an approximately 40,000 square foot
warehouse, 6,000 square foot office and a 45,360 square foot greenhouse in the City.
Appendix A-1
Appendix B
Map of Development District No. 1 and the District
Appendix B-1
Appendix C
Description of Property to be Included in the District
The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the
parcel listed below.
Parcel Numbers Address Owner
20.027.21.44.0005 Wag Farms Inc Etal
Appendix C-1
Appendix D
Estimated Cash Flow for the District
Appendix D-1
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Appendix E
Minnesota Business Assistance Form
(Minnesota Department of Employment and Economic Development)
A Minnesota Business Assistance Form (MBAF) should be used to report and/or update each calendar year's
activity by April 1 of the following year.
Please see the Minnesota Department of Employment and Economic Development (DEF D) website at
hftp://www.deed.state.mn.us/Community/subsidies/MBAFForm.htm for information and forms.
Appendix E-1
Appendix F
Findings Including But/For Qualifications
To be added prior to the public hearing
But -For Analysis
Current Market Value 270,014
New Market Value - Estimate 3,720,800
Difference 3,450,786
Present Value of Tax Increment 377,850
Difference 3,072,936
Value Likely to Occur Without TIF is Less Than: 3,072,936
Appendix F-1