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HomeMy WebLinkAbout2004-014 EDAR1 1 1 Commissioner Kathleen Carmody introduced the following resolution and moved its adoption: Section 1. Recitals. EDA RESOLUTION NO. 2004 -14 RESOLUTION APPROVING THE MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3 BE IT RESOLVED by the Board of Commissioners of the Brooklyn Center Economic Development Authority, Minnesota as follows: 1.01. The Brooklyn Center Economic Development Authority, Minnesota (the "Authority has heretofore established the Housing Development and Redevelopment Project No. 1 (the "Project Area pursuant to Minnesota Statutes, Sections 469.001 to 469.047 and adopted a Redevelopment Plan therefor, as modified (the "Redevelopment Plan The Authority also established the Tax Increment Financing District No. 3 (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 modification is attached hereto as Exhibit A. 1.03. The Authority has caused to be prepared a modification to the TIF Plan which is attached hereto as Exhibit A. 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 the 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 1 President 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. 1 1 RESOLUTION NO. 2004 -14 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. 03. WITNESS my hand as such Secretary of the Brooklyn Center Economic Development Authority, Minnesota this day of November, 2004. Secretary EDA RESOLUTION NO. 2004-14 Brooklyn Center Economic Development Authority, Minnesota Administrative Amendment to Tax Increment Financing Plan for Dated: November 4, 2004 Amendment Approved: Prepared by: SPRINGSTED INCORPORATED 85 E. Seventh Place, Suite 100 St. Paul, MN 55101 -2887 (651) 223 -3000 WWW. SPRINGSTED. COM Exhibit A Tax Increment Financing (Redevelopment) District No. 3 EDA RESOLUTION NO. 2004-14 Introduction The purpose of the Administrative Amendment to the Tax Increment Financing Plan for Tax Increment Financing District No. 3 is to make a line -item adjustment to the estimated project costs and sources of revenue. This amendment will not increase the overall size of the budget. The section specifically being modified is Section G, Estimate of Costs and Section I Sources of Revenue. 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. EDA RESOLUTION NO. 2004-14 TABLE OF CONTENTS Section Page(s) G. Estimate of Costs 1 I. Sources of Revenue 2 EDA RESOLUTION NO. 200€) ok /yn Center Economic Development Authority, Minnesota 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 Land Acquisition a. Commercial b. Industrial Public Improvements a. Streetscape b. Public Works /Storm water Demolition and Relocation Site Improvements /Site Preparation Public Parking Facilities Bond principal payments Bond interest payments Loan Principal Payments Loan Interest Payments Administrative, Legal, Engineering, and Consulting Fees Housing Development Account Property Acquisition of Multi- family Units Rehabilitation of Multi- Family Units Acquisition of Blighted Single Family Housing Rehabilitation of Blighted Senior Housing Contingency Other Increment Refund SPRINGSTED ORIGINAL $7,000,000 8,000,000 4,500,000 3,500,000 0 0 0 29,000,000 20,000,000 2,900,000 5,000,000 1,000,000 MOD. 1 $7,000,000 8,000,000 4,500,000 3,500,000 0 1,000,000 0 29,000,000 20,000,000 2,900,000 5,000,000 MODIFIED 11 -8 -04 19,200.000 1,000,000 3,842,572 2,000,000 29,000,000 16,500,000 1,000,000 281,428 1,700,000 5,000.000 0 1,000,000 376.000 Total Estimated Project Costs 80,900,000 80,900,000 80,900,000 Any funds to be expended for off-site improvements outside the boundaries of District No. 3, but within the boundaries of Housing Development and Redevelopment Project No. 1, would be less than 25 percent of total tax increment generated by District No. 3, including administrative costs, provided that tax increment deposited in the housing development account may be spent on eligible housing activities located anywhere in the City, as provided in the Special Act. The Authorit reserves the ri ht to administrativel ad'ust the amount of an of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost is not increased. Page 1 EDA RESOLUTION NO. 200ggkboklyn Center Economic Development Authority, Minnesota 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 Redevelopment 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 City, the Authority, or the developer from using other funds, at its discretion, to pay such costs. Estimated Sources of Revenue Tax Increment revenue Interest on invested funds Bond proceeds Loan proceeds Sales /Lease Proceeds Special assessments Loan /Advance Repayments Grants Other Transfers In Total SPRINGSTVD ORIGINAL $48,069,393 1,030,607 29,000,000 0 2,800,0000 0 0 0 0 0 MODIFIED 48,069,393 1,030,607 29,000,000 0 2,800,000 0 0 0 0 0 MODIFIED 11 -8 -04 $48,069,393 1,500,607 29,000,000 0 2,330,000 0 0 0 0 0 80,900,000 80,900,000 80,900,000 Page 2