HomeMy WebLinkAbout2004-013 EDAR1
Commissioner Kathleen Carmody introduced the following resolution and moved its
adoption:
EDA RESOLUTION NO. 2004 -13
RESOLUTION APPROVING THE MODIFICATION OF THE TAX
INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING
DISTRICT NO. 2
BE IT RESOLVED by the Board of Commissioners of the Brooklyn Center
Economic Development Authority, Minnesota as follows:
Section 1. Recitals.
1.01. The Brooklyn Center Economic Development Authority, Minnesota (the
"Authority has heretofore established Housing Development and Redevelopment Project No. 1
(formerly known as the Earle Browne Farm Redevelopment Project) (the "Project Area
pursuant to Minnesota Statutes, Sections 469.001 to 469.047 and adopted a Redevelopment Plan
therefor, as amended (the "Redevelopment Plan"). The Authority also established Tax Increment
Financing District No. 2, more commonly known as the Earle Brown Farm Tax Increment
Financing District (the "TIF District within the Project Area and adopted a Tax Increment
Financing Plan therefor (the "TIF Plan") all pursuant to and in accordance with Minnesota
Statutes, Sections 469.174 to 469.1799.
1.02. The Authority desires to modify the TIF Plan in order to make certain
administrative changes to the TIF Plan, such changes are attached hereto as Exhibit A.
1.03. The Authority has caused to be prepared a modification to the TIF Plan. The
modification to the TIF Plan does not increase the total estimated tax increment expenditures, the
amount of bonded indebtedness, capitalized interest, or make any other changes described in
Minnesota Statutes, Section 469.175, subd. 4, that would require a new public hearing.
Section 2. Authority Approval.
2.01. The Authority finds that its objectives in encouraging development and
redevelopment within the Project Area and TIF District would be advanced by adoption of the
modification to the TIF Plan.
2.02. The modified TIF Plan is hereby approved and adopted by the Authority.
November 8 2004
Date Presi�
Date de
The motion for the adoption of the foregoing resolution was duly seconded by commissioner
Kay Lasman
and upon vote being taken thereon, the following voted in favor thereof:
Myrna Kragness, Kathleen Carmody, Kay Lasman, Diane Niesen, and Bob Peppe;
and the following voted against the same: none;
whereupon said resolution was declared duly passed and adopted.
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EDA RESOLUTION NO, 2004 -13
STATE OF MINNESOTA
ss.
COUNTY OF HENNEPIN
I, the undersigned, being the duly qualified and acting Secretary of the Brooklyn Center
Economic Development Authority, Minnesota, DO HEREBY CERTIFY that I have carefully
compared the attached and foregoing extract of minutes with the original minutes of a meeting of
the Board of Commissioners of the Brooklyn Center Economic Development Authority,
Minnesota held on the date therein indicated, which are on file and of record in my office, and
the same is a full, true and complete transcript therefrom insofar as the same relates to a
Resolution Approving the Modification of the Tax Increment Financing Plan No. 2.
WITNESS my hand as such Secretary of the Brooklyn Center Economic Development
Authority, Minnesota this day of November, 2004.
Secretary
EDA RESOLUTION NO. 2004-13
Brooklyn Center Economic Development
Authority, Minnesota
Administrative Amendment
to
Tax Increment Financing Plan
for
Exhibit A
Tax Increment Financing (Redevelopment)
District No. 2
(Earle Brown Farm Project)
Dated: November 1, 2004
Amendment Approved:
Prepared by:
SPRINGSTED INCORPORATED
85 E. Seventh Place, Suite 100
St. Paul, MN 55101 -2887
(651) 223 -3000
WWW. SPRINGSTED. COM
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EDA RESOLUTION NO. 2004-13
Introduction
The purpose of the Administrative Amendment to the Tax Increment Financing Plan for Tax
Increment Financing District No. 2 is to make a line -item adjustment to the Estimated Project
Costs and Estimated Revenue Sources. This amendment will not increase the overall size of
the budget. The sections specifically being modified are the Estimated Project Costs and
Revenue Sources. This amendment 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.
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EDA RESOLUTION NO. 2004-13
TABLE OF CONTENTS
Section Page (s)
Estimated Project Costs 1
Estimated Revenue Sources 2
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EDA RESOLUTION NO. 2004-13
Brooklyn Center Economic Development Authority, Minnesota
Estimated Project Costs
The estimated project costs are based solely upon those projects involving expenditures on
the part of either the City or EDA. Table I represents the total redevelopment costs including
the cost of acquiring all privately held land within the district. The costs also include interim
finance costs based upon assumptions outlined in this section under "Revenue Sources
ANTICIPATED DEVELOPMENT
1. Construction of 130,000 square feet of retail (Target) is anticipated along Shingle Creek
Parkway between the intersection of Summit Drive on the north and John Martin Drive
on the south. Current zoning is C -2. It is anticipated that construction will begin in the
summer of 1985. See Figure IV. Completed 1986.
2. Construction of 269 units of apartments. The project is to be constructed on the Earle
Brown Farm site. The land is presently zoned I- and will necessitate a rezoning to R -7.
Construction to start in the spring of 1987. See Figure V. Completed 1988.
3. Construction of 67,000 square feet of retail on the parcels located on Summit Drive and
Earle Brown Drive. Present zoning is C -2. Construction to begin in 1988. See Figure
VI.
4. Renovation of the Earle Brown Farm. Acquisition is anticipated by the summer of 1985.
Renovation of the existing building will start in the spring of 1986. See Figure VIII.
Completed 1989.
5. Traffic Light Installation. See Figure IX. Completed.
6. Construction of a 200 room hotel
Estimated Project Costs
Land /Building acquisition
Site Improvements /Preparation costs
Installation of public utilities
Parking facilities
Streets and sidewalks
Social, Recreation and conference
Bond principal payments
Bond interest payments
Loan Principal payments
Loan Interest payments
Administrative expenses
Capitalized interest
Other
Contingencies
Operating subsidies
Transfers Out
TABLE I
Total 18,842,865
ORIGINAL MODIFIED MODIFIED
11 -8 -04
$2,920,000 $3,260,000
0 0
1,300,000 1,500,000
0 1,500,000
500,000 985,000
2,000,000 9,016,000
5,250,000 15,570,000
5,561,965 10,600,761
7,574,067
1,956,409
309,000 562,300
1,001,900
$3,260,000
2,600,000
750,000
1,536, 564
830,000
10,850,000
15,100,000
8,580,000
7,085,000
935,000
900.000
23,369
1,250,000 1,324,604
53,774,537 53L774 53
The Authority reserves the right to administratively adjust the amount of any of the items listed
above or to incorporate additional eligible items, so long as the total estimated public cost is
not increased.
SPRINGSTED Page 1
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EDA RESOLUTION NO. 2004-13
Brooklyn Center Economic Development Authority, Minnesota
Estimated Revenue Sources
The primary revenue source for the acquisition and redevelopment of the Earle Brown Farm
and the streetscaping plan for the District will be tax increment financing bonds. Also available
for the acquisition of the Earle Brown Farm are Community Development Block Grant Funds
and land sales.
The primary revenue source for other public projects will be special assessments, Municipal
State -Aid Roadway Funds and local roadway funds. Possible future redevelopment loans and
soil correction projects would be funded with tax increment dollars but such projects would not
be bonded for.
For the acquisition of the Earle Brown Farm, it is anticipated that $1,000,000 in Community
Development Block Grant Funds would be available. Land sales for the development of rental
units are estimated at $650,000.
The estimated captured value is based upon development completed and fully assessed by
1.991. In addition to the capture of the increment for new development, it is anticipated that
additional increment will be obtained for increased values, both new and existing development,
during the life of the district. It is assumed that assessed values will increase at three (3)
percent annually.
Based upon the estimated assessed value captured (see Table II) within the district a bond
issue for twenty (20) years, it is the desire and intent of both the City and the EDA to terminate
this District at such time when reserve funds are of a sufficient amount to assure the
completion of the project and the retirement of all indebtedness associated with the project.
(See Addendum B Cash Flow Analysis).
Estimated Revenue Sources
Tax Increment revenue
Interest on invested funds
Bond proceeds
Loan proceeds
Real estate sales
Special assessments
Rent /Lease revenue
Grants
Other
Transfers In
Total
SPRINGSTED
ORIGINAL
$12,534,744
760,267
5,167,364
0
650,000
1,300,000
0
680,000
21,092,375
MODIFIED
$26,170,761
400,000
16,679,709
7,574,067
650,000
1,300,000
0
1,000,000
53,774,537
MODIFIED
11 -8 -04
$26,170,761
2,200,000
15,434,223
7,574,067
1,395,486
0
0
1,000,000
53,774,537
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