HomeMy WebLinkAbout2002 05-13 EDAP I
• EDA MEETING
City of Brooklyn Center
May 13, 2002 AGENDA
1. Call to Order
2. Roll Call
3. Approval of Agenda and Consent Agenda
-The following items are considered to be routine by the Economic Development Authority
(EDA) and will be enacted by one motion. There will be no separate discussion of these
items unless a Commissioner so requests, in which event the item will be removed from the
consent agenda and considered at the end of Commission Consideration Items.
a. Approval of Minutes
- Commissioners not present at meetings will be recorded as abstaining from the vote
on the minutes.
1. March 11, 2002 — Regular Session
2. March 13, 2002 — Regular Session
. 4. Commission Consideration Items
a. Resolution Authorizing and Consenting to the Assignment of the Twin Lakes
Business Park's Interest in a Certain Tax Increment Note to Twin Lakes II, LLC
Requested Commission Action:
- Motion to adopt resolution.
b. Twin Lakes Business Park
Development Agreement Amendment
Requested Commission Action:
- Discussion.
C. Resolution Accepting Quotes and Authorizing Demolition of 5912 Camden Avenue
North, Brooklyn Center, Minnesota
• Requested Commission Action:
- Motion to adopt resolution.
5. Adjournment
•
EDA Agenda Item No. 3a
•
• MINUTES OF THE PROCEEDINGS OF THE
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF BROOKLYN CENTER
IN THE COUNTY OF HENNEPIN AND THE
STATE OF MINNESOTA
REGULAR SESSION
MARCH 11, 2002
WEST FIRE STATION — TRAINING ROOM
CALL TO ORDER
President Kragness opened the meeting at 7:01 p.m. and announced that due to lack of a quorum the
Economic Development Authority was unable to transact business.
ROLL CALL
President Myrna Kragness and Commissioner Bob Peppe. Commissioners Kay Lasman, Ed Nelson,
and Tim Ricker were absent and excused. Also present were Executive Director Michael J.
McCauley and City Clerk Sharon Knutson.
FIX THE TIME TO WHICH TO ADJOURN
• There was a motion by Commissioner Peppe, seconded by President Kragness to adjourn the
meeting to March 13, 2002, following the 7 p.m. Regular Session City Council meeting, West Fire
Station Training Room, at which time the meeting will be convened. Motion passed unanimously.
Meeting adjourned at 7:02 p.m.
President
03/11/02 -1- DRAFT
MINUTES OF THE PROCEEDINGS OF THE
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF BROOKLYN CENTER
• IN THE COUNTY OF HENNEPIN AND THE
STATE OF MINNESOTA
REGULAR SESSION
MARCH 13, 2002
WEST FIRE STATION — TRAINING ROOM
1. CALL TO ORDER
The Brooklyn Center Economic Development Authority (EDA) met in regular session and was called to order
at 7:51 p.m. by President Myrna Kragness.
2. ROLL CALL
President Myrna Kragness, Commissioners Kay Lasman, Ed Nelson, and Bob Peppe. Commissioner Tim
Ricker was absent and excused. Also present were Executive Director Michael McCauley, Assistant City
Manager Jane Chambers, Community Development Director Brad Hoffman, City Attorney Bob Vose, and City
Clerk Sharon Knutson,
3. APPROVAL OF AGENDA AND CONSENT AGENDA
There was a motion by Commissioner Peppe, seconded by Commissioner Nelson to approve the agenda and
consent agenda. Motion passed unanimously.
• 3a. APPROVAL OF MINUTES
There was a motion by Commissioner Peppe, seconded by Commissioner Nelson to approve the February 25,
2002, regular session minutes. Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
4a. RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE
CITY OF BROOKLYN CENTER APPROVING HENNEPIN COUNTY'S
PARTICIPATION IN THE SHINGLE CREEK TOWER PROJECT
Mr. McCauley explained that this resolution is identical to the item on the City Council agenda that was
discussed at the City Council meeting.
RESOLUTION NO. 2002 -05
Commissioner Nelson introduced the following resolution and moved its adoption:
RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF
BROOKLYN CENTER APPROVING HENNEPIN COUNTY'S PARTICIPATION IN THE
SHINGLE CREEK TOWER PROJECT
The motion for the adoption of the foregoing resolution was duly seconded by Commissioner
S Lasman. Motion passed unanimously.
03/13/02 -1- DRAFT
5. ADJOURNMENT
There was a motion by Commissioner Lasman, seconded by Commissioner Peppe to adjourn the meeting at
7:52 p.m. Motion passed unanimously.
President
•
•
03/13/02 -2- DRAFT
•
EDA Agenda Item No. 4a
MEMORANDUM
•
TO: Michael McCauley, City Manager
FROM: Brad Hoffman, Community Development Director
DATE: May 8, 2002
SUBJECT: Resolution Approving Assignment of Twin Lake Business Park Note No. 2
The resolution before the EDA authorizes Twin Lake Business Park II to assign EDA note
number 2 to the 1 st National Bank of Omaha as collateral to the permanent financing of Phase II
(Toro). While this is considered a minor housekeeping item, EDA approval is required under the
terms (Section 5.2) before the note can be assigned.
The assigriment of the note simply means that the monetary benefits of the note that are received
by the Twin Lake Business L
S .L.C. Real Estate Recycling) yclmg) are directed to the Bank of Omaha as
partial security towards the payment of the long term financing held by Twin Lake Business on
Phase II.
•
I
s
• Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING AND CONSENTING TO THE ASSIGNMENT OF
THE TWIN LAKES BUSINESS PARK'S INTEREST IN A CERTAIN TAX
INCREMENT NOTE TO TWIN LAKES IL LLC
WHEREAS, Twin Lakes Business Park, LLC has requested that the Brooklyn
Center Economic Development Authority consent to the assignment of the Twin Lakes Business
Park's interest in a certain Tax Increment Note to Twin Lakes II, LLC; and
WHEREAS, the Tax Increment Note and Development Agreement between Twin
Lake Business Park, LLC and the Brooklyn Center Economic Development Authority provide
that the note is assignable with the prior written consent of the Brooklyn Center Economic
Development Authority; and
WHEREAS, Twin Lakes Il, LLC incurred extraordinary costs in the development
of the improvements on the underlying parcel.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of Brooklyn Center, Minnesota that the Economic Development
• Authority approves, authorizes and consents to the assignment of the Tax Increment Note dated
January 25, 2002, in the amount of Five Hundred Sixty -nine Thousand Nine Hundred and
Thirty -eight dollars ($569,938) made by the Brooklyn Center Economic Development Authority
in favor of Twin Lakes Business Park, LLC (Assignor), to Twin Lakes lI, LLC (Assignee).
Date President
The motion for the adoption of the foregoing resolution was duly seconded by commissioner
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
•
EDA Agenda Item No. 4b
•
MEMORANDUM
TO: Michael McCauley, City Manager
FROM: Brad Hoffman, Community Development Director
DATE: May 9, 2002
SUBJECT: Twin Lake Business Park Agreement
On April 27, 1999, the EDA entered into a development agreement with Twin Lakes
Business Park (Real Estate Recycling). As an overview of the agreement, the EDA was to write
down the cost of the land to $2.00 per foot to make it competitive with other industrial properties
being marketed at that time. The total EDA commitment was capped at $4,000,000 for Phase I
• (Wicks) and Phase II (Toro). In essence, the EDA would take the sum of the purchase price, the
cost of the environmental clean up and the clearing of the site less any grants and write the
developers land cost down to $2.00 per square foot but not to exceed a total of $4,000,000.
The agreement further stipulated that each Phase would stand alone and would receive
TIF monies for a period of 10 years once that Phase had reached full value. The Wicks building
would generate of to be used to pay a note to Twin Lake Business Park on the Wicks building
only. Under the agreement, the Wicks site (Phase 1) had $1,600,000 in eligible costs not covered
by grants and in excess of $2.00 per square foot. They received a note from the EDA in the
amount of $1,600,000 at 8 %. The Toro building or Phase II is treated in the same manner under
the terms of the agreement. At the time the EDA entered into the agreement, each development
Phase would have its own note from the EDA and would have had sufficient of cash flows to
easily amortize the note. Each building had its own 10 -year period to collect the of monies to pay
off their respective notes. It was intended that each Phase or development would be removed
from the of district once the note had been paid off.
The problem is that when the legislature significantly altered the property tax laws last
year, the impact on of districts throughout the state was profound. The cash flows from existing
districts were almost cut in half. As an example, the Wicks building which has a market value of
$8,000,000 should have generated approximately $335,000 in of annually. Under the new
property tax laws, it generates approximately $158,000 in of annually. Originally, the Wicks
project should have been paid off and returned to the general tax roles after approximately 8
years of of payments. The current of cash flow will not pay off the note within the lifetime of the
district. Phase II (Toro) was hit even harder. In determining the amount of the EDA note to the
• developer the agreement limits the amount of the note to 97.5% of the present value to the of
generated by the project discounted at 8 %. Originally, that of would have had a net present
• value well in excess of $1,000,000. The project had $758,056 in eligible expenditures and should
have received a note from the EDA in that amount. Because of the change in property tax laws,
the net present value of the cash flow from the Toro building was $569,938. The developer lost
$188,118 in principal. Again, Phase II is unable to amortize the current note. As a result of the
property tax law changes, the developer will not receive the benefits of our development
agreement as currently written. It should be noted that the total to the two notes if corrected
would be $2,358,056, which is substantially less than the $4,000,000 the EDA was potentially
committed to.
Attached for discussion Monday evening is an amendment to the agreement that would
restore or make whole the developer as intended in the original agreement. It would require that
the EDA agree to use the of generated from all 3 phases of the development to retire the two
notes as opposed to each Phase of the development retiring only the note associated with that
Phase. It would also amend the second note to cover all eligible costs. Finally, it would extend
the time frame in which the developer would be able to receive of assistance.
The time frame by which the of district would be extended is contingent upon several
variables. First, to the extent that we see an increase in the market value of the real estate within
the district, there will be a corresponding reduction in the time frame to retire the notes. I have
had Springsted run several scenarios from 0 inflation to 2% inflation. Attached for our discussion
Monday evening is the 0% inflation model. At 0% inflation, both notes should be retired by
August 2015. The current Phase I note will run through 2011 and the Phase II note runs through
2013. Another option available to the EDA under new legislation would allow the EDA to let the
tax rate float. When the district was established, the tax rate at that time was frozen at 134.261.
Tax increment districts do not capture increases in the tax rate. However, the legislature is
currently considering an y g exception to this law to provide relief to of districts that had been hurts
by the property tax changes. The City /EDA could elect to let the rate float to the current rate of
146.909. The two notes would be retired around February 2014.
These scenarios have one other major assumption. We are assuming that Phase III is built
and that it is comparable in value to Phase II. Further, Phase III needs to be completed so that
2004 pay 2005 is at full value. The owners should be available to discuss this matter and answer
other questions of the Commissioners.
•
• { Assumptions Report {
City of Brooklyn Center, Minnesota
Tax Increment Financing (Soils) District No. 4 (County 2103)
France Avenue Business Park Project
Scenario C - Phases 1, 11, & III TIF Combined for Note - 0% Inflation, Float TC Rate
Type of Tax Increment Financing District Soils Condition
Maximum Duration of TIF District 20 years from 1st increment
Decertification Date 12,01/20 (19 Years of Increment)
2001/2002
Base Estimated Market Value 2,005,600
Total Original Net Tax Capacity $37,862
Assessment/Collection Year
2001/2002 2002/2003 2003/2004 2004/2005
Base Estimated Market Value $2,005,600 $2,005,600 $2,005,600 $2,005,600
Increase in Estimated Market Value 7,707,600 12,670,900 15,933,700 18,000,000
Total Estimated Market Value (1) $9,713,200 $14,676,500 $17,939,300 $20,005,600
Phase I - Current Net Tax Capacity 158,000 153,250 157,250 157,250
Phase II - Current Net Tax Capacity 15,650 118,936 118,936 118,936
Phase III - Current Net Tax Capacity 18,014 17,994 79,250 120,576
Nothing - Current Net Tax Capacity 850 850 850 850
Total Net Tax Capacity (2) $192,514 $291,030 $356,286 $397,612
• Base Inflation Factor NA
Local Tax Capacity Rate (3) 146.909% 2001/2002
Frozen Tax Rate 134.261%
Fiscal Disparities Contribution From TIF District 32.4875%
Administrative Retainage Percent (maximum = 10 %) 2.50%
Pooling Percent 0.00%
City Tax Rate (Only if Local- Effort TIF) NA
Bonds Note (Pav -As- You -Go)
Bonds Dated NA Note Dated 02/01/02
First Interest Date NA Note Rate 8.00%
Underwriters Discount NA
LGA/HACA Loss:
Will Annual Local Contribution Be Made (Yes or No)? No
I.S.D #281 Equalized Tax Capacity Rate NA
I.S.D #281 Sales Ratio NA
City Sales Ratio & Taxable Net Tax Capacity NA NA
Present Value Date & Rate NA NA
(1) Assume full value in Pay 2005.
(2) Estimates provided by City Assessor.
(3) Final 2002 rate provided by Hennepin County.
r
Prepared by: Springsted Incorporated (printed on 5/8/2002 at 11:49 AM) TIF 4 0% Float 050802.xIsAssumptions
•
Projected Tax Increment Report
City of Brooklyn Center, Minnesota
Tax Increment Financing (Soils) District No. 4 (County 2103)
France Avenue Business Park Project
Scenario C - Phases I, II, & III TIF Combined for Note - 0% Inflation, Float TC Rate
Inflation rate: 0.00%
Less: Less: Retained Times: Less: Less:
Annual Total Original Fiscal Captured Tax Annual State Aud. Admin. Net Tax Total Annual
Period Net Tax Net Tax Disp. @ Net Tax Capacity Gross Tax Deduction Retainage Increment Revenue
Ending Capacity Capacity 32.4875% Capacity Rate (a) Increment 0.425% 2.50% (all phases) Avail. for Note
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
12/31/02 192,514 37,862 50,243 104,409 146.909% 153,386 652 3,818 148,916 148,916
12/31/03 291,030 37,862 82,248 170,920 146.909% 251,097 1,067 6,251 243,779 243,779
12/31/04 356,286 37,862 103,448 214,976 146.909% 315,819 1,342 7,862 306,615 306,615
12/31/05 397,612 37,862 116,874 242,876 146.909% 356,807 1,516 8,882 346,409 346,409
12131/06 397,612 37,862 116,874 242,876 146.909% 356,807 1,516 8,882 346,409 346,409
12/31/07 397,612 37,862 116,874 242,876 146.909% 356,807 1,516 8,882 346,409 346,409
12/31/08 397,612 37,862 116,874 242,876 146.909% 356,807 1,516 8,882 346,409 346,409
12/31/09 397,612 37,862 116,874 242,876 146.909% 356,807 1,516 8,882 346,409 346,409
12/31/10 397,612 37,862 116,874 242,876 146.909% 356,807 1,516 8,882 346,409 346,409
12/31/11 397,612 37,862 116,874 242,876 146.909% 356,807 1,516 8,882 346,409 346,409
12/31/12 397,612 37,862 116,874 242,876 146.909% 356,807 1,516 8,882 346,409 346,409
12/31/13 397,612 37,862 116,874 242,876 146.909% 356,807 1,516 8,882 346,409 346,409
12/31/14 397,612 37,862 116,874 242,876 146.909% 356,807 1,516 8,882 346,409 346,409
12/31/15 397,612 37,862 116,874 242,876 146.909% 356,807 1,516 8,882 346,409 346,409
12/31/16 397,612 37,862 116,874 242,876 146.909% 356,807 1,516 8,882 346,409 346,409
12/31/17 397,612 37,862 116,874 242,876 146.909% 356,807 1,516 8,882 346,409 346,409
12/31/18 397,612 37,862 116,874 242,876 146.909% 356,807 1,516 8,882 346,409 346,409
12/31/19 397,612 37,862 116,874 242,876 146.909% 356,807 1.516 8,882 346,409 346,409
12/31/20 397,612 37,862 116,874 242,876 146.909% 356,807 1,516 8,882 346,409 346,409
$6,429,214 $27,317 $160,043 $6,241,854 $6,241,854
(a) Assumes City applies to use current tax capacity rate instead of frozen rate.
Prepared by: Springsted Incorporated (printed on 5/8/2002 at 11:49 AM) TIF 4 0% Float 050802.xis
Proiected Pay -As- You -Go Note Report
. City of Brooklyn Center, Minnesota
Tax Increment Financing (Soils) District No. 4 (County 2103)
France Avenue Business Park Project
Scenario C - Phases I, II, & III TIF Combined for Note - 0% Inflation, Float TC Rate
Note Date: 02/01102
Note Rate: 8.00%
Amount: $2,344,101 ($1,586,045.20 plus $758,056)
Semi - Annual Loan
Net Accrued Balance
Date Principal Interest P & I Revenue Interest Outstanding
(1) (2) (3) (4) (5) (6) (7)
2,344,101.20
02/01/02 0.00 0.00 0.00 0.00 0.00 2,344,101.20
08/01/02 0.00 74,458.00 74,458.00 74,458.00 19,306.05 2,344,101.20
02/01/03 0.00 74,458.00 74,458.00 74,458.00 19,306.05 2,344,101.20
08/01/03 0.00 93,764.05 93,764.05 121,889.50 (28,125.45) 2,344,101.20
02/01/04 17,638.80 93,764.05 111,402.85 121,889.50 (10,486.65) 2,326,462.40
08/01/04 60,249.00 93,058.50 153,307.50 153,307.50 0.00 2,266,213.40
02/01/05 62,658.96 90,648.54 153,307.50 153,307.50 0.00 2,203,554.44
08/01/05 85,062.32 88,142.18 173,204.50 173,204.50 0.00 2,118,492.12
02/01/06 88,464.82 84,739.68 173,204.50 173,204.50 0.00 2,030,027.30
08/01/06 92,003.41 81,201.09 173,204.50 173,204.50 0.00 1,938,023.89
02/01/07 95,683.54 77,520.96 173,204.50 173,204.50 0.00 1,842,340.35
08/01/07 99,510.89 73,693.61 173,204.50 173,204.50 0.00 1,742,829.46
02/01/08 103,491.32 69,713.18 173,204.50 173,204.50 0.00 1,639,338.14
08101/08 107,630.97 65,573.53 173,204.50 173,204.50 0.00 1,531,707.17
02/01/09 111,936.21 61,268.29 173,204.50 173,204.50 0.00 1,419,770.96
08/01/09 116,413.66 56,790.84 173,204.50 173,204.50 0.00 1,303,357.30
02/01/10 121,070.21 52,134.29 173,204.50 173,204.50 0.00 1,182,287.09
S 08/01/10 125,913.02 47,291.48 173,204.50 173,204.50 0.00 1,056,374.07
02/01/11 130,949.54 42,254.96 173,204.50 173,204.50 0.00 925,424.53
08/01/11 136,187.52 37,016.98 173,204.50 173,204.50 0.00 789,237.01
02/01/12 141,635.02 31,569.48 173,204.50 173,204.50 0.00 647,601.99
08/01/12 147,300.42 25,904.08 173,204.50 173,204.50 0.00 500,301.57
02/01/13 153,192.44 20,012.06 173,204.50 173,204.50 0.00 347,109.13
08/01/13 159,320.13 13,884.37 173,204.50 173,204.50 0.00 187,789.00
02/01/14 165,692.94 7,511.56 173,204.50 173,204.50 0.00 22,096.06
08/01/14 22,096.06 883.84 22,979.90 22,979.90 0.00 0.00
02/01/15 0.00 0.00 0.00 0.00 0.00 0.00
08/01/15 0.00 0.00 0.00 0.00 0.00 0.00
02/01/16 0.00 0.00 0.00 0.00 0.00 0.00
08/01116 0.00 0.00 0.00 0.00 0.00 0.00
02/01/17 0.00 0.00 0.00 0.00 0.00 0.00
08/01/17 0.00 0.00 0.00 0.00 0.00 0.00
02/01118 0.00 0.00 0.00 0.00 0.00 0.00
08/01/18 0.00 0.00 0.00 0.00 0.00 0.00
02/01/19 0.00 0.00 0.00 0.00 0.00 0.00
08/01/19 0.00 0.00 0.00 0.00 0.00 0.00
02/01/20 0.00 0.00 0.00 0.00 0.00 0.00
08/01/20 0.00 0.00 0.00 0.00 0.00 0.00
02/01/21 0.00 0.00 0.00 0.00 0.00 0.00
$2,344,101 $1,457,257.60 $3,801,358.80 $3,839,970.90 $0.00
Surplus Tax Increment 2,401,883.10
Total Net Revenue $6,241,854.00
Loan Balance is combined Phases I and II as provided by City. $1,586,045.20 is balance of Phase I and $758,056 is balance of Phase 11.
•
Prepared by: Springsted Incorporated (printed on 5/8/2002 at 11:49 AM) TIF 4 0% Float 050802.xls
i
• Assumptions Report
City of Brooklyn Center, Minnesota
Tax Increment Financing (Soils) District No. 4 (County 2103)
France Avenue Business Park Project
Scenario A - Phases I, II, & 111 TIF Combined for Note - Assume 0% Inflation
Type of Tax Increment Financin g District Soils Condition
Maximum Duration of TIF District 20 years from 1st increment
Decertification Date /2/01120 (19 Years of Increment)
2001/2002
Base Estimated Market Value 2,005,600
Total Original Net Tax Capacity $37,862
Assessment/Collection Year
2001/2002 2002/2003 2003/2004 2004/2005
Base Estimated Market Value $2,005,600 $2,005,600 $2,005,600 $2,005,600
Increase in Estimated Market Value 7,707,600 12,670,900 15,933,700 18,000,000
Total Estimated Market Value (1) $9,713,200 $14,676,500 $17,939,300 $20,005,600
Phase I - Current Net Tax Capacity 158,000 153,250 157,250 157,250
Phase II - Current Net Tax Capacity 15,650 118,936 118,936 118,936
Phase 111 - Current Net Tax Capacity 18,014 17,994 79,250 120,576
Nothing - Current Net Tax Capacity 850 850 850 850
Total Net Tax Capacity (2) $192,514 $291,030 $356,286 $397,612
• Base Inflation Factor NA
Local Tax Capacity Rate (3) 146.909% 2001/2002
Frozen Tax Rate 134.261%
Fiscal Disparities Contribution From TIF District 32.4875%
Administrative Retainage Percent (maximum = 10 %) 2.50`%,
Pooling Percent 0.00%
City Tax Rate (Only if Local -Effort TIF) NA
Bonds Note (Pav -As- You -Go)
Bonds Dated NA Note Dated 02/01/02
First Interest Date NA Note Rate 8.00%
Underwriters Discount NA
LGA /HACA Loss:
Will Annual Local Contribution Be Made (Yes or No)? No
I.S.D #281 Equalized Tax Capacity Rate NA
I.S.D #281 Sales Ratio NA
City Sales Ratio & Taxable Net Tax Capacity NA NA
Present Value Date & Rate NA NA
1
( Assume full value in Pay ay 2005.
(2) Estimates provided by City Assessor.
(3) Final 2002 rate provided by Hennepin County.
•
Prepared by: Springsted Incorporated (printed on 5/8/2002 at 11:47 AM) TIF 4 0% 050802.xIsAssumptions
Project Values Report j
• City of Brooklyn Center, Minnesota
Tax Increment Financing (Soils) District No. 4 (County 2103)
France Avenue Business Park Project
Scenario A - Phases I, 11, & III TIF Combined for Note - Assume 0% Inflation
Pav 2002 Tax Caoacitv Rates, C -1 Class Rates
City of Brooklyn Center 58.901% Pay 2001 Pav 2002
Hennepin County 50.409% Up to $150,000 2.40% 1.50%
School District #281 30.213% Over $150,000 3.40% 2.00%
Other 7.386%
Total 146.909%
Frozen Rate 134.261 %
Base Values
PID NUMBER Class Base EMV Pay 2001 Pav 2002
10- 118 -21 -23 -0004 C -1 192,600 5,048 3,102
10- 118 -21 -31 -0008 C -I 574,000 18,016 10,730
10- 118 -21 -31 -0027 C -I 946,000 30,664 18,170
10- 118 -21 -31 -0028 C -1 293,000 9,962 5,860
Totals 2,005,600 63,690 37,862
Current and Future Estimated Market Values
PID NUMBER Class Pav 2002 Est. Pav 2003 Est. Pav 2004 Est. Pav 2005
10- 118 -21 -23 -0006 C -1 7,900,000 7,700,000 7,900,000 7,900,000
10- 118 -21 -23 -0007 C -I 5,000 5,000 5,000 5,000
10- 118 -21 -24 -0032 C -1 50,000 50,000 50,000 50,000
10- 118 -21 -24 -0034 C -1 820,000 5,984,300 5,984,300 5,984,300
• 10- 118 -21 -31 -0030 C -1 938,200 937,200 4,000,000 6,066,300
Totals 9,713,200 14,676,500 17,939,300 20,005,600
Current and Future Net Tax Capacities
Pay 2002 w/
Old Rates Pav 2002 Est. Pav 2003 Est. Pav 2004 Est. Pav 2005
Phase 1 268,600 158,000 153,250 157,250 157,250
170 100 100 100 100
1,200 750 750 750 750
Phase II 26,380 15,650 118,936 118,936 118,936
Phase 111 30,399 18,014 17,994 79,250 120,576
Totals 326,749 192,514 291,030 356,286 397,612
•
Prepared by: Springsted Incorporated (printed on 5/8/2002 at11:47 AM) TIF 4 0% 050802.xls Project Values 2
Projected Tax Increment Report
City of Brooklyn Center, Minnesota
Tax Increment Financing (Soils) District No. 4 (County 2103)
France Avenue Business Park Project
Scenario A - Phases I, II, & III TIF Combined for Note - Assume 0% Inflation
Inflation rate: 0.00%
Less: Less: Retained Times: Less: Less:
Annual Total Original Fiscal Captured Tax Annual State Aud. Admin. Net Tax Total Annual
Period Net Tax Net Tax Disp. @ Net Tax Capacity Gross Tax Deduction Retainage Increment Revenue
Ending Capacity Capacity 32.4875% Capacity Rate (a) Increment 0.425% 2.50% (all phases) Avail. for Note
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
12/31 /02 192,514 37,862 50,243 104,409 134.261% 140,181 596 3,490 136,095 136,095
12/31/03 291,030 37,862 82,248 170.920 134.261% 229,479 975 5,713 222,791 222,791
12/31/04 356,286 37,862 103,448 214,976 134.261% 288,629 1,227 7,185 280,217 280,217
12/31/05 397,612 37,862 116,874 242,876 134.261% 326,088 1,386 8,118 316,584 316,584
12/31/06 397,612 37,862 116,874 242,876 134.261% 326,088 1,386 8,118 316,584 316,584
12/31/07 397,612 37,862 116,874 242,876 134.261% 326,088 1,386 8,118 316,584 316,584
12/31/08 397,612 37,862 116,874 242,876 134.261% 326,088 1,386 8,118 316,584 316,584
12/31/09 397,612 37,862 116,874 242,876 134.261% 326,088 1,386 8,118 316,584 316,584
12/31/10 397,612 37,862 116,874 242,876 134.261% 326,088 1,386 8,118 316,584 316,584
12/31/11 397,612 37,862 116,874 242,876 134.261% 326,088 1,386 8,118 316,584 316,584
12/31/12 397,612 37,862 116,874 242,876 134.261% 326,088 1,386 8,118 316,584 316,584
12/31/13 397,612 37,862 116,874 242,876 134.261% 326,088 1,386 8,118 316,584 316,584
12/31/14 397,612 37,862 116,874 242,876 134.261% 326,088 1,386 8,118 316,584 316,584
12/31/15 397,612 37,862 116,874 242,876 134.261% 326,088 1,386 8,118 316,584 316,584
12/31/16 397,612 37,862 116,874 242,876 134.261% 326,088 1,386 8,118 316,584 316,584
12/31/17 397,612 37,862 116,874 242,876 134.261% 326,088 1,386 8,118 316,584 316,584
12/31118 397,612 37,862 116,874 242,876 134.261% 326,088 1,386 8,118 316,584 316,584
12/31/19 397,612 37,862 116,874 242,876 134.261% 326,088 1,386 8,118 316,584 316,584
12/31/20 397,612 37,862 116,874 242,876 134.261% 326,088 1,386 8,118 316,584 316,584
$5,875,697 $24,974 $146,276 $5,704,447 $5,704,447
(a) Applicable frozen tax rate.
Prepared by: Springsted Incorporated (printed on 5/8/2002 at 11:47 AM) TIF 4 0% 050802.xls
Proiected Pay -As- You -Go Note Report
• City of Brooklyn Center, Minnesota
Tax Increment Financing (Soils) District No. 4 (County 2103)
France Avenue Business Park Project
Scenario A - Phases I, II, & III TIF Combined for Note - Assume 0% Inflation
Note Date: 02/01/02
Note Rate: 8.00%
Amount: $2,344,101 ($1,586,045.20 plus $758,056)
Semi - Annual Loan
Net Accrued Balance
Date Principal Interest P & I Revenue Interest Outstanding
(1) (2) (3) (4) (5) (6) (7)
2,344,101.20
02/01/02 0.00 0.00 0.00 0.00 0.00 2,344, 101 .20
08/01102 0.00 68,047.50 68,047.50 68,047.50 25,716.55 2,344,101.20
02/01103 0.00 68,047.50 68,047.50 68,047.50 25,716.55 2,344,101.20
08/01/03 0.00 93,764.05 93,764.05 111,395.50 (17,631.45) 2,344,101.20
02/01/04 0.00 93,764.05 93,764.05 111,395.50 (17,631.45! 2,344,101.20
08/01/04 30.174.25 93,764.05 123,938.30 140,108.50 (16,170.20) 2,313,926.95
02/01/05 47,551.42 92,557.08 140,108.50 140,108.50 0.00 2,266,375.53
08/01/05 67,636.98 90,655.02 158,292.00 158,292.00 0.00 2,198,738.55
02/01106 70,342.46 87,949.54 158,292.00 158,292.00 0.00 2,128,396.09
08/01/06 73,156.16 85,135.84 158,292.00 158.292.00 0.00 2,055,239.93
02/01/07 76,082.40 82,209.60 158,292.00 158,292.00 0.00 1,979,157.53
08101/07 79,125.70 79,166.30 158,292.00 158,292.00 0.00 1,900,031.83
02/01/08 82,290.73 76,001.27 158,292.00 158,292.00 0.00 1,817,741.10
08101/08 85,582.36 72,709.64 158,292.00 158,292.00 0.00 1,732,158.74
02/01/09 89,005.65 69,286.35 158,292.00 158,292.00 0.00 1,643,153.09
08/01/09 92,565.88 65,726.12 158,292.00 158,292.00 0.00 1,550,587.21
02/01/10 96,268.51 62,023.49 158,292.00 158,292.00 0.00 1,454,318.70
• 08/01/10 100,119.25 58,172.75 158,292.00 158,292.00 0.00 1,354,199.45
02/01/11 104,124.02 54,167.98 158,292.00 158,292.00 0.00 1,250,075.43
08/01/11 108,288.98 50,003.02 158,292.00 158,292.00 0.00 1,141,786.45
02/01/12 112,620.54 45,671.46 158,292.00 158,292.00 0.00 1,029,165.91
08/01/12 117,125.36 41,166.64 158,292.00 158,292.00 0.00 912,040.55
02/01/13 121,810.38 36,481.62 158,292.00 158,292.00 0.00 790,230.17
08/01/13 126,682.79 31,609.21 158,292.00 158,292.00 0.00 663,547.38
02/01/14 131,750.10 26,541.90 158,292.00 158,292.00 0.00 531,797.28
08/01/14 137,020.11 21,271.89 158,292.00 158,292.00 0.00 394,777.17
02/01/15 142,500.91 15,791.09 158,292.00 158,292.00 0.00 252,276.26
08/01/15 148,200.95 10,091.05 158,292.00 158,292.00 0.00 104, 075.31
02/01116 104,075.31 4,163.01 108,238.32 108,238.32 0.00 0.00
08/01/16 0.00 0.00 0.00 0.00 0.00 0.00
02/01/17 0.00 0.00 0.00 0.00 0.00 0.00
08/01/17 0.00 0.00 0.00 0.00 0.00 0.00
02/01/18 0.00 0.00 0.00 0.00 0.00 0.00
08/01/18 0.00 0.00 0.00 0.00 0.00 0.00
02/01/19 0.00 0.00 0.00 0.00 0.00 0.00
08/01/19 0.00 0.00 0.00 0.00 0.00 0.00
02/01/20 0.00 0.00 0.00 0.00 0.00 0.00
08/01/20 0.00 0.00 0.00 0.00 0.00 0.00
02/01/21 0.00 0.00 0.00 0.00 0.00 0.00
$2,344,101 $1,675,939.02 $4,020,040.22 $4,071,473.32 $0.00
Surplus Tax Increment 1,632,973.68
Total Net Revenue $5,704,447.00
Loan Balance is combined Phases I and II as provided by City. $1,586,045.20 is balance of Phase I and $758,056 is balance of Phase Il.
s
Prepared by: Springsted Incorporated (printed on 5/8/2002 at 11:47 AM) TIF 4 0% 050802.x1s
EDA Agenda Item No. 4c
MEMORANDUM
TO: Michael J. McCauley, City Manager
FROM: Tom Bublitz Community Development Specialist -
DATE: May 8, 2002
SUBJECT: Resolution Accepting Quote and Authorizing Demolition of 5912 Camden Avenue
North, Brooklyn Center, Minnesota
Quotes were received for the demolition of the single family property purchased by the Brooklyn
Center Economic Development Authority (EDA) at 5912 Camden Avenue North. The following
quotes were received:
CONTRACTOR QUOTATION
Belair Excavating $19,889
Semple Companies, Inc. $15,265
Kevitt Excavating Inc. $13,975
Veit and Company, Inc. $13,669
The quotes are competitive but somewhat higher than normal for a single family property due to the
large amount of debris and trash in the house and yard.
Veit and Company submitted the lowest quote and a resolution has been prepared for EDA
consideration which would award the contract to Veit and Company. Veit and Company has
performed numerous demolition projects for the City and EDA and have performed well on all of the
past projects. The completion date for the demolition work is set for no later than May 29, 2002.
• Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO.
RESOLUTION ACCEPTING QUOTES AND AUTHORIZING DEMOLITION OF
5912 CAMDEN AVENUE NORTH, BROOKLYN CENTER, MINNESOTA
WHEREAS, informal quotations were received for demolition of 5912 Camden
Avenue North, Brooklyn Center, Minnesota and said quotations were as follows:
CONTRACTOR QUOTATION
Belair Excavating $19,889
Semple Companies, Inc. $15,265
Kevitt Excavating Inc. $13,975
Veit and Company, Inc. $13,669
WHEREAS, it appears Veit and Company, Inc. of Rogers, Minnesota is the
contractor submitting the lowest responsible quote.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of Brooklyn Center, Minnesota that:
• 1. The EDA Executive Director is hereby authorized and directed to enter into a
contract with Veit and Company, Inc. of Rogers, Mimiesota in the name of the Economic
Development Authority in and for the City of Brooklyn Center for demolition of 5912 Camden
Avenue North, Brooklyn Center, Minnesota.
Date President
The motion for the adoption of the foregoing resolution was duly seconded by commissioner
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
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