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HomeMy WebLinkAbout7A - Lakefront Plaza TIF Distri CITY COUNCIL AGENDA REPORT JUNE 4, 2001 7A DONALD RYE, PLANNING DIRECTOR AGENDA ITEM: PUBLIC HEARING TO CONSIDER APPROV AL OF RESOLUTION MODIFICATING DEVELOPMENT DISTRICT 1 AND ESTABLISHINGOF TAX INCREMENT FINANCING DISTRICT 1-3 (LAKE FRONT PLAZA) DISCUSSION: History On February 27, 2001, the Council adopted a resolution approving in concept the use of tax increment financing (TIF) to assist in the development of a mixed-use senior housing and retail facility in the Downtown. The project, called Lakefront Plaza, will contain 73 condominium units for seniors 55 years of age and older and 12,000 square feet of retail. In addition, significant street and utility reconstruction is contemplated in the Downtown area. On April 16, 2001, the Council ordered the preparation of a TIF Plan and set a public hearing date of June 4th on the Plan. The public hearing is required by statute before a TIF Plan can be adopted and a TIF District created. The County and school district have received a notice of the hearing and a copy of the TIF Plan pursuant to state statutes. Discussion It is necessary to expand the area of Development District 1 in order to allow for the expenditure of TIF revenues outside the TIF District for street and utility reconstruction. TIF District 1-3, which will be established as a result, consists of three parcels on Block 9, Original Townsite, having an area of approximately 77,000 square feet. These parcels will be combined into one parcel for development purposes. The applicants have estimated the total cost of the project to be $12,146,058. The TIF Plan has assumed an arumal increment of $151,662. The applicants have requested assistance totaling $950,000 that will be used to assist in property acquisition, site clearance and preparation and installation of utilities. The TIF Plan also provides for City retention of 20% of the increment to be generated by the project that will be used to assist in the cost of street and utility reconstruction in the Downtown area. This will generate $606,64 7 for City use. The Plan also contemplates a local contribution of $151 ,662 over the life of 162&(1lff~~~~~~..@!-E., Prior Lake, Minnesota !>5372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER 11J!" --'~'---",.. ISSUES: ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: L:\O lfiles\O leda\cc06040 I.doc At the Planning Commission meeting on May 29, the Commission adopted a resolution as required by statute stating that the TIP Plan was consistent with redevelopment plans of the City as a whole. The primary concern with this project is the possible effect of pending legislation at the State level on this TIP Plan and TIP projects in general. The attached e-mail from the Economic Development Association of Minnesota foresees a drastic reduction of TJF capability as a result of the elimination of the school tax base brought about by the State's assumption of school financing and continued tax rate compression. The message indicates that the TJF base will be reduced 30 to 50%. In the proposed TJF Plan, the school portion of the taxes collected for the increment total $73,698 out of a total annual increment of$151,662. Modifications to the TIP Plan can be made in the future without a new public hearing if the changes involve a reallocation of funds between specific line items. A new hearing would be required if the total dollar amount were increased. Because of the uncertainty surrounding this issue, the City's TIP consultant, Ehlers and Associates, has recommended that the City conduct the TIP hearing but take no .action at this time to establish a TJF district. Conclusion Adoption of the proposed TJF Plan for the Lakefront Plaza project should be delayed until such time as State legislation has been adopted and a clear picture of the implications of such legislation is available. 1. Conduct the public hearing and continue the hearing until June 18, 2001 to allow for the adoption of state legislation that allows a definitive analysis of the project. 2. Direct staff to prepare the necessary resolutions for adoption of the TIF Plan for Lakefront Plaza. 3. Conduct the public hearing and determine that TIP District 1-3 should not be established. Alternative 1. Motion to continue the public hearing until June 18, 2001 2 Don Rye From: Sent: To: Subject: kathy .hahne@leonard.com Thursday, May 24,200110:13 AM drye@cityofPriorLake.com Tax Reform Impact on TIF This message is from the EDAM Bulk Emailer. It was sent to all EDAM Members. Dear Donald: The Senate and House Tax conferees continue to work as the Tax "working group" to finalize the Omnibus Tax Bill for approval by the yet to be called Special Session. While there are still many differences to be resolved between the House and Senate bills, the conferees have agreed to the Governor's proposal to shift the education levy to the state. This shift of the entire education levy off of the property tax eliminates about $900 million per year of property tax revenues statewide and will substantially reduce the property tax base for TIF purposes. The ultimate total impact will depend upon how much class rate compression the conferees finally agree upon. It is generally expected that TIF districts will see a reduction of 30 - 50% in their TIF base. I am working with municipal lobbyists and other stakeholders to discuss how best to fund anticipated TIF revenue shortfalls. The House bill requires municipalities to first pool TIF revenues from districts with surplus revenues to districts with shortfalls in order to cover those shortfalls. Then the municipality must form a Special Taxing District in TIF districts as a mechanism whereby taxpayers in TIF districts will be required to continue paying their ell (or whatever type of tax) at current law rates, rather than receive the benefit of the new reduced ell rate. Then if there is still a shortfall, the municipality may apply to DOR for a TlF grant. Tax staff understands that if there are tax-exempt TIF bonds outstanding, the Special Taxing district would probably make these bonds taxable, and supports eliminating this requirement in those situations. I have argued that these Special Taxing Districts are bad policy since they will create two classes of property tax payers - those in TIF districts (unless tax-exempt bonds were issued )will continue paying current property taxes and their competitors will pay the new lower tax rates. Often these businesses in TIF districts did not receive a direct benefit from TIF, if the use of funds was for such activities as brownfield clean-up, or blight removal. Any other suggested arguments or examples you have that I can use - or your general comments - would be helpful. Other issues under discussion - pay-as-you-go districts are generally viewed as not being eligible for TIF grants or other assistance in the event of a shortfall. Your thoughts? There are many projects "in the pipeline" at this time. Rep. Abrams generally feels that a project must have a signed development agreement (probably as of this June l)in order to be eligible for whatever assistance is ultimately provided to TlF districts that experience a debt service shortfall. Does this work or are there projects that don't have development agreements yet in place but should be considered? I am meeting with tax staff on Tuesday AM. Please provide me with your comments in the next few days. Thank you. 1 r City of Prior lake Tax Increment Financing District No. 1-3 Proposed Action: I. Modify the Development Program for Development District No. I by expanding the boundaries as shown below. 2. Establish Tax Increment Financing District No. 1-3, and adopt its tax increment financing plan. Type of TIF District: Parcel Numbers: A resolution taking these actions and making the required statutory findings will be presented to the City Council for consideration at a meeting after the public hearing Redevelopment District Lots 1-4 and 7-12 in Block 9 of the Original Town Subdivision consisting of the following parcels: 25-001062-0 25-001067-0 25-001063-0 25-001068-0 25-00 I 066-0 25-001069-0 25-001070-0 Location: City of Prior Lake Municipal Development District No. FiOt< / nr Proposed development: The development proposed in the District would result in approximately 78 housing units intended for occupancy by senior citizens and approximately 12,000 square feet ofretail uses (the Lakefront Plaza Project). +) EHLERS & ASSOCIATES INC 3060 Centre Pointe Drive Roseville, MN 55113-1105 651.697.8506 fax 651.697.8506 www.ehlers-inc.com Estimated annual tax increment: Project Costs: Fom1 of Financing: Maximum Duration: LGAlHACA penalty: 3 Year Activity Rule I r Summary- TIF District No. 1-3 $151,662 This estimate is based on the current property tax system. It is likely that the outcomes of the 2001 Legislative Session will change the amount of tax increment. The TIF Plan contains the following project budget (maximums only). Land/Building Acquisition .......................................................... $200,000 Site Improvements/Preparation ........................... ........ ................ $400,000 Public Utilities ..... ... ..... ................................... ...................... ....... $350,000 Parking Facilities .................... ..... ................... ................. .............. ......... $0 Streets and Sidewalks .... ........... ..................... .............. ................ $500,000 Other Public Improvements ......................................................... $100,000 Loan Interest (pay-as-you-go note) ........................................... $1,450,000 Administrative Costs (up to 10%) ................................................. $70,000 PROJECT COST TOTAL ................................................. $3,070,000 Interfund Loans/Transfers..................... ................................. .......... $65,000 TOTAL FINANCING & PROJECT COSTS ................... $3,135,000 As presently proposed, the project will be financed by a pay-as-you-go notelinterfund loan/transfer. Additional indebtedness may be required to finance other authorized activities. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The City may also finance the activities to be undertaken pursuant to the Plan through loans from funds of the City or to reimburse the developer on a Apay-as-you-go@ basis for eligible costs paid for by a developer. The duration of the District will be 25 years afterreceipt ofthe first increment (a total of26 years). The date of receipt of the first tax increment is expected to be 2003. Thus, it is estimated that the District, including any modifications of the Plan for subsequent phases or other changes, would terminate after 2028 or when the Plan is satisfied. If increment is received in 2002 due to inflation, the term of the District will be 2027. The City elects to make the annual local contribution to the project to exempt itself from the LGA-HACA penalty. Contribution for a redevelopment district is 5% of annual tax increment. The contribution can be made annually or in larger contribution throughout the life of the district. At least one ofthe following activities must take place in the District within 3 years from the date of certification: . bonds have been issued . the authority has acquired property within the district . the authority has constructed or caused to be constructed p improvements within the district The estimated date whereby this activity must take place is June, 2004. 2 4 Year Knockdown Provision 5 Year Rule Summary - T1F District No. 1-3 If after four years from the date of certification of the District one of the following activities must have been commenced on each parcel in the District: . demolition . rehabilitation . renovation . other site preparation (not including utility services such as sewer water) If the activity has not been started by the approximately June, 2005, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. Within 5 years of certification revenues derived from tax increments must be expended or obligated to be expended. Tax increments are considered to have been expended on an activity within the District if one of the following occurs: . the revenues are actually paid to a third party with respect to the acti . bonds, the proceeds of which must be used to finance the activity, issued and sold to a third party, the revenues are spent to repay the bo and the proceeds of the bonds either are reasonably expected to be s before the end of the later of (i) the five year period, or (ii) a reason temporary period within the meaning of the use of that tem1 unde 148(c)(1) ofthe Internal Revenue Code, or are deposited in a reason required reserve or replacement fund . binding contracts with a third party are entered into forperfom1ance 0 activity and the revenues are spent under the contractual obligation . costs with respect to the activity are paid and the revenues are spe reimburse a pay for payment of the costs, including interest unreimbursed costs. Any obligations in the Tax Increment District made after approximately June, 2006, will not be eligible for repayment from tax increments. 3 Draft for public hearing Modification of DEVELOPMENT PROGRAM for DEVELOPMENT DISTRICT NO.1 and TAX INCREMENT FINANCING PLAN for the establishment of TAX INCREMENT FINANCING DISTRICT NO. 1-3 (a redevelopment district) CITY OF PRIOR LAKE SCOTT COUNTY STATE OF MINNESOTA Public Hearing: June 4, 2001 Adopted: . EHLERS Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 (651) 697-8500 fax: (651) 697-8555 www.ehlers-inc.com & ASSOCIATES INC LEADERS IN PUBLIC FINANCE j .--.--.--,...-..--.---...-....---.........---...--..---...............----- . 1 Draft - Planning Commission Review SECTION I MODIFICA TlON TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.1 Foreword The creation of Tax Increment Financing District No. 1-3 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. In addition, the City proposes to expand the boundaries of the Development District as indicated in the map below. For further information, a review of the complete Development Program for Development District No.1 is recommended. It is available from the City of Prior Lake. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Development District No.1. City of Prior Lake Municipal Development District No, 1 KIB Draft - Planning Commission Review SECTION /I TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-3 Subsection 2-1. Foreword The City of Prior Lake (the "City"), City staff, and consultants have prepared the following information to expedite the establishment of Tax Increment Financing District No. 1-3 (Athe District@), a redevelopment tax increment financing district, located within Development District No.1. Subsection 2-2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the City has certain statutory powers pursuant to Minnesota Statutes ("M.S."), 469.124 through 469.134, inclusive, as amended, andM.S., Sections 469.174 through 469.179, inclusive, as amended (the ATax Increment Financing Act@ or ATIF Act@), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the ATIF Plan@) for Tax Increment Financing District No. 1-3. Other relevant information is contained in the Modification to the Development Program for Development District No.1. Subsection 2-3. Statement of Objectives The City has prepared a plan for the redevelopment property in and around the downtown area. The Downtown Plan provides a framework for guiding public and private development decisions. The development activities contemplated by the TIF Plan are consistent with the Downtown Plan. The development proposed in the District would result in approximately 78 housing units intended for occupancy by senior citizens and approximately 12,000 square feet of retail uses. The proposed development helps to achieve several development objectives, including: $ Bringing permanent residents to the Downtown area with the potential to support existing and future businesses. $ Redeveloping substandard and underutilized properties. $ Providing a catalyst for additional private investment in the Downtown area. $ Providing a catalyst for public improvements identified in the Downtown Plan. $ Increasing housing opportunities in the City. The District is being created to facilitate the redevelopment of property in the downtown area with a mix of senior housing and retail development (the Lakefront Plaza Project) in the City of Prior Lake. Contracts for this have not been entered into at the time of preparation ofthis Plan, but the date when development is likely to occur is in the Summer of 200 1. This Plan is expected to achieve many of the objectives outlined in the Development Program for Development District No.1. The activities contemplated in the Modification to the Development Program and the Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Development District No.1 and the District. City of Prior Lake Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 2-1 Drafl- Planning Commission Review Subsection 2-4. Development Program Overview Activities to be undertaken by the City to further the Development Program for Development District No. I include, but are not limited to, the following: 1. Property to be Acquired - Selected property located within the District may be acquired by the City and is further described in this Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the City may sell to a developer selected properties that they may acquire within the District or may lease land or facilities to a developer. 4. The City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public streets work within the District. Subsection 2-5. Description of Property in the District The property to be included in the District includes the following parcels and the adjacent rights-of way. These parcels occupy Lots 1-4 and 7-12 of Block 9 in the Original Town subdivision. The proposed development requires the reconfiguration of the property into a common site and single parcel. The TIP Plan is based on this action. The parcels will be replatted and combined prior to the certification of the District. 25-001062-0 25 -00 I 063-0 25 -00 1 066-0 25-001067-0 25 -001068-0 25 -001069-0 25-001070-0 City of Prior Lake Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 2-2 Draft - Planning Commission Review Subsection 2-6. Property for Acquisition The City may acquire any parcel within the Tax Increment Financing District and the Development Distrct including interi or and adj acent street rights of way. Any properties identified for acquisition will be acquired by the City only in order to accomplish one or more ofthe 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 City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 2-7. Classification of the District The City finds that the District meets the criteria for the establishment of the redevelopment district pursuant to M.S., Section 469.174, Subd. 10. The statutory criteria for a redevelopment district are as follows: (a) "Redevelopment district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists: (J) parcels consisting of 70 percent of the area in the district are occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings. not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; or (2) The property consists of vacant, unused, underused, inappropriately used, or infrequently City of Prior Lake Municipal Development District NO.1 City of Prior Lake Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 2-3 Draft - Planning Commission Review used rail yards, rail storage facilities or excessive or vacated railroad rights-of-way; or (3) tank facilities, or property whose immediately previous use was for tank facilities, as defined in Section 115 C, Subd. 15, if the tank facility: $ have or had a capacity of more than one million gallons; $ are located adjacent to rail facilities; or $ have been removed, or are unused, underused, inappropriately used or infrequently used. (b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination of deficiencies in essential utilities andfacilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or .similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. (c) A building is not structurally substandard ifit is in compliance with the building code applicable to new buildings or could be modified to satisfY the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that (l) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard... (d) A parcel is deemed to be occupied by a structurally substandard building for purposes of the finding under paragraph (a) if all of the following conditions are met: (l) the parcel was occupied by a substandard building within three years of the filing of the request for certification of the parcel as part of the district with the county auditor; (2) the substandard building was demolished or removed by the authority or the demolition or removal was financed by the authority or was done by a developer under a development agreement with the authority; (3) the authority found by resolution before the demolition or removal that the parcel was occupied by a structurally substandard building and that after demolition and clearance the authority intended to include the parcel within a district; and (4) upon filing the request for certification of the tax capacity of the parcel as part of a district, the authority notifies the county auditor that the original tax capacity of the parcel must be adjusted as provided by I 469.177, subdivision 1, paragraph (h). City of Prior Lake Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 2-4 Draft - Planning Commission Review (e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, or other improvements unless 15 percent of the area of the parcel contains improvements. (j) For districts consisting of two or more noncontiguous areas, each area must qualify as a redevelopment district under paragraph (a) to be included in the district, and the entire area of the district must satisfY paragraph (a). In meeting the statutory criteria the City relies on the following facts and findings: $ The District will consist of one parcel. $ 100% of the parcels by area are occupied by buildings, streets, utilities, or other improvements within the statutory definition. $ An inspection of the property shows that 36.34% of the area of the parcel is occupied by buildings, utilities and other improvements. These improvements exceed the 15 % minimum required by statute to determine that the parcel is occupied. $ Two buildings are located within the District. The City has undertaken investigations to determine that the buildings are structurally substandard to a degree requiring substantial renovation or clearance pursuant to the statutory criteria. A more complete explanation of the redevelopment findings are contained in Appendix D. Pursuant to 469.176 Subd. 7, the District does not contain any parcel or part ofa parcel that qualified under the provisions of Section 273.111 or 273.112 of Chapter 473H for taxes payable in any ofthe five calendar years before the filing of the request for certification of the District. Subsection 2-8. Duration of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of the District must be indicated within the Plan. Pursuant to M.S., Section 469.176, Subd. 1 b, the duration of the District will be 25 years after receipt of the first increment by the City (a total of 26 years). The date of receipt by the City of the first tax increment is expected to be 2003. Thus, it is estimated that the District, including any modifications of the Plan for subsequent phases or other changes, would terminate after 2028, or when the Plan is satisfied. If increment is received in 2002, the term of the District will be 2027. The City reserves the right to decertify the District prior to the legally required date. Subsection 2-9. Original Tax Capacity PursuanttoM.S., Section 469.174, Subd. 7 andMS., Section 469.177, Subd. 1, the Original Net Tax Capacity (aNTe) as certified for the District will be based on the market values placed on the property by the assessor in 2000 for taxes payable 2001. The TIF Plan estimates the ONTC to be $3,675. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2002) the amount by which the original value has increased or decreased as a result of: 1. change in tax exempt status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to adjustments, negotiated or court-ordered abatements; 4. change in the use of the property and classification; City of Prior Lake Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 2-5 I I Draft - Planning Commission Review 5. change in state law governing class rates; or 6. change in connection with previously issued building permits. In any year in which the current Net Tax Capacity value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the City. Subsection 2-10. Original Tax Rate The amount of tax increment is calculated by multiplying the total local tax rate (excluding market value rates) by the Captured Tax Capacity value of the District. If the current total local tax rate exceeds the Original Tax Rate (OTR), the amount of tax increment produced by the tax rate above the OTR is distributed to the taxing jurisdictions as excess tax increment. The OTR for the District will be the local tax rate for taxes payable 2001, assuming the request for certification is made before June 30, 2001. The local tax rate for taxes payable 2001 is 124.6060% City of Prior Lake Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 2-6 Draft - Planning Commission Review Subsection 2-11. Estimated Tax Increment The City estimates that the total tax capacity value of property within the District upon completion of the proposed development will be $151,662. The amount of annual tax increment revenue is shown in the table below. Project Estimated Tax Capacity upon Completion (PTC) Original Estimated Net Tax Capacity(ONTC) Estimated Captured Tax Capacity (CTC) Original Local Tax Rate (OTR) Estimated Annual Tax Increment (CTC x Local Tax Rate) Percent Retained by the City $125,388 (3,675) $121,713 124.6060% Pay 2001 $151,662 100% The City requests 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2003 The following factors will determine the actual amount of tax increment received by the City: $ Actual market value of property within the District as determined by the Assessor. $ Statutory rates for setting tax capacity values. $ Actual total local tax rate. The cash flow projections in Appendix C show the potential tax increment revenues collected by the City. Subsection 2-12. Notification of Prior Planned Improvements Pursuant to M.S., Section 469.177, Subd. 4, the City shall, after 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 Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City is reviewing the area to be included in the District to determine if any building permits have been issued during the 18 months immediately preceding approval of the Plan by the City. Subsection 2-13. Use of Tax Increment Pursuant to M.S. Section 469.176, Subd. 4j, at least 90% ofthe revenues derived from tax increments from the District must be used to finance the cost of correcting conditions that allow the redevelopment designation. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements, or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of the land, the removal of hazardous substances or remediation necessary to development of the land, and installation of utilities, roads, sidewalks, and parking facilities for City of Prior Lake Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 2-7 I r Draft - Planning Commission Review the site. Within this limitation, the City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. to pay the principal of and interest on bonds issued to finance a project; 2. to finance, or otherwise pay the public development costs of Development Distrct No.1 pursuant to theM.S. Sections 469.124 to 469.134; 3. to pay for project costs as identified in the budget set forth in the TIF Plan; 4. to finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. to pay principal and interest on any loans, advances or other payments made to or on behalf the City or for the benefit of Development District No. 1 by a developer; 6. to finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or MS., Sections 469.178; and 7. to accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, subd. 4. Tax increments generated in the District will be paid by Scott County to the City for the Tax Increment Fund of said District. The City 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 City administration (up to 10 percent) and the costs of public improvement activities. Pursuant to M.S., Section 469.1763, (1) At least 80% of the tax increment derived from the District must be expended on Public Costs incurred within said district, and up to 20% of said tax increments may be spent on Public Costs incurred outside of the District but within Development Distrct No.1; provided that in the case of a housing district, a housing project, as defined in M.S., Section 469.174, Subd. 11 is deemed to be an activity in the District, and (2) pubic costs within the District shall be limited to reimbursement of public costs paid before or within five years after certification of said district by the County Auditor and interest on all such unreimbursed expenditures. Subsection 2-14. Sources of Revenue The estimated sources of revenue for the District are contained in the table below. SOURCES OF FUNDS TOTAL $3,025,000 $0 Tax Increment Other City Funds PROJECT REVENUES Interfund Loans/Transfers $3,025,000 $110,000 $0 Bond Proceeds City of Prior Lake Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 2-8 Draft - Planning Commission Review TOTAL PROJECT AND FINANCING REVENUES $3,135,000 The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to use other sources of revenue legally applicable to the City and the TIF 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. In addition to the actual tax increment collected by the City, the TIF Act (M.S. Section 469.174, Subd. 25) places restrictions on the use of revenues derived from the following sources: X the proceeds from the sale or lease of property, tangible or intangible, purchased by the City with tax increments; X repayments of loans or other advances made by the City with tax increments; and X interest or other investment earnings on or from tax increments. Subsection 2-15. Bonded Indebtedness It is anticipated that the City will use a pay-as-you-go note to reimburse the Developer for eligible expenses and interest on the unpaid balance. The City may use an interfund loan or a transfer of funds to pay for public costs. Tax increment revenues may be used to repay an interfund loan or transfer. The City reserves the right to incur bonded indebtedness or other indebtedness as a result of the TIF Plan. The City may issue bonds to finance public improvements or other eligible costs of the TIP Plan. The amount of the bonded indebtedness may not exceed $1,000,000 without a modification to the TIP Plan pursuant to applicable statutory requirements. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. Subsection 2-16. Uses of Funds Currently under consideration for the District is a proposal to facilitate construction of senior housing. The City has determined that it will be necessary to provide financial assistance to the project. To facilitate the proposed development, 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 following table. USES OF FUNDS TOTAL Land/Building Acquisition Site Improvements/Preparation Public Utilities Parking Facilities Streets and Sidewalks Other Public Improvements $200.000 400,000 350,000 o 565,000 100,000 City of Prior Lake Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 2-9 Draft - Planning Commission Review Interest on Pay-as-you-go Note Administrative Costs (up to 10%) $1,450,000 70,000 PROJECT COSTS TOTAL $3,135,000 Interfund Loans/Transfers Loan Interest Bond Interest Bond Principal $0 o o o TOTAL FINANCING AND PROJECT COSTS $3,135,000 The above budget is organized according to the current State reporting forms. The information in Appendix A contains additional information about the project. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed the Total Project Costs in the table above without formal modification ofthis Plan pursuant to the applicable statutory requirements. Subsection 2-17. Local Contribution (State Tax Increment Financing Aid) The City elects to make the annual local contribution to the project (pursuant to M.S., Section 273.1399, Subd. 6) to exempt itselffrom the LGA-HACA penalty set forth in M.S. Section 273.1399. The District is exempt from the LGA-HACA reduction if the elects to make a qualifying local contribution at the time of approving the tax increment financing plan. To qualify for the exemption in each year, the City must make a qualifying local contribution to the project in an amount equal to five percent (5%) of the annual tax increment for the District. 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 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, 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. Such contribution may be in form of either lump sum or annual payments (in addition to tax increment payments) towards costs identified in this Plan or other costs related to that development or redevelopment. The contribution may also be made in the form of public improvements financed by the City or other unit of government with unrestricted funds. Subsection 2-18. Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, the City may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to M.S., Section 469.177, Subd. 3, clause a, (outside the District) are followed, the following method of computation shall apply: City of Prior Lake Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 2-]0 Drafl- Planning Commission Review (1) The original net tax capacity and the current net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured net tax capacity and no tax increment determination. Where the original net tax capacity is less than the current net tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2) The county auditor shall exclude the retained captured net tax capacity of the 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 lesser of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. The City shall submit to the County Auditor at the time of the request for certification which method of computation of fiscal disparities the City elected. The City will choose to calculate fiscal disparities by clause a. According to M.S., Section 469.177, Subd. 3: (c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or (b) shall remain the samefor 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 2-19. Business Subsidies Pursuant to M.S. Statutes 116J.993, Subdivision 3, assistance for housing is not considered a business subsidy. The assistance to the developer will be structured in a manner to be targeted solely at the housing or to qualify for other exemptions from a business subsidy. Subsection 2-20. County Road Costs Pursuant to M.S., Section 469.175, Subd. 1 a, the county board may require the City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgement of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. In the opinion of the City and consultants, the proposed development outlined in this IIF Plan will have little or no impact upon county roads. If the county elects to use increments to improve county roads, it must notify the City within forty-five days of receipt of this IIF Plan. City of Prior Lake Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 2-11 . 1 Draft - Planning Commission Review Subsection 2-21. 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 City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: IMPACT ON TAX BASE Scott County City of Prior Lake Prior Lake ISD No. 719 2000/2001 Total Net Tax Capacity 72,745,188 12,927,888 22,722,075 Estimated Captured Tax Capacity (CTC) Upon Completion 121,713 121,713 121,713 Percent of CTC to Entity Total 0.1673% 0.9415% 0.5357% IMPACT ON TAX RATES 2000/2001 Percent Potential Extension of Total CTC Taxes Rates Scott County 0.317110 25.45% 121,713 38,596 City of Prior Lake 0.264110 21.20% 121,713 32,146 Prior Lake ISD No. 719 0.605510 48.59% 121,713 73,698 Other 0.059330 4.76% 121,713 7,221 Total 1.246060 100.00% 151,662 The estimates listed on the previous page display the captured tax capacity when all construction is completed. The tax rate and total net tax capacities used for calculations is for taxes payable in 2001. Subsection 2-22. Modifications The City reserves the right to make future modifications to the TIF Plan and District. In accordance with the TIP Act (M.S. Section 469.175, Subd. 4) the following modifications may be made only upon the notice and after the discussion, public hearing and findings required for approval of the original TIP Plan: 1. reduction or enlargement of the geographic area of Development District No. 1 or the District; 2. increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized; City of Prior Lake Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 2-12 Draft - Planning Commission Review 3. increase in the portion of the captured net tax capacity to be retained by the City; 4. increase in total estimated tax increment expenditures; or 5. designation of additional property to be acquired by the City, City of Prior Lake Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 2-13 Draft - Planning Commission Review Subsection 2-23. Time Factors 1. District Enlargement Pursuant to M.S. Section 469.175 Subd. 4(b), the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a redevelopment district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. 10 must be documented. The requirements of this paragraph do not apply if (I) the only modification is elimination ofparcel(s) from Development District No. I or the District and (2) (A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or (B) the 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 ofthe parcel(s) eliminated from the District. The City must notify the County Auditor of any modification that reduces or enlarges the geographic area of Development District No. I or the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. 2. Activity Within 3 Years No tax increment shall be paid to the City for the District after three (3) years from the date of certification of the Original Net Tax Capacity value of the taxable property in the District by the County Auditor (M.S. Section 469.176, Subd. 1 a) unless: (a) bonds have been issued in aid of the project containing the district pursuant to M.S. Section 469.178, or any other law, except revenue bonds issued pursuant to M.S., Sections 469.152 to 469.165, or (b) the City has acquired property within the District, or (c) the City has constructed or caused to be constructed public improvements within the District. The bonds must be issued, or the City must acquire property or construct or cause public improvements to be constructed by approximately June, 2004 and report such actions to the County Auditor. 3. 4- Year Knockdown Parcels without Aqualifying activity@ will be knocked out of the District after four years from the date of certification of the original net tax capacity. M.S. Section 469.176, Subd. 6 defines qualifying activities as A demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems@ in accordance with the TIF Plan. For purposes of the knock down requirements, qualified improvements of a street are limited to (I) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. Knock down means that the original net tax capacity of that parcel is excluded from the original net tax capacity of the District and no tax increment may be collected from that parcel. If the City or the owner of the parcel subsequently commences a qualifying activity in accordance with the TIF Plan, the City shall certify to the county auditor that the activity has commenced and the county auditor City of Prior Lake Tax Increment Financing Plan for Tax Increment Financing District No. ]-3 2-14 Draft - Planning Commission Review 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 City must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 ofthe fifth year following the year in which the parcel was certified as included in the district. The City or a property owner must improve parcels within the District by approximately June, 2005 and report such actions to the County Auditor. 4. 5- Year Limit After five years from the date of certification of the TIF District, tax increment may only be used to (1) repay existing bonds the proceeds of which must be used to finance the activity, are issued and sold to a third party before or within five years after certification, the revenues are spent to repay the bonds, and the proceeds ofthe bonds either are, on the date of issuance, reasonably expected to be spent before the end of the later of (a) the five-year period, or (b) a reasonable temporary period within the meaning of the use of that term under' l48(c)(l) of the Internal Revenue Code, or are deposited in a reasonably required reserve or replacement fund; (2) reimburse a developer or other third party for eligible expenses paid before or within five year period, including interest on unreimbursed costs; (3) eligible administrative expense; and (4) eligible expenses under M.S. Section 469.1763, Subd. 2 (Pooling). Subsection 2-24. Administration of the District Administration of the District will be handled by the City Manager. Subsection 2-25. Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, and M.S., Section 469.176, Subd. 3, administrative expenses means all expenditures ofthe City, 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 proj ect; 3. relocation benefits paid to or services provided for persons residing or businesses located in the project; or 4. amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5. amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in sections 1 to 3. For districts for which the request for certification were made before August 1, 1979, or after June 30,1982, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total tax increment expenditures authorized by the Plan or the total tax increment expenditures for Development District No.1, whichever is less. City of Prior Lake Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 2-15 . 1 Draft - Planning Commission Review Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the county's actual administrative expenses incurred in connection with the District. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the county treasurer shall deduct an amount equal to 0.25 percent of any increment distributed to the City and the county treasurer shall pay the amount deducted to the state treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. Subsection 2-26. Requirements for Agreements with the Developer The City will review any proposal for private development to determine its conformance with the Development Program and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the City to demonstrate the conformance of the development with City plans and ordinances. The City may also use the Agreements to address other issues related to the development. Pursuant to MS., Section 469.176, Subd. 5, no more than 25 percent, by acreage, of the property to be acquired in the District as set forth in the Plan shall at any time be owned by the City as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of25 percent of the acreage, the City concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the City should the development or redevelopment not be completed. Subsection 2-27. Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the assessor shall also certify the minimum market value agreement. Subsection 2-28. Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subd. 5, 6 and 6a the City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board, County Auditor and School Board on or before August 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 M.S. 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. City of Prior Lake Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 2-16 Draft - Planning Commission Review Subsection 2-29. Reasonable Expectations As required by the Tax Increment Financing Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value ofthe projected tax increments for the maximum duration of the District permitted by the Plan. In making said determination, reliance has been placed upon written representations made by the developer to such effects and upon City staff awareness of the feasibility of developing the project site. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix C, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. Subsection 2-30. Summary The City of Prior Lake is establishing the District to preserve and enhance the tax base, redevelop substandard areas, and provide employment opportunities in the City. The Tax Increment Financing Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113, telephone (651) 697-8500. City of Prior Lake Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 2-17 . r Draft - Planning Commission Review APPENDIX A - PROJECT DESCRIPTION The Lakefront Plaza project is proposed to be built on Block 9 on the northern edge of downtown Prior Lake. The Development will consist of approximately 78 units of housing for purposes 55 years of age or older and 12,000 square feet of retail uses. The residential component would consist of one- and two- bedroom condominium units with various support facilities and amenities. The retail element could contain office and small stores compatible with the residential use. The City plans to undertake improvements on adjacent streets and park areas. APPENDIX A-I Draft - Planning Commission Review APPENDIX B - PROPERTY TO BE INCLUDED IN THE DISTRICT The property to be included in the District includes the following parcels and the adjacent rights-of way. These parcels occupy Lots 1-4 and 7-12 of Block 9 in the Original Town subdivision. The proposed development requires the reconfiguration of the property into a common site and single parcel. The TIF Plan is based on this action. The parcels will be replatted and combined prior to the certification of the District. 25-001062-0 25-001063-0 25-001066-0 25 -00 1 067-0 25-001068-0 25-001069-0 25-001070-0 APPENDIX B-1 . 1 Draft - Planning Commission Review APPENDIX C - ESTIMATED CASH FLOW FOR THE DISTRICT Project Value Information Total Size (sf) or Market Tax Element Units EMV Value Capacity fuI.ilt. 1 st Taxes RetailDffice 12,000 90 1,080,000 35,220 2001 2003 Housing 78 100,000 90,168 2001 2003 Total 12,078 1,180,000 125,388 Total Years of TIF Capture 20.0 Tax Increment Projections Tax Gross Local Net Tax Capacity Values Extension Tax Retained Semi-Annual Local Year Base Total Caotured Rate Increment 20.00% Increment Contribution 2001 3,675 1.24606 0 2002 3,675 1.24606 0 2003 3,675 125,388 121,713 1.24606 151,662 (30,332 ) 60,665 7,583 60,665 2004 3,675 125,388 121,713 1.24606 151,662 (30,332) 60,665 7,583 60,665 2005 3,675 125,388 121,713 1.24606 151,662 (30,332) 60,665 7,583 60,665 2006 3,675 125,388 121,713 1.24606 151,662 (30,332) 60,665 7,583 60,665 2007 3,675 125,388 121,713 1.24606 151,662 (30,332) 60,665 7,583 60,665 2008 3,675 125,388 121,713 1.24606 151,662 (30,332) 60,665 7,583 60,665 2009 3,675 ] 25,388 121,713 1.24606 151,662 (30,332) 60,665 7,583 60,665 20]0 3,675 125,388 12],713 1.24606 15],662 (30,332) 60,665 7,583 60,665 20] ] 3,675 125,388 121,713 1.24606 15],662 (30,332 ) 60,665 7,583 60,665 2012 3,675 125,388 121,7]3 1.24606 15],662 (30,332) 60,665 7,583 60,665 2013 3,675 125,388 121,713 1.24606 151,662 (30,332) 60,665 7,583 60,665 2014 3,675 125,388 121,713 1.24606 151,662 (30,332) 60,665 7,583 60,665 2015 3,675 125,388 121,713 1.24606 15],662 (30,332) 60,665 7,583 60,665 20]6 3,675 125,388 12],7]3 1. 24606 151,662 (30,332) 60,665 7,583 60,665 2017 3,675 125,388 121,713 1.24606 151,662 (30,332) 60,665 7,583 60,665 2018 3,675 125,388 121,713 1.24606 151,662 (30,332) 60,665 7,583 60,665 2019 3,675 125,388 12],713 1.24606 151,662 (30,332) 60,665 7,583 60,665 2020 3,675 125,388 121,713 1.24606 ]51,662 (30,332) 60,665 7,583 60.665 202] 3,675 125,388 121,713 1.24606 151,662 (30,332) 60,665 7,583 60,665 2022 3,675 125,388 121,713 1.24606 151,662 (30,332) 60,665 7.583 60,665 Total 3,033,234 (606,647) 2,426,587 151,662 APPENDIX C-l Draft - Planning Commission Review APPENDIX D. REDEVELOPMENT QUALIFICATIONS [To be added prior to Hearing] APPENDIX E-l II Modification of DEVELOPMENT PROGRAM for DEVELOPMENT DISTRICT NO.1 and TAX INCREMENT FINANCING PLAN for the establishment of TAX INCREMENT FINANCING DISTRICT NO. 1-3 (a redevelopment district) CITY OF PRIOR LAKE SCOTT COUNTY STATE OF MINNESOTA Public Hearing: June 4, 2001 Adopted: . & ASSOCIATES INC EHLERS i Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 (651) 697-8500 fax: (651) 697-8555 www.ehlers-inc.com LEADERS IN PUBLIC FINANCE