HomeMy WebLinkAbout2021-117 CCR CITY OF BROOKLYN CENTER
STATE OF MINNESOTA
HENNEPIN COUNTY
RESOLUTION NO. 2021-117
RESOLUTION APPROVING A MODIFICATION TO THE
TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT
FINANCING DISTRICT NO. 3
WHEREAS, the Brooklyn Center Economic Development Authority (the "EDA")
has proposed to amend the Tax Increment Financing Plan (the "TIF Plan") for Tax Increment
Financing District No. 3 (the "TIF District") within Housing and Redevelopment Project No. 1
(the "Project Area") to amend the budget; all pursuant to and in conformity with applicable law,
including Minnesota Statutes, Sections 469.001 through 469.047, 469.090 through 469.1082, and
469.174 through 469.1794; all as reflected in that certain document, dated September 27, 2021,
entitled "Modification to the Tax Increment Financing (TIF) Plan: Modification of Tax Increment
Financing District No. 3 (a redevelopment district)" and presented for the Council's consideration
(the "Modification").
WHEREAS, the City Council (the "Council") of the City of Brooklyn Center,
Minnesota(the "City") has investigated the facts relating to the Modification of the Plans.
WHEREAS, the City has performed all actions required by law to be performed
prior to the adoption and approval of the Modification of the Plans, including, but not limited to,
30 days' prior notification of the County Auditor, School District Clerk,and the individual affected
County Commissioner; a review of the Modification to the Plans by the City Planning
Commission; and the holding of a public hearing thereon following notice thereof published in the
City's official newspaper at least 10 but not more than 30 days prior to the public hearing.
WHEREAS, certain information and material (collectively, the "Materials")
relating to the Modification of the Plans and to the activities contemplated therein have heretofore
been prepared and submitted to the Council and/or made a part of the City or EDA files and
proceedings on the Plans. The Materials include information and/or substantiation constituting or
relating to (1) the reason for the Modification; and (2) the bases for the other findings and
determinations made in this resolution. The Council hereby confirms, ratifies, and adopts the
Materials, which are hereby incorporated into and made as fully a part of this resolution to the
same extent as if set forth in full herein.
NOW THEREFORE BE IT RESOLVED by the City Council (the "Council") of
the City of Brooklyn Center, Minnesota (the "City"), as follows:Findin�s for the Budget
Modification for the TIF District and Adoption of Modification of the TIF Plan Therefor.
1.01 The Council hereby finds that the Modification will serve to carry out the objectives
of the TIF Plan and the Housing and Redevelopment Plan for Housing and Redevelopment Project
No. 1 (the"Redevelopment Plan")and to create an impetus for redevelopment activities associated
BR291-336-749296.v2
RESOLUTION NO. 2021-117
with the construction of development in the City and otherwise promote certain public purposes
and accomplish certain objectives as specified in the Plans.
1.02 The Council hereby ratifies and confirms the findings made in connection with the
establishment of the TIF District, including without limitation the finding that the TIF District
meets the conditions for establishing a redevelopment ta�c increment financing district. The specific
facts that form the basis for these findings as set forth in the TIF Plan and the resolutions previously
adopted with respect to the TIF District, as previously modified, are hereby incorporated by
reference into and made a part of this resolution.
1.03 The Council hereby makes the following additional findings, the specific facts that
form the basis for which are in the TIF Plan, and the resolutions previously adopted with respect
to the TIF District and are hereby incorporated by reference into and made a part of this resolution
as supplemented herein:
(a) The Council further finds that the types of additional development(s) proposed
to be assisted from tax increments of the TIF District, in the opinion of Council, would not
occur solely through private investment within the reasonably foreseeable future and,
therefore, the use of tax increment financing is deemed necessary.
The Council finds that the Project Area is fully built and aging and
constitutes an area that is blighted, underused, or inappropriately used,
within the meaning of Minnesota Statues, Section 469.002, subd. 11 and
Section 469.028, subd. 4.The costs of rehabilitation, redevelopment and
dense in-fill development to better utilize areas that are already built up are
higher than for new development and are not expected to proceed without
tax increment and other public assistance.
(b)The Council further finds that the Modification conforms to the general plan for
the development or redevelopment of the City as a whole.
The Modification will generally complement and serve to implement
policies adopted in the City's comprehensive plan. No specific
development is contemplated at this time. Any further construction will be
in substantial accordance with the existing zoning or any permitted
exception for the property.
(c) The City Council further finds that the Modification will afford maximum
opportunity, consistent with the sound needs of the City as a whole, for the development
of the Project Area by private enterprise.
Future rehabilitation, redevelopment and dense in-fill development will
increase the taxable market valuation of the City and will increase
employment opportunities. The Modification is intended in part to
BR291-336-749296.v2
RESOLUTION NO. 2021-117
incentivize such rehabilitation, redevelopment and dense in-fill
development.
1.04 The provisions of this Section 2 are hereby incorporated by reference into and made
a part of the TIF Plan.
Section 2. Approval and Adoption of the Modification of the TIF Plan.
2.01 The Modification, as presented to the Council on this date, including without
limitation the findings and statements of objectives contained therein, is hereby approved,ratified,
established, and adopted.
2.02 The Council hereby ratifies and confirms all elections made in connection with the
establishment of the TIF District, including without limitation elections regarding the amount of
captured tax capacity to be retained and the applicable fiscal disparities computation.
2.03 City and EDA staff are authorized to file the Modification with Hennepin County,
the Commissioner of Revenue, and the Office of the State Auditor.
PASSED on September 27, 2021, by the Brooklyn Center City Council.
__---
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M yor—_. - --
Attest: h
_I������%���
City Clerk
BR291-336-749296.v2
CITY CLERK'S CERTIFICATE
I, the undersigned, being the duly qualified and acting City Clerk of the City of Brooklyn
Center, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and
foregoing extract of minutes of a duly called and regularly held meeting of the City Council of
said City held on September 27, 2021, with the original minutes thereof on file in my office and
that the same is a full, true, and correct transcript thereof insofar as said minutes relate to the
actions referenced therein with respect to the modification of the TIF Plan for Tax Increment
Financing District No. 3.
Councilmember Graves moved the adoption of the foregoing resolution, the reading of
which was waived by unanimous consent of the Council, and said motion was duly seconded by
Councilmember Ryan, and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
Butler, Elliott, Grave, Lawrence-Anderson, Ryan
whereupon said resolution was declared duly adopted.
WITNESS My hand officially and the official seal of the City this 27th day of September,
2021.
� ��
City Clerk
Brooklyn Center, Minnesota
BR291-336-749296.v2
Adoption Date: December 19, 1994
Modification #1: April 28, 1997
Modification #2: April 28, 1997
Modification #3: January 24, 2011
Modification #4: November 12, 2013
Administrative amendments were completed in 2004, 2008 and 2015
Modification #5 Public Hearing: September 27, 2021
City of Brooklyn Center Economic
Development Authority
City of Brooklyn Center,
Hennepin County, Minnesota
MODIFICATION TO THE
Tax Increment Financing �TIF� Plan
Modification of Tax Increment Financing
District No. 3 (Earle Brown Farm Project)
(a redevelopment district)
Located in Housing Development and
Redevelopment Project No. 1
�
� , _ � ��. -- r�: ,,� �� � - r;�. � �- r-� s
Prepared by:
Ehlers
3060 Centre Pointe Drive
Roseville, Minnesota 55113
BUILDING COMMUNITIES. IT'S WHAT WE DO.
� � • �
Modification to the Tax Increment Financing Plan for Tax Increment Financing
District No. 3 �
FOREWORD �
STATEMENT OF OBJECTIVES 1
ESTIMATED PUBLIC COSTS 1
ESTIMATED PROJECT COSTS 2
ESTIMATED SOURCES OF REVENUE 3
ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS 3
Appendix A: Map of Housing Development and Redevelopment Project No. 1 and
the TIF District 6
Appendix B: November 12, 2013 TIF Plan Modification 7
Modification to the Tax Increment Financing Plan for Tax
Increment Financing District No. 3
FOREWORD
The Economic Development Authority (the "EDA"), the City of Brooklyn
Center (the "City"), staff and consultants have prepared the following
information to expedite the Modification of Tax Increment Financing District
No. 3 (the "District"), a redevelopment tax increment financing district,
located in Housing Development and Redevelopment Project No. 1.
STATEMENT OF OBJECTIVES
The District currently consists of 207 parcels of land and adjacent roads and
internal rights-of-way. The general goals and objectives of the
Redevelopment Plan and the establishment of the District was created to
provide decent, safe and sanitary housing for persons of low and moderate
income, to provide governmental assistance to eliminate slum and blight,
provide ongoing benefit to the residents of the city and those who may
frequent the area and to enhance the tax base of the City. This TIF Plan is
expected to achieve many of the objectives outlined in the Redevelopment
Plan for Housing Development and Redevelopment Project No. 1.
The Tax Increment Financing Plan is being modified to increase the budget
from the 2013 modification to reflect actual tax increment collected to date
and tax increment expected through the remaining term of the District, which
is through 2021.
The activities contemplated in the Modification to the Redevelopment Plan
and the TIF Plan do not preclude the undertaking of other qualified
development or redevelopment activities. These activities are anticipated to
occur over the life of Housing Development and Redevelopment Project No. 1
and the District.
ESTIMATED PUBLIC COSTS
As modified September 27, 2021
Section III.G of the Modification No. 4 to Tax Increment Financing Plan for Tax
Increment Financing District No. 3 shall be amended as follows:
City of Brooklyn Center Economic Development Authority
Modification to Tax Increment Financing District No. 3 1
The September 27, 2021 Amendment contains the cumulative estimated
project costs, including the previously identified costs from the original and
previous amendments. The total project cost, including financing costs
(interest) listed in the table on the following page does not exceed the total
projected tax increments for the District as shown in the Sources of Revenue
section.
ESTIMATED PROJECT COSTS
. . - - . . -
• • ' C •
• •
Land/Building Acquisition $25,000,000 $26,000,000
Public Improvements 4,500,000 5,500,000
Site Improvements 2,100,000 4,500,000
Utilities 3,900,000
Administrative Expenses 4,400,000 4,600,000
Housing Development Account
Land Acquisition 6,000,000 6,000,000
Affordable Housing Expenses 4,175,000 4,175,000
Interest Expense on Debt Issuance 250,000 -
Total Housing Development Account 10,425,000 10,175,000
Poolinc�
Land Acquisition 6,775,000 6,775,000
Public Improvements 4,000,000 4,000,000
Interest Expense on Debt Issuance 1,050,000 1,050,000
Total Poolina 11,825,000 11,825,000
PROJECT COSTS TOTAL $58,250,000 $66,500,000
Interest Expense (including capitalized) 11,250,000 11,500,000
PROJECT AND INTEREST COSTS TOTAL $69,500,000 $78,000,000
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, without formal
modification, the budget above pursuant to the applicable statutory
requirements. The City may expend funds for qualified housing activities
outside of the District boundaries pursuant to Minnesota Laws of 1994
Chapter 587 Article 9 Section 14.
City of Brooklyn Center Economic Development Authority
Modification to Tax Increment Financing District No. 3 2
Section III.I of Modification No. 4 to the Tax Increment Financing Plan for Tax
Increment Financing District No. 3 shall be amended as follows:
ESTIMATED SOURCES OF REVENUE
� � � � • - • - - . • -
• •
Tax Increment Revenue $65,344,375 $69,000,000
Interest on Invested Funds 4,111,758 5,100,000
Sales/Lease Proceeds - 3,900,000
Market Value Homestead Credit 43,867 -
Transfers In - _
TOTAL $69,500,000 $78,000,000
The pubiic costs will be financed primarily through the annual collection of tax
increments. The EDA and the City reserve the right to incur bonds or other
indebtedness as a result of the TIF Plan. Any refunding amounts will be
deemed a budgeted cost without a formal TIF Plan Modification. This
provision does not obligate the EDA or the City to incur debt. The EDA or the
City will issue bonds or incur other debt only upon the determination that
such action is in the best interest of the EDA or the City.
The EDA or the City may issue bonds (as defined in the TIF Act) secured in
whole or in part with tax increments from the District in a maximum principal
amount of $65,450,000. Such bonds may be in the form of pay-as-you-go
notes, revenue bonds or notes, general obligation bonds, or interfund loans.
This estimate of total bonded indebtedness is a cumulative statement of
authority under this TIF Plan as of the date of approval.
ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS
As modified September 27, 2021
The estimated impact on other taxing jurisdictions assumes that the
redevelopment contemplated by the TIF Plan would occur without the
creation of the District. However, the EDA or City have 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:
City of Brooklyn Center Economic Development Authority
Modification to Tax Increment Financing District No. 3 3
. .
- .
• • • � . . - .
. �
. - ..
. .
. .. . .
. . - .
County 2,085,111,988 4,469,809 0.2144°/a
City 26,514,653 4,469,809 16.8579%
ISD #11 52,685,791 203,003 0.3853%
ISD #279 201,407,862 1,054,883 0.5238%
ISD #281 113,977,030 972,148 O.g52g%
ISD #286 9,428,361 2,239,775 23.7557%
• •
� � .
■- .
.
County 38.2100% 4,469,809 $ 1,707,914 25.91°/a
City 66.2600% 4,469,809 2,961,695 44.92%
ISD #11 16.0870% 203,003 32,657 0.50%
ISD #279 22.1230% 1,054,883 233,372 3.54%
ISD #281 25.5290% 972,148 248,180 3.76%
ISD #286 45.9870% 2,239,775 1,030,005 15.62%
Watershed 8 0.8430% 2,828,480 23,844 0.36%
Watershed 9 0.3480% 1,641,329 5,712 0.09%
Other 7.8130% 4,469,809 349,226 5.30%
Totals $ 6,592,605 100.00%
The estimates listed above display the captured tax capacity when all
construction is completed. The tax rate used for calculations is the Pay 2021
rate. The total net capacity for the entities listed above are based on Pay
2021 figures. The District was certified under the Pay 1995 rates.
Pursuant to M.S. Section 469.175 Subd. 2(b):
(1) Estimate of total tax increment. It is estimated that the total amount
of tax increment that will be generated over the life of the District is
$69,000,000;
(2) Estimated amount of tax increment attributable to school district
levies. It is estimated that the amount of tax increments over the life
of the District that would be attributable to school district levies,
City of Brooklyn Center Economic Development Authority
Modification to Tax Increment Financing District No. 3 4
assuming the school district's share of the total local tax rate for all
taxing jurisdictions remained the same, is $341,798 for ISD #11,
$2,442,532 for ISD #279; $2,597,516 for ISD #281, and $10,780,316 for
ISD #286.
(3) Estimated amount of tax increment attributable to county levies It is
estimated that the amount of tax increments over the life of the
District that would be attributable to county levies, assuming the
county's share of the total local tax rate for all taxing jurisdictions
remained the same, is $17,875,492;
(4) Additional information reauested bv the countv or school district The
City is not aware of any standard questions in a county or school
district written policy regarding tax increment districts and impact on
county or school district services. The county or school district must
request additional information pursuant to M.S. Section 469.175 Subd.
2(b) within 15 days after receipt of the tax increment financing plan.
No requests for additional information from the county or school
district regarding the proposed development for the District have
been received.
City of Brooklyn Center Economic Development Authority
Modification to Tax Increment Financing District No. 3 5
Appendix A: Map of Housing Development and Redevelopment
Project No. 1 and the TIF District
City of Brooklyn Center Economic Development Authority
Modification to Tax Increment Financing District No. 3 6
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Appendix B: November 12, 2013 TIF Plan Modification
City of Brooklyn Center Economic Development Authority
Modification to Tax Increment Financing District No. 3 7
Brooklyn Center Economic Development
Authority, Minnesota
Modification to Redevelopment Plan for
Housing Development and Redevelopment Project No. �
And
Modification No. 4 to Tax Increment Financing Plan for
Tax Increment Financing District No. 3
(A Redevelopment District)
Within Housing Development and Redevelopment Project No. 1
(Earle Brown Farm Project)
Modification Adopted: November 12, 2013
Original Plan adopted December 19, 1994
Modification No. 1 adopted April 28, 1997
Modification No. 2 adopted April 28, 1997
Modification No. 3 adopted January 24, 2011
Administrative amendments were completed in 2004 and 2008
Prepared by:
SPRINGSTED INCORPORATED
380 Jackson Street, Suite 300
St. Paul, MN 55101-2887
(651)223-3000
WWW.SPRINGSTED.COM
Introduction
The purpose of this Modification No. 4 to the Tax Increment Financing Plan for Tax Increment Financing
District No. 3 is to make adjustments to the Estimate of Costs and Sources of Revenue. This modification
increases the overall spending of a "TIF only" budget(the original and previously modified budgets included
non-TIF revenues and assumed spending).
The sections specifically being modified are the Property to be Acquired, Estimate of Costs, Estimate of
Loan/Bonded Indebtedness, Sources of Revenue, and Estimatetl Impact on Other Taxing Juristliction. This
modification does not reflect all the legislative changes that have occurred since original adoption, and may
not reflect fully the financial ramifications of all the TIF and property tax system changes.
TABLE OF CONTENTS
Section Pa e s
SectionI Definitions............................................................................................................................1
Section II Modification to Redevelopment Plan for Redevelopment Project ......................................................2
Section II.A Statement and Finding of Public Purpose.............................................................................2
Section II.B Statutory Authorization ....................................................................................................2
Section II.0 Statement of Objectives...................................................................................................2
Section III Modification of TIF District No.3 ..............................................................................................3
SectionIII.F Property to be Acquired ..................................................................................................3
Section III.G Estimate of Costs..........................................................................................................3
Section III.H Estimated Amount of Loan/Bonded Indebtedness.................................................................4
Section III.I Sources of Revenue........................................................................................................4
Section III.M Estimated Impact on Other Taxing Jurisdictions...................................................................4
Exhibit I: Map of Project Area and TIF District...........................................................................................6
Exhibit II: Estimated Impact on other Tax Jurisdictions Report ......................................................................7
Brooklyn Center Economic Development Authority, Minnesota
Section I Definitions
The terms defined in this section have the meanings given herein, unless the context in which they are used indicates
a different meaning:
"Authoritv"means the Economic Development Authority in and for the City of Brooklyn Center.
"Citv„means the City of Brooklyn Center, Minnesota; also referred to as a"Municipalitv".
"City Council"means the City Council of the City;also referretl to as the"Governing Body".
"Coun "means Hennepin County, Minnesota.
"EDA Act"means Minnesota Statutes, Section 469.090 to 469.108, inclusive, as amendetl.
"HRA Act"means Minnesota Statutes, Section 469.001 to 469.047, inclusive, as amendetl.
"Redevelopment Plan"means the Redevelopment Plan for the Redevelopment Project.
"Redevelopment Project" means Housing Development and Redevelopment Project No. 1 in the City, which is
described in the corresponding Retlevelopment Plan.
"Proiect Area"means the geographic area of the Redevelopment Project.
"School District/ISD No. 11"means the Anoka-Hennepin School District/ISD No. 11, Minnesota.
"School District/ISD No. 279"means the Osseo School District/ISD No.279, Minnesota.
"School District IISD No.281"means the Robbinsdale School District/ISD No. 281, Minnesota.
"School District/ISD No.286"means Brooklyn Center School District/ISD No. 286, Minnesota.
"State" means the State of Minnesota.
"TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1799, both inclusive.
"TIF District"means Tax Increment Financing District No. 3.
"TIF Plan Modification" means Modification No. 4 to the tax increment financing plan for the TIF District (this
document).
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Brooklyn Center Economic Development Authority, Minnesota
Section II Modification to Redevelopment Plan for Redevelopment Project
The following text represents a Modification to the Redevelopment Plan for Redevelopment Project No. 1: This
modification represents a continuation of the goals and objectives set forth in the Retlevelopment Plan for
Redevelopment Project No. 1. Generally, the substantive changes include the modification of the estimated public
costs and estimatetl revenues sources for the TIF District.
The Estimated Public Costs is motlified to include those set forth in Section III.B of the TIF Plan Modification and the
Estimated Revenue Sources is modified to include those set forth in Section III. C of the TIF Plan Modification.
For further information, a review of the Redevelopment Plan for Redevelopment Project No. 1 is recommended and is
available from the City of Brooklyn Center. Other relevant information is contained in the Tax Increment Financing
Plan for Tax Increment Financing Districts No. 1, No.2, No. 3, No.4, and No.5 located within Redevelopment Project
No. 1.
A map of Redevelopment Project No. 1 is shown in Exhibit I.
Section II.A Statement and Finding of Public Purpose
On April 25, 1994, the City Council antl Authoriry expantled the geographic boundaries of the Earle Brown Farm
Redevelopment Project to inclutle Housing Development Project No. 1 and other properties and provided additional
housing powers. The modified redevelopment project is renamed Housing Development and Redevelopment Project
No. 1.
The Authority intentls to use the powers allowed untler the EDA Act and HRA Act to promote development antl
redevelopment through the City antl to pool resources in order to reduce financial barriers to providing decent housing
and employment opportunities.
Section II.B Statutory Authorization
On August 24, 1987, the City Council authorized the establishment of the Brooklyn Center Economic Development
Authority (Authority). Pursuant to City Council Resolution No. 87-170, the Authority has and may exercise all of the
powers conferred by law upon a Housing and Retlevelopment Authority. The Authority has been authorized by the
City to carry out all powers of and atlminister all projects initiated by the Brooklyn Center HRA. The Authority
established Housing Development and Redevelopment Project No. 1 pursuant to the EDA Act and the HRA Act. HRA
Act authorizes the Authority to exercise all the powers relating to a housing and redevelopment authority granted
under Minnesota Statutes, Sections 469.001 to 469.047, or other law.
Within the City areas exist where public involvement is necessary to cause retlevelopment to occur.The Authority has
certain statutory powers pursuant to the TIF Act to assist in financing eligible activities related to these redevelopment
needs.
Section II.0 Statement of Objectives
The sampling of the general goals and objectives of the Redevelopment Plan are listed below:
■ To provitle decent, safe antl sanitary housing for persons of low and moderate income.
■ To provide governmental assistance to eliminate slum and blight.
■ To provide an ongoing benefit to the residents of the City and those who may frequent the area.
■ To enhance the tax base of the City.
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Brooklyn Center Economic Development Aufhority, Minnesota
■ To provide maximum opportunity, consistent with the neetls of the City, for development by private
enterprise.
■ To better utilize vacant or undeveloped land.
This motlification of the estimated public costs for TIF District No. 3 will ensure a continuation of the EDA's goals antl
objectives of the Project Area that result in increased opportunities for commercial development and will otherwise
benefit the health, safety, morals and welfare of the resitlents of the City.
Section III Modification of TIF District No.3
Section III.F Property to be Acquired
The City or Authority may acquire any parcels, inclutling interior streets and railway right-of-ways, within the
boundaries of Housing Development and Redevelopment Project No. 1; and may use tax increment depositetl in the
housing development account to acquire any parcel located anywhere city for eligible housing activities, as provided
in the Special Act.
Section III.G Estimate of Costs
The estimate of public costs associated with District No.3 is outlined in the following line item budget:
Estimate of Public Costs March 24,2008 Proposed
Admin.Amendment Bud et Modification
Land Ac uisition $13,000,000 $25,000,000
Public Improvements 8,000,000 4,500,000
Site Im rovements 2,000,000 2,100,000
Administrative Ex enses 2,900,000 4,400,000
Contin enc 1,000,000 -
Housin Develo ment Account
Land Ac uisition - 6,000,000
Affordable Housin Expenses - 4,175,000
Interest Ex ense on Debt Issuance - 250,000
Total Housin Develo ment Account 5,000,000 10,425,000
Poolin
Land Ac uisition - 6,775,000
Public Im rovements - 4,000,000
Interest Ex ense on Debt Issuance - 1,050,000
Total Poolin - 11,825,000
Interest Ex ense Includin Ca italized - 11,250,000
Total $31,900,000 $69,500,000
Any funds to be expentled for off-site improvements outside the boundaries of District No.3, but within the bountlaries
of Housing Development and Redevelopment Project No. 1,would be no more than 25 percent of total tax increment
generated by District No. 3, inclutling administrative costs, provided that tax increment deposited in the housing
development account may be spent on eligible housing activities locatetl anywhere in the City, as provided in the
Special Act.
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Brooklyn Center Economic Development Authority, Minnesota
The Authority reserves the right to administratively adjust the amount of any of the items listetl above or to
incorporate additional eligible items,so long as the total estimated public costs is not increasetl.
Section III.H Estimated Amount of LoanlBonded Indebtedness
It is anticipated that the City or Authority may issue a revenue bontl, general obligation bond, or other type of
obligation in one or more series to finance public costs. The original principal amount of all indebtedness is not
expected to exceed $��99A;AA9 45 000 000 with additional increments to be paid to capitalized and other interest
determined at the time of issuance.
Section III.I Sources of Revenue
The major source of revenue to be used to finance public costs associated with the public development projects in
Housing Development and Retlevelopment Project No. 1 is tax increment generated as a result of the taxation of the
land and improvements in District. No. 03. Tax increment financing refers to a funding technique that utilizes
increases in valuation and the property taxes attributable to new development to finance, or assist in the financing of
public development costs. Additional sources of revenue may include but are not limited to investment income and
land sales. This does not preclude the Ciry, the Authority or the tleveloper from using other funds, at its discretion, to
pay such costs.
Estimated Sources of Revenue November 8, 2004 Proposed
Admin.Amendment Bud et Modification
Tax Increment revenue $48,069,393 $65,344,375
Interest on investetl funtls 1,500,607 4,111,758
Sales/Lease Proceeds 2,330,000 -
Market Value Homestead Credit - 43,867
Transfers In - 0
Total $51,900,000 $69,500,000
Tax increment revenue projections were based on historical revenue receipts, and future revenue projections based
on an approximate growth in captured tax capacity of$486,170,and a 3%market value inflator applied to future
captured tax capacities.
Section III.M Estimated Impact on Other Taxing Jurisdictions
Exhibit II shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax
capacity of the TIF District,generated over the remaining term of the District,was hypothetically available to the other
taxing jurisdictions. The City believes that there will be no adverse impact on other taxing jurisdictions during the life
of the TIF District, since the proposed development would not have occurred without the modification of the TIF
District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF
District is decertified and the development therein becomes part of the general tax base.
The fiscal and economic implications of the proposed modification to the tax increment financing district, as pursuant
to Minnesota Statutes, Section 469.175, Subtlivision 2, are listed below.
1. The total amount of tax increment that will be generated over the remaining life (Collections from taxes
payable 2013—2021)of the TIF District is estimated to be$34,470,103.
2. To the extent the modification of the TIF District generates any public cost impacts on City-provided services
such as police and fire protection, public infrastructure, antl the impact of any general obligation tax
increment bonds attributable to the TIF District upon the ability to issue other debt for general fund purposes,
such costs will be levied upon the taxable net tax capacity of the City, excluding that portion captured by the
TIF District.
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Brooklyn Center Economic Developmenf Aufhority, Minnesota
3. The amount of tax increment generated over the remaining term of the TIF District that would be attributable
to School District #011 levies, assuming the School District's share of the total local tax rate for all taxing
jurisdictions remained the same, is estimated to be$302,902.
4. The amount of tax increment generated over the remaining term of the TIF District that would be attributable
to School District #279 levies, assuming the School District's share of the total local tax rate for all taxing
jurisdictions remained the same, is estimated to be$1,993,309.
5. The amount of tax increment generated over the remaining term of the TIF District that would be attributable
to School District #281 levies, assuming the School DistricYs share of the total local tax rate for all taxing
jurisdictions remained the same, is estimated to be$1,195,911.
6. The amount of tax increment generated over the remaining term of the TIF District that would be attributable
to School District #286 levies, assuming the School DistricYs share of the total local tax rate for all taxing
jurisdictions remained the same, is estimated to be$4,540,511.
7. The amount of tax increment generated over the remaining term of the TIF District that would be attributable
to County levies, assuming the Counry's share of the total local tax rate for all taxing jurisdictions remainetl
the same is estimated to be$9,920,659.
8. No additional information has been requested by the County or School Districts that would enable them to
determine atlditional costs that will accrue to it due to the development proposed for the district.
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Brooklyn Center Economic Developmenf Authority, Minnesota
Exhibit I - Map
Housing Development and
Redevelopment Project No. 01
Project Areas
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