HomeMy WebLinkAbout6B1 - Tax Increment Hearings/ Keyland Homes
AGENDA #:
PREPARED BY:
SUBJECT:
DATE:
INTRODUCTION:
BACKGROUND:
DISCUSSION:
STAFF AGENDA REPORT
6 B-1
DONALD RYE, PLANNING DIRECTOR
PUBLIC HEARING TO CONSIDER APPROVAL OF
RESOLUTION 98-XX APPROVING THE MODIFICATION OF
TAX INCREMENT FINANCING DISTRICT NO. 2-1
JANUARY 5,1998
The purpose of this item is to consider modification of Tax
Increment Financing District (TIF) #2-1. This district is a part of
Development District No.2, which is the Waterfront Passage
Business Park.
TIF District No. 2-1 is located along the east side of Fish Point
Road and has been developed by Keyland Homes. The
property is currently zoned BP (Business Park). The site was
initially 1.8 acres in size and was developed with an 18,000
square foot facility. This proposed modification will expand the
District by .5 acres to 2.3 acres and will permit the construction
of an addition up to 15,000 square feet in size. Keyland Homes
has expressed a desire to have this additional property
available for expansion purposes.
Development District No. 2 was formed to promote
development of certain property, secure additional industrial,
commercial, and housing development and redevelopment
opportunities, increase property subject to taxation, provide
public improvements to development properties, and designate
methods for financing of activities in the Development District.
The purpose of the proposed modification to TIF District 2-1 is
to finance the development activities of this site.
This site is designated as C-BO (Commercial - Business Office
Park) in the 2010 Comprehensive Plan. The property is also
zoned BP. The proposed use of the property is consistent with
both the land use plan designation and the zoning.
The Planning Commission initially reviewed the creation of the
original district, finding the proposed use is consistent with the
Comprehensive Plan. The Economic Development Authority
also recommended approval of the original Tax Increment
District, the original Development Agreement and this
proposed modification.
Financing for the project will consist of bank financing, general
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16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQLJAL OPPORTL':iITY EMPLOYER
ISSUES:
ALTERNATIVES:
obligation bonds, tax increment financing, a City contribution
equal to 10% of the tax increment revenues, and developer
equity. The use of tax increment financing will employ the
"pay-as-you-go" method of reimbursing eligible project costs.
Under this program, tax increment receipts generated from the
development will be used to reimburse the City and developer
for certain qualified costs such as land, site work, sewer, water,
roads, sidewalks and landscaping. This "buy down" method
will occur over the life of the District, or until all agreed upon
costs have been reimbursed. The intent of this method is to
apply all of the revenues from the "pay-as-you-go" tax
increment financing to reduce the project cost. The attached
narrative, prepared by Advance Resources, explains the
proposal in greater detail. A development agreement will be
brought before the Council at a later date.
The .5 acre parcel contemplated for inclusion in TIF 2-1
maximizes the use of property in the area. If the .5 acre parcel
is not acquired by Keyland, it would remain part of the Robert's
Food parcel (TIF 2-9). Given the configuration of the 4.5 acre
parcel, this .5 acre parcel would not be as usable for building
expansion as it would be as part of the Keyland parcel.
1. Adopt Resolution #98-XX, approving the modification of TIF
District No. 2-1
2. Further discuss this issue and direct the staff to provide
additional information to the City Council.
3. Deny the tax increment financing proposal.
RECOMMENDATION: Adopt Alternative #1.
ACTION REQUIRED:
REPORT
ATTACHMENTS:
1:\econdev\eda\tif\2-1 modcc.doc
A motion and second to adopt the proposed resolution.
1. Resolution #98-XX
2. Tax Increment Financi?1 District No. 2-1 Report
( \ A'
~~{ ~
Reviewed By:rnk
s, City Manager
PAGE 2
RESOLUTION 98-XX
A RESOLUTION OF Itt..t. CITY COUNCIL OF THE CITY OF PRIOR LAKE
APPROVING A MODIFICATION OF TAX INCREMENT FINANCING DISTRICT NO.
2-1
AND TtJ..I:L USE OF TAX INCREMENT FINANCING
MOTION BY: SECONDED BY:
WHEREAS: the City Council of the City of Prior Lake, Minnesota (the "City"), has
previously approved Development District No.2 (the "Development District")
and in connection therewith adopted a development program; and
WHEREAS: it is desirable and in the public interest that the City undertake and carry out a
tax increment finance plan for Tax Increment Financing District No. 2-1pursuant
to Chapter 469 of Minnesota Statutes, encompassing the area which is more
particularly described on Exhibit A attached hereto and made a part hereof,
(which area is herein called the "District"); and
WHEREAS: the City Council has reviewed "Tax Increment Financing District No. 2-l, dated
January 5, 1998 (the "Plan Booklet"), which sets forth a modified tax increment
financing plan for the District; and
WHEREAS: the Plan Booklet sets forth the City's estimate of the fiscal and economic impact
of the District on the tax capacities of all taxing jurisdictions in which the
District is located; and
WHEREAS: the Board of Commissioners of Scott County, Minnesota, has been notified of
the public hearing for the review of the Plan Booklet; and
WHEREAS: the School Board of Independent School District No. 719 has been notified of
the public hearing for the review of the Plan Booklet; and
WHEREAS: the City has received and considered the comments of the Board of
Commissioners of Scott County and the School Board of Independent School
District No. 719 respecting the contents of the Plan Booklet; and
WHEREAS: the City on January 5, 1998, after having published a notice of public hearing in
the official newspaper of the City, conducted a public hearing on the Plan
Booklet and received public comments on the same.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Prior Lake,
Minnesota, as follows:
1. The City finds and determines there is a need for the activities of Development District No.
2 to be financed in part by the tax increments from the District.
1:\econdev\eda\tif\2-1 ceres. doc Page 1
16200 Eagle Creek Ave. S.E.. Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY E;vIPLOYER
2. The City finds and determines the activities to be financed by the tax increments from the
District will carry out the objectives of Develvpment District No.2 by encouraging
industrial development, providing job opportunities and enhancing the tax base.
3. The City finds and determines the provision for job opportunities and the preservation and
enhancement of the tax base are in the public interest of the City and the expenditures of the
District are a public purpose.
4. The City finds and determines the modified tax increment financing plan as set forth in the
Plan Booklet having been duly reviewed and considered is hereby approved and adopted,
and the area described in Exhibit A hereto is hereby designated as an Economic
Development District pursuant to Minnesota Statutes, Sections 469.174, Subd. 12.
5. The City finds and determines the District is an Economic Develvpment District because it
will result in increased employment in the City, and it will result in preservation and
enhancement of the tax base of the City.
6. The City finds and determines the proposed development, in the opinion of the City, would
not reasonably be expected to occur solely through private investment within the
reasonably foreseeable future and therefore the use of tax increment financing is deemed
necessary.
7. The City finds and determines the modified tax increment financing plan will afford
maximum opportunity, consistent with the sound needs of the City as a whole, for the
development of the District by private enk.p.~se.
8. The City finds and determines the modified tax increment financing plan set forth in the
Plan Booklet conforms to the general plan for the development of the City as a whole.
9. The reasons and supporting facts and findings as set forth on pages 3 and 4 of the Plan
Booklet are by this reference confirmed, approved and adopted.
10 The City has calculated tax increment revenues generated in District 2-1 Modification
pursuant to Minnesota Statutes Chapter 469.177, Subdivision 3, as amended.
11 Pursuant to the 1996 Omnibus Tax Bill, Article 5, Section 6, the City requests an exemption
from a LGAlHACA penalty because a contribution of unrestricted funds in excess of 10%
of the tax increment to be generated will be made in support of the project.
12 The City Clerk shall request the auditor of Scott County to certify the original tax capacity
and original local tax rate of the District appwved by this resolution.
13 The City Clerk is hereby directed to file a copy of this resolution with a copy of the Plan
Booklet to the Minnesota Department of Revenue.
14 The City hereby states its intention to use all of the captured tax capacity for purposes of
tax increment financing as per the conditions set forth in the Plan Booklet.
Passed and adopted this 5th day of January, 1998.
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Page 2
Mader
Kedrowski
Peterson
Schenck
Vacant
1:\econdev\eda\tif\2-1ccres,doc
YES
Mader
Kedrowski
Peterson
Schenck
Vacant
Frank Boyles
City Manager
City of Prior Lake
NO
Page 3
~
DYANeE
Resources for Development, 'nc.
Business Finance and
Economic Development
Specialists
TAX INCREMENT
FINANCING
DI"-'.I.NC'f NO. 2-1
MODuJ.CATION
PRIOR ~
MINNESOTA
ESTABLISIUdJ:
SEI .I.~MBER. 28, 1993
MOD.lr .lr..u:
JANUARY 5, 1998
TAX INCREMENT FINANCING DISTRICT NO. 2-1 MODIFICATION
PRIOR LAKE, MINNESOTA
ESTABLISHED: SEPTEMBER 20,1993
MODIFIED: JANUARY 5, 1998
PREPARED BY
ADVANCE RESOURCES FOR DEVELOPMENT, INC.
MANKATO, MINNESOTA
TABLE OF CONTENTS
Page
INTRODUCTION .................................................
LOCATION................................................ .
DEFINITIONS ...............................................
PURPOSE OF TAX INCREMENT FINANCING PLAN. . . . . . . . . ...... . . . .
SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
1
1
1
1
TAX INCREMENT FINANCING PLAN .................................
RELATIONSHIP OF DISTRICT TO DEVELOPMENT PLAN ..............
PROPERTY CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NARRATIVE BOUNDARY DESCRIPTION OF THE DISTRICT ............
LIST OF PARCELS ...........................................
FINDINGS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PLAN OBJECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEVELOPMENT PROGRAM ..................... . . . . . . . . . . . . . .
DISTRICT DEVELOPMENT ACTIVITIES ............................
CONFORMANCE WITH PLAN FOR THE CITY .......................
PROCEDURE FOR MODIFYING THE DISTRICT PLAN ........... . . . . . .
RELOCATION POLICY PLAN ...................................
PROPERTY ACQUISITION AND DISPOSITION PLAN .................
METHOD OF FINANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS ...............
FINANCIAL PLAN ............................................
2
2
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2
3
4
5
5
5
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6
6
6
6
6
MAP
TAX INCREMENT FINANCING DISTRICT 2-1
Follows Page
1
NOTICES, RESOLUTIONS AND CERTIFICATIONS ......................
1. NOTICE OF A PUBLIC HEARING
2. TRANSMITTAL TO INDEPENDENT SCHOOL DISTRICT NO. 719
3. TRANSMITTAL TO SCOTT BOARD OF COMMISSIONERS
4. RESOLUTION OF THE CITY COUNCIL APPROVING AND ADOPTING TAX INCREMENT
FINANCING DISTRICT NO. 2-1 MODIFICATION
5. CERTIFICATION OF ORIGINAL TAX CAPACITY AND ORIGINAL LOCAL TAX RATE
FOR TAX INCREMENT FINANCING DISTRICT NO. 2-1
12
INTRODUCTION
LOCATION
Tax Increment Financing District No. 2-1 is located in the Waterfront Passage Business Park south of
County Road 21 on the east side of Prior Lake. The map following page 1 shows the location of District No.
2-1.
DEFINITIONS
For the purpose of clarity, the following terms defined in this report shall have the meanings given them.
"Project" means development district as defined in Minnesota Statutes, Section 469.125, Subd. 9.
"Development District" means a specific area within the corporate limits of a municipality which has
been so designated and separately numbered by the governing body. "Development District" also means
Development District No.2.
"Tax Increment Financing District No. 2-1", "Tax Increment Financing District" or "District" means a
contiguous or noncontiguous geographic area within a project delineated in the tax increment financing plan,
as provided by Minnesota Statutes, Section 469.175, Subd. 1, for the purpose of financing redevelopment,
mined underground space development, housing, or economic development in municipalities through the
use of tax increment generated from the captured net tax capacity in the tax increment financing district.
r
"Economic Development District" means a type of tax increment financing district which consists of any
project, or portions of a project, not meeting the requirements found in the definition of redevelopment
district, renewal and renovation district, soils condition district, mined underground space development
district, or housing district, but which the authority finds to be in the public interest because:
1. It will discourage commerce, industry, or manufacturing from moving their operations to another state
or municipality; or
2. It will result in increased employment in the state; or
3. It will result in preservation and enhancement of the tax base of the state.
PURPOSE OF TAX INCREMENT FINANCING PLAN
r-
District No. 2-1 is being established pursuant to Minnesota Statutes, Chapter 469, in order to give the
City Council the authority to use Tax Increment Financing as a funding source. Under Chapter 469, a tax
increment district has to be established as a housing district, a redevelopment district, a mined underground
space district, a renewal and renovation district, a soils condition district or an economic development
district. Since this area qualifies as an economic district, pursuant to Minnesota Statutes, Section 469.174,
Subd. 12, it will have a duration of not greater than nine years from the date of receipt of the first tax
increment or eleven years from the approval of the tax increment financing plan, whichever is less.
SUMMARY
The formation of District No. 2-1 improves the quality of life in the community by financing eligible
Project costs which will result in the creation of job opportunities and increase of the tax base.
--
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WATERFRONT PASSAGE BUSINESS PARK
PRIOR LAKE, MINNESOTA
TIF 2-1 MODIFIED
TIF 2-6 MODIFIED
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TAX INCREMENT FINANCING PLAN
RELATIONSHIP OF TAX INCREMENT DISTRICT TO DEVELOPMENT DISTRICT
Development District No.2 was formed in order to promote development of certain property, secure
additional industrial, commercial and housing development and redevelopment opportunities, increase
property subject to taxation, provide public improvements to development properties, and designate methods
for the financing of activities in the Development District.
Development District law authorizes the use of tax increment funds to pay for these Project activities
and improvements. When using tax increment funds, it is necessary to establish/modify a tax increment
financing district according to Minnesota Statutes, Sections 469.174 to 469.179, inclusive. Approval of this
plan results in the modification of Tax Increment Financing District No. 2-1, the purpose of which is to finance
the development activities authorized by the creation of Development District No.2.
PROPERTY CONDITIONS
The District consists of an approximate 2.3 acre parcel which was incorporated as part of the Waterfront
Passage Business Park. The property is appropriately zoned for light industrial development. Upon initial
establishment of the District in 1993, KeyLand Homes developed an approximate 18,000 sq. ft. produc-
tion/warehouse facility. The proposed modification will increase the size of the District from 1.8 to 2.3 acres
and enable up to a 15,000 SF expansion of the production/Warehouse facility.
Financing for the project will consist of bank financing, tax increment financing and equity. The use of
tax increment financing will employ the "pay-as-you-go. method of reimbursing eligible project costs. Under
this program tax increment receipts generated from the development will be used to reimburse the City and
developer for certain qualified costs such as land, site work, sewer, water, roads, sidewalks and landscaping.
This "buy down" will occur over the life of the District or until all agreed upon costs have been reimbursed.
The intent of this method is to apply all the revenues from the "pay-as-you-go" tax increment financing to
reduce the project cost.
NARRATIVE BOUNDARY DESCRIPTION OF DISTRICT NO. 2-1
Tax Increment Financing District No. 2-1 Modification is described as follows:
Lot 2, Block 2, WaterFront Passage Addition
AND
That part of Lot 1, Block 2, WATERFRONT PASSAGE ADDITION, Scott County,
Minnesota described as follows:
Beginning at the southeast corner of Lot 2, Block 2, of said plat; thence North 00 degrees 10
minutes 44 seconds East along the east live of said Lot 2, a distance of 228.00 feet to the
northeast corner of said Lot 2; thence South 89 degrees 49 minutes 16 seconds East along the
easterly extension of the north line of said Lot 2, a distance of 100.52 feet; thence South 00
degrees 10 minutes 44 seconds West a distance of 228.00 feet to the intersection with the south
line of said Lot 1; thence North 89 degrees 49 minutes 16 seconds West along the said south line,
a distance of 100.52 feet to the point of beginning.
LIST OF PARCELS INCLUDED IN DISTRICT NO. 2-1
The following parcel is included in District No. 2-1:
Parcel Number 25-296-003-0 (this parcel will be increased as a result of the acquisition of approximately
.53 acres by the developer)
2
FINDINGS
Minnesota Statues, Section 469.175, Subd. 4, requires that prior to municipality approval of a tax
increment financing plan that the statutory findings of Minnesota Statutes, Section 469.175, Subd. 3, must be
made and the reasons for those findings must be set forth in writing along with supporting facts for each
determination.
The tax increment financing plan for District No. 2-1 finds the following:
1. FINDING. That the proposed tax increment financing district is an economic development
district.
SUPPORTING FACTS. Minnesota Statutes, Chapter 469 provides for six types of districts - a
redevelopment district, renewal and renovation district, soils condition district, a mined underground
space district, a housing district, and an economic development district -- each serving a well-defined
need and each having different qualifying standards. Tax Increment Financing District No. 2-1 is
intended to be an "Economic Development District". Minnesota Statutes, Section 469.174, Subdivi-
sion 12, defines "Economic Development District". This definition is also included on page 1 of this
plan.
The proposed District qualifies as an "Economic Development District" pursuant to the above
cited statute because Project activities will increase employment and result in preservation and
enhancement of the tax base of the municipality. Upon inclusion in the District the property will be
further developed by KeyLand Homes. Inclusion of this property in the District will increase the
community's tax base, as well as add approximately 15 new jobs.
2. FINDING That the proposed development or redevelopment, in the opinion of the municipality,
would not reasonably be expected to occur solely through private investment within the reasonably
foreseeable future and therefore, the use of tax increment financing is deemed necessary.
SUPPORTING FACTS. In order for KeyLand Homes to develop and occupy the site project
financing must be obtained. The City of Prior Lake in conjunction with the developer has prepared a
public/private financial package which includes owner equity, tax increment financing and a bank
fixed asset loan. The need for this type of project financing was determined by the city, and in the
opinion of city officials this development would not occur in the City of Prior Lake without the
public/private effort, including the financial assistance offered.
3. FINDING. That the tax increment financing plan conforms to the general plan for the develop-
ment or redevelopment of the municipality as a whole.
SUPPORTING FACTS. The tax increment financing plan conforms to the general plan of the
City of Prior Lake for the following reasons:
A. The tax increment financing area is designated on the zoning map for industrial develop-
ment. Plan activities and subsequent development are intended to encourage and result in
industrial development for this area.
B. The general plan for the community supports the creation of job opportunities; particularly,
increased opportunities for low and moderate income individuals.
4. FINDING. That the tax increment financing plan will afford maximum opportunity, consistent with
the sound needs of the municipality as a whole, for the development or redevelopment of the project
by private enterprise.
SUPPORTING FACTS. The City of Prior Lake, in approving Development District No.2, has
prepared a blueprint for the development and redevelopment of the community. The Development
District plan encourages cooperation with private enterprise. Information contained in the Develop-
3
ment District report along with other city plans and reports has been used in the preparation of the
District No. 2-1 plan. Based upon the objective of cooperation and upon the guidance provided by
city plans and ordinances, the city has determined Project costs which will be paid for by tax
increment revenues. As the Financial Plan contained on pages 6 through 12 of this report indicates,
the city intends to concentrate the use of tax increment revenue on those improvements which would
not reasonably be expected to occur solely through private action. Private enterprise will be
responsible for the vast majority of the expenses and activities normally associated with land
development.
STATEMENT OF OBJECTIVES FOR DEVELOPMENT DISTRICT NO.2
The City Council of Prior Lake, Minnesota, determines that it is necessary, desirable, and in the
public interest to establish/modify, designate, develop, and administer a development district in the city
pursuant to the provisions of Minnesota Statutes, Sections 469.124 to 469.134, inclusive. The city council
further determines that the funding of the necessary activities and improvements in the Development District
may be financed through tax increment financing, as well as, other appropriate sources. Prior to involving
itself in financing Project activities or a development, the city council shall determine financial feasibility of the
Project or development. Any public or private activity when funded by the city shall demonstrate the need for
such financing and how said financing is going to be repaid if it is a loan. In the case of a grant or tax
increment financing, the benefits to the community, such as housing or job opportunities, increased tax base
or removal of blighting conditions, shall be demonstrated.
The city council seeks to achieve the following objectives for Development District No.2:
1. Acquire land which is vacant or underused, including public or semi-public properties already
devoted to a public use which is underutilized.
2. Assist with land assembly for new and expanding business, office and industrial areas.
3. Provide development sites of such size and character so as to assure the development of the
Project area.
4. Eliminate or correct physical deterrents to the development of land.
5. Provide adequate streets, utilities and other public improvements and facilities to enhance the
area for development.
6. Achieve a high level of design and landscaping quality to enhance the physical environment.
7. Accomplish convenient and adequate parking to serve the needs of the area.
8. Create effective buffers, screens and/or transitions between residential and nonresidential uses
to minimize the potential blighting effects of divergent land uses.
9. Combine elements of the City's Comprehensive Plan with these Project objectives.
10. Improve the financial base of the City.
11. Provide maximum opportunity, consistent with the needs of the City, for development by private
enterprise.
12. Provide increased employment opportunities and as much as possible seek businesses which
would employ the unemployed and underemployed.
13. Promote redevelopment in order to prevent or eliminate blight and maintain the viability of
commercial and residential areas.
4
DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.2.
Minnesota Statutes, Section 469.175, Subd. 1 (2) requires: "A statement as to the development
program for the project, including the property within the project, if any, which the authority intends to
acquire". The Development Program for Development District No. 2 is delineated in a. report entitled
"Development District No.2" adopted May, 1992, and modified August 1, 1994, copies of which are on file in
the city clerk's office. By this reference, said development program is incorporated as part of this tax
increment financing plan.
TAX INCREMENT DISTRICT DEVELOPMENT ACTIVITIES.
Development activities to be financed in whole or in part as a result of the implementation of this Plan
include:
1. Reimbursement, to the city and developer, via pay-as-you-go tax increment agreement for
property acquisition and site preparation costs.
2. Expansion and development by KeyLand Homes of an approximate 15,000 sq. ft. addition to an
existing production/warehouse facility.
All of the proposed activities and improvements are within the boundaries of Development District
No.2 and District No. 2-1. The proposed facility expansion may be initiated in 1998 or whenever market
conditions allow.
The above activities are, at the time of preparation of this report, the only activities proposed for the
Development District as a result of the formation of District No. 2-1. No contract has been entered into at the
time of preparation of this Plan pursuant to Minnesota Statutes, Section 469.175, Subd. 1 (3), completion of
any of the activities.
CONFORMANCE WITH PLAN FOR THE CITY
The City Council, by approval of this report, believes that modification and implementation of District
No. 2-1 does indeed meet the intent of the plan for the city by maintaining the quality of existing develop-
ment, and improving the quality of life through orderly planned improvements.
PROCEDURE FOR MAKING MODIFICATIONS IN AN APPROVED TAX INCREMENT DISTRICT PLAN.
Tax Increment Financing District No. 2-1 may be modified, provided that the modification shall be
approved by the City Council under provisions of the Minnesota Tax Increment Financing Act of Minnesota
Statutes, Section 469.175, Subd. 4, as follows:
"(a) A tax increment financing plan may be modified by an authority, provided that any reduction or
enlargement of geographic area of the project or tax increment financing district, increase in amount of
bonded indebtedness to be incurred, including a determination to capitalize interest on the 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, increase in the portion of the captured assessed value to be retained by the authority,
increase in total estimated tax increment expenditures or designation of additional property to be acquired by
the authority shall be approved upon the notice and after the discussion, public hearing and findings
required for approval of the original plan; provided that if an authority changes the type of district from
housing, redevelopment or economic development to another type of district, this change shall not be
considered a modification, but shall require the authority to follow the procedure set forth in Sections 469.174
to 469.179 for adoption of a new plan, including certification of the assessed valuation of the district by the
county auditor. If a redevelopment district or a renewal and renovation district is enlarged, the reasons and
supporting facts for the determination that the addition to the district meets the criteria of section 469.174,
subdivision 10, paragraph (a), clauses (1) and (2), or subdivision 10a must be documented. The require-
ments of this paragraph do not apply if (1) the only modification is elimination of parcels from the project or
district and (2)(A) the current tax capacity of the parcels eliminated from the district equals or exceeds the tax
5
capacity of those parcels in the district's original tax capacity or (B) the authority agrees that, notwithstanding
section 469.177, subdivision 1, the original tax capacity win be reduced by no more than the current tax
capacity of the parcels eliminated from the district. The authority must notify the county auditor of any
modification that reduces or enlarges the geographic area of a district or a project area.
(b) The geographic area of a tax increment financing district may be reduced, but shall not be
enlarged after five years following the date of certification of the original assessed value by the county auditor
or five years from August 1, 1979..
RELOCATION POLICY
The Tax Increment Financing Plan does not require any relocation at this time. The District does not
contain any residential, commercial, or industrial uses that will require relocation or movement on individual
sites. If in the future the District is expanded or modified to include additional area or relocation activities, the
City Council shall adopt rules and regulations that are in compliance with the Uniform Relocation Act and any
persons affected shall be treated according to those laws, rules and regulations.
PROPERTY ACQUISITION AND DISPOSITION
The City of Prior Lake will transfer property to KeyLand Homes to enable their expansion of a
production/warehouse facility. The property proposed for disposition includes the property described under
the "Narrative Boundary Description of District No. 2-1" on page 2 of this Plan.
METHOD OF FINANCE
The City Council of the City of Prior Lake, Minnesota, elects to use Tax Increment Financing pursuant
to Minnesota Statutes, Chapter 469, to finance all or part of the costs of the Project.
By electing these methods of financing, the City Council is not precluding the use of other methods
provided by State law.
NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS
Minnesota Statutes, Section 469.177, Subd. 4 requires that the request for certification of original tax
capacity be accompanied by a listing of properties within the tax increment district for which building permits
have been issued in the 18 months preceding approval of the tax increment financing plan. The original tax
capacity of District 2-1 was certified at 1,050. The expanded area of District No. 2-1 has had no building
permits issued during this period, accordingly the most recent tax capacity of the property to be added to the
District is 34. The combined base tax capacity of the expanded District will be 1,084.
FINANCIAL PLAN
ESTIMATE OF PUBLIC COST
The following is an estimate of public costs including cost of District indebtedness, source of
revenue, most recent tax capacity, and estimate of captured tax capacity.
Original Budget
1 . Activities
A. Property acquisition/site improvements
B. Administration
C. Interest
SUBTOTAL
$160,000
15,000
53.155
$228,144
2. Source of Funds
A. Tax increment revenues
B. Developer payment
SUBTOTAL
$225,000
$3.500
$228,500
6
Modified Budget
3. Activities
A. Property acquisition
B. Administration
C. Interest
SUBTOTAL
$46,754
9,500
10.277
$66,531
4. Source of Funds
A. Developer payments and tax increment
reimbursement
SUBTOTAL
$66.531
$66,531
Cumulative Budget
5. Activities
A. Original
B. Modification
SUBTOTAL
$228,144
66.531
$294,675
6. Source of Funds
A. Tax increment revenues
B. Developer payments
TOTAL
$261,780
32.895
$294,675
SOURCES OF REVENUE
The proposed source of revenue to be used to finance public costs and reimburse developer payments
associated with the development projects in the District is tax increment generated as a result of the taxation
of the land and improvements in the District. Tax increment financing refers to a funding technique that
utilizes increases in assessed valuation and the property taxes attributed to new development to finance, or
assist in the financing of public development costs. The improvements resulting from development of the
property by private business within the District will generate an anticipated annual tax increment of $25,000 in
1995 through 1999 and $34,195/year in 2000 through 2003 based on a full assessment less contributions for
fiscal disparities.
The District's tax increment will originally be generated from the construction of an approximate 18,000
sq ft. production/warehouse facility and subsequently from a 15,000 sq. ft. addition to the facility. The city
may issue tax increment bonds or use the annual receipt of tax increment to reimburse eligible Project costs.
FINANCING ASSUMPTIONS
Tax increment will be used to finance activities in the Project area. The following information and
assumptions were used to calculate financing costs for the activities in the Project area.
1. Table 1 on page 8 shows the calculations which were used to determine the amount of property
taxes and tax increment resulting from the proposed development in District No. 2-1.
2. Original development activities began September, 1993. The subsequent expansion may occur in
1998 or as market conditions allow.
3. Financing of the modified Project activities will begin in 1997.
4. The first tax increment in the estimated amount of $25,000 collected from the District will be in 1995,
payable from the 1994 tax levy.
7
T
5. The 1997 local tax rate of 135.784% and 1997 tax values were used to calculate the estimate of
increment in this plan.
6. Annual tax increments of $25,000 in 1995 through 1999 and anticipated increment revenues (net of
fiscal disparities contribution) of $34,195 in 2000 through 2003 generated as a result of modification of
this District will be one source of funds used to finance the Project area activities.
7. Increment revenues will be used to finance only capital and administrative costs resulting from the
Project activities. All tax increment generated by the formation of this District will be used to finance the
activities of the Plan.
8. Initial financing for the modified Project activities will be available from developer payments. These
payments are projected as follows:
1997 -
1998 -
1999 -
2000 -
2001 -
2002 -
2003 -
TOTAL
$ 6,254
$10,046
$10,046
$10,046
$10,046
$10,046
$10.046
$66,531
If net tax increment revenues in excess of the amount necessary to amortize the initial costs incurred by the
City for the Phase I expansion are generated as a result of the proposed Phase II expansion, the developer is
entitled to receive pay-as-you-go reimbursement for monies contributed to purchase the additional property
included in the District as a result of this modification.
TABLE 1: TAX INCREMENT CALCULATIONS
Local Tax Rate =135.784% (Prior Lake, Payable 1998)
ESTIMATED COMPLETION MARKET VALUE: $831,000 CLASSIFICATION: INDUSTRIAL
(assume completion prior to 12-31-98)
(1 ) (2) (3) (4) (5) (6) (7) (8)
Year Project Original Fiscal Captured Estimated Estimated Estimated
Tax Tax Tax Disparities Tax Annual LGA Net Annual
Pavable Caoacitv Caoacitv 32.21% Caoacitv Increment Imoact Increment
1993 1050 (1,050) 0 0 0 0 0
1994 1050 (1,050) 0 0 0 0 0
1995 20,008 (1,050) 0 18,958 25,000 (8,280) 16,719
1996 20,008 (1,050) 0 18,958 25,000 (8,280) 16,719
1997 20,008 (1,050) 0 18,958 25,000 (8,280) 16,719
1998 20,042 (1,084) 0 18,958 25,000 (8,280) 16,719
1999 20,042 (1,084) 0 18,958 25,000 (8,280) 16,719
2000 32,374 (1,084) (6,106) 25,184 34,195 (11,327) 22,868
2001 32,374 (1,084) (6,106) 25,184 34,195 (11,327) 22,868
2002 32,374 (1,084) (6,106) 25,184 34,195 (11,327) 22,868
2003 32,374 (1,084) (6,106) 25,184 34,195 (11,327) 22,868
TOTAL $261,780 ($86,708) $175,067
PRESENT VALUE DISCOUNTED AT 7% $161,662 ($53,259) $108,113
8
9. The city will use tax increments of approximately $25,000 in 1995 through 1999 and $34,195 in 2000
through 2003 to service Project costs. .Project Costs. means all expenditures of the city or reimbursement
for the purchase of land or amounts paid to contractors or others providing materials and services,
including architectural and engineering services, directly connected with the physical development of the
real property in the District, including interest thereon. Project costs also include all administrative
expenses as defined in Minnesota Statutes, Section 469.174, Subdivision 14. The city will use approxi-
mately $261,780 of annual tax increments to service Project debt. In order to estimate the amount of the
increment assistance the City and developer will receive as a result of the approval of District No. 2-1 two
additional factors were considered: (1) the impact the District would have on future Local Government Aid
(LGA) received by the city, and (2) the estimated present value of the net tax increment less contribution
for fiscal disparities. Both factors are shown in Table 1. The estimated LGA impact is shown in column 7
of Table 1 and the present value of the net increment is shown in column 8 of Table 1. In forming District
No. 2-1 the city will potentially experience future reductions in LGA as per column 7. While the city is
prohibited from using tax increment to replace LGA losses, by retaining a portion of the increment for its
overall economic development efforts the city may be able to generate future tax base growth thus
mitigating the impact of reduced LGA. The first increment would be available to the city in 1995 and
would continue through 2003.
LIMITATION ON USE OF TAX INCREMENT; GENERAL RULE
Pursuant to Minnesota Statutes, Section 469.176, Subd. 4, "All revenues derived from tax increment shall
be used in accordance with the tax increment financing plan. The revenues shall be used solely for the
following purposes: (1) to pay the principal and interest on bonds issued to finance a project; (2) by a rural
development financing authority for the purposes stated in Minnesota Statutes, Section 469.142, by a port
authority or municipality exercising the powers of a port authority to finance or otherwise pay the cost of
redevelopment pursuant to Minnesota Statutes, Sections 469.048 to 469.068, by an economic development
authority to finance or otherwise pay the cost of redevelopment pursuant to Minnesota Statutes, Sections
469.090 to 469.108, by a housing and redevelopment authority or economic development authority to finance
or otherwise pay public redevelopment costs pursuant to Minnesota Statutes, Sections 469.001 to 469.047, by
a municipality or economic development authority to finance or otherwise pay the capital and administration
costs of a development district pursuant to Minnesota Statutes, Sections 469.124 to 469.134, by a municipality
or authority to finance or otherwise pay the costs of developing and implementing a development action
response plan, by a municipality or redevelopment agency to finance or otherwise pay premiums for insurance
or other security guaranteeing the payment when due of principal of and interest on the bonds pursuant to
Minnesota Statutes, Sections 462C, Sections 469.152 to 469.165, or both, or to accumulate and maintain a
reserve securing the payment when due of the principal of and interest on the bonds pursuant to Chapters
462C, Sections 469.152 to 469.165, or both, which revenues in the reserve shall not exceed, subsequent to
the fifth anniversary of the date of issue of the first bond issue secured by the reserve, an amount equal to 20
percent of the aggregate principal amount of the outstanding and nondefeased bonds secured by the reserve.
EXCESS TAX INCREMENTS
Pursuant to Minnesota Statutes, Section 469.176, Subd. 2, "(a) In any year in which the tax increment
exceeds the amount necessary to pay the costs authorized by the tax increment financing plan, including the
amount necessary to cancel any tax levy as provided in Section 475.61, Subd. 3, the authority shall use the
excess amount to do any of the following: (1) prepay any outstanding bonds, (2) discharge the pledge of tax
increment therefore, (3) pay into an escrow account dedicated to the payment of such bonds, or (4) return the
excess amount to the county auditor who shall distribute the excess amount to the municipality, county and
school district in which the tax increment financing district is located in direct proportion to their respective tax
capacity tax extension rates. The county auditor must report to the commissioner of education the amount of
any excess tax increment distributed to a school district within 30 days of the distribution.
(b) The amounts distributed to a city or county must be deducted from the levy limits of the govern-
mental unit for the following year. In calculating the levy limit base for later years, the amount deducted must
be treated as a local government aid payment.
9
DURATION OF TAX INCREMENT FINANCING DISTRICTS
The city estimates that the District shall endure for as long as it is permitted to by law. If no new
development activities were to occur, the city estimates that tax increments would be sufficient to pay all
indebtedness initially undertaken and to pay all initial and administration costs of the District by 2003.
LIMITATION OF ADMINISTRATIVE EXPENSES
Pursuant to Minnesota Statutes, Section 469.176, Subd. 3, .(a)....notax increment shall be used to pay
any administrative expenses for a project which exceed ten percent of the total tax increment expenditures
authorized by the tax increment financing plan or the total tax increment expenditures for the project,
whichever is less."
ESTIMATED TOTAL CAPTURED TAX CAPACITY; RETENTION
The city estimates that the District's total tax capacity at completion of the expansion activities will be
32,374; Since the original tax capacity as a result of the modification is 1,084 and a fiscal disparities
contribution will be deducted, the captured tax capacity will be 25,184. Pursuant to Minnesota Statutes,
Section 469.177, Subd. 2, the authority may retain the full captured tax capacity to pay expenditures noted in
the Plan or subsequent Plan modifications.
TAX INCREMENT ACCOUNT
Pursuant to Minnesota Statutes, Section 469.177, Subd. 5, "the tax increment received with respect to any
district shall be segregated by the authority in a special account or accounts on its official books and records
or as otherwise established by resolution of the authority to be held by a trustee for the benefit of holders of
the bonds."
ANNUAL DISCLOSURE AND FINANCIAL REPORTING
Minnesota Statutes, Section 469.175, Subd. 5, requires .For all tax increment financing districts, whether
created prior or subsequent to August 1, 1979, on or before July 1 of each year, the authority shall submit to
the county board, the school board, the commissioner of revenue and, if the authority is other than the
municipality, the governing body of the municipality a report of the status of the district. The report shall
include the following information: the amount and the source of revenue in the account, the amount and
purpose of expenditures from the account, the amount of any pledge of revenues, including principal and
interest on any outstanding bonded indebtedness, the original tax capacity of the district, the captured tax
capacity retained by the authority, the captured tax capacity shared with other g districts, the tax increment
received, and any additional information necessary to demonstrate compliance with any applicable tax
increment financing plan. An annual statement showing the tax increment received and expended in that year,
the original tax capacity, captured tax capacity, amount of outstanding bonded indebtedness, and any
additional information the authority deems necessary shall be published in a newspaper of general circulation
in the municipality..
Minnesota Statutes, Section 469.175, Subd. 6, requires .(a) The state auditor shall develop a uniform
system of accounting and financial reporting for tax increment financing districts. the system of accounting
and financial reporting shall, as nearly as possible:
(1) provide for full disclosure of the sources and uses of public funds in the district;
(2) permit comparison and reconciliation with the affected local government's accounts and financial
reports;
(3) permit auditing of the funds expended on behalf of a district, including a single district that is part
of a multidistrict project or that is funded in part of whole through the use of a development account funded
with tax increments from other districts or with other public money;
(4) be consistent with generally accepted accounting principles.
(b) The authority must annually submit to the state auditor, on or before July 1, a financial report in
compliance with paragraph (a). Copies of the report must also be provided to the county and school district
boards and to the governing body of the municipality, if the authority is not the municipality. To the extent
necessary to permit compliance with the requirement of financial reporting, the county and any other ap-
10
the authority or the state auditor as provided by the system of accounting and financial reporting developed
pursuant to paragraph (a).
(c) The annual financial report must also include the following items:
(1) the original tax capacity of the district;
(2) the captured tax capacity of the district, including the amount of any captured tax capacity
shared with other taxing districts;
(3) the outstanding principal amount of bonds issued or other loans incurred to finance project
costs in the district;
(4) for the reporting period and for the duration of the district, the amount budgeted under the
tax increment financing plan, and the actual amount expended for, at least, the following categories:
(i) acquisition of land and buildings through condemnation or purchase;
(ii)site improvements or preparation costs;
(iv)administrative costs, including the allocated cost of the authority;
(5) for properties sold to developers, the total cost of the property to the authority and the price
paid by the developer;
(6) the amount of tax exempt obligations, other than those reported under clause (3), that were
issued on behalf of private entities for facilities located in the district.
(d) The reporting requirements imposed by this subdivision are in lieu of the annual disclosure
required by subdivision 5..
IMPACT OF THE USE OF TAX INCREMENT OF TAXING JURISDICTIONS
Minnesota Statutes, Section 469.175, Subd. 1 (6), requires .statements of the authority's alternate
estimates of the impact of tax increment financing on the tax capacity of all taxing jurisdictions in which the
tax increment financing district is located in whole or in part. For purposes of one statement, the authority
shall assume that the estimated captured tax capacity would be available to the taxing jurisdictions without
creation of the district, and for purposes of the second statement, the authority shall assume that none of the
estimated captured tax capacity would be available to the taxing jurisdictions without creation of the district;.
Table 2 on page 12 depicts the impact of tax increment financing on the tax capacity of the affected
taxing jurisdictions assuming (1) none of the increment would be available, and (2) the increment would be
available to the tax jurisdictions. This table was previously submitted to the Independent School District
#719 and the Scott County Board of Commissioners and incorporate assumptions that the entire Waterfront
Passage Business Park will eventually be designated as a tax increment district. These local jurisdictions
have reviewed this information and provided a response to the City that they understand and are in support
of the development efforts.
11
ESTIMATE OF FISCAL AND ECONOMIC IMPLICATIONS OF
PROPOSED TAX INCREMENT DISTRICf NO. 2-1 MODIFICATION
PRIOR LAKE, MN
Projecl Description:
A 15,000 SF expansion of production facilities in WAlERFRONT PASSAGE BUSINESS PARK. The following is an estimate of theflscal and
economic impact of the proposed project.
Type of Tax Incremenl District:
Economic Development
Maximum Length of District:
9 years from the date of receipl of Ihe first lax increment or September 20, 2003
Value of Project Upon Completion:
$831,000 (estimated, Phase I & II)
.....
N
Estimated School's Loss of City's Loss of
Annual Property Taxes Due to County's Loss Property Property Taxes
Year Tax Increment TIF Taxes Due to TIF Due to TIF
1998-1999 $25,000 $11,278 $7,798 $6,171
2000-2003 34,195 14,980 10,359 8,198
TOTAL $186,780 $82.477 $57,030 $45,135
Assumptions:
1. The 1997 local tax rates of 41.132% (county), 32.552% (City), 59.482% (school district) and 135.784% (total) are used to estimate
the increment.
2. The district is intended to cease on September 20, 2003.
3. For purposes of preparing this estimate local tax rates remain constant regardless if the district is or is not created.
The above information represents an estimate of lax revenue each jurisdiction could expect to receive if the development occurred without lax increment assistance. However, it has been
determined Ihat this project will not proceed unless it receives its anticipated funding package parI of which is tax incremenl assistance.
NOTICES, RESOLUTIONS, TRANSMITTALS AND CERTIFICATIONS
1. NOTICE OF A PUBLIC HEARING
- INCLUDING LOCATION MAP
2. TRANSMITTAL TO INDEPENDENT SCHOOL DISTRICT NO. 719
3. TRANSMITTAL TO SCOTT COUNTY BOARD OF COMMISSIONERS
4. RESOLUTION OF THE CITY COUNCIL APPROVING AND ADOPTING TAX INCREMENT FINANCING
DISTRICT NO. 2-1
5. CERTIFICATION OF ORIGINAL TAX CAPACITY AND ORIGINAL LOCAL TAX RATE FOR TAX INCRE-
MENT FINANCING DISTRICT NO. 2-1
NOTICE OF PUBUC HEARING ON MODIFICATION OF
TAX INCREMENT FINANCING DISTRICTS NOS. 2-1 AND 2-6 AND
FORMATION OF TAX INCREMENT FINANCING DISTRICT NO. 2-9
TO WHOM IT MAY CONCERN:
Notice is hereby given that the City Council of the City of Prior Lake, Minnesota, will meet at Fire Station
No.1, at 16776 Fish Point Road in Prior Lake, Minnesota, at 7:00 p.m. on Monday, January 5, 1998, to
consider the modification of Tax Increment Financing Districts Nos. 2-1 and 2-6 and formation of Tax
Increment Financing District No. 2-9. Such persons as desire to be heard with reference to the above
proposal will be heard at this meeting.
Tax Increment Financing District No. 2-1 Modification is described as follows:
Lot 2, Block 2, WaterFront Passage Addition
AND
That part of Lot 1, Block 2, WATERFRONT PASSAGE ADDITION, Scott County,
Minnesota described as follows:
Beginning at the southeast corner of Lot 2, Block 2, of said plat; thence North 00 degrees 10
minutes 44 seconds East along the east live of said Lot 2, a distance of 228.00 feet to the
northeast corner of said Lot 2; thence South 89 degrees 49 minutes 16 seconds East along the
easterly extension of the north line of said Lot 2, a distance of 100.52 feet; thence South 00
degrees 10 minutes 44 seconds West a distance of 228.00 feet to the intersection with the south
line of said Lot 1; thence North 89 degrees 49 minutes 16 seconds West along the said south line,
a distance of 100.52 feet to the point of beginning.
Tax Increment Financing District No. 2-6 Modification is described as follows:
That part of Lot 1, Block 2, WATERFRONT PASSAGE ADDITION, Scott County, Minnesota
described as follows:
Commencing at the most easterly corner of said Lot 1; thence North 62 degrees 51 minutes 58
seconds West along the northerly line of said Lot 1, a distance of 131.44 feet; thence northwesterly
continuing along said northerly line a distance of 79.85 feet on a tangential curve concave to the
northeast, having a radius of 530.00 feet and a central angle of 08 degrees 37 minutes 54
seconds; thence North 54 degrees 14 minutes 04 seconds West continuing along said northerly
line and tangent to said curve a distance of 593.15 feet;thence South 61 degrees 45 minutes 56
seconds West a distance of 106.00 feet; thence South 33 degrees 45 minutes 56 seconds West a
distance of 33.69 feet to the point of beginning of the land to be described; thence continuing
South 33 degrees 45 minutes 56 seconds West a distance of 36.31 feet; thence South 14 degrees
15 minutes 56 seconds West a distance of 75.00 feet; thence South 48 degrees 45 minutes 56
seconds West a distance of 87.00 feet; thence South 75 degrees 45 minutes 56 seconds West a
distance of 185.99 feet to the intersection with the west line of said Lot 1; thence northwesterly
along said west line, to the intersection with a line bearing North 89 degrees 25 minutes 19
seconds West from the point
~~
~NE~
December 16, 1997
Prior Lake ISO No. 719
P.O. Box 539
Prior Lake, MN 55372
Attn: Dr. Les Sonnabend
Dear Dr. Sonnabend:
You are invited to a public hearing of the Prior Lake City Council on Monday, January 5, 1998, at 7:00
p.m. at the Prior Lake Fire Station #1, located at 16776 Fish Point Road SE (Southwest of the intersection of
C.R.21 and Fish Point Road). This hearing was originally to be conducted on December 15,1997, but has
been rescheduled. The purpose of this meeting is to discuss the modification of Tax Increment Financing
Districts Nos. 2-1 and 2-6 and establishment of Tax Increment Financing District No. 2-9, within Water1ront
Passage Business Park. The proposed action will enable the city to provide tax increment financing in the
expansion of two existing businesses and development of a production/Warehouse facility by a real estate
developer.
Since the proposed plan involves the taxable base of your jurisdiction, representation at the meeting
would be appreciated. Attached to this letter is a copy of the estimated fiscal and economic impacts for
each of the Districts. A copy of the proposed tax increment financing plans will be forwarded in the near
future. This proposed action Is consistent with the development strategy that was outlined and
presented to ISO #719 In March, 1993. At that time the Board authorized the City Council to proceed
with the use of tax increment financing in support of projects within Waterfront Passage Business Park.
If you have any questions regarding the above information, please contact me.
Sincerely,
Donald Rye
Planning Director
16200 Eagle Creek Ave. S.L Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
N\ EQl!\L OPPORTl''\ITY E~1PLOY[R
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December 16, 1997
Scott County Board of Commissioners
County Courthouse
428 Holmes St.
Shakopee, MN 55379
Attn: Mr. Gary Cunningham
County Administrator
Dear Mr. Cunningham:
You are invited to a public hearing of the Prior Lake City Council on Monday, January 5, 1998, at 7:00
p.m. at the Prior Lake Fire Station #1, located at 16776 Fish Point Road SE (Southwest of the intersection of
C.R. 21 and Fish Point Road). This hearing was originally to be conducted on December 15, 1997, but has
been rescheduled. The purpose of this meeting is to discuss the modification of Tax Increment Financing
Districts Nos. 2-1 and 2-6 and establishment of Tax Increment Financing District No. 2-9, within Waterfront
Passage Business Park. The proposed action will enable the city to provide tax increment financing in the
expansion of two existing businesses and development of a production/warehouse facility by a real estate
developer.
Since the proposed plan involves the taxable base of your jurisdiction, representation at the meeting
would be appreciated. Attached to this letter is a copy of the estimated fiscal and economic impacts for
each of the Districts. A copy of the proposed tax increment financing plans will be forwarded in the near
future. This proposed action Is consistent with the development strategy that was outlined and
presented to ISO #719 in March, 1993. At that time the Board authorized the City Council to proceed
with the use of tax Increment financing In support of projects within Waterfront Passage Business Park.
If you have any questions regarding the above information, please contact me.
Sincerely,
Donald Rye
Planning Director
16200 Eagle Creek Ave. S.E.. Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTV\IlTY EMPLOYER
RESOLUTION 97-
MOTION BY:
SECONDED BY:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PRIOR LAKE
APPROVING TAX INCREMENT FINANCING DISTRICT NO. 2-1 MODIFICATION
AND TIlE USE OF TAX INCREMENT FINANCING
WHEREAS, the City Council of the City of Prior Lake, Minnesota (the "City"), has previously approved
Development District No.2 (the "Development District") and in connection therewith adopted a development
program; and
WHEREAS, it is desirable and in the public interest that the City undertake and carry out a tax increment
finance plan modification for Tax Increment Financing District No. 2-1 pursuant to Chapter 469 of Minnesota
Statutes, encompassing the area which is more particularly described on Exhibit A attached hereto and made a
part hereof, (which area is herein called the "District"); and
WHEREAS, the City Council has reviewed "Tax Increment Financing District No. 2-1 Modification, dated
January 5, 1998" (the "Plan Booklet"), which sets forth a tax increment financing plan for the District; and
WHEREAS, the Plan Booklet sets forth the City's estimate of the fiscal and economic impact of the
District on the tax capacities of all taxing jurisdictions in which the District is located; and
WHEREAS, the Board of Commissioners of Scott County, Minnesota, has been notified of the public
hearing for the review of the Plan Booklet; and
WHEREAS, the School Board of Independent School District No. 719 has been notified of the public
hearing for the review of the Plan Booklet; and
WHEREAS, the City has received and considered the comments of the Board of Commissioners of Scott
County and the School Board of the Independent School District No. 719 respecting the contents of the Plan
Booklet; and
WHEREAS, the City on January 5, 1998, after having published a notice of public hearing in the official
newspaper of the City, conducted a public hearing on the Plan Booklet and received public comments on the
same.
NOW, TIIEREFORE, BE IT RESOLVED by the City Council of the City of Prior Lake, Minnesota, as
follows:
1. The City finds and determines that there is a need for the activities of Development District No.2 to
be financed in part by the tax increments from the District.
2. The City finds and determines that the activities to be financed by the tax increments from the District
will carry out the objectives of Development District No.2 by encouraging industrial development, providing
job opportunities and enhancing the tax base.
3. The City finds and determines that the provision for job opportunities and the preservation and
enhancement of the tax base are in the public interest of the City and the expenditures of the District are a
public purpose.
4. The City finds and determines that the tax increment financing plan as set forth in the Plan Booklet
having been duly reviewed and considered is hereby approved and adopted, and the area described in
Exhibit A hereto is hereby designated as an Economic Development District pursuant to Minnesota
Statutes, Section 469.174, Subd. 12.
5. The City finds and determines that the District is an Economic Development District because it will
result in increased employment in the City, and that it will result in preselVation and enhancement of the
tax base of the City.
6. The City finds and determines that the proposed development, in the opinion of the City, would not
reasonably be expected to occur solely through private investment within the reasonably foreseeable future
and therefore the use of tax increment financing is deemed necessary.
7. The City finds and determines that the tax increment financing plan will afford maximum opportunity,
consistent with the sound needs of the City as a whole, for the development of the District by private
enterprise.
8. The City finds and determines that the tax increment financing plan set forth in the Plan Booklet
conforms to the general plan for the development of the City as a whole.
9. The reasons and supporting facts for findings 5, 6, 7 and 8 as set forth on pages 2, 3 and 4 of the Plan
Booklet are by this reference confirmed, approved and adopted.
10. The City has calculated tax increment revenues generated in District No. 2-1 modification pursuant to
Minnesota Statutes, Section 469.177 Subdivision 3, as amended.
11. The City Clerk shall request the auditor of Scott County to certify the original tax capacity and
original local tax rate of the District approved by this resolution.
12. The City Clerk is hereby directed to file a copy of this resolution with a copy of the Plan Booklet to
the Minnesota Department of Revenue.
13. The City hereby states its intention to use all of the captured tax capacity for purposes of tax
increment financing as per the conditions set forth in the Plan Booklet.
Adopted by the Prior Lake City Council this 5th day of January, 1998.
Passed and adopted this 5th day of January, 1998.
YES
NO
Mader
Peterson
Kedrowski
Schenck
Mader
Peterson
Kedrowski
Schenck
Frank Boyles
City Manager
City of Prior Lake
(Seal)
EXHIBIT A
TO
CITY COUNCIL RESOLUTION APPROVING
TAX INCREMENT FINANCING DISTRICfNO. 2-1
Tax Increment Financing District No. 2-1 Modification includes the following property:
Lot 2, Block 2, WaterFront Passage Addition
AND
That part of Lot 1, Block 2, WATERFRONT PASSAGE ADDmON, Scott County,
Minnesota described as follows:
Beginning at the southeast comer of Lot 2, Block 2, of said plat; thence North 00 degrees 10 minutes
44 seconds East along the east live of said Lot 2, a distance of 228.00 feet to the northeast comer of
said Lot 2; thence South 89 degrees 49 minutes 16 seconds East along the easterly extension of the
north line of said Lot 2, a distance of 100.52 feet; thence South 00 degrees 10 minutes 44 seconds
West a distance of 228.00 feet to the intersection with the south line of said Lot 1; thence North 89
degrees 49 minutes 16 seconds West along the said south line, a distance of 100.52 feet to the point of
beginning.
STATE OF MINNESOTA
) CERTIFICATION AS TO ORIGINAL NET TAX CAPACITY AND
) ORIGINAL LOCAL TAX RATE WI11IIN TAX INCREMENT
) FINANCING DISTRICf NO. 2-1 MODIFICATION
) IN ruE CITY OF PRIOR LAKE, MINNESOTA
COUNTY OF SC01T
I, the undersigned, being the duly qualified and acting County Auditor of Scott County, Minnesota, do
hereby certify to the City of Prior Lake in said County, pursuant to the provisions of Minnesota Statutes, Section
469.177, Subd. 1, that the original net tax capacity of all taxable property within the tax increment district
designated as Tax Increment Financing District No. 2-1 (the "District") of said City, as described in the tax
increment financing plan for the area approved by City Council resolution dated January 5, 1998 is 1,084.
I also certify that such original net tax capacity is composed of the net tax capacity of each parcel of
taxable property within the District as determined by the assessment thereof in 1993 and 1997, this being the net
tax capacity most recently determined before the date when this certification was requested.
I will also, in accordance with the provisions of Minnesota Statutes, Section 469.177, Subd. 1, add to the
original net tax capacity of the District, an amount equal to the original net tax capacity for the preceding year
multiplied by the average percentage increases in the market value of all property included in the District during
the five years prior to certification of the District.
The market value of the property to be added to the District for the five years prior to certification of
the modified District is as follows:
Assessment Year Tax Year Market Value Percent Chanl!e
January 2, 1992 1993 $ 850 0%
January 2, 1993 1994 850 0%
January 2, 1994 1995 850 0%
January 2, 1995 1996 850 0%
January 2, 1996 1997 850 0%
The average percentage increase in the tax capacity of all property in the District during the five years
prior to its certification is 0%
I also certify that attached to and made part of this certificate is a full, true, and complete list of all
taxable parcels of real property within the District and of the original net tax capacity determined for each parcel
and included in the aggregate amount stated above.
I also certify pursuant to the provision of Minnesota Statutes, Section 469.177, Subd. la that the "local
tax rate" that applies to the District is 135.784%
WITNESS my hand and seal this _ day of
,1998.
Scott County Auditor
ATIACHMENT"A"
TO TIlE
CERUl'1CATEAS TO ORIGINAL NET TAX CAPAcu y
AND ORIGINAL LOCAL TAX RATE WITHIN
TAX INCREMENT FINANCING DISTRICf NO. 2-1 MODIFICATION
IN TIIE CITY OF PRIOR lAKE, MINNESOTA
List of All Taxable Parcels
Within the District
Original Net Tax Capacity
as Certified bv State
25-296-003-0 (after inclusion of expanded parcel)
1.084
Total Net Tax Capacity
1,084