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05-14-2009 Planning Commission Packet
CITY OF OAK PARK HEIGHTS PLANNING COMMISSION MEETING AGENDA Thursday, May 14, 2009 7:00 p.m. — City Hall Council Chambers I. Call to Order: II. Agenda Approval: III. Approve Minutes of April 9, 2009: (1) IV. Department / Commission Liaison / Other Reports: V. Visitors /Public Comment: This is an opportunity for the public to address the Commission with questions or concerns regarding items not on the agenda. Please limit comments to three minutes. VI. Public Hearings: A. Oakgreen Village: Carriage House Cooperative & OaUreen Commons: to consider requests of Timothy Nolde of Green Twig LLC and Oakgreen Villa LLC for Planned Unit Development: Concept & General Plan Approval, Preliminary & Final Plat Approval, Building Height Variance, and Drainage /Utility Vacation for construction of Carriage House Cooperative & Oakgreen Commons as part of the Oakgreen Village Development. (2) VII. New Business: A. Tax Increment Financing Request: (Renewal & Renovation) District No. 1 -1, in conjunction with the Carriage House Cooperative project. (3) VIII. Old Business: IX. Informational: A. Upcoming Planning Commission Meetings June 11, 2009 7:00 p.m. (Council Chambers) July 9, 2009 7:00 p.m. (Council Chambers) B. Council Representative May — Chair Wasescha June — Commissioner LeRoux July — Commissioner Powell X. Adjournment. CITY OF OAK PARK HEIGHTS PLANNING COMMISSION MEETING MINUTES ' Thursday, April 9, 2009 Call to Order: Chair Wasescha called the meeting to order at 7:00 p.m. Present: Commissioners Bye, LeRoux, Liljegren and Powell; City Administrator Johnson, City Planner Richards and Commission Liaison Abrahamson. Agenda Approval: Commissioner Powell, seconded by Commissioner Liljegren, moved to approve the Agenda as presented. Carried 5 — 0. Approve Minutes of March 12, 2009: Commissioner Powell, seconded by Vice -Chair Bye, moved to approve the Minutes as presented. Carried 5 — 0. Department /Commission Liaison & Other Reports: Commission Liaison Abrahamson informed the Commission that the City Council awarded the City Hall project to Jorgenson Construction and that ground was expected to be broken in mid -May, 2009. Visitors /Public Comment: None. Public Hearings: A. Continued: Doug Corblick to consider request for Site Plan Review and Conditional Use Permit related to construction and placement of a playhouse /tool shed accessory building, located at 1547158 th St. N. City Planner Richards reviewed the April 1, 2009 planning report as to the CUP request noting that the original request was for a side yard variance and conditional use permit for two accessory structures and that City Council amendment to Ordinance 401.15.D. as related to accessory buildings eliminated the need for the variance. Richards clarified that the discussion of the public hearing is for three conditional use permits to locate the accessory building within a side yard; to locate it within the five foot side yard setback requirements; and for two accessory structures. Richards provided an issue analysis and discussed items to the request and concluded his report with a staff recommendation, subject to the conditions noted within the report. Brief discussion ensued as to the report recommendation that the structure not be repaired or replaced unless it is brought into conformance with the Zoning Ordinance should it become destroyed by more than 50 percent of its value and specifically how the value would be determined. Richards stated that the condition and value would be determined by the Building Official should the situation arise. Planning Commission Minutes April 9, 2009 Page 2 of 4 Chair Wasescha opened the hearing for public comment. There being no visitors to the public hearing, Wasescha closed the hearing. Wasescha stated that he felt the requests were straight forward and didn't see any issues and asked for Commission comment. Commissioner LeRoux, seconded by Commissioner Powell, moved to recommend City Council approval of the requests subject to the conditions noted within the April 1, 2009 planning report, specifically that: The applicant shall provide a signed copy of the Encroachment Licensing Agreement from Northern States Power Company. All provisions of the agreement shall be complied with by the applicant /property owner. 2. The applicant /property owner shall not make additions to the structure. 3. If the structure is destroyed by more than 50 percent of its value, it shall not be repaired or replaced unless brought into conformance with the Zoning Ordinance. Carried 4 — 0. B. Outdoor Wood Burning Furnaces to consider amendments to Oak Park Heights City Ordinance, Section 1100, adding chapter 1124 to include the regulation of outdoor wood burning furnaces. City Planner Richards advised the Commission of the City Council's discussion of the issue and of their interest in providing regulations to the City Code of Ordinances to allow outdoor wood burning furnaces with appropriate limitations and conditions for the City of Oak Park Heights. Richards noted that the City Council has sent the matter to the Planning Commission for their input and public hearing in order to serve public interest. Richards reviewed his April 2, 2009 memo and proposed Ordinance amendment and discussed the same in relation to content, how many furnaces were thought to be in place at the moment, how the matter came up for discussion and what the City Council sought from the Commission at the end of the public hearing. Chair Wasescha opened the public hearing and invited public comment. Don McComber of 5728 Penfield Ave. N. noted that the wood stoves that are already in garages and other places would not meet the criteria of the ordinance and questioned how they would be affected by ordinance as there is no reference of any kind to existing wood burning in garages. Planning Commission Minutes April 9, 2009 Page 3of4 Craig Freeman of 5703 Peller Ave. N. stated that he felt that if someone wants to put a wood burning boiler in such as being discussed and it meets the requirements they should be allowed to. He also stated that he felt the restriction of the amount of wood permitted to be stored was too restrictive, noting that wood needs to dry & cure before it can be used. City Administrator Johnson noted the importance of having regulations for wood burning furnaces so that those who desire to install one is aware of their limitations and to also have rules in place for neighbors who may have a concern about such a unit so that the City may investigate the situation within appropriate context versus through the general nuisance ordinance. Commission discussion ensued as to chimney heights and EDA Phase II requirements. Keith Bruchu of 5653 Penrose Ave. N. questioned how code changes to building heights and the ordinance would affect existing homes. City Planner Richards stated that he believed existing homes would be grandfathered and suggested that Mr. Bruch contact the Building Official to clarify. There being no further visitors to the public hearing, Chair Wasescha closed the public hearing and asked the Commission for comment. Discussion ensued regarding the conditions of the report with some amendments suggested to seasonal use, wood storage restriction, chimney heights, and possible language denoting that the ordinance does not include wood burning stoves. There was general consensus that an ordinance establishing guidelines for wood burning furnaces was appropriate. Chair Wasescha, seconded by Commissioner Powell, moved to recommend to the City Council their support of the Ordinance as per the City Planner's report with amendment to the same removing the restriction of wood storage, clarifying the chimney height language, removing the restriction of when such a furnace may be operated, and suggested that it be clarified that this ordinance does not affect wood burning stoves. Carried 5 — 0. New Business: A. Design Guidelines Update City Planner Richards advised the Commission that the City Council will be reviewing the Design Guidelines in context to the City's needs and that he will keep them informed as to the discussion. Old Business: None. Planning Commission Minutes April 9, 2009 Page 4 of 4 Informational: A. Upcoming Planning Commission Meetings May 14, 2009 7:00 p.m. (Council Chambers) June 11, 2009 7:00 p.m. (Council Chambers) B. Council Representative April —Vice Chair Bye May — Chair Wasescha June — Commissioner LeRoux Adjournment: Commissioner Powell, seconded by Commissioner Bye, moved to adjourn the meeting at 7:48 p.m. Carried 5 — 0. Respectfully submitted, Julie A. Hultman Planning & Code Enforcement Officer Approved by the Planning Commission: 4800 Olson Memorial Highway, Suite 202, Golden Valley, MN 65422 Telephone: 763.231.2555 Facsimile: 763.231.2561 plan ners4"nacpla nning. com TO: Eric Johnson FROM: Scott Richards DATE:, May 6, 2009 RE: Oak Park Heights — Oakgreen Commons and Carriage House Cooperative Planned Unit Development (PUD), Preliminary and Final Plat, Building Height Conditional Use Permit (CUP) N0711119016"I Tim Nolde, representing Oakgreen Villa LILC and Green Twig LLC, has made application for PUD concept and general plan, preliminary and final plat, and building height conditional use permit for the Oakgreen Commons and Carriage House Cooperative development west of Oakgreen Avenue and north of 58 Street. A PUD concept plan application for two 48 unit senior cooperative rental buildings, referred to as the Carriage House Cooperative, was - filed in July 2008. The project was to be constructed in two phases and is located near the intersection of 58 Street North and Oakgreen Avenue. The City Council approved the PUD concept plan at their August 26, 2008 meeting. In October 2008, the applicant submitted a PUD general plan request to allow the construction of the first phase of the Carriage House Cooperative. The applicant withdrew this request prior to the Planning Commission public hearing. The applicant is now proposing a general plan approval for the 48 unit Carriage House Cooperative building at the corner of Oakgreen Avenue and 58 Street. The second building, the Oakgreen Commons, is a 110 assisted living facility and is to be constructed north of the Carriage House Cooperative on Oakgreen Avenue. Concept and general plan approvals are requested for the Oakgreen Commons. Attached for reference: General Site Plans: Exhibit 1. Existing Conditions Plan KC1j\ Exhibit 27. Landscape Plan (L1) Exhibit 2. Removal Plan 0C12\ Exhibit 28. Garage Level A\1.[A Exhibit 3. Tree ReD1OVa| P|8D (C1.3\ Exhibit 29. First Floor Plan kA11\ Exhibit 4. Master Plan (C2.1) Exhibit 30. GeCOOd Floor Plan A\1.2\ Exhibit 5. Layout P\8O /C2.2\ Exhibit 31. Third F|OU[ Plan (A1.3) Exhibit 6. Turning MOV8Dl8DtG (C2.3) Exhibit 32. Fourth Floor Plan k41.4U Exhibit 7. Grading/Erosion P|@O /C3.1\ Exhibit 33. Unit Floor Plans A\2.0> Exhibit 8. City Trail Plan (C3.2) Exhibit 34. Unit Floor Plans (421) Exhibit 9. UU|kv Fq8D (C4.1) Exhibit 35. Unit Floor Plans (A2.2) Exhibit 10. Traffic & Street Sign P|3O (C5.1) Exhibit 36. Unit Floor Plans A\2.3A Exhibit 11. P[8|iDliOBry Plat Exhibit 37. Unit Floor Plans kA2.4\ Exhibit 12. Lighting P|8O /E1.1\ Exhibit 38. Elevations k43.0\ Exhibit 13. Lighting Specifications Exhibit 39. Elevations (A3.1) Exhibit 14. Landscape N0t8S/SigDGg8(L2) Exhibit 40. Color Elevations (A4.2) Exhibit 41. Color Elevations (A4.3) Carriage House Cooperative: Exhibit 42. Section kA5.0\ Exhibit 43. Section (A5.1) Exhibit 15. Landscape Plan (L1.i) Exhibit 18. Parking Level Plan k41.0> Staff Comments: Exhibit 17. First Floor Plan h41.1\ Exhibit 18. Second Floor Plan A\1.2\ Exhibit 44. Letter from City Engineer - Exhibit 10. Unit Plans (A1.3) Karen Erickson Exhibit 20. Unit Plans /A1.4\ Exhibit 45. K4enlo from City Arboriat - Exhibit 21. Unit P|GDG (A1.5) K@thyVVidin Exhibit 22. Unit Plans (A1.6) Exhibit 23. Roof Plan A\2.0\ Exhibit 24. Elevations (A3.0) Exhibit 25. Elevations (A3.1) Exhibit 26. Section /A4.0\ North of Site: Present Zoning - B-4, Limited Business District Present Use - Highway 36 orientated commercial development, Goodwill and the Xcel Energy power line easement South of Site: Present Zoning -(l. (]D8O Space Present Use - City park land, undeveloped areas, and @ single family nBsid8DC2 '111 West of Site: Present Zoning — B-4, Limited Business District and B-2, General Business Present Use — Oakgreen Village area and Lowe's/CSM Commercial development East of Site: Present Zoning — PUD, Residential Planned Unit Development Present Use — Townhome residences and Oakgreen Avenue Project Description. See materials submitted as part of the request for Tax Increment Financing. Comprehensive Plan. A Comprehensive Plan amendment was approved in July 2005, removing the Central Business District (CBD) designation and replacing it with a commercial land use designation. The current draft Proposed Land Use Map of the 2008 Comprehensive Plan designates this area for medium density residential. The Land Use Map would be changed in the final draft of the Comprehensive Plan to indicate this area as high density residential if the project moves forward. Zoning. , This property has been designated as B-4, Limited Business which accommodates residential development as a conditional use. As such, the underlying base zoning district will be B-4, Limited Business with a PUD overlay. The B-4, Limited Business District lists two family, townhomes and multiple family dwellings as a conditional use. The project is being developed as a planned unit development. Subdivision. A preliminary plat was submitted as part of this application. Lot 1, Block 1 will be created for the Carriage House Cooperative and Lot 2, Block I is created for the Oakgreen Commons. Outlot A will be established as the common area. With removal of the townhome at 13930 Lower 59 Street, Block 15, Lot 4 of the Oakgreen Village plat would be incorporated into Lot 2 for the Oakgreen Commons project. The appropriate drainage and utility easements would also be vacated as part of this process. 'The applicant shall provide a graphic indicating which easements will be vacated as part of this process. The preliminary and final plat, as well as the vacation of easements, shall be subject to review and approval of the City Engineer and the City Attorney. Park Dedication. Park dedication has been satisfied for this area. The applicant paid the maximum percentage (14%) of equivalent cash value as part of the original approvals in 2006. Project Density. Section 401.15.0.3 of the Zoning Ordinance establishes the density thresholds for residential properties. Two family dwellings require 6,000 square feet of lot area per dwelling unit. Townhomes require 4,000 square feet of lot area per dwelling unit. Multiple family units with one or two bedrooms require 2,500 square feet per dwelling unit. 91 The total development area for Phase 1 to include Oakgreen Village and the Oakgreen Ponds as well as Phase 2 to include the Carriage House Cooperative and Oakgreen Commons is 781,699 square feet. The resulting density calculations are as follows: Twinhomes: 7 X 6,000 square feet = 42,000 square feet Townhomes: 49 X 4,000 square feet = 196,000 square feet Multiple Family: 158 X 2,500 square feet = 395,000 square feet 633,000 square feet The development requires at least 633,000 square feet. With a total of 781,699 square feet, the project is well within the density requirements of the Zoning Ordinance. Proposed Street/Access. Access for the Carriage House Cooperative and Oakgreen Commons would be from Lower 59 Street and Upper 58 Street, the two private streets that are accessed off of Nova Scotia Avenue North. The streets would end in a parking lot with separate turnarounds in front of each building. A driveway provides access to the two underground parking areas. There would be no direct access allowed from 58 Street or from Oakgreen Avenue. The plans also include the 50 foot right -of -way dedication for Oakgreen Avenue, as required by the City Engineer. This dedication has been indicated on the preliminary/ final plat. Please note that the plans also indicate the future MnDOT alignment of the Oakgreen /Highway 36 intersection as currently planned. Setbacks. Within a PUD, the base district setback requirements (R -3) are applied only to the perimeter of the project. The R -3 District specifies setback requirements as follows: 30 feet front yard, 30 feet rear yard, and 20 feet side yard. If the lot is on a corner, not less than 30 feet from a lot line is required for side yards. The PUD section of the Zoning Ordinance specifies that buildings should be located at least 20 feet from the back of a curb line from roadways as part of the internal street pattern. Additionally, the ordinance specifies that no building within the project shall be nearer to another building by one -half the sum of the building heights of the two buildings. In its approval of the concept plans for the Carriage House Cooperative in August 2008, the City Council specified that the buildings maintain a 30 foot setback to 58 Street and a 20 foot setback to Oakgreen Avenue. The Carriage House Cooperative building is set back 32.5 feet to the property line on 58 Street North and 25.5 feet to the Oakgreen Avenue right -of -way. The Oakgreen Commons building would be a minimum of 40 feet from the Oakgreen Avenue property line. From the curb of 58 Street, the Carriage House Cooperative building would be 41.2 feet and from Oakgreen Avenue, it would be 66 feet. The Oakgreen Commons building would be 79.4 feet from the edge of Oakgreen Avenue. Recognizing that the Oakgreen Commons building would be four stories with a gable roof, staff worked with the applicant to provide as much setback from Oakgreen Avenue as possible. As a result, the applicant decided to remove one of the existing townhome units (13930 Lower 59 Street) and move the building further west on the site. The two 11 buildings will be closer than one-half the sum of the building heights of the two buildings. That is addressed as part of the PUD approvals and building height conditional use permit. All of the parking lot and driveway setbacks are within the requirements of the Zoning Ordinance and PUD. The Planning Commission and City Council should discuss the proposed setbacks as part of the approval process. Traffic. The applicant has provided projected vehicle count information for the proposed development in the Traffic and Street Sign Plan (Exhibit 10). The traffic numbers are subject to review and approval of the City Engineer. Tre I e Preservation/Landscaping. The applicant has provided tree removal plans and detailed landscape plans for both buildings and the surrounding area. The City Arborist has done a review of the project and has provided comments. All tree removal and landscape plans shall be subject to review and approval of the City Arborist. Grading and Drainage. Grading and drainage plans have been submitted. The grading and drainage plans shall be subject to City Engineer and applicable watershed authority review and approval. Utilities. A utility plan has been submitted. The utility plans shall be subject to City Engineer review and approval. Parking. The Zoning Ordinance requires the following for elderly housing: Itm. Elderly (Senior Citizen) Housing. Reservation of area equal to one (1) parking space per unit. Initial development is, however, required for only one-half (1/2) space per unit and said number of spaces can continue until such time as the City considers a need for additional parking spaces has been demonstrated." The Carriage House Cooperative is planned with a total of 48 units. The lower level parking area will have a total of 63 parking stalls, six of which are disability accessible. The Oakgreen Commons building will have a total of 110 dwelling units. The lower level parking has a total of 29 spaces of which two are disability accessible. There are 48 surface parking stalls, four of which are disability accessible also planned. With a total of 140 stalls, and 158 dwelling units, the project does not comply with ordinance standards for parking. The site plan will need to be revised to show 18 proof of parking stalls in addition to the stalls provided. Trails/Sidewalk. The plans indicate a trail to be constructed on the north side of 58 Street to Nova Scotia. Additionally, a trail would extend along Oakgreen Avenue from 58 Street to the existing trail in the Xcel power line easement. A significant number of private sidewalk connections have also been shown throughout the project. The trail system is subject to review and approval of the City Engineer. The Engineer has made I specific comments about the crosswalk and pedestrian ramps at 58 Street and Oakgreen Avenue. Architectural Appearance. The application materials include building elevations and color elevations of the two buildings in the project. Both buildings will feature brick exteriors and lap siding with porches and other architectural detailing. The roofs will be asphalt shingles and the siding will be a cement board such as Hardi - Plank. The Planning Commission and City Council should comment in general on the building plans. The applicant shall provide a materials board for both buildings to be discussed at the meetings. Of note, the Planning Commission and City Council may want to comment on the long horizontal roof expanses and ways to break up the appearance of the roof on the Oakgreen Commons building. Building Height. Section 401.301.E.10 of the Zoning Ordinance allows building heights in excess of three stories or 35 feet within the B -4 Zoning District as a conditional use. Staff had advertised this for a variance, but has since realized that the proposed height of the Oakgreen Commons building can be pursued as a conditional use permit as part of the PUD. The Oakgreen Commons building is proposed at 49 feet, 2 inches at the midpoint of the highest gable and is four stories in height. The Carriage House Cooperative building will be 25 feet, 5 inches to the mid point of the gable and is two stories in height. The Carriage House Cooperative building is well within the allowances of the 35 foot height limit. Review of the conditional use permit for building height is as follows: a. The site is capable of accommodating the increased intensity of use. Comment: The site is adequate for the two buildings and the project exceeds density requirements. b. The increased intensity of use does not cause an increase in traffic volumes beyond the capacity of the surrounding streets. Comment: The existing roadway network will be able to handle the traffic. C. Public utilities and services are adequate. Comment: The utility and service capacity is adequate for this development. d. For each additional story over three (3) stories or for each additional ten (10) feet above thirty -five (35) feet, front and side yard setback requirements shall be increased five (5) feet, except for elderly public housing. Comment: Not required — elderly housing. 0 e. The provisions of Section 401.03.A.8 of this Ordinance are considered and satisfactorily met. Comment: The health, safety and welfare issues have been addressed and there should be no negative impacts. Trash/Recycling. All of the trash storage and recycling will be internal - to the buildings. The design of the driveway accommodates roll out containers for pickup. Snow Storage. The plans indicate an area for snow storage. The City Engineer should comment on the adequacy of this area. Signage. The plans indicate three monument signs for the project. There would be a sign at the corner of 58 Street and Oakgreen Avenue that would feature both the Carriage House and the Oakgreen Commons. The other two monument signs are located in the landscaped areas in front of each of the two buildings. The two monument signs in the front of the buildings are approximately 30 square feet each. The development sign at the corner is about 40 square feet. The signs are less than eight feet in height and are appropriately landscaped. There are no wall signs proposed. The sign plan is consistent with the requirements of the Zoning Ordinance. Mechanical Equipment. The applicant's architect has indicated that the mechanical equipment is located within the buildings. The plans should be revised to include the locations of electric transformers. Lighting. The freestanding driveway and parking lot lights are consistent with - the features that have been installed in Oakgreen Village. The fixtures are full cut off. They shall have a maximum height of 25 feet to - the top of the - fixture and pole. The building lights are also designed to be full cut off and are compliant. The applicant has proposed bollard lights in four locations on the site to provide pathway lighting. The bollard fixtures are not full cut off. The lighting would assist the elderly residents in those areas where the other fixtures do not provide illumination. The Planning Commission and City Council should comment on the use of bollard fixtures. A photometric plan has been submitted with the application materials. The lighting plan would comply with requirements for intensity of lighting. B-4, Limited Business Standards. Section 401.301.E.9 of - the Zoning Ordinancm provides the CUP standards for allowing residential use in the B-4 District. T standards are as follows: I Two family, townhomes and multiple family dwellings provided that: a. At least two parking spaces per unit must be provided for on site, or proof is shown of arrangements for private parking nearby. 7 The development will need to comply with the specific Zoning Ordinance requirements for senior housing. The plans shall be revised to indicate at least 18 proof of parking stalls. b. No physical improvements, either interior or exterior, may preclude future re-use for commercial purposes. The development could be converted to future office use, but highly unlikely. C. Unit floor areas must comply with Section 401.15.0.6. All of the units are at least 600 square feet for one bedroom and 720 square feet for two bedrooms as required by the Zoning Ordinance, The requirements will be complied with. e. The development does not conflict with existing or potential future commercip.1 uses and activities. V. The density, setbacks, and building height standards imposed as part of the R-3 Zoning District are complied with. The building setbacks are consistent with the requirements set by the City Council with the concept plan approvals. 9. Adequate open space and recreational space is provided on site for the benefit of the occupants. ITOT01 Wo M-0 h. The development does not conflict or result in incompatible land use arrangements as related to abutting residential uses or commercial uses. No incompatible land use arrangements are created. Residential use can be governed by all applicable standards of the Zoning Ordinance, Building Code, Housing Code and Fire Codes. All standards will be complied with. livill il�!! il Not applicable. 0 k. Residential uses shall be provided with a separate entrance, and separately identified parking stalls. Not applicable. The architectural appearance, design and building materials of residential structures shall be consistent with the Design Guidelines and subject to approval of the City Council. The Planning Commission and City Council should comment on the architectural appearance. 4. The traffic numbers are subject to review and approval of the City Engineer. 5. All tree removal and landscape plans shall be subject to review and approval of the City Arborist. 6. The grading and drainage plans shall be subject to City Engineer and applicable watershed authority review and approval. 7. The Fire Marshal and Police Chief should review the plans and determine the accessibility of emergency vehicles throughout the development. 8. The Planning Commission and Park Commission should comment on the proposed private and public trail system. 9. All utility plans shall be subject to review and approval of the City Engineer. z 10. The site plan shall be revised to indicate 18 proof of parking stalls in addition to the stalls provided. 11. The trails and sidewalks shall be constructed in accordance with the City Engineer's review and approvals. 12. The Planning Commission and City Council shall comment on the final building plans. The applicant shall provide a materials board for both buildings to be discussed at the Planning Commission and City Council meetings. 13. The Planning Commission shall make a recommendation and the City Council make a determination on the conditional use permit for the building height. 14. The snow storage area shall be subject to review and approval of the City Engineer. 15. All lighting fixtures shall be full cut off and the maximum height of all freestandirEo light fixtures shall be no more than 25 feet. I 16. The Planning Commission and City Council should comment on the use of bollard light fixtures. 17. The site plans shall be revised to include electrical transformers subject to revie and approval of City staff. i 18. The applicant shall supply the homeowner's association documents as required by the City Attorney for review and approval. 1► . The applicant is required to enter into an amended development agreement wi the City in a form acceptable to the City, subject to the review and approval of t City Attorney. I 20. The applicant has indicated in his application for Tax Increment Financing (TIF) that this project will not more forward without TIF approval. The approval of the Planned Unit Development is contingent upon approval of the TIF. 21. 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Ity i° o Z 30 If W e° I ZF F? o wtv Q ° � —° w t, F a NHHUONYO I:o i r- limm KLNON Y YLWX YAON — a o I j ai- - = z I .H 9 I I I i oo,�s a gz�lz 0 �� ° ♦ Q a 3lIN3ntl N33MDNtl0 T o O E 9 s n a v ° a o a _ 3fW3AtlN33LONtl0 X DL =000 N LU z Z U w pp g I z -z OE H n_ I f\ Preliminary Plat CARRIAGE HOUSE CO.-OP AND ASSISTED LIVING J M r r r —17 0 �0 1 w , " 7 ------------------- Oanwr .4 FMz, Freeman, Erickson, Inc. 'Zoo, LAND PLANNING 0 SURVEYING . ENGINEERING 11411Y51- S TREET .. . = A 16511959.8855 h (651) 430-9131 Y. .4— Wy. -- — — — — — — 7j7 1101", N.- W, SEY Vicinity Map SrcHan 4 n5W - R2M 21 J M r r r —17 0 �0 1 w , " 7 ------------------- Oanwr .4 FMz, Freeman, Erickson, Inc. 'Zoo, LAND PLANNING 0 SURVEYING . ENGINEERING 11411Y51- S TREET .. . = A 16511959.8855 h (651) 430-9131 --4 -- — — — — — — 7j7 1101", 010 I A T --j L-- L- po VI I I I s =�tp , I 8 I K Sll d �«a P g Ia�f DA r __j Z� A ` Pr A r. p JVJ J M r r r —17 0 �0 1 w , " 7 ------------------- Oanwr .4 FMz, Freeman, Erickson, Inc. 'Zoo, LAND PLANNING 0 SURVEYING . ENGINEERING 11411Y51- S TREET .. . = A 16511959.8855 h (651) 430-9131 xouew�s3n rarsxw 'ox lrilin&IS a35N3tl % €f >�� � ZWKS NW'WVM71LL5 �awnus>, =�nwuc osn•w AVM DWU N3310 UL ofW7 9 d00)35110FI3MAWJ p � �3Xn Yt! �. 2 c 4 °w v ° JNI `ObdAVSOH�NV NVId ONIIHJII LJJ N r� � Xbak g 45 b< � a Y �. o �, � Eg 1 9— 2 SB �� �B�B!I sh fU 1OF a S 1 1 ° 1 y a� E 0 W a b MR jf =M - f I- - a [ _ a . o J P 7 - } F JW 11 ��� a a 7 U s -P r2 • - I - : I a� P 7 F � P P: P P a }�•�� L\ aaaa iaFPaa aP: aaa )a aFa a: A 9 y a s s k k k�tR e eA flo, EXHIBIT 13 18 '/2" �II DSAP25 [250 WATT MAX.] 14 L DSAPi [175 WATT MAX.] E.P.A. OSAP25 = 1.23 DSAPI = 0.77 SPEEIREAT10NS HOUSING: ONE PIECE HEAVY WALL ALUMINUM CONSTRUCTION WITH REMOVABLE BALLAST TRAY FOR EASY BALLAST ACCESS. LENS ASS'Y: ONE PIECE HINGED HEAVY 6AU6E DIE FORMED ALUMINUM DOOR FRAME SURROUNDS 3/16" CLEAR TEMPERED GLASS LENS. GLASS 15 SEALED TO DOOR WITH HIGH TEMPERATURE SILICONE SEAL. CAPTIVE THUMB SCREW DISENGAGES LENS ASSEMBLY AND ACTIVATES ACCUHIN6E' TO ALLOW LENS ASSEMBLY TO HINGE AWAY FROM HOUSING FOR LUMINAIRE ACCESS WITHOUT THE USE OF TOOLS. OPTICS: COMPUTER ❑ES16NEO ONE PIECE SPECULAR SEGMENTED 51DE REFLECTORS COMBINE WITH AN AUXILIARY SPECULAR TOP REFLECTOR TO PRODUCE A HIGHLY EFFICIENT. SHARP CUTOFF. OPTICAL ASSEMBLY IS ROTATABLE IN 90° INCREMENTS. GASKETING: CLOSED CELL EPOM 6ASKETIN6 COMPRESSED BETWEEN DOOR AND HOUSING WORKS IN COMBINATION WITH ACCUHIN6E' TO PRESSURE SEAL OPTICAL CHAMBER. LAMP HOLDER: MEDIUM OR MOGUL BASE PORCELAIN. LAMPHOLOER EQUIPPED WITH FACTORY INSTALLED QUICK DISCONNECT PLUG. LAMP: (BY OTHERS] BALLAST: H.P.F. /C.W.A. AUTOTRANSFORMER. -20 STARTING TEMPERATURE. ELECTRICAL COMPONENTS ARE MOUNTED TO A REMOVABLE BALLAST TRAY. BALLAST 15 EQUIPPED WITH FACTORY INSTALLED QUICK DISCONNECT PLUG. FINISH: POLYESTER POWDER COAT -STATE OF THE ART 20 PSI PRESSURE POWER WASH AT 140 TEMPERATURE INCORPORATES FOUR STEP IRON PHOSPHATE PRDCESS TO CLEANSE AND PRETREAT THE METAL SURFACE FOR MAXIMUM PAINT ADHESION. ELECTROSTATICALLY APPLIED TEXTURED POLYESTER POWDER TOPCOAT IS NAKED AT 400° TEMPERATURE FOR MAXIMUM HARDNESS AND EXTERIOR DURABILITY. OU.L.Listedfor �� wet location MOUNTING STYLES XPK XPS �24" 92411 42" 42" XPD 24 "- 42" ARMS ARE HEAVY WALL E X T R H E O A L U M I N U M CONSTRUCTION. FOR ADDITIONAL ARM OPTIONS SEE ARM SECTION. MODEL OPTICS NO. MODEL OPTICS NO. 0250 ❑ HPS �a ®�1 HORIZONTAL LAMP D REFLECTORS ❑ 208 ❑ TYPE I I S HR- II....... ❑ 100 (segmented) A [- I I I HR- 111...... L ❑1 ............ (segmented) P ❑ TYPE I V El MT (FORWARD THROW) HR- IV....... (segmented) -- ❑ TYPE V HR -V -SQ (segmented) VERTICAL LAMP REFLECTORS ❑ ASYMMETRIC VR- ASY... (segmented) ❑ TYPE V VR -V -SQ (segmented) VERTICAL LAMP REFLECTOR REQUIRES CONVEX GLASS WALL MOUNT EXTRUDED ALUMINUM ARM AND CAST ALUMINUM WALL BRACKET ASSEMBLY PROVIDED WITH BUILT IN GASKETED WIRE ACCESS FOR FIXTURE /SUPPLY WIRE CONNECTION. WALL PLATE T a]/2"OIA. T 7 I- - 5 �k" I� �l (4) HOLES WATTAGE TYPE VOLTAGE _ ►I F. i WATTAGE TYPE VOLTAGE 0250 ❑ HPS ❑ 120 ❑175 ❑ MH ❑ 208 1-1150 0 m El 240 ❑ 100 MBM ❑ 277 ❑ 75 ❑1 ............ E ❑70 ❑WHITE El MT ❑ 50 ❑SILVER DSAP25 USE MOGUL BASE LAMPS DSAP1 USE MEDIUM BASE LAMPS MOUNTING LAMP SIZE: 50 - 250 WATT E.P.A.= 1.23 DSAP25 (250 WATT MAX.] E.P.A.= 0.77 DSAP 1 (175 WATT MAX.) FOUR LIGHT DISTRIBUTIONS AVAILABLE. OPTICAL SYSTEMS ENCLOSED IN IMPACT RESISTANT TEMPERED GLASS LENS. REFLECTOR IS FIELD ROTATABLE. FINISH ■ OPTIONS MOUNTING FINIS ❑ CONVEX GLASS. , ........DG ❑DARK ❑ XPK I ❑ XPS BRONZE POLYCARBONATE DBM DIFFUSER ..............LEX ❑MEDIUM ❑XPD BRONZE ❑W M ....... MBM (4'4" MAX.) ................SM ❑ BLACK ❑1 ............ BKM (4' O'MAX.) ............... ❑WHITE WTM ❑SILVER SLM OPTIONS ❑ PHOTO CELL + VOLTAGE ❑ CONVEX GLASS. , ........DG (EXAMPLE: PC120V) ..... PC +V ❑ CLEAR CONVEX ❑ SINGLE FUSE POLYCARBONATE (120V. , 277V) ...........SF I DIFFUSER ..............LEX SEEPAGE ❑ 3/4" IPS STEM MOUNT FOR R ❑ DOUBLE FUSE AND SWIVEL CANOPY ADDITIONAL (208V., 240V) (4'4" MAX.) ................SM ...........DF COLORS ❑ CHAIN MOUNTED (4' O'MAX.) ............... CM ❑ HOUSE SIDE SHIELD ......HS ❑ QUARTZ RESTRIKE ..............QTZ LUM. A B C DSAPI 14" 20" 14" OSAP25 IB" 25" 1B t /z" ❑ PHOTO CELL + VOLTAGE (EXAMPLE: PC120V) ..... PC +V ❑ SINGLE FUSE (120V. , 277V) ...........SF I SEE SEEPAGE ARM SEC TION FOR R ❑ DOUBLE FUSE ADDITIONAL ADDITIONAL (208V., 240V) ARMS ...........DF COLORS LUM. A B C DSAPI 14" 20" 14" OSAP25 IB" 25" 1B t /z" ta`s 1 18" Wall Commander' revision 10/1/08 a wcl8.pdf Type: Job: Page: 2 of 5 pmw]' D Standard Fixture Cat. No. designates tAlC18 ° S n fixture with: A= Up Light Distribution Type II Type III Type IV Primary and Primary and Asymmetric Flood Ray v = Down Light Distribution Secondary Secondary n/a = not available Grazers Spots Primary Primary UP ONLY A Type II A Type III A Type 1V A Grazer A Spot A Asymmetric Flood A Ray' DOWN ONLY ❑ WC18U2 ❑ WC18U3 ❑ WC18U4 ❑ WC18UG ❑ WC18US n/a n/a Primary Primary ® Type II ® Type III v Type IV v Grazer ® Spot v Asymmetric Flood v Ray' ❑ WC18D2 ❑ WC18133 ❑ WC18D4 ❑ WC18DG ❑ WC18DS n/a n/a V ' For colored up light ray beam, contact factory. 'Primary grazer or primary spot optics supplied when specified with the ray option. Secondary grazer or secondary spot optics supplied when specified in all other up/down combination configurations Refer to the Kim Lighting Wall Commander Catalog for a complete matrix of available configurations. © 2008 KIM LIGHTING INC. ^ P.O. BOX 60080, CITY OF INDUSTRY, CA 91716 -0080 ^ TEL: 626/968 -5666 - FAX: 626/369 -2695 5609708275 Secondary Secondary UP/ DOWN A Type II A Type III A Type IV A Grazer A Spot A Asymmetric Flood A Ray'.' v Type II n/a n/a n/a ❑ WCI8UGD2 ❑ WCI8USD2 ❑ WCIBUFD2 ❑ WC18URD2 ® Type III n/a n/a n/a Q WCI8UGD3 ❑ WCI8USD3 ❑ WC ❑ WCI8URD3 V v Type IV n/a n/a n/a ❑ WCI8UGD4 ❑ WCI8USD4 ❑ WC18UFD4 ❑ WCI8URD4 Secondary ® Grazer' ❑ WC18U2DG ❑ WC18U3DG ❑ WC18U4DG ❑ WCI8UGDG ❑ WCI8USDG ❑ WC18UFDG ❑ WC18URDG Secondary ®Spot. ❑ WC18U2DS ❑ WC18U3DS ❑ WC18U4DS ❑ WC18UGDS ❑ WCIBUSDS ❑ WC18UFDS ❑ WCI8URDS ® Asymmetric ❑ WC18U2DF ❑ WC18U3DF ❑ WC18U4DF ❑ WCIBUGDF ❑ WC18USDF ❑ WCIBUFDF ❑ WC18URDF Flood ' For colored up light ray beam, contact factory. 'Primary grazer or primary spot optics supplied when specified with the ray option. Secondary grazer or secondary spot optics supplied when specified in all other up/down combination configurations Refer to the Kim Lighting Wall Commander Catalog for a complete matrix of available configurations. © 2008 KIM LIGHTING INC. ^ P.O. BOX 60080, CITY OF INDUSTRY, CA 91716 -0080 ^ TEL: 626/968 -5666 - FAX: 626/369 -2695 5609708275 .��\ » 2� � gip: \� � � / � . � �� /\ ��\ �\ . j \ � ^'/ y. /� � //f VSB2 Square Bollard MM LIGHTING revision Function, Vandal- Resistant, Aluminum Shaft revision 10/1/08 a vsb2.pdf Type: Approvals: Job: Catalog number: VSB2 Fixture Electrical Module Top Cap and Shaft Finish Option See page 2 I Date: Page: 1 of 2 Specifications VSB Models 70 to 100 watt Medium Base Lamps 42 watt Compact Fluorescent VSB2 - Dual Function Luminaire (Aluminum Shaft) Maximum weight: 35 lb $ "DIA. I x(2032 mm) 10" - (254.0 mm) 36" 43°* LIGHT (1092.2 mm) CENTER HEIGHT (9 14 4 mm) F�-ni *30" OR 36" OVERALL HEIGHT AVAILABLE - CONTACT KIM REPRESENTATIVE (27 ABSOLUTE MINIMUM) ANCHOR BOLT PROJECTION (38.1 mm) BASE PLAN VSB ALUMINUM SHAFT (263 22 mm) m 33/8" CONDUIT OPENING (85.7 mm) 5" BOLT CIRCLE DIA. i 270° 1/ 90 HUBBELL LIGHTING. INC U.S. Patent D410,553 Top Cap: One die -cast, low copper ( <0.6% Cu) aluminum 3 /16" minimum thickness, secured to louvers by concealed stainless steel allen screws in keyhole slots. For relamping access, alien screws shall not require complete removal. Louvers: One -piece die cast, low copper ( <0.6% Cu) aluminum with horizontal and vertical blades. Horizontal louvers shall provide 270° of down - lighting with source cutoff above horizontal. Vertical louver shall provide 90 of non -cutoff lighting. Horizontal louver blades shall have a 1 depth, and be angled 25 from the horizontal. Vertical louver blades shall have a 1 depth with a 45 spacing. Louver castings shall be secured to shaft by four internal tie rods. Lamp Enclosure: One -piece tempered molded glass with internal flutes and full silicone gasketing at bottom edge. Socket: Porcelain medium base socket rated 4KV for HID and incandescent. Plastic socket for Fluorescent. Fixture Head: Allows flow - through ventilation around and above the lamp enclosure. Shaft One -Piece extruded aluminum, .156" minimum wall thickness with a heavy cast aluminum anchor base concealed within the shaft. Hex socket stainless steel screws shall lock shaft onto the cast anchor base. Ballast: Factory mounted to rigid harness attached to the anchor base. Wiring shall be supplied from the socket for field connection to the prewired ballast components. HID: High power factor with starting temperatures of -20 °F. for PMH and -40 °F. for HPS lamp modes. 26W, 32W, 42W Fluorescent: High power factor with starting temperature of 0 °F. Anchor Bolts: Four 3 /8" x 10" + 2" zinc plated L- hooks, each with two nuts, washers and a rigid pressed board template. Finish: Super TGIC thermoset polyester powder coat paint, 2.5 mil nominal thickness, applied over a titanated zirconium conversion coating; 2500 hour salt spray test endurance rating. Standard colors are Black, Dark Bronze, Light Gray, Stealth Gray , Platinum Silver, or White. Custom colors are available. CAUTION: Fixtures must be grounded in accordance with national, state and/or local electrical codes. Failure to do so may result in serious personal injury. Listirligg and Ratings UL cUL 1598' 1 CE IP46 Rated I 25C Ambient 'Suitable for wet locations. KIM LIGHTING RESERVES THE RIGHT TO CHANGE SPECIFICATIONS WITHOUT NOTICE © 2008 KIM LIGHTING INC. • P.O. BOX 60080, CITY OF INDUSTRY, CA 91716 -0080 - TEL: 626/968 -5666 - FAX: 626/369 -2695 5610208275 {, F j . 77 0 v D z � O m d O E E + L r y3'3n Eo m u = f-- c a aoEao �u 10 m v Y a we io 4-6J _ M 0 v D e � O m d tl c v� y3'3n Eo "" SeUy zLL 3 Q a aoEao �u in �J N •9qq a`4 o we _ _ D O 04 O ! I N� ■ . .i _ vo 1 .. 1 1 .• -` 1 I I ,li 1, Im J F _ _ o yfl G J a 0 I+ I RM 11 H 9 yJ. K W a� Aar e z a m d Eiq� w v� y3'3n Eo "" SeUy zLL 3 � 1 1T a aoEao �u in �J N •9qq a`4 _ we E IN J W Z� NS •1 R 1A,� z 5 �G r €t:p3 Ti i i 3F y e z a m d J W Z� NS •1 R 1A,� z 5 �G r €t:p3 Ti i i 3F y � 1 1T r �J r �J z Lo . AE11 . En EgiiE ,.. w 5 $ 'o flliu H J im W R9 if. 11H fflM p o g � < Ei J � A ! ,888 in. 6a - - ------- -- hhhM �AIX141�� i j I idli-AhIm"HIL M 411111 L l g dill 1. .5 I . 933 1 'i, H. I H f I H. l .1 1 HIM If .53i Vgg�Rg Abgygm? 6szBgld.-!R4 In g03 li Hi?JON "3AV N33�:PDNVO ' I . 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( > § z p = , } { { { \ ; o ( > § z p = , } { { { \ |\ } \ |` - � w ®; « k§ } : | k§ � § A ;` a > $ . { \ _ Cl- / \ � e § . � « m � k 2 |\ } \ |` - � w ®; « k§ } : | k§ � § A ;` a > $ . { \ _ - � w ®; « k§ } : | k§ � § A ;` a > $ . { \ _ � � q oo @ £ c l - # #g! ! � } 2 � G � � q oo \ J § l - # #g! ! � � q oo \ J § l � . ; n : y � [ / � \� §� u I 2 { � 3 / � . ; n \� §� ; n \� §� n� o °oa Z `o � f CJ I c E y cr E L m � U w y gEa � ° i as m Y h 5� M Y O m 0 fa 0 n� o °oa o O `o ,Y o € a Y aQzSs � of pv'i w y gEa � ° i as m ^RE-4 O m o O `o E Q y L . ! ! « [ ` ƒ!7! KD ! I k {( /M/ [ ) )\ \/ §j\ / 3 w \ } o 0 L . ! ! « [ ` ƒ!7! k {( /M/ , ) )\ \/ §j\ L . ! ! « [ ` ƒ!7! Dear Eric: We have reviewed the general plans for the proposed Oakgreen Commons & Carriage House Co -Op development as submitted by Folz, Freeman, Erickson, Inc. on April 15, 2009. Following are our comments /recommendations for your consideration. Sheet C1.1 1. Show the locations of the existing wells and spetics for the homes along Oakgreen Avenue. - Sheet C1.2 1. Attached is the record plan for the utility improvements on Oakgreen Avenue N. The following information is needed for the removal plan: a. The existing 8" water has an 8" x 6" tee for the hydrant lead and not a 6" reducer as shown on the drawings. b. There is a 4" PVC sanitary sewer stub that was installed south of the hydrant. This stub should be removed to the wye and plugged at the main line. 2. The existing hydrant and 8" x 6" tee on Oakgreen Avenue N. shall be salvaged and delivered to the City of Oak Park Heights Public Works department. 3. Full width removal and replacement of the bituminous pavement on Oakgreen Avenue N. should be shown at the connection to the existing sanitary manhole. The typical section on Oakgreen Avenue N. is as follows: 2" MVWE35035E 3" MVNW35035B 8" Class 5 24" Aggregate Backfill 4. Show the removal /abandonment of the sanitary and water service for the townhome that is being razed. St. Paul St. Cloud Rochester Milwaukee Chicago 2335 Highway 36 w St. Paul, MN 55113 Tel 651- 636 -4600 Fax 651-636 -1311 www.bonestroo.com April 21, 2009 Bonestroo Mr. Eric Johnson, Administrator City of Oak Park Heights 14168 Oak Park Blvd., P. 0. Box 2007 Oak Park Heights, MN 55082 -2007 EXHIBIT 4 4 Re: Oakgreen Commons & Carriage House Co -Op General Plan Review BRA File No. 55 -09 -000 Dear Eric: We have reviewed the general plans for the proposed Oakgreen Commons & Carriage House Co -Op development as submitted by Folz, Freeman, Erickson, Inc. on April 15, 2009. Following are our comments /recommendations for your consideration. Sheet C1.1 1. Show the locations of the existing wells and spetics for the homes along Oakgreen Avenue. - Sheet C1.2 1. Attached is the record plan for the utility improvements on Oakgreen Avenue N. The following information is needed for the removal plan: a. The existing 8" water has an 8" x 6" tee for the hydrant lead and not a 6" reducer as shown on the drawings. b. There is a 4" PVC sanitary sewer stub that was installed south of the hydrant. This stub should be removed to the wye and plugged at the main line. 2. The existing hydrant and 8" x 6" tee on Oakgreen Avenue N. shall be salvaged and delivered to the City of Oak Park Heights Public Works department. 3. Full width removal and replacement of the bituminous pavement on Oakgreen Avenue N. should be shown at the connection to the existing sanitary manhole. The typical section on Oakgreen Avenue N. is as follows: 2" MVWE35035E 3" MVNW35035B 8" Class 5 24" Aggregate Backfill 4. Show the removal /abandonment of the sanitary and water service for the townhome that is being razed. St. Paul St. Cloud Rochester Milwaukee Chicago Sheet C2.2 I. The pedestrian ramp at 58 Street N. and Oakgreen Avenue N. should be directed to the south. On the south side of 58` Street N. a pedestrian ramp should be added that faces to the north. In addition, a zebra striped cross walk and pedestrian crossing signs should be added at this crossing. 2. It is not recommended to have parking stalls directly accessing the through roadway. Sheet C3.1 1. The west 941 contour along Oakgreen Avenue should be extended south by approximately 30'. The existing 941 contour is in conflict with the proposed 942 contour. 2. On the east side and southwest areas of the property the grading will impact the existing trees. Will the trees survive these grading limits? 3. On the north side of the property there is a ten foot high hill at a 3:1 slope that is directly adjacent to the existing trail. Incorporate a design that will ensure permanent erosion control on the slope and over the trail. Sheet C3.2 1. For pedestrian and bicyclist safety, a.fence is required at the top of the boulder retaining wall. 2. To keep storm water /snowmelt from discharging directly over the path it is recommended that the path and boulevard be sloped a minimum of 2% towards the street. 3. Detailed design drawings and calculations for the retaining walls signed by an engineer licensed in Minnesota shall be submitted to the City for review and approval prior to construction. 4. The wall will be sitting directly on top of an existing 30" RCP storm sewer. Bridge the wall over the pipe. Sheet C4.1 1. The attached record drawings for Oakgreen Avenue N. shows an invert on the existing sanitary manhole at 923.61. It is recommended that the sewer line enters at the bottom of the structure and the invert of the structure be reconstructed. 2. For your information there is an 8" steel gas main in the west boulevard along Osgood Avenue. You may want to identify this main with a "Caution" note at the sanitary service /gas main crossing and at the connection to the water main. 3. Insulation shall be placed at all water main /storm sewer crossings. 4. At CB119 there are storm sewer pipes that extend into both buildings. What is the pipe material, size and invert? Do these pipes connect to something? 5. Verify with the Director of Public Works that HDPE flared ends sections are acceptable within the City maintained ponds, Preliminary Pla 1. easement required for the bituminous pathway along the north side of 58'� Street north. General items to submit for review 1. The detail plates need tobe submitted for review. 2. Copy of the Approval letter from the Middle St. Croix Watershed Management Organization If you have any questions or require additional information, please contact me at(651)604-4788 or Dennis Postler at (651) 604-4815. Sincerely, Karen S. Erickson, P.E. cc: ]udyHolst, Finance Director Tom 0zzek,Public Works Director Jim Butler, Building Official Scott Richards, City Planner MarkVieding, City Attorney KathyVVidin, OtyArborist Todd A. Erickson — Fo|z, Freeman, Erickson, Inc. DMP, {%NL-2, File — Bunestnoo m /sr /s ppwsaxoee nm TTET-9ET59 ,zed 9- 8# S.N3V13AONdW' `IMYN31VM ONV N3M3S ANV11NV S1N3W3AO'& ,,LriLn an N3AV N33N'JNVO SJLH9I3H )lllVd NVO T 0 d- 0096-9E9 -[59 :auZd ET SS NN'Ined '15 nawru w s�.vnsgii 9E Ae 4DIR I - MSEEZ °'^ a�Ul0lned 7S q u pz a w F< w s g i W <° F °z u r m�p; 0 W 0 O 0 0 0 00) 0 0 0 w 0 0 R QQ "a ..J _� � Nac uW ww�� >o w � p ���` °�o m° 3 9i mN� €� O 33o� SdS - w w o a ���� a € � m � U .. . {b B B 1B 38OZ LY 26 ... z6:ANI Z6'ANI t6'Y11H V ,B £i'L 6 AN .. 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Widin [kdwidin @comcast.net] Sent: Monday, April 27, 2009 11:49 PM To: Eric Johnson; Mark Vierling (E- mail); Dennis Postler (E- mail); Scott Richards; Jimmy Butler; Judy Holst; Julie Hultman; Tom Ozzello Subject: Oakgreen Commons & Carriage House Cooperative - Landscape Plans, Tree Replacement Requirement OPH Staff - I have reviewed the latest set of tree removal and landscape plans for the Oakgreen Commons and Carriage House Cooperative project (plans dated 4/13/09), inspected the site, and have the following comments: 1. Species - these are basically the same as in the previous landscape plans and are acceptable, many being native species (or improved cultivars of same) which are hardy and relatively free of serious insect and disease problems. 2. Placement - after the last review, a few changes in placement were made, most of which were done to provide larger trees with more rooting area. In some places, where rooting area was tight, ornamental trees were substituted for larger deciduous trees. 3. Aesthetics - plans are attractive and should complement the buildings and site. 4. "Planting Detail" - add the language "for evergreen or deciduous balled & burlapped (B &B) plant material, the top rungs of any wire basket around the root ball should be removed before back - filling the planting hole ". *5. Carriage House Cooperative plan - six large deciduous trees on the east side of the building appear to be specified to be planted in the road right -of -way. Any trees planted should be on private property. These trees may need to be replaced with smaller ornamental trees. 6. Tree Replacement Requirement - after removing boxelders and trees under 8 in. dbh from consideration, the total caliper inches of trees on the site is 1943 inches, and the total caliper inches of trees to be removed is 1491 inches. The calculated tree replacement requirement is 1521 caliper inches - 235 caliper inches to be planted as part of the landscape plans = 1286 caliper inches. Payment in lieu of tree planting = 1286 in. x $50. /cal. in. _ $64,300. 7. An inspection of trees to be retained along Oakgreen Ave. revealed two trees which should be removed due to storm damage and poor structure #25132 and #25135. Remaining deciduous trees to be retained along Oakgreen Ave. should be pruned by a professional tree service company, especially #25067 which has branches extending into the roadway. If you have any questions regarding this report, please contact me. Please forward these comments to the developer. Due to a conference on 4/29, 1 will be unable to attend the site review meeting with the developer. Kathy Widin OPH Arborist I ✓I '"� ENCLOSURE �����, ����x��~�_ ��~..�_ l�]|~�� ��u�� ��JL �-��U0� ���UL�� �]L��8�Ui�t%� ~ ~° l4\60 Oak Park Blvd. N° Box 2O07* Oak Park Heights, &0N55O82° Phone (65\)439443Ya Fax (hjl)439'O574 May 7, 2009 MEMO TO: Planning Commission Mefhb FROM: Eric Johnson, RE: Nolde TIF ProDmbal - Renewal District Mr. Tim NVkde (d.b.a. consideration of the creation of &IRanevd & Renewal" Tax Incremental Financing District (#l) that would aid in ultimate development of the Carriage Homes Development which would consist of a 48-unit Senior Cooperative and 120-unit assisted living facility. The applicant is seeking to recover $1,200,000 of tax increments to off-set his total land acquisition costs of $1,600,000 and would be approximately 6.3% of the total project costs. The application has been forwarded to the City's financial consultant Mr. Nick Skmrich of Northland Securities for a more In-depth analysis and discussion of process and has received a favorable opinion. (See Sac 2') At this time, if the City does wish to consider the use ofTIFto aid in this Development, it must take the first step and adopt the enclosed Resolution (See Sec 3.) prepared by Briggs & Morgan (Adopted by the City Council on April 14th, 2009) calling for a public hearing on the proposed establishment of the T|F district osproposed. |fis vital to note that the Developer has indicated that without the proposed level of TIF assistance, the project would not be able to proceed, (the "but-for-test"). ThePlanning Commission in also required to review and approve osupporting resolution on the proposed district. |n its current form cm proposed, nor bif anticipated 1hotthe Applicant would seek any actual cash contribution or direct financial burden on the part of the, City. This is - to be a "poy-os-yx}u-go''T|FDishkcf'nneoningiftheunitxononotonnstruotedthenavvouldbeno new tax increment genera and thus there would beT|F payments paid tothe Applicant to off-set - their costs. The City is also not being asked to issue any redevelopment or conduit financing. BENEFITS TO THE CITY When examining oYIF proposal, m City does look mt the long-term impacts and benefits that can be generated from implementing - the TIF. Redevelopment of a long standing run-down area, tax base enhancements, new jobs, affordable housing, environmental nomedintion are all typical exump|esofTIFuseondthesebenefibon*evidentAdUitinnm| benefits can be new roads, new utility systems, etc, so long as these are related to the development. I will preface the three points below by saying that generating TIF increment with a housing development tends to be more difficult versus a new commercial / office area as new residents will require more local public services as opposed to a commercial /industrial area. The Nolde TIF proposal does target to remove 6 "substandard" homes and place 160 + /- new residential units in the City. The use of the word 'substandard', in terms of TIF, generally is understood to mean that the cost of bringing such structures into code compliance would exceed 15% the value of a new and similar home, not that it is dilapidated, inhabitable or in poor condition. Because this TIF District is anticipated to be a Renewal District, meeting these requirement standards will not be as rigorous. The City has contracted a consultant LHB to perform this analysis and the report is enclosed. Additionally, the tax base that is proposed to be generated is being used by the developer to reimburse his costs related to the acquisition of the 6 properties to approximately $1,200,000. Accordingly, the City is not going to be realizing an immediate tax -roll benefit as a result of the TIF, but will in the long term. Also, the total net accrued TIF revenues, estimated to be $ 3,250,000 with only $1,200,000 needed for the Developer, will leaving an estimated balance of $2,000,000. The City may use a portion of these remaining funds (up to 20 percent of all total GROSS TIF proceeds generated), "TIF pooling ", for other TIF eligible expenses throughout the balance of the City. (NOTE: This does assume a full build -out of all units by the Developer and applying their property values) Developer does already own all these properties, the redevelopment opportunities can also be positive in terms of addressing certain poorly maintained homes, eliminating wells and septic fields (these homes are not on City sewer and water) and this development may ultimately aid the City in reaching a goal of 5,000 in population, which may trigger state road aids. ® One additional benefit that may be generated as a result of the TIF is that the Developer (Mr. Nolde), once the properties are acquired could provide to the City the necessary easement /ROW for an Oakgreen Ave. expansion. However, this benefit however could be generated in other ways, such as from MnDOT or as a condition of the CUP that would be required in the proposed area. APPLYING CITY TIF POLICY Applying the City's Tax Increment Policy, the proposal would likely meet many of the City's base requirements: ® The proposal does demonstrate long -tem benefits to the City, being the renewal of the area. ® The proposal does provide some employment opportunities related to the assisted care facility and some management staff at the Cooperative homes. ® The proposal will not SIGNIFCANTLY add to the City's commercial of industrial tax base. (The nature of the development is purely residential) Sec 2. TIF Plan Documents dated April 20th, 2009 and Memo from Nick Skarich of Northland Securities dated April 9th, 2009, providing a summary and process discussion. Sec 3. Required Resolution to Initiate TIF Process. This document does not create the TIF district nor provides any approvals, but initiates the public hearing process to allow the City to make a decision in May 2009. Sec 4. Inspection Report Document from City Consultant L.H.B. for the required "Blight" Inspection Reports for Properties within the District. Sec 5. Additional Information from Anchobaypo. This includes a letter from Anchobaypro that he is seeking this to be a "pay -as- you -go" project and that his ultimate project IS dependent on the receipt of TIF assistance. Sec 6. General TIF Information & What is a Renovation and Renewal District? Sec 7. Plan Layout (no approvals have been granted) Sec 8. Requested Resolution to be approved by Planning Commission. • The proposal does not immediately conform to the Comprehensive Plan -the area is Zoned B -4 (commercial), but multi- family residential is permitted via Conditional Use Permit. • The City has been given indications via the LHB Report that the properties to be acquired and involved in the District are generally known to be in need of redevelopment and will likely meet the required statutory test of a Renewal District. KEY QUESTIONS AND RECCOMENDATIONS 1. Regardless of the proposal made by the Developer for TIF assistance, does the City desire housing in this area? If that answer is NO, then the merits of the TIF should be disregarded and the proposal unilaterally rejected. Within the last year, the City has approved a concept plan for this area to permit multi- family housing. However, the current plan has substantially increased the number of units to 160 + / -. 2. Should that answer be something besides no, I would recommend that the City proceed onward with the further analysis of this proposal with the following being accomplished: Adopt a resolution calling for a Public Hearing (Sec 3.) (COMPLETED BY THE CITY COUNCIL ON APRIL 114th 2009) on the concept of the TIF district creation and in the interim, further engage third -party experts to make more specific determinations on the qualification of the proposal as a Renewal District, clarity the "but -for" tests and the issue of qualifying the properties as substandard. All of these costs are to be the Developer's. Preliminary reports in these areas appear to be supportive. • The City must weigh the other values of the current tax base at the site against the predicted outcomes; some which are not all purely a financial consideration. Again, the City will benefit from right -of -way acquisition, removal of substandard homes, job creation, removal of septic /wells and longer -term tax base expansion, • The City is not making any final commitment on the TIF proposal at this time. A final approval by the City would not be considered until May and a TIF Developer's Agreement would be required that would outline all final commitments and expectations. • For the City to further continue with the consideration of this request, the City Planning Commission must adopt the enclosed approving resolution, see enclosed. Please review the enclosed information: Sec 1. Introduction Letter and TIF Application from Anchobaypo. SUITE 100, 4018 WEST 65TH STREET EDINA, MINNESOTA 55435 Mr. Eric Johnson City Administrator City of Oak Park Heights 14168 Oak Park Blvd. Box 2007 Oak Park Heights, MN 55082 OFFICE: (952) 926 -5337 PAX: (952) 926 -5743 March 16, 2009 Re: Anchobaypro, Inc. Tax Increment Proposal Dear Mr. Johnson: PATRICK J. BRADLEY pjb@bradleydeike.com ROBERT J. DEIKE rjd @bradleydeike,com STEPHEN J. WONTOR sjw@bradleydeike.com As you are aware, this firm has been retained by Anchobaypro, Inc., (the "Developer ") in connection with its proposal for tax increment financing from the City of Oak Park Heights to assist it in undertaking a proposed housing development. The tax increment application requires that it be accompanied by a letter from the Developer's legal counsel stating that the proposal has the general capacity to meet tax increment standards under Minnesota law. This letter is intended to satisfy that requirement. The creation of a renewal and renovation tax increment district requires compliance with the requirements of Minnesota Statutes, section 469.174, subd. 10a. Simply stated, those requirements are: 1. 70% of the area of the proposed district must be occupied by improvements. 2. In order to be considered "occupied ", at least 15% of the area of a parcel must be occupied by "buildings, streets, utilities, paved or gravel parking lots, or other similar structures." 3. 20 percent of the buildings, not including outbuildings, must be structurally substandard, as defined in the statute, to a degree requiring substantial renovation or clearance j and 30 percent of the other buildings must have other conditions that would require substantial renovation or clearance to eliminate. Typically, a municipality will retain an engineering or architectural firm to inspect the properties and buildings to be included in a district and prepare a report on whether the proposed district 1 of 21 NOLDE TIF DOCUMENTS meets the statutory requirements. The City has done that in this case and the preliminary report of the City's consultant indicates that the proposed tax increment district would qualify. Under the tax increment financing laws before a municipality can create a tax increment district the municipality must find that if it were not for the tax increment financing assistance, the proposed development would not occur. Again, a city proposing to create a tax increment district will typically retain a financial advisor to examine the developer's pro forma and to advise the city on whether the use of tax increment is justified and what the level of assistance should be. The Developer has provided to the City a preliminary project pro forma and will provide such updated pro formas and supporting documentation as the City and its financial advisor will need to make this finding. . The proposed development involves the acquisition of six single family homes for demolition to allow construction of new townhouses. The cost of acquiring the single family homes exceeded $1,600,000. Such costs are extraordinary costs of redevelopment and normally can not be recovered through the proceeds received from the sales of housing units or from long term operations. In addition, the project is being designed with certain material upgrades that will add cost to the project. Finally, the Developer anticipates that certain property that it has acquired will have to be contributed to the City for adjacent right -of -way improvements, which also adds cost to the project. We believe that the project pro formas will demonstrate that without tax increment assistance the return that the Developer will likely achieve by doing the project will be below the level that a typical housing developer would expect to receive. I hope that this letter is sufficient for your purposes at this point. If you have any questions please let me know. Sincerely, Robert J. Deike cc: Tim Nolde 2 of 21 NOLDE TIF DOCUMENTS F GITY OF OAK PARK HEIGHTS 14168 Oak Park Blvd. N a Box 2007 • Oak Park Heights, MN 55082 • Phona (651) 439 -4439 •Fax (651 } 439.0574 APPLICATION FOR TAX INCREMENT FINANCING A. PROJECT 1. Applicant Name Address Telephone # Fax # Contact Person ANCHOBAYPRO, INC. P.O. Box119, Stillwater, MN 55082 651430-3891 651430-9197 Tim Nolde 2. Brief description of Applicant. ANCHOBAYPRO, INC., is a locally owned real estate development company. 3. PID #'s, Legal description, address and size o roject site. The project will consist of Lots 1 and 2, Bl One, Ou tlots A-and. , rflage'House- coopemttve St. Croix Valley. The site is approximately 227,000 square feet In size. 4, proposed Project; Dater materials, proposed s u etc. Attach site plan. There will be one 48 unit residential buildings (two stories in height). The building will be approximately 80,000 square feet In size. A second building will be a 120 unit assisted living facility of approximately 107,000 square feet. The exterior of both buildings will be brick on masonry with "hard]- plank ". 1 3 of 21 NOLDE TIF DOCUMENTS APPLICATION FOR TAX INCREMENT FINANCING d, If property is to be subdivided, describe division planned. See proposed/pending reliminary plat. p 2 4 of 21 NOLDE TIF DOCUMENTS 6. Estimated Project Costs: (Please enclose construction proformas, if available) a. Land Acquisition $ 1,780,000 b, Public Improvements C, Site Improvements 580,000 d. Demolition 120,000 15,240,000 i e. Building(s) f. Equipment , g. Architectural & Engineering Fees 226,000 h, Legal Fees /Other Consulting Fees 63,000 I. Financing Costs 520,000 j, Contingencies 100,000 k. Other Overhead 100,000 I, Other Marketing 368,000 TOTAL 19,097,00 7. Source of Financing. a. Equity s3,888,858 �0 14,000,000 b. Bank Financing 1,208,142 C. Tax Increment Assistance d. Other e. 'Other . I to TOTAL $19 ,097 ,000 2 4 of 21 NOLDE TIF DOCUMENTS APPLICATION FOR TAX INCREMENT FINANCING 8. Form of financing project costs Pay -as- You -Go Pay - You - Go or Bonds 9. Name and address of architect, engineer and general contractor Architect- Archnet, 333 North Main, Stillwater, MN 55082a Engineer- Foiz Freeman Erickson, Inc, 12445 55th Street North, Lake Elmo, MN 55042 General Contractor- ANCHOBAYPRO, INC., P.O. Box 119, Stillwater, MN 55082 10, Project Construction Schedule, a. Construction Start Date b. Construction Completion Date C. If phased project 2009 Year s0�� 2010 Year so�o S/1/09 5/1/11 % Complete % Complete 11. Total estimated market value of project upon completion $ 19,000,000 12. Estimated real estate taxes on project upon completion of project (Please show calculations) It is estimated that the cooperative building will generate 72,000 in taxes per year and that the assist living facility generate $130,000 per year in taxes. 3 5 of 21 NOLDE TIF DOCUMENTS APPLICATION FOR TAX INCREMENT FINANCING 13. Projected number of new jobs-create: 16 Full-time 24 Part -time Seasonal B. TAX INCREMENT FINANCING REQUEST T 1. Describe the amount and purpose for which tax increment financing is required (please include proforma), We are requesting that the City create a 15 year renewal and renovation district and that the City provide assistance to offset costs of the project equal to 90% of the tax increment generated over the fi term of the district. We estimate that the tax increment that would be generated from the project would generate net proceeds of approximately $1,207,000. 'The purposes for the I , request are: 1. The assistance would write -down the cost of acquiring the land to allow units to be affordable to re of t City. i 2. The assistance would finance upgrades In materials used to construct the buildings. 3. The assistance would allow the City to acquire land for right -of -way on Oakgreen Avenue. I i 4. The assistance results in the removal of several existing substandard single family homes. i 2. Statement of necessity for use of tax increment financing for project. Tax increment financing is necessary to construct the project as proposed. There are a number of i factors t have caused the costs of the project to increase beyond what would nor b Incu First, is.the cost of acquiring developed properties as opposed to vacant land. Second, upgrades in i exterior materials add substantial costs. Third, the developerwill contribute a substantial parcel of property to the City for the realignment and improvement of Oakgreen Avenue. Finally, current economic conditions require a substantially larger equity contribution for a project like this. 4 6 of 21 NOLDE TIF DOCUMENTS APPLICATION FOR TAX INCREMENT FINANCING 3. Municipal Reference (if applicable). Please name other municipalities wherein the applicant, or other corporations the applicant has been involved with, has completed development within the last five years. C o f St M C Crest Villas Long Lake Villas f' 4. The following documents must accompany the Application A Project Pro - Forma, ® Parcel Maps depicting the proposed TIF area, ® A written statement from your attorney that the TIF proposal has the general capacity to meet applicable TIF standards under Minnesota Law. w SIGNIFICANT ADDITIONAL INFORMATION MAY BE RE QESTED AT ANY TIME BY THE CITY AND MAY BE IN ADDITION TO THE MATERIALS OUTLINED IN THIS APPLICATION, THE APPLICANT SHALL BE REQUIRED TO SUBMIT ANY AND ALL INFORMATION AS REQUESTED Bl° THE CITY. 5. Applicant acknowledges and agrees to pay the $3,000 TIF Application Fee and is non - refundable. Additionally the Applicant acknowledges and agrees to pay all fees and expenses incurred by the City in connection with this application or establishment of the TIF District, whether or not approved. The City does require a minimum deposit of $10,000 to cover such fees, this amount may be adjusted upward on a project -by- project basis. The Applicant shall hold the City, its officers, consultants, attorneys and agents harmless from any and all claims arising from or in connection with the Projector TIF Application, including but not limited to, any legal or actual violations of any State or Federal securities laws. Applicant recognizes and agrees that the City reserves the right to deny any Application for Tax Increment Financing at any state of the proceedings prior to adopting the resolution approving the district, that the Applicant is not entitled to rely on any preliminary actions by the City prior to the final resolution, and that all expenditures, obligations, costs, fees or 5 7 of 21 NOLDE TIF DOCUMENTS i E APPLICATION FOR TAX INCREMENT FINANCING liabilities incurred by the Applicant in connection with the project are incurred by the Applicant at its sole risk and expense and not in reliance on any actions of the City. The undersigned, a duly authorized representative of the Applicant, hereby certifies that the foregoing information is true, correct and complete as of the date hereof and agrees that the Applicant shall be bound by the terms and provisions herein. i.. DATE: Applicant: ANCHOBAYPRO, INC. i — i- By: Its: I r 6 8 of 21 NOLDE TIF DOCUMENTS City of Oak Park heights, Minnesota Taxable Tax Increment Revenue Bonds (Senior Cooperative Project) SOURCES Bond Proceeds Total Sources USES Net Bond Proceeds Capitalized Interest Costs of Issuance Total Uses $ 539,000 * $539,000 $ 441,508 75,932 4.00% 21,560 $ 539,000 Master Assumptions Closing Date 3/1/2009 Maturity Date 2/1/2025 Local Tax Rate 0.83309 Fiscal Disparities Rate N/A State Auditor Fee 0.36% Administrative Fees 10.00% Inflation Rate 1.00% Minimum Debt Service Coverage Ratio 1.25 x * Preliminary - Subject to change. S &U 12/18/2008 9 of 21 NOLDE TIF DOCUMENTS City of Onk Park Heights, Minnesota Taxable Tax Increment Revenue Bonds lSrnins• r--ii.. Pmianel 10 of 21 NOLDE TIF DOCUMENTS Date Original Estimmcd Tax Tax Capacity Capacity ($a assumptions) 1.00% Inflation Captured Tax Capacity Estimated Tax Iner -ent 0.83309 State Auditor Fees 0,36: City Admin Fee 10.003: Available Increment Net of Fees principal Coupon Interest Debt Service Capitali2e.d Interest Told Net Debt Service Excess Tax Increment Debt Service Coverage Ratio e.6 0.0 3/1/2009 0.0 811 /2009 6,662 6,662 - - - - - 7.0001. 15,721 15,721 (16,507) (786) - 1.03 0.0 2/1/2010 - - - - 7.000°0 18,865 18,865 (19,808) (943) 1.05 OS 8 /1/2010 6,662 6,662 - - - - - - 7,000% 18,865 18,865 (19,808) (943) - 1,05 1.0 2/I /2011 - - - 7.000°!. 18,865 18,865 (19,808) (943) - 1.05 15 a /1/1011 6,662 81,000 74,338 30,965 (111) (3,085) 27,768 1000 1.00011. 18,865 21,865 - 21,865 5,903 1.27 2.0 2/1/2012 30,965 (111) (3,085) 27,768 3,000 7.0001. 18,760 21,760 - 21,760 6,008 1.28 25 8112012 6,662 108,000 101,338 42.212 (152) (4,206) 37,854 11,000 7,000% 18,655 29,655 - 29,655 8,199 1.28 3.0 2/1/2013 42,212 (152) (4,206) 37,854 12900 7.000P /a 18.270 30,270 30,270 7,584 1.25 35 8/12013 6,662 109,080 102,418 42,662 (154) (4,251) 38,257 12,000 7.000% 17,850 29,850 29,850 8,407 1.28 4.0 2/1 /2014 42,662 (154) (4,251) 38,257 13,000 7.000% 17,430 30,430 30,430 7,827 1.26 44 e/I /2014 6,662 110,171 103,509 43,116 (155) (4,296) 38,665 13,000 7.00091, 16,975 29,975 29,975 6,690 1.29 SA 2/1/2015 43,116 (155) (4,296) 38,665 14,000 7,000'/. 16,520 30,520 - 30,520 8,145 1.27 85 8/1/2015 6,662 111,273 104,611 43,575 (157) (4,342) 39,076 15,000 7,000% 16,030 31,030 31,030 8,046 1.26 6.0 2/1/2016 43,575 (157) (4,342) 39,076 15,000 7.000% 15,505 30,505 - 30,505 8,571 1,28 6.5 81112016 6,662 112,385 105,723 44,038 (159) (4,388) 39,492 16,000 7.OWA 14,980 30,980 - 30,980 8,512 1.27 7,0 1/1 /2017 44,038 (159) (4,388) 39,492 17,000 1.000°A 14,420 31,420 31,420 8,072 1.26 7S 8/02017 6,662 113,509 106,847 44,507 (160) (4,435) 39,912 18,000 7.000% 13,823 31,825 - 31,825 8,087 1.25 8A 1/12018 44,507 (160) (4,435) 39,912 18,000 1.007/. 13,195 31,195 31,195 8,717 1,28 83 VIP-018 6,662 114,644 107,982 44,979 (162) (4,482) 40,336 19,000 7.00055 12,565 31,565 - 31,565 8,771 128 9A 1!112019 44,979 (162) (4,482) 40,336 20,000 7.OWY. 11,900 31,900 31,900 8,436 126 9.5 9/1 /2019 6,662 115,791 109,129 43,457 (164) (4,529) 40,764 21,000 7.000% 11,200 32,200 - 32,200 8,564 1.27 10.0 2/1/2020 45,457 (164) (4,529) 40,764 22,000 7.000'-3 10,465 32,465 - 32,465 8,299 1.26 105 8/1/2020 6,662 116,949 110,287 45,939 (165) (4,577) 41,197 23,000 7.001/ /. 9,695 32,695 32,695 8,502 1.26 11.0 2/1/2021 45,939 (165) (4,577) 41,197 24,000 7,000°/6, 8,890 32,890 - 32,890 8,307 1.25 115 8/1/2021 6,662 118,118 111,456 46,426 (167) (4,626) 41,633 25,000 7.000/. 8,050 33,050 • 33,050 8,583 1.26 12.0 2/1 /2022 46,426 (167) (4,626) 41,633 26,000 7.0WA 7,175 33,175 - 33,175 8,458 125 125 9/1 /2022 6,662 119,299 112,637 46,918 (169) (4,675) 42,075 27,000 7,000'% 6,265 33,265 - 33,265 8,810 126 13,0 211 /2023 46,918 (169) (4,675) 42,075 28,000 7.000% 5,320 33,320 - 33,320 8,755 1.26 135 8/1/2023 6,662 120,492 113,830 47,415 (171) (4,724) 42,520 29,000 7.000'% 4,340 33,340 - 33,340 9,180 1.28 14.0 2/1/2724 47,415 . (171) (4,724) 42,520 30,000 7.OWV.. 3,325 33,325 - 33,325 9,195 1.28 145 8/1/2024 6,662 121,697 115,035 47,917 (173) (4,774) 42,970 32,000 7.000%. 2,275 34,275 - 34,275 8,695 1.25 I5,0 2/1/2025 41,917 (173) (4,774) 42,970 33,000 7.000% 1,155 34,155 - 34,155 8,815 1.26 106,592 1,585,731 1,479,139 1,232,256 4,436 122.782) - 1,105,038 539,000 406,216 911 216 _25,932 -- _869;284 _ 232,138 10 of 21 NOLDE TIF DOCUMENTS City of Oak Park Heights, Minnesota Taxable Tax Increment Revenue Bonds Assumptions Schedule Annual Valuation Growth Rate =1.00% Type of Tax Increment Financing (TIF) District Redevelopment Construction Year = 2009 2010 2011 2012 Assessment Year = 2010 2011 2012 2013 Taxes Payable Year = 2011 2012 2013 2014 Senior Co -Op Units Number of Units Average Value Per Unit Percent Complete Assessed Market Value @ Times: Property Classification Rate Net Tax Capacity Total Assessed Market Value Total Net Tax Capacity (NTC) Property ID 05.029.20.14.0003 05.029.20.11.0026 05.029.20.11.0063 05.029.20. l 1.0065 Original Net Tax Capacity (ONTC) - Total Total Tax Capacity Rate (Pay 2008) Fiscal Disparities Ratio (Pay 2008) Annual Valuation Growth Rate State Auditor Fee Administrative Fee 48 225,000 75.00% 100.00% 100.00% 100.00 100% 8,100,000 10,800,000 10,908,000 11,017,080 1.00% 1.00 % 1.00% 1.00% $81,000 $108,000 $109,080 $110,171 8,100,000 10,800,000 10,908,000 11,017,080 $81,000 $108,000 $109,080 $110,171 Pay 2008 Taxes (1) $1,600 1,764 1,186 2,112 $6,662 83.309% N/A 1.00% 0.36% 10.00% (1) Information obtained from the Washington County Property and Tax Information web site. 11 of 21 NOLDE TIF DOCUMENTS City of Oak Park Heights, Minnesota Taxable Tax Increment Revenue Bonds (Senior Cooperative Project) SOURCES Bond Proceeds Total Sources Building 2 $ 853,000 $ 853,000 USES Net Bond Proceeds Capitalized Interest Costs of Issuance Total Uses $ 766,634 52,246 4.00% 34,120 $ 853,000 Master Assumptions Closing Date 4/l/2009 Maturity Date 2/l/2025 Local Tax Rate 0.83309 Fiscal Disparities Rate N/A State Auditor Fee 0.36% Administrative Fees 10.00% Inflation Rate 0.00% Mini Debt Service Coverage Ratio 1.25 x * Preliminary - Subject to change. S &U 2/20/2009 12 of 21 NOLDE TIF DOCUMENTS City of Oak Park Heights, Minnesota Taxable Tax Increment Revenue Bonds Building 2 (Senior Cnone.retive Pmlmt) (1) This x .... i...suan $130,000 in annual luxes. 13 of 21 NOLDE TIF DOCUMENTS Date Original Estimated Tax Tex C.psoity Cepacity (see assumptions) 0.00.% Inflation Captured Tex Cap.city (1) Estimated Tax Incrcmmf State Auditor Fees 0.36% City Admin Fco 10.00% Available Inaemenl Netot Fees principal Coupon 7100% Interest Debt Semce Capilaliz d interest Total Net Debt Service Excess Tax Increment Debt Service Coverage Ratio 0.0 - 0.0 4/1/2009 0.0 8/1/2009 - - - - - - - 7.00091. 19,903 19,903 (20,899) (995) - 1.05 OA 2/1/2010 - - 7.0001. 29,855 29,855 (31,348) (1,493) - 1.05 OS 8/1/2010 - 130,000 65,000 (234) (6,477) 58,289 16,000 7.000% 29,855 45,855 - 45,855 12,434 1.27 1,0 2/1/2011 65,000 (234) (6,477) 58,289 17,000 7.000% 29,295 46,295 - 46,295 11,994 1.26 1.5 8/1/2011 - - 130,000 65,000 (234) (6,477) 58,289 18,000 7.000% 28,700 46,700 - 46,700 11,589 1.25 2.0 2/1/2012 65,000 (234) (0477) 58,289 18,000 7.00 A 28,070 46,070 - 46,070 12,219 1.27 25 8/1/2012 - - 130,000 65,000 (234) (6,477) 58,289 19,000 7.000% 27,440 46,440 - 46,440 11,849 1.26 3A 2/1/2013 65,000 (234) (6,477) 58,289 20,000 7.000° /, 26,775 46,775 - 46,775 11,514 1.25 35 8/112013 - - 130,000 65,000 (234) (6,477) 58,289 20,ODO 7.000% 26,075 46,075 - 46,075 12,214 1.27 4.0 2/1/2014 65,000 (234) (6,477) 58,289 21,000 7.000% 25,375 46,375 - 46,375 11,914 1.26 4.6 8/1/2014 - - 130,000 65,000 (234) (6,477) 58,289 22,000 7.00W. 24,640 46,640 - 46,640 11,649 1.25 SA 2/1/2015 65,000 (234) (6,477) 58,289 22,000 7.WW. 23,870 45,870 - 45,870 12,419 1.27 SS •8/112015 - - 130,000 65,000 (234) (6,477) 58,289 23,000 7.000% 23,100 46,100 46,100 12,189 1.26 bA 2/1/2016 65,000 (234) (6,477) 58,289 24,OOD 7,030% 22,295 46,295 46,295 11,994 1.26 65 8/1/2016 - - 130,000 65,000 (234) (6,477) 58,289 25,000 7.000°/ 21,455 46,455 - 46,455 11,834 1.25 7.0 2/1/2017 65,000 (234) (6,477) 58,289 26,000 7.000°/ 20,580 46,580 - 46,580 11,709 1.25 7.5 8 /,11017 130,000 65,000 (234) (6,477) 58,289 27,000 7.00 19,670 46,670 - 46,670 11,619 1.25 SA 2/1 /2018 65,000 (234) (6,477) 58,289 28,000 7.000% 18,125 46,725 - 46,725 11,564 1.25 SS 8/1/2018 - - 130,000 65,000 (234) (6,477) 58,289 29,000 7.000% 17,745 46,743 46,745 11,544 125 9A 211/2019 65,000 (234) (6,477) 58,289 30,000 70D0% 16,730 46,730 - 46,730 11,559 125 9-1 8/112019 - 130,000 65,000 (234) (6,477) 58,289 31,000 7.0D0% 15,680 46,680 - 46,680 11,609 1.25 100 2/112020 65,000 (234) (6,477) 58,289 32,000 7.000% 14,595 46,595 - 46,595 11,694 1.25 IOS 8/1/2020 - 130,000 65,000 (234) (6,477) 58,289 33,000 .7.000°.. 13,475 46,475 - 46,475 11,814 1.25 110 2/1/2021 65,000 (234) (6,477) 58,299 34,000 7.000% 12,320 46,320 - 46,320 11,969 1.26 t15 8/1/2021 - - 130,000 65,000 (234) (6,477) 58,289 35,000 7.000° /a 11,130 46,130 - 46,13D 12,159 126 I2.O 2/1/2022 65,ODD (234) (6,477) 58,289 36,OW 7.0003. 9,905 45,905 - 45,905 12,384 127 125 8/112022 - 130,000 65,000 (234) (6,477) 58,289 38,000 7.000° /r 8,645 46,645 - 46,645 11,644 1.25 130 2/1/2023 65,000 (234) (6,477) 58,289 39,000 7,000% 7,315 46,315 - 46,315 11,974 1.26 13.5 8/1(2023 - - 130,000 65,000 (234) (6,477) 58,289 40,1810 7.60011. 5,950 45.950 - 45,950 12,339 1.27 14.0 2/1/2024 65,000 (234) (6,477) 58,289 42,000 7.0004. 4,550 46,550 - 46,550 11,739 125 145 8/1/2024 - - 130,000 65,000 (234) (6,477) 58,289 43,000 7,000% 3,080 46,080 - 46,080 12,209 1.26 16,0 2/1/2025 65,000 (234) (6,477) 58,289 45,000 7.000 1,575 46,575 - 46,575 11,714 1.25 1,950,000 1,950,000 7,020 194,298 1,748 612 13 588,373 1,441,373 5 ( 2,246) 13�� 337067 (1) This x .... i...suan $130,000 in annual luxes. 13 of 21 NOLDE TIF DOCUMENTS E 14 z 00 w Lij 0 0 tl ay J >! o 0 0 c) u :E it tr Q Q 14 of 21 NOLDE TIF DOCUMENTS m >? NT � � teb M^( -NN � � N � ^ MI 'v Y on ..... 0..0 0.. F UR ....... 1 0 "'a"O ;:Alp 9 5 � i 00000.. N N Ono . . . a R§k c4 �WWW I A IM P . . . 0000 pi 6. gg�12fm PiR 14 1; �• ..Roo.. 0 . . . . . 0. 4? A no Z5 E 14 z 00 w Lij 0 0 tl ay J >! o 0 0 c) u :E it tr Q Q 14 of 21 NOLDE TIF DOCUMENTS O W N N M r M000O M 7(74 D M R D [M M NMM . MM ci N b M N 0 0 0 0 n� 0 0 0 0 0 0 0 0 O n O a ° 10 4 M It Ln O w r 0 M ,r R0000 70000n000 n o c� �$ $ q c c v 16 M [� N � •- O r b b N w b c,2 o 0 o o n o 0 0 0 0 0 0 o r „ o Q ;F 4 5q q M v ?5 u N �y M b ('}0000 N0000 00 00 h O O (� M D n o o 0 0 o , o o o o 0 o o o o N V b N W O o 0 o o O O o o o o o o o O W q b w O O O o 0 , O O O o o 0 0 0 0 , ' , O O o o 0 0 0 0 0 0 0 0 0 0 0 0 q Q 8 pp r o o o o 0 0 0 o n o 0 0 0 0 01 r N N w 0000o ' 000 o000oo n OOO n V 4 m� L �d w DmM c ea m 0 w � W G O m C G �` ryry m 0 9 y � c o S U o ro Cr= ° o rn' �� 5rf C 3 yy n � ' - J3 u o a 0 0 � o m o a a yf 2 :a : r O 15 of 21 NOLDE TIF DOCUMENTS Cost Summary Amount Percent Land Acquisition $ 890,000 8,42% Site Work $ 300,000 2.84% Environmental $ 10,000 0.09% Demolition $ 60,000 0.57% Broker Fees, Commissions $ 30,000 0.28% Relocation Total Acquisition $ 1,290,000 12.20% New Construction Private $ 7,650,000 72.34% City Fees $ 100,000 0.95% Private Streets $ 75,000 0.71% Excavation $ 75,000 0.71% Contingency $ 150,000 1.42% Total New Construction $ 8,050,000 76.12% Architectural and Engineering $ 110,000 1.04% Architectural Inspections $ 3,000 0.03% Soil Testing $ 5,000 0.05% Surveys $ 5,000 0.05% Total Architectural and Engineering $ 123,000 1.16% Sales Fees and Marketing $ 308,000 2.91% Signage Sales Commissions Advertising $ 30,000 0.28% Total Marketing $ 338,000 3.20% Construction Interest and Fees $ 300,000 2.84% Association Fees and Taxes $ 60,000 0.57% Insurance $ 20,000 0.19% Total Carrying Costs $ 380,000 3.59% Lender Fees $ 150,000 1.42% City TIF Fees $ 40,000 0.38% TIF Note Costs of issuance $ 21,560 0.20% Capitalized Interest $ 75,932 0.72% Total Financing Fees $ 287,492 2.72% Environmental Consultants $ 7,000 0.07% Total Environmental Consultants $ 7,000 0.07 % Condo Documents $ 20,000 0.19% Attorneys Fees $ 25,000 0.24% Title Costs $ 5,000 0.05% Total Condo, Attorneys, Title $ 50,000 0.47% Developer's Overhead $ 50,000 0.47% Developer Fees 16 of 21 NOLDE TIF DOCUMENTS Total Developer's Overhead $ 50,000 0,47% Total Project Costs $10,575,492 100,00% Income Summary Total Sales Prices of Units $10,560,000 Tax Increment $ 539,000 Total Proceeds $11,099,000 Proceeds $11,001,508 Project Costs $ 10,575,492 Profit $ 426,016 Percent of Cost 4.03% 17 of 21 NOLDE TIF DOCUMENTS A A 'It Existing iCandfit-l-aus Wit City of Oak Park - Flel ' uh-ts CARRPIGEHOUSE CO-OPANDASSIWED LIVUIIG March 19, 2009 Rmsm if WRICT Dcu. T,T - T F 1 - - - 1 F I 1 7 1 1 F I .1 Li rl-t 1-�l ul 71 -- I I LuMpumma suovimc - E, 5.W 14.1SINK41) WSHIM"Ill 18 of 21 NOLDE TIF DOCUMENTS -IFF I ina-al.Bluild - Out CARRM GE HOUSE C01 -OP AUVD AS3,ISTEV.UVfilqG I :YYw3fF:_ 1- �.- -..... I L f� I t oo ``, _ — �� `\~"`1` ' � !!fir � ..\ J' - �,, _ -�- �- cam_ .. I ,.... " }l ., � � I V .......... -- - ----- ----- I ! r rr r IZ ir 13 I i I br -' -k— •— - , I I d::�' J I - - I I I :}:xl< v , �j �� — _'n. _'_— - _._ -_ ___ _ _ - I . - � . I .J� _ :. i I d < \, _fi itttrr l —I t t t ----- ----- L—T — J VP k L =-Yu F l_ - - ) Fol III 19 of 21 NOLDE TIF DOCUMENTS Carriage House Project Dated: April 20, 2009 PLAN DOCUMENTS PREPARED BY NORTHLAND SECURITIES Northland Securities, Inc. 45 South 7"' Street - Suite 2500 Minneapolis, MN 55402 (800) 851 -2920 Member FINRA and SIPC TABLE OF CONTENTS ARTICLE I - DEFINITIONS AND EXHIBITS Section1.01 Definitions .............................................................................. ............................... 1 Section1.02 Introduction ............................................................................. ............................... 2 Section 1.03 Exhibit Reference/ Description ................................................ ............................... 2 ARTICLE II - STATEMENT OF PUBLIC PURPOSE AND AUTHORITY Section 2.01 Statement of Need and Public Purpose ................................... ............................... 3 Section 2.02 Statutory Authority ................................................................. ............................... 3 ARTICLE III - DEVELOPMENT PROGRAM Section 3.01 Statement of Objectives .......................................................... ............................... 4 Section 3.02 Boundaries of Development District ...................................... ............................... 4 Section 3.03 Development Activities .......................................................... ............................4 -5 Section 3.04 Payment fPublic Costs ........................................................... ............................... 5 Section 3.05 Environmental Controls; Land Use Regulations .................... ............................... 5 Section 3.06 Park and Open Space to be Created ........................................ ............................... 5 Section 3.07 Proposed Reuse of Property .................................................... ............................... 6 Section 3.08 Administration and Maintenance of Development District .... ............................... 6 Section3.09 Relocation ............................................................................... ............................... 6 Section3.10 Amendments ........................................................................... ............................... 6 Section 3.11 Estimates of Public Costs and Budget .................................... ............................... 6 ARTICLE IV -TAX INCREMENT FINANCING PLAN Section 4.01 Statement of Need and Public Purpose ................................... ............................... 7 Section 4.02 Statutory Authority ................................................................. ............................... 7 Section 4.03 Statement Objectives ......................................................... .................................. .. 7 Section 4.04 Redevelopment District Designation ............................................ ..................... .7 -8 Section 4.05 Duration of the Tax Increment Financing District .................. ............................... 8 Section 4.06 Specific Development Expected to Occur Within the TIF District ....................... 8 Section 4.07 Parcels(s) to be Included in the TIF District ........................... ............................... 9 Section 4.08 Property to be Acquired in the TIF District ............................ ............................... 9 Section 4.019 Findings and Need for Tax Increment Financing .................. ...........................9 -10 Section 4.10 Estimated Sources of Revenue /Public Costs ........................ ............................... 10 Section 4.11 Estimated Amount of Bonded Indebtedness ......................... ............................... 10 Section 4.12 Original Net 'Tax Capacity .................................................... ............................... 1 I Section 4.13 Original Local Tax Capacity Rate ........................................ ............................... 1 1 Section 4.14 Projected Retained Captured Net Tax Capacity and Projected Tax Increment ... 1 1 Section 4.15 Use of Tax Increment .................................................. ................................... 1 1 -12 Section 4.16 Excess Tax hncrement ........................................................... ............................... 13 Section 4.17 County Road Costs ............................................................... ............................... 13 Section 4.18 Four -Year Rule - Limitations on Property Not Subject to Improvements ...... 13-14 Section 4.19 Five -Year Rule - Tax Increment Pooling .............................. ..........................14 -15 Section 4.20 Limitations on Administrative Expenses .............................. ............................... 15 Section 4.21 Estimated Impact on Other Taxing Jurisdictions_....._ ................................................. 15 Section 4.22 Prior Planned Improvements ................................................. ..........................15 -16 Section 4.23 Development Agreements ..................................................... ............................... 16 Section 4.24 Assessment Agreements ....................................................... ..........................I.... 16 Section 4.25 Modifications of the Tax Increment Financing Plan ............ ............................... 16 Section 4.26 Administration of the Tax Increment Financing Plan ........... ............................... 17 Section 4.27 Financial Reporting and Disclosure Requirements ............... ..........................18 -21 Section 4.28 Business Subsidy Compliance .............................................. ..........................21 -22 Map of the Development District ........................................................... ..............._............... Map of the Tax Increment Financing District ........................................ ......................._....... PropertyDescription .............................................................................. ............................... Sourcesand Uses Statement .................................................................. ............................... TIF District Assumptions Report ........................................................... ............................... Projected Tax Increment Report ............................................................ ............................... Estimated Impact on Other Taxing Jurisdictions Report ....................... ............................... MarketValue Analysis Report ............................................................... ............................... EXHIBIT I EXHIBIT IA EXHIBIT IB EXHIBIT II EXHIBIT III EXHIBIT IV EXHIBIT V EXHIBIT V Article I — Definitions, Introduction and Exhibits NO RTr-r LA w 1) 0 S F c U «r r I I: S Section 1,01 Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: °Cit " means the City of Oak Park Heights, Minnesota; also referred to as a "Municipality" "City Council" means the City Council of the City; also referred to as the "Governing Body . "County" means Washington County, Minnesota. "Development District Act" means Minnesota Statutes, Sections 469.124 through 469.134, as amended and supplemented from time to time. "Development District" means Municipal Development District No. 1 in the City, created and established pursuant to and in accordance with the Development District Act as described in Section 3.02 of the Development Program. "Development Program" means the Development Program for the Development District, as amended and supplemented from time to time. "Land Use Regulations" means all federal, state and local laws, rules, regulations, ordinances and plans relating to or governing the use or development of land in the City, including but not limited to environmental, zoning and building code laws and regulations. "Proiect Area" means the geographic area of the Development District. "Public Costs" means the costs set forth in Sections 4.10 and 4.15 of the Tax Increment Financing Plan, repayment of debt service on any Tax Increment Bonds, and any other eligible costs set forth in the Tax Increment Financing Plan, Development Program, or Minnesota Statutes, Section 469.176, subdivision 4. "Public !Unr_oye means the public improvements, if any, described in Section 3.03 of the Development Program and Section 4.10 of the Tai. Increment Financing Plan. "Sch District" means Independent School District No. 834, Washington County, Minnesota. "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1791, both inclusive. "TIF District" means Tax Increment Financing (Renewal and Renovation) District No. I -1. "TIF Plan" means the tax increment financing plan for the TIF District. City of'Oak Park Heights, Minnesota 1 Article I — Definitions, Introduction and Exhibits NORTHLAND s r, C. t, R r, r t t; S Section 1.02 Introduction The City of Oak Park Heights has agreed to provide tax increment financing assistance to Anchobaypro, Inc. related to public costs for the development of a 48 -unit residential senior cooperative and a 120 -unit assisted living facility within the City. It has been stated, in writing, by Anchobaypro, Inc. to the City that the project will not be viable without public participation. The City, through this document, will be establishing Tax Increment Financing District No. 1 -I and also Municipal Development District No. 1. The Municipal Development District boundaries will be coterminous with the corporate boundaries of the City Oak Park Heights and are described in Exhibit 1. Section 1.03 Exhibit Reference /Description Exhibit I This is a map that describes the boundaries of the Development District in which the Tax Increment Financing District will be established. Exhibit IA This is a map that describes the boundaries of the Tax Increment Financing District in which the project(s) generating the tax increment will be located. Exhibit IB This is a property description that describes the property to be included within the boundaries of the TIF district. Exhibit II This is a sources and uses statement that line items the anticipated revenue sources for the project and the anticipated expenditures for those revenues. Exhibit III This report shows the various project and district assumptions for the tax increment financing district including applicable dates, original tax capacity information, projected project valuation, buildout, and various required elections. Exhibit IV This report shows the projected cash flow of the tax increment over a specified period of time. It reflects calculations used to determine "net" tax increment including various additions and deductions. Exhibit V This report shows the estimated impact on the respective taxing jurisdictions if the captured tax capacity was available immediately to the taxing jurisdictions (See Section 4.22). It also shows a comparative market value analysis of the property both with and without the establishment of the TIT district. (See Section 4.09(2)). City of Oak Park Heights, Minnesota 2 Article H— Statement o f .Public Purpose and Autlzorit N O R T H L A N D 0 S E C U R t T t E S Section 2,01 Statement of Need and Public Purpose The City Council of the City has determined that there is a need for the City to take certain actions designed to encourage, ensure and facilitate development and redevelopment by the private sector of underutilized, and unused land located within the corporate limits of the City in order to provide additional employment opportunities for residents of the City and the surrounding area; to improve the tax base of the City, the County and Independent School District No. 834 (the "school district "), thereby enabling them to better utilize existing public facilities and provide needed public services; and to improve the general economy of the City, the County and the State. Specifically, the City Council has determined that the property within the Development District is either underutilized or unused due to a variety of factors, including inadequate public improvements to serve the property; which has resulted in a lack of private investment; that, as a result, the property is not providing adequate employment opportunities, and is not contributing to the tax base and general economy of the City, the School District, the County and the State to its full potential; and, therefore, that it is necessary for the City to exercise its Authority under the Development District Act and the Tax Increment Financing Act to develop, implement and finance a program designed to encourage, ensure and facilitate the commercial development and redevelopment of the property located in the Development District, to further and accomplish the public purposes specified in this paragraph. The development proposed for the Development District would not occur solely through private investment in the foreseeable future; the Tax Increment Financing Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the property to be located in the Development District by private enterprise. The welfare of the City, the County and the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce by the City. Section 2002 Statutory Authorization The Development District Act authorizes the City, upon certain public purpose findings by the City Council, to establish and designate development districts within the City and to establish, develop and administer development programs therefor to meet the needs and accomplish the public purposes specified in Section 2.01. In accordance with the purposes set forth in Section 469.124 of the Development District Act, the City Council has established the Development District comprising the area described on the attached Exhibit I, IA, and I13 and has adopted this Development Program therefor. The TIF Act authorizes the City, upon certain findings by the City Council, to establish and designate tax increment financing districts within the Development District and to adopt and implement a tax increment financing plan to accomplish the Development Program established for the Development District. In accordance with the Tax Increment Financing Act, the City has established Tax Increment Financing District No. 1 -1 in the L)evelopinent District as a renewal and renovation district described in Section 469.174 subdivision I Oa, and has adopted therefor the Tax Increment Financing Plan set forth in Article IV hereof, which provides for the use of tax increment financing to finance the costs of qualified public activities and improvements in the Development District, as specified in the Development Program and the Tax Increment Financing Plan. City of Oak Park Heights, Minnesota 3 Article III — Development Prograll NNORYI -I LAN I) 0 SEC C_`R[ TI[:S Section 3,01 Statement of Objectives The establishment of the Development District in the City pursuant to the Development District Act, is necessary and in the best interests of the City and its residents and is necessary to give the City the ability to meet certain public purpose objectives that would not be obtainable in the foreseeable future without intervention by the City in the normal development process. The City intends, to the extent permitted by law, to accomplish the following objectives through the implementation of the Development Program: (1) Provide for the acquisition of land and construction and financing of the Site Improvements in the Development District which are necessary for the orderly and beneficial development of the Development District and adjacent areas of the City. (2) Promote and secure the prompt and unified development of certain property in the Development District, such property is not now in productive use or in its highest and best use, with a minimum adverse impact on the environment, and thereby promote and secure the desirable development of other land in the City. (3) Promote and secure additional employment opportunities within the Development District and the City for residents of the City and the surrounding area, thereby improving living standards and reducing unemployment and the loss of skilled and unskilled labor and other human resources in the City. (4) Secure the increase of assessed values of property subject to taxation by the City, the County, the Independent School District No. 834, the County, and other taxing jurisdictions in order to better enable such entities to pay for governmental services and programs that they are required to provide. (5) Promote the concentration of new unified development consisting of desirable industrial and other appropriate development in the Development District so as to maintain the area in a manner compatible with its accessibility and prominence in the City. (6) Encourage the expansion and improvement of local business, economic activity and development, whenever possible. (7) Create a desirable and unique character within the Development District through quality land use alternatives and design quality in new buildings. (8) Encourage and provide assistance for residential development, including single and multifamily housing accommodations for low and moderate income families. Section 3002 Boundaries of the Development District The area within the Development District is described in the attached Exhibit I. City of Oak Park Heights, Minnesota 4 Section 3.03 Development Activities The City will perform or cause to be performed, to the extent permitted by law, all project activities pursuant to the Development District Act, the Tax Increment Financing Act and other applicable state laws. In doing so the City anticipates that the following may, but are not required, to be undertaken by the City: (1) The making of studies, planning and other formal and informal activities relating to the Development Program. (2) The implementation and administration of the Development Program (3) The rezoning of land within the Development District. (4) The acquisition of property, or interests in property, by purchase or condemnation, when such acquisition is consistent with the objectives of the Development Program. (5) The preparation of property for use and development in accordance with applicable Land Use Regulations and the development agreement, including demolition of structures, clearance of sites, placement of fill and grading. (6) The resale of property to private parties. (7) The construction or reconstruction of site improvements described in Section 4.07 hereof (8) The issuance of tax increment bonds to finance the Public Costs of the Development Program, and the use of tax increments, or other funds available to the City, to pay or finance the Public Costs of the Development Program incurred or to be incurred by it pursuant to the Development Agreement. (9) The use of tax increments to pay debt service on tax increment bonds or otherwise pay or reimburse with interest the Public Costs of the Development Program. Section 3.04 Payment of Public Costs It is anticipated that the Public Costs of the Development District will be paid primarily from proceeds of tax increment bonds or from tax increments. The City reserves the right to use other sources of revenue including, but not limited to, special assessments and user charges, which the City may apply to pay a portion of the Public Costs. Section 3.05 Environmental Controls; band Use Regulations All municipal actions, public improvements and private development shall be carried out in a manner consistent with existing environmental controls and all applicable Land Use Regulations. Section 3.06 Park and Open Space to be Created Park and open space created within the Development District will be done so in accordance with the zoning and platting ordinances of the City. City of Oak Park Heights, Minnesota 5 Article III — Development Program NO 1:T H LA N 1) 0 S[? C U R E T 1 E S Section 3.07 Proposed Reuse of Property The Development Program contemplates that the City may acquire property and reconvey the same to another entity. Prior to formal consideration of the acquisition of any property, the City Council will require the execution of a binding development agreement with respect thereto and evidence that tax increments or other funds will be available to repay the Public Costs associated with the proposed acquisition. It is the intent of the City to negotiate the acquisition of property whenever possible. Appropriate restrictions regarding the reuse and redevelopment of property shall be incorporated into any development agreement to which the City is a party. Section 3.08 Administration and Maintenance Maintenance and operation of the Development District will be the responsibility of the City Administrator who shall serve as administrator of the Development District. Each year the administrator will submit to the City Council the maintenance and operating budget for the following year. The administrator will administer the Development District pursuant to the provisions of Section 469.131 of the Development District Act; provided, however; that such powers may only be exercised at the direction of the City Council. No action taken by the administrator pursuant to the above - mentioned powers shall be effective without authorization by the City Council. Section 3.09 Relocation Any person or business that is displaced as a result of the Development Program will be relocated in accordance with Minnesota Statutes, Sections 117.50 to 117.56. The City accepts its responsibility for providing such relocation assistance pursuant to Section 469.133 of the Development District Act. Section 3.10 Amendments The City reserves the right to alter and amend the Development Program, and the Tax Increment Financing Plans, subject to the provisions of state law regulating such action. The City specifically reserves the right to enlarge or reduce the size of the Development District and the Tax Increment Financing District, the Development Program and the Public Costs of the Development Program and the amount of Tax Increment Bonds to be issued to finance such costs by following the procedures specified in Minnesota Statutes, Section 469.175, Subdivision 4. Section 3.11 Estimates of Public Costs and Budget The eligible costs to be reimbursed by the City, in carrying out the Development Program, are described in Exhibit II of the Tax Increment Financing Plan. City of Oak Park Heights, Minnesota 6 Article ITS — Tax Increment financing Plea N10 i F r � L. :N 1 � � : f � �: [; c i I F S 19 Section 4.01 Statement of Indeed and Public Purpose See Section 2.01 of the Statement of Public Purpose and Authority. Section 4002 Statutory Authorization See Section 2.02 of the Statement of Public Purpose and Authority. Section 4003 Statement of Objectives See Section 3.01 of the Development Program for the Development District. Section 4.04 Renewal and Renovation District Designation Renewal and Renovation districts are a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that: (1) parcels comprising at least 70% of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other improvements, and more than 20% of the buildings (not including outbuildings) are structurally substandard, and 30 percent of the other buildings require substantial renovation or clearance to remove existing conditions such as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety, and general well -being of the community; A parcel is deemed "occupied" if at least 15% of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or other similar structures; and (2) the conditions described in clause (l) are reasonably distributed throughout the geographic area of the district. For districts consisting of two or more noncontiguous areas, each area must individually qualify under the provisions listed above, as well as the entire area must also qualify as a whole. The TIF District qualifies as a renewal and renovation district in that it meets all of the criteria listed in (1) and (2) above. The supporting facts and documentation for this determination will be retained by the City for the life of the TIF District and are available to the public upon request. "Structurally substandard" is defined as buildings containing; defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. A building is not structurally substandard if it is in compliance with the building code applicable to a new building, or could be modified to satisfy the existing code at a cost of less than 15% of the cost of constructing a new structure of the same square footage and type on the site. City of Oak Park Heights, Minnesota ArticleIV— TaxIncre entFinancingPlan N 0 Crr1-tLAN1) SE'("URITtES The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard. Items of evidence that support such a conclusion include recent fire or police inspections, on -site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence. Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained by the City. Failure of a building to be disqualified under the provisions of this paragraph is a necessary, but not a sufficient, condition to determining that the building is substandard. A parcel is deemed to be occupied by a structurally substandard building if the following conditions are met: (1) the parcel was occupied by a substandard building within a three -year period prior to the parcel's inclusion in the district and request for certification from the County Auditor; and (2) if the substandard building was demolished or removed within the three year period, such demolition or removal was performed or financed by the City, or was performed by a developer under a development agreement with the City. hn addition, the City must have found by resolution before such demolition or removal occurred that the building was structurally substandard and that the City intended to include the parcel in the TIF District. In the case of (2) above, the County Auditor shall certify the original net tax capacity of the parcel to be the greater of (a) the current tax capacity of the parcel, or (b) a computed tax capacity of the parcel using the estimated market value of the parcel for the year in which the demolition or removal occurred, and the appropriate classification rate(s) for the current year. At least 90 percent of the tax increment from a redevelopment district or renewal and renovation district must be used to finance the cost of correcting conditions that allow designation as a redevelopment district. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of land, removal of hazardous substances, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the City may be included in the qualifying costs. Section 4.05 Duration of the TI>F District Renewal and renovation districts may remain in existence 15 years frorn the date of receipt of the first tax increment. Modifications of this plan shall not extend this limitation. The City reserves the right to allow the TIF District to remain in existence the maximum duration allowed by law (projected to be through the year 2026) but may decide to decertify the TIF District at an earlier date. All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the City. City of Oak Park Heights, Minnesota 8 Section 4,06 Specific Development Expected to Occur Within the TIF District See Exhibit IA & IB. The City intends to enter into a contract with Anchobaypro, Inc. regarding their proposal to develop two phases of housing within the City. The first is a 48 -unit residential senior cooperative building that will be two stories in height and approximately 80,000 square feet in size. The second will be a 120 -unit assisted living facility approximately 107,000 square feet in size. The construction is expected to be completed by late spring of 2011. This would result in the first tax increments being available in taxes payable 2011 (partial based on 2009 completion). The benefits to the City include replacement of older housing stock, an addition of new housing units, including an assisted living facility and an increased future tax base. It has been stated, in writing, by Anchobaypro, Inc. to the City that the project will not be viable without public participation. The proposed development is within the TIF District boundaries described in Exhibit IA & IB. No contracts have been entered into for the proposed development at this time. The entire project should be 100% assessed and on the tax rolls as of January 2, 2012 for taxes payable in 2013. Section 4.07 Parcel(s) to be Included in the TIF District The property to be included in the TIF District includes nine parcels within the City. The boundaries of the TIF District are reflected on a map attached as Exhibit IA. The following parcel identification number(s) (PID #'s) and corresponding legal description(s), along with adjacent rights-of-way, will be included in the TIF District: See Exhibit IB for the PID #'s and legal description of the parcels. Section 4.08 Property to be Acquired in the TIF District Anchobaypro, Inc. will be purchasing all of the parcels within the TIF district. None of the parcels are are owned by the City. The City reserves the right to reimburse the developer for TIF eligible costs as specified in Section 4.10 and Exhibit L1. Section 4,09 Findings and Need for Tax Increment Financing Pursuant to Minnesota Statutes, the City makes the following findings in conjunction with the approval of this tax increment financing plan: (1) Tax Increment Financing District loo. 1 -1 is a renewal and renovation district as defined in Minnesota Statutes, Section 469.174, Subd. 10a. The reasons and supporting facts for this determination will be documented in writing and retained and made available to the public by the City until the district has been terminated. The determination is described in Section 4.04 of this TIF Plan. (2) The proposed development or redevelopment, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future, and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan; The reasons supporting this finding are that: City of Oak Park Heights, Minnesota 9 ,\� RFH1,ANIDi- ; SECUR(IAES (i) This finding is supported by the fact that the redevelopment proposed in this TIF Plan meets the City's objectives for redevelopment. The District is currently occupied by residential housing, of which 50% has been designated substandard. Redevelopment will require demolition and site clearance. The high cost of acquisition of the site represents a substantial financial risk to Anchobaypro, Inc., which has represented to the City in writing that it would not be feasible to undertake the proposed redevelopment without tax increment financing assistance. The TIF is intended to mitigate the risk by providing assistance for land acquisition costs related to the property. Therefore, the City reasonably concludes that the proposed redevelopment of the District (including both phases of housing) is not financially feasible or likely to occur in the foreseeable future without the assistance described in this Plan. (ii) This finding is based on the fact that the land in the District is now fully developed, with a substandard use. Any increase in market value without tax increment assistance would only occur if the existing owners made substantial improvements, or sold their property for redevelopment through large -scale improvements similar to those proposed in this Plan. The City has evidence to support the expectation that the existing owners will not make improvements on their own. Further, there has been little interest in comprehensive redevelopment in this area without public intervention. Therefore, the City reasonably determines that no other redevelopment of similar scope is anticipated on this site without substantially similar assistance being provided to the development. The above findings are stated in monetary terms in Exhibit V, which can be summarized as follows: a. The City's estimate of the amount by which the market value of the site will increase without the use of tax increment financing is $0 (for the reasons described above). If all development which is proposed to be assisted with tax increment were to occur in the District, the total increase in market value would be up to $24,439,400. C. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $2,209,813. d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $24,439,400 (the amount in clause b less the amount in clause c) without tax increment assistance. (3) The Tax Increment Financing Plan for Tax Increment Financing District No. I -1 conforms to the general plan for development or redevelopment of the City of Oak Park Heights as a whole. The reasons for supporting this finding are that: a. Tax Increment Financing District No. I—I is properly zoned, and b. The Tax Increment Financing Plan will generally compliment and serve to implement policies adopted in the City's comprehensive plan. The TIF Plan has been adopted by the City Planning Commission after review and making the determination that the TIF Plan complies with the City's comprehensive plan. City of Oak Park Heights, Minnesota 10 Article IV — Tax Increment Financing Plan NO R F C 1, A N 1) WO M E c; E. ( r I L (4) The Tax Increment Financing Plan will afford maximum opportunity, consistent with the sound needs of the City of Oak Park Heights as a whole, for the development or redevelopment of Municipal Development District No. 1, as modified, by private enterprise. The reasons supporting this finding are that: The project to be assisted by the District will result in the preservation and enhancement of the tax base and the redevelopment of a substandard area, and will provide employment opportunities in the City. Section 4.10 Estimated Sources of Revenue/Public Costs The estimated sources of revenue, along with the estimated public costs of the TIF District, are itemized and attached as Exhibit II. Such costs are eligible for reimbursement from tax increments, and other listed sources of revenue from the TIF District. The City reserves the right to administratively adjust the amount of any of the items in Exhibit I1 or to incorporate additional eligible items, so long as the total estimated public cost (uses) is not increased. The City anticipates providing financial assistance to the proposed development through the use of a pay - as- you -go technique. As tax increments are collected from the TIF District in future years, a portion of these taxes will be reimbursed to the developer for TIF eligible costs. The City reserves the right to finance any or all public costs of the TIF District using pay -as- you -go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The City also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section 4.11 Estimated Amount of Bonded Indebtedness The City does not anticipate issuing tax increment bonds to finance the estimated public costs of the TIF District, but reserves the right to issue such bonds in an amount not to exceed $2,497,000. Section 4.12 Original Net Tax Capacity Upon or after adoption of the tax increment plan, the County Auditor, upon request of the City, shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the Commissioner of Revenue plus any amount determined under M.S. Section 469.177 subd. 4. For districts certified between January I and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. For projection puroposes, this will be based on the Estimated Market Value of all property within the TIF District as of January 2, 2008, for taxes payable in 2009 which is estimated to be $1,360,600. Upon establishment of the TIF 'District it is estimated that the original net tax capacity of the TIF District will be approximately $16,248. Reclassification of property will be incorporated into this calculation. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax- exempt status of property; City of Oak Park Heights, Minnesota 11 Article IV— Tax Increment Financing Plan N 0 R H LA N 1 )� 0 SE C c E: r r [ E s (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements; or (4) changes in property classification rates. Section 4.13 Original Tax Capacity Rate At the time of the initial certification of the original net tax capacity for the tax increment financing district, the County Auditor shall certify the original local tax capacity rate that applies to the TIF District. This is the sum of all the local tax rates that apply to the property in the TIF District. This rate certified is the rate in effect for the same taxes payable year as the certified original net tax capacity. The tax generated by the extension of the lesser of (a) the local taxing district tax rates or (b) the original local tax capacity rate, to the retained captured net tax capacity of the TIF District is the tax increment. The sum of all local tax rates that apply to property in the TIF District, for taxes levied in 2008 and payable in 2009, is 87.312 %. The County Auditor shall certify this amount as the original tax capacity rate of the TIF District. For purposes of estimating the tax increment generated by the TIF District, the sum of the local tax rates for taxes levied in 2008 and payable in 2009, is 87.312% as shown below: 2008/2009 Taxing Jurisdiction Local Tax Rate City of Oak Park Heights 39.657% Washington County 26.343% Independent School District No. 834 17.691% Other 3.621% Total 87.312% Section 4.14 Projected Retained Captured Net Tax Capacity and Projected Tax Increment Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. The County Auditor shall certify to the City the amount of captured net tax capacity each year. The City may choose to retain any or all of this amount. It is the City's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Exhibit III gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit 1V, which shows the projected tax increment generated over the anticipated life of the TIF District. City gf'Oak Park Heights, Minnesota 12 Article IV — Tax Increment Financing Playa N R I rx LA N 7 > A & ISEICL R I H L's Section 4015 Use of 'Tax Increment Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit IV shows the projected deduction for this purpose over the anticipated life of the TIF District. The City has determined that it will use the remaining tax increment generated by the portion of the captured net tax capacity specified above (See Section 4.14) for any of the following purposes: (1) pay for the estimated public costs of the TIF District (see Section 4.10) and County administrative costs associated with the TIF District (see Section 4.20); (2) pay principal and interest on tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the County Board under M.S. Section 469.175, Subdivision 1 a (see Section 4.17); or (5) return excess tax increments to the County Auditor for redistribution to the City, County and School District. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless both county boards involved waive this requirement. Tax increments shall not be used to circumvent levy limitations applicable to the City. Tax increment shall not be used to finance the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the State or federal government, or for a commons area used as a public park, or a facility used for social, recreational or conference purposes. This prohibition does not apply to the construction or renovation of a parking structure, or a privately owned facility for conference purposes. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at less than the cost of acquisition or fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. Section 4,16 Excess 'Tax Increment In any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the City shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; (2) discharge the pledge of tax increments thereof; City of Oak Park Heights, Minnesota 13 ArticleIV— TaxIncrementFinancingPlan NOR HLAND Sr, C oRIHcS (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds; 0r• (4) return excess tax increments to the County Auditor for redistribution to the City, County ;D m and School District. The County Auditor must report to the Commissioner of Education: the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. Section 4.17 County Road Costs The County Board may require the City to pay all, or a portion of, the cost of county road improvements out of increment revenues, if the following conditions occur: (1) the proposed development will, in the judgment of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs; and (2) the road improvement or other road costs are not scheduled for construction within five years under the county capital improvement plan, or another formally adopted county plan and in the opinion of the county, would not reasonably be expected to be needed within the reasonably foreseeable future if the TIF plan were not implemented. If the county elects to use tax increments to finance the road improvements, the county must notify the City and municipality within 45 days after receipt of the proposed TIF plan under subdivision 2 and the county and municipality must comply with the terms in M.S. Section 469.175, subd. 2(b). Section 4.18 Four -fear Rule - Limitation on Property Not Subject to Improvements If after four years from certification of the TIF District no demolition, rehabilitation, renovation or site improvement, including a qualified improvement of an adjacent street, has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The City must submit to the County Auditor, by February I of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the City or owner of the parcel subsequently commences any of the above activities, the City shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. Section 4.19 Five -fear Rule - Tax Increment Pooling 100% of the tax increments (net of administrative expenses) from the TIF District must be expended on activities within the district or to pay for bonds used to finance the estimated public costs of the TIF District (see Section 4.04 for additional restrictions). All administrative expenses are considered to have been spent outside of the TIF District. Tax increments are considered to have been spent within the TIF District if such amounts are: (1) actually paid to a third party for activities performed within the TIF District within five years after certification of the district; (2) used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the five -year City of Oak Park Heights, Minnesota 14 t . ri period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund. (3) used to make payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which were entered into within five years after certification of the district; or (4) used to reimburse a party for payment of eligible costs (including interest) incurred within five years from certification of the district; or (5) in the case of a housing district, used for a housing project, as defined in section 469.174, subdivision 11. Beginning with the sixth year following certification of the TIF District, at 100% of the tax increments must be used to pay outstanding bonds or make contractual payments obligated within the first five years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the TIF District must be decertified. The City may also elect to increase by up to ten percentage points the permitted amount of expenditures for activities located outside of the geographic area of the district. As permitted by M.S. Section 469.176, subdivision 4k, the expenditures, including the prior permitted expenditures, need not be made within the geographic area of the project if the expenditures: (1) are used exclusively to assist housing that meets the requirement for a qualified low - income building, as that term is used in Section 42 of the Internal Revenue Code; (2) do not exceed the qualified basis of the housing, as defined under Section 42 (c) of the Internal Revenue Code, less the amount of any credit allowed under Section 42 of the Internal Revenue Code; and (3) be used to: a) acquire and prepare the site of the housing; b) acquire, construct, or rehabilitate the housing; or C) make public improvements directly related to the housing. Section 4.20 Limitation on Administrative Expenses Administrative expenses are defined as all costs of the City other than: (1) amounts paid for the purchase of land; (2) amounts paid for materials and services, including architectural and engineering services directly connected with the proposed development within the TIF District; (3) relocation benefits paid to, or services provided for, persons or businesses residing or located within the TIF District; or (4) amounts used to pay interest on, fund a reserve for, or sell at a discount, tax increment bonds. City of Oak Park Heights, Minnesota 15 Article IV— Tax Increment Financing Plan NORTHLAND 0 sE c u R 1 T i Es Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants, planning or economic development consultants, and actual costs incurred by the County in administering the TIF District. Tax increments may be used to pay administrative expenses of the TIF District up to the lesser of (a) 10% of the total estimated tax increment expenditures authorized by the TIF Plan or (b) 10% of the total tax increments from the district. Section 4.21 Estimated Impact on Other Taxing Jurisdictions The City believes that, because the development would not have occurred without the tax increment assistance, TIF District No. 1 -1 has no impact on other taxing jurisdictions. However, assuming the development would have occurred without tax increment assistance, making the anticipated captured tax capacity available to other jurisdictions, the hypothetical impacts on other jurisdictions are presented in Exhibit V. 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. Additional fiscal and economic impacts of TIF District No. 1 -1, pursuant to Section 469.175, subd. 2 of the TIF Act, are listed below. 1. The total amount of tax increment that will be generated over the life of the district is estimated to 'ke $3,469,238. - - / 2. The probable impact of the district on city- provided services such as police and fire protection, r ublic infrastructure, and the impact of any general obligation tax increment bonds attributable to the district po the ability to issue other debt for general fund purposes, is minimal. According to the Fire Chief of e pal Parki4eights Fire Department, adequate resources currently exist to handle any fire - related incidents ithin the TIF District. Likewise, residential housing developed in recent years has not created a substantial increase in service calls from police. Public infrastructure costs, such as traffic impacts, water and sewer usage, and street maintenance, are estimated to ' , as compared with the TIF District's previous residential use. The City does not plan to issue general obligation tax increment bonds, and therefore there should be no effect on the ability of the City to issue other bonds. Therefore, there will be no impact of any general obligation tax increment bonds attributable to the district upon the ability to issue other debt for general fund purposes. 3. The amount of tax increments over the life of the district that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be $702,930. 4. The amount of tax increment 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 estimated to be $1,046,707. 5. Neither the County nor the School District have requested additional information regarding size, timing, or type of development in the TIF District. If the City receives such a request, the City will provide the information requested. City of Oak Park Heights, Minnesota 16 ArticleIV— TaxIncrementFinancin Plan NORTHLAN1) Ef:r RtYrLS Section 4022 Prior Planned Improvements The City shall accompany its request for certification to the County Auditor (or notice of district enlargement), with a listing of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. Section 4,23 Development Agreements No more than 10 %, by acreage, of the property to be acquired within a project containing a housing district may be purchased by the City with the proceeds of bonds issued pursuant to M.S. 469.178 to which tax increment frorn the property being acquired is pledged unless prior to acquisition the City has entered into an agreement for development which provides recourse for the property should the development or redevelopment not be completed. The City intends to enter into an agreement for development. Section 4024 Assessment Agreements The City may, upon entering into a development agreement, also enter into an assessment agreement with the developer, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The assessment agreement shall be presented to the County or City Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land, and so long as the minimum market value contained in the assessment agreement appears to be an accurate estimate, shall certify the assessment agreement as reasonable. The assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is located. Any modification or premature termination of this agreement Must first be approved by the City, County and School District. The City does not intend to enter into an assessment agreement. Section 4825 Modifications of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Project Area or the TIF District; increase in the amount of bonded indebtedness to be incurred; increase in the amount of capitalized interest; increase in that portion of the captured net tax capacity to be retained by the City; increase in the total estimated public costs; or designation of additional property to be acquired by the City shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if. (1) the only modification is elirnination of parcels from the TIF District; and (7) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity, or the City agrees that the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. City of Oak Park Heights, Minnesota 17 ArticleIV— T"axIncrement Financing.Plan No RIr+LAN C('Rt FrFs The City must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section 4026 Administration of the 'fax Increment Financing Flan Upon adoption of the TIF Plan, the City shall submit a copy of such plan to the Minnesota Department of Revenue and the Office of the State Auditor. The City shall also request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the City shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. The City shall also send the County Assessor any assessment agreement establishing the minimum market value of land and improvements in the TIF District, and shall request that the County Assessor review and certify this assessment agreement as reasonable. The County shall distribute to the City the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained captured net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation of property values, or changes in property classification rates or formulas. In administering and implementing the TIF Plan, the following actions should occur on an annual basis: (1) prior to July 1, the City shall notify the County Assessor of any new development that has occurred in the TIF District during the past year to insure that the new value will be recorded in a timely manner. (2) if the County Auditor receives the request for certification of a new TIF District, or for modification of an existing TIF District, before July 1, the request shall be recognized in determining local tax rates for the current and subsequent levy years. Requests received on or after July 1 shall be used to determine local tax rates in subsequent years. (3) each year the County Auditor shall certify the amount of the original net tax capacity of the TIF District. The amount certified shall reflect any changes that occur as a result of the following: a) the value of property that changes from tax - exempt to taxable shall be added to the original net tax capacity of the TIF District. The reverse shall also apply; b) the original net tax capacity may be modified by any approved enlargement or reduction of the TIF District; C) if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes, then the resulting increase or decrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity ofthe TIF District. The County Auditor shall notify the City of all changes made to the original net tax capacity of the TIF District. City of Oak Park Heights, Ainnesota 18 Article IV— Tax Increment Financing Ilan NOR 1 -1 [_.:i N D U 0%. � F c: U R f r I E: s Section 4027 Financial Reporting and Disclosure Requirements The State Auditor shall enforce the provisions of the TIF Act and shall have full responsibility for financial and compliance auditing of the City's use of tax increment financing. On or before August I of each year, the City must annually submit to the State Auditor, County Auditor and to the governing body of the municipality a report which shall: (1) provide full disclosure of the sources and uses of public funds in the TIF District; (2) permit comparison and reconciliation of the accounts and financial reports; (3) permit auditing of the funds expended on behalf of the TIF District; and (4) be consistent with generally accepted accounting principles. The report shall include, among other items, the following information: (1) the original net tax capacity of the district and any subdistrict under 469.177, subdivision 1, (2) the net tax capacity for the reporting period of the district and any subdistrict; (3) the captured net tax capacity of the district; (4) any fiscal disparity deduction from the captured net tax capacity under section 469.177, subdivision 3; (5) the captured net tax capacity retained for tax increment financing under 469.177, subdivision 2, paragraph (a), clause (1); (6) any captured net tax capacity distributed among affected taxing districts under 469.177, subdivision 2, paragraph (a), clause (2); (7) the type of district; (S) the date the municipality approved the tax increment financing plan and the date of approval of any modification of the tax increment financing plan, the approval of which requires notice, discussion, a public hearing, and findings under subdivision 4, paragraph (a); (9) the date the City first requested certification of the original net tax capacity of the district and the date of request for certification regarding any parcel added to the district; (10) the date the county auditor first certified the original net tax capacity of the district and the date of certification of the original net tax capacity of any parcel added to the district; (11) the month and year in which the City has received or anticipates it will receive the first increment from the district; (12) the date the district must be decertified; (13) for the reporting period and prior years of the district, the actual amount received from, at least, the following categories: City of Oak Park Heights, Minnesota 19 Article IV— Tax Increment Financing Plan NOR r +INNs) �,��eR I T[ 1 ; a) tax increments paid by the captured net tax capacity retained for tax increment financing under section 469.177, subdivision 2, paragraph (a), clause (1), but excluding any excess taxes; b) tax increments that are interest or other investment earnings on or from tax increments; C) tax increments that are proceeds from the sale or lease of property, tangible or intangible, purchased by the City with tax increments; d) tax increments that are repayments of loans or other advances made by the City with tax increments, e) bond or loan proceeds; f) special assessments; g) grants; h) transfers from funds not exclusively associated with the district; and i) the market value homestead credit paid to the City under M.S. Section 273.1384; (14) for the reporting period and for the prior years of the district, the amount budgeted under the tax increment financing plan, and the actual amount expended for, at least, the following categories: a) acquisition of land and buildings through condemnation or purchase; b) site improvements or preparation costs; C) installation of public utilities, parking facilities, streets, roads, sidewalks, or other similar public improvements; d) administrative costs, including the allocated cost of the City; and e) public park facilities, facilities for social, recreational, or conference purposes, or other similar public improvements; and f) transfers to funds not exclusively associated with the district; (15) the amount of any payments for activities and improvements located outside of the district that are paid for or financed with tax increments; (16) the amount of payments of principal and interest that are made during the reporting period on any non - defeased: a) general obligation tax increment financing bonds, b) other tax increment financing bonds; and C) notes and pay -as- you -go contracts; (17) the principal amount, at the end of the reporting period, of any non- defeased: City of'Ook Park Heights, Minnesota 20 Article IV— Tax Increment Financing flan NOR YH L AN D S F C L R I' I' t c s a) general obligation tax increment financing bonds; b) other tax increment financing bonds; and C) notes and pay -as- you -go contracts; (18) the amount of principal and interest payments that are due for the current calendar year on any non - defeased: a) general obligation tax increment financing bonds; b) other tax increment financing bonds; and C) notes and pay -as- you -go contracts; (19) if the fiscal disparities contribution under chapter 276A or 473F for the district is computed under section 469.177, subdivision 3, paragraph (a). the amount of increased property taxes imposed on other properties in the municipality that approved the tax increment financing plan as a result of the fiscal disparities contribution; (20) the estimate, if any, contained in the tax increment financing plan of the amount of the cost of the project, including administrative expenses, that will be paid or financed with tax increment; (21) any additional information the state auditor may require. The City must also annually publish in a newspaper of general circulation in the City an annual statement for each tax increment financing district showing: (1) the original net tax capacity of the district and any subdistrict under 469.177, subdivision 1; (2) the net tax capacity for the reporting period of the district and any subdistrict; (3) the captured net tax capacity of the district; (4) the month and year in which the City has received or anticipates it will receive the first increment from the district; (5) the date the district must be decertified; (6) the amount of principal and interest payments that are due for the current calendar year on any non- defeased obligations; (7) if the fiscal disparities contribution under chapter 276A or 473F for the district is computed under section 469.177, subdivision 3, paragraph (a). the amount of increased property taxes imposed on other properties in the municipality that approved the tax increment financing plan as a result of the fiscal disparities contribution; (8) the amounts of tax increment received and expended in the reporting period (9) and any additional information the City deems necessary. City of Oak Park Heights, Minnesota 21 Article IV — Tax Increment Financing Plan NO R 1 - 1-t t.A N D s�- � : U R � �� � � The annual statement must inform readers that additional information regarding each district may be obtained from the City, and must explain how the additional information may be requested. The City must publish the annual statement for a year no later than August 15 of the next year. The City must identify the newspaper of general circulation in the municipality to which the annual statement has been or will be submitted for publication and provide a copy of the annual statement to the county board, county auditor, the school board, the state auditor, and the governing body of the municipality on or before August l of the year in which the statement must be published. The reporting and disclosure requirements outlined in this section shall begin with the year the district was certified, and shall end in the year in which both the district has been decertified and all tax increments have been spent or returned to the county for redistribution. Failure to meet these requirements, as determined by the State Auditors Office, may result in suspension of distribution of tax increment. Section 4.28 Business Subsidy Compliance The City, or other local government agency, must comply with the business subsidies law when providing business subsidies to private entities. The requirements are specified in Minnesota Statutes, Sections 1164.993 to 1 16J.995. The City must adopt business subsidy criteria prior to granting a business subsidy. The requirements include: (1) the grantor must adopt the criteria following a public hearing; (2) the criteria may not be adopted on a case -by -case basis; (3) the criteria must set specific minimum requirements that recipients must rneet in order to be eligible to receive business subsidies; (4) the criteria must include a specific wage floor for the wages to be paid for the _jobs created. The wage floor may be stated as a specific dollar amount or a formula that will generate a specific dollar amount (5) a grantor may deviate from its criteria by documenting in writing the reason for deviation and attaching a copy of the document to its next annual report to the Department of Employment and Economic Development; (6) a copy of the criteria must be submitted to the Department of Employment and Economic Development. In addition, the City must enter into a subsidy agreement with the recipient of the subsidy. For subsidies greater than $100,000 the grantor must provide public notice and a hearing on the subsidy. The subsidy agreement must include: (1) a description of the subsidy, including the amount and type of subsidy, and type of district if the subsidy is tax increment financing; (2) a statement of the public purpose for the subsidy; (3) measurable, specific, and tangible goals for the subsidy; (4) a description of the financial obligation of the recipient if the goals are not met; (5) a staternent of why the subsidy is needed; City of Oak Park Heights, Minnesota 22 1 (6) a commitment to continue operations in the jurisdiction where the subsidy is used for at least five years after the benefit date; (7) the name and address of the parent corporation of the recipient, if any; and (8) a list of all financial assistance by all grantors for the project. The statute provides specific requirements in the event the subsidy agreement goals are not met by the recipient. Recipients are required to report to the grantor specific information as defined in statute. The grantor is also required, as specified in the statute, to report specific information annually to the Department of Employment and Economic Development. The City of Oak Park Heights has adopted a Business Subsidy Policy and intends to comply with the requirements of Minnesota Statutes 1161993 to 116J.995. Because the intended subsidy for the project specified in this document is anticipated to be 100% for housing assistance it is exempt from the requirements of Minnesota Statutes 1161993 to 1161995. City of Oak Park Heights, Minnesota 23 EXHIBIT I - Municipal Dev. District No. I NO RT I t LA N « sr <_ U R C t' l E' The boundaries of Municipal Development District No. 1 are coterminous with the Oak Park Heights City limits. EXHIBIT IA - Tax Increment Financing District NO RTHLAND 0 SE c U R -H Ea Tax Increment Financing (Renewal and Renovation) District No. 1 -1 EXH1131T IB ® Pr NORY11LAND 0) S , I"C t ; R tl't P� Parcel ID Number/Legal Description EXHIBIT II - Sources & Uses Statement NORTFIL3NQ10 SFCURITIEs City of Oak Park Heights, MN Tax Increment Financing (Renewal and Renovation) District No. 1 -1 Oakgreen Project Sources of Funds Tax increment revenue Interest on invested funds Bond proceeds Loan Proceeds Real estate sales Special assessments Kent/ease revenue Grants Developer Equity Transfers in ITotal Sources of Funds Land /building acquisition Site improvements /preparation costs Installation of public utilities Parking facilities Streets and sidewalks Public park facilities Social, recreational, conference facilities Interest reduction payments Bond principal payments Bond interest payments Loan principal payments Loan/note interest payments Administrative expenses Capitalized Interest Other (OSA) Transfers out otal Uses of F unds Uses of Funds 2,509,500 0 0 0 0 0 2,509,500 1,200,000 0 0 0 345,000 0 0 0 457,000 345,000 150,000 12,500 0 2,509,500 Northland Securities, Inc. - 4/20/2009 at 3:42 PM TIF 042009Source &Use EXHIBIT III - TIF District Assumptions No RT F! LA N D 0 SEC C U R IT[ E s City of Oak Park Heights, MN Tax Increment Financing (Renewal and Renovation) District No. 1 -1 Oakgreen Project Certification Request Date 06/01/09 Decertification Date 12/31/26 (16 Years of Increment) Present Value Date 06/01/09 Present Value Rate 6.00% Type of TIF District: Renewal and Renovation Type of Debt: Loan (Pay -as- you -go) Fiscal Disparities Election: NA Fiscal Disparities Rate: 0.0000% Local Tax Capacity Rate: 87.312% 2008/2009 Administration: 10.00% Pooling: 10.00% Market Value Inflator: 100.00% Base Value Information 2008/2009 2008/2009 2008/2009 CLASS RATE CLASS RATE 2008/2009 Class PID # EMV 1st Tier 2nd Tier NTC RES 05- 029 -20 -14 -0003 175,100 1.00% 1.25% 1,999 RES 05- 029 -20 -11 -0063 119,400 1.00% 1.25% 1,303 REN 05- 029 -20 -11 -0062 100 1.25% 1.25% 1 REN 05- 029 -20 -11 -0059 219,200 1.25% 1.25% 2,740 REN 05- 029 -20 -11 -0136 100,000 1.25% 1.25% 1,250 RES 05- 029 -20 -11 -0026 182,300 1.00% 1.25% 2,089 RES 05- 029 -20 -11 -0065 177,300 1.00% 1.25% 2,026 REN 05- 029 -20 -11 -0028 168,000 1.25% 1.25% 2,100 REN 05- 029 -20 -11 -0059 219,200 1.25% 1.25% 2,740 Total 1,360,600 16,248 2010/2011 2011/2012 2012/2013 2013/2014 Base EMV Coop $654,100 $654,100 $654,100 $654,100 Base EMV Assisted $706,500 $706,500 $706,500 $706,500 Increase in EMV Coop 7,609,425 10,145,900 10,145,900 10,145,900 Increase in EMV Assisted 0 10,720,125 14,293,500 14,293,500 Total Estimated Market Value $8,970,025 $22,226,625 $25,800,000 $25,800,000 NTC Project 1- 1st Tier RES 0 0 0 0 NTC Project 1 - 2nd Tier RES 76,094 101,459 101,459 101,459 NTC Project 2. - 1st Tier REN 0 0 0 0 NTC Project 2 - 2nd Tier REN 0 134,002 178,669 178,669 Total Net Tax Capacity $76,094 $235,461 $280,128 $280,128 Northland Securities, Inc. - 4/20/2009 at 3:42 PM TIF 042009 - Assumptions n s J n Z Y FBI U_ u s, u H F u u �O �.I a t H N wil -1 TI O z v Q Ti z° .. o �bJD GL a 'O .O O d � � L R a � O O � O C U c J: O v x Gd F O .. 00 , D ,o ,c \c , o , c �o �c , D , o , c , c , D , o O O O O o o O O O O O O M �n , D In In In V1 kl1 V1 Vl In In In In ul In Vl O � � 't n 00 x 000 00 0 00 00 00 0 00 00 C 0 n 0 0 000 000 N 03 O r -r r r r r r r r r r r r r r r O O O O O O O O O O O O �O G o In O O O U r C O 0�1 O 0�1 O a,, •� Vl a\ N N N N N N N N N N N N N N n N N N N N N N N N N N N N N Q v o r - r r r r r r r r r r r r r r O G o 0 0 0 0 o O 0 G o ,o M c O r V1 In �n Vl In V1 V1 In In W) In V1 V1 V1 N O Q1 a1 Q1 a T c a, a, a, O, O, r �,'' O � O1 V1 a; N N N N N N N N N " N N N N , 7 In y '� N N N N N N N N N N N N N N O ra ¢ y O rn �r O o0 O, a, c7l cl a, O, al O1 O1 O1 01 CT U O\ cl O O O O O O O O O O O O M p 00 00 N N N N N N N N N N N N N N o0 u ^' 1 0 00 00 00 00 oo 00 00 00 00 00 oC 00 00 00 r R Q In r O, O\ 41 (71 Cl O, a, a, a, O, S a a, U IN n vl V^ O Q v a y Y 4 00 x 86 00 00 00 0o o0 00 00 00 00 00 00 — — — " — " " v — — — L ._ of N W 00 ao 00 00 00 OC 00 00 of 00 00 07 00 ON O1 M M M, M m M M M M (n M M M M is a In ^ , L` ,D ,D , D ,D ,D ,D ,o , D ,c ,D , D Ur y ro N N N N N N N N N N N N N N N z U N x V O G G O O O O G G O O O o O O O O O O G O O O C O G O O O 0 n U C L) o Q O 00 00 00 00 00 00 00 w 00 C. w 00 00 00 00 w 00 00 D7 00 00 00 00 00 00 00 00 00 w y Y 7 7 Y 7 d• 7 7 7 7 7 It •It 7 7 •t N N N N N C N N N N N N N N N N f V N N N N N �- - --� -� ^- .--. ca n F-^ U ,o l "J ,O I'D \: ,O , D , D ,O ,o ,O 10 V• ,c , D o o O O O O O O O O O O J m Q. - - - - - - - - - - - - - - 00 W 00 00 00 00 00 00 00 00 00 os N N N N N N N N N N N N F- J 00 0C 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 0^' 00 y y o N N N N f l N N N N N N N N N N N N N N N N N N N N N F c In n a o o o o o o 0 0 0 0 0 0 0 0 0 0 0 0 0 p 4 I M 00 00 00 oc Y_ 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 (_ I N N N N N N N N N N N N N N N nl N N N N f N N N N N V I� OG O, O N rn V In , o r 00 U O N fn �n , o r o0 -' N N N N N N N N N N rn fn M M M M M fn M v 01) o c o 0 0 0 o c a o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ❑ C C N N N N N N N N \1 \J N N `J N N N N N N N N \1 N N N N N N N C N M I fn M rn r\ M C\ M fn M fn M rn M fn fn rn Cn M fn fn rn C\ C\ M rn rn r\ Q a W r j N N N N N f , j [`4 i-1 N N N N N N N N N N N N N N N N N N N N c U C X F- O O N d' O i 2i d N d' M N D7 O N O cu v U C U C C z CD r oo In In In :n In In In In -n In In In In In O o 0 0 o O O o O G o O ,o ,D M In Vl In �n V1 In Vl Vl In Vl Wn In In In r °. N r Cl a, 0, a, a, a, a, o, rn ON o1 0, a, a, n M O r - M M M M M M M M M M M M M M Cl O O O O O Cl O O O O O O 0 c oC o0 00 00 00 00 00 00 W o0 00 00 00 00 00 00 r , D \c , D ,D , D ,o ,c , D ,c ,O V , c ,c ,O M s O • O o0 , D ,O ,c ,D , D ,c ,O , D ,o , D lc \c \c ,O -It , I. :T d' V' 'V' 7 O O In <i• �' 7 V •� �' d' 7 t Ch CI' d' 7 7 0 0 0 0 0 0 0 0 0 G G O r p n In In In I O c r r In 1n In In In In In In -n r M In r O, O\ 41 (71 Cl O, a, a, a, O, S a a, U , D p M vl V^ O V `D N O M M r r r r r r r r r (`• r r r r O O O O O O C O O O O O M 0 M M It 't d' It 7 't 7 cP N c r a; ,c ,D , D � ,D ,D � It V et -It -It -11 V o0 O O G O O O O O O O G O 0 0 r a, ° O m O, P O a1 O, a, a, a, a1 a1 a1 a1 a a1 a, O O O O O O O O O O O O o0 X N n a, a, a, O O` a1 a, a\ U O, O\ a` a O1 a, N rn M M ^, n M N E M M M C M M M M fn fn M rll M N O O O C O O C O O 0 0 0 0 0 N a fn M M M M' M M M C `-- N N N N N N N N N N N N N N Q U V 5 fn v a y Y 4 00 x 86 00 00 00 0o o0 00 00 00 00 00 00 — — — " — " " v — — — L ._ of N W 00 ao 00 00 00 OC 00 00 of 00 00 07 00 ON O1 M M M, M m M M M M (n M M M M is a In ^ , L` ,D ,D , D ,D ,D ,D ,o , D ,c ,D , D Ur y ro N N N N N N N N N N N N N N N z U N x V O G G O O O O G G O O O o O O O O O O G O O O C O G O O O 0 n U C L) o Q O 00 00 00 00 00 00 00 w 00 C. w 00 00 00 00 w 00 00 D7 00 00 00 00 00 00 00 00 00 w y Y 7 7 Y 7 d• 7 7 7 7 7 It •It 7 7 •t N N N N N C N N N N N N N N N N f V N N N N N �- - --� -� ^- .--. ca n F-^ U ,o l "J ,O I'D \: ,O , D , D ,O ,o ,O 10 V• ,c , D o o O O O O O O O O O O J m Q. - - - - - - - - - - - - - - 00 W 00 00 00 00 00 00 00 00 00 os N N N N N N N N N N N N F- J 00 0C 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 0^' 00 y y o N N N N f l N N N N N N N N N N N N N N N N N N N N N F c In n a o o o o o o 0 0 0 0 0 0 0 0 0 0 0 0 0 p 4 I M 00 00 00 oc Y_ 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 (_ I N N N N N N N N N N N N N N N nl N N N N f N N N N N V I� OG O, O N rn V In , o r 00 U O N fn �n , o r o0 -' N N N N N N N N N N rn fn M M M M M fn M v 01) o c o 0 0 0 o c a o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ❑ C C N N N N N N N N \1 \J N N `J N N N N N N N N \1 N N N N N N N C N M I fn M rn r\ M C\ M fn M fn M rn M fn fn rn Cn M fn fn rn C\ C\ M rn rn r\ Q a W r j N N N N N f , j [`4 i-1 N N N N N N N N N N N N N N N N N N N N c U C X F- O O N d' O i 2i d N d' M N D7 O N O cu v U C U C C z EXHIBIT V - Projected Tax Impact /Market Value Analysis NORTHLAND I O" C URI ` r: City of Oak Park Heights, MN Tax Increment Financing (Renewal and Renovation) District No. 1 -1 Oakgreen Project Estimated Impact on Other Taxing Jurisdictions City of Washington I.S.D. #834 Oak Park Heights County Stillwater Other Total Total Taxable NTC 2008/2009 8,921,360 295,173,120 87,614,826 NA Projected Retained NTC 263,880 263,880 263,880 263,880 Hypothetical New NTC 9,185,240 295,437,000 87,878,706 NA Existing Local Tax Rate 2008/2009 39.657% 26.343% 17.691% 3.621% Hypothetical Adj. Local Tax Rate 38.518% 26.319% 17.638% 3.621% Difference 1.139% 0.024% 0.053% NA Hypothetical Taxes on Retained NTC 101,641 69,452 46,543 NA Statement 1: If the projected Retained Captured Net Tax Capacity of the TIF District was hypothetically available to each of the taxing jurisdictions above, the result would be a lower local tax rate (see Hypothetical Adjusted Tax Rate above) which would produce the same amount of taxes for each taxing jurisdiction. In such a case, the total local tax rate would decrease by 1.216% (see Hypothetical Adj. Local Tax Rate above). The hypothetical tax that the Retained Captured Net Tax Capacity of the TIF District would generate is also shown above. Statement 2: Since the projected Retained Captured Net Tax Capacity of the TIF District is not available to the taxing jurisdictions, then there is no impact on taxes levied or local tax rates. (1) Taxable net tax capacity = total net tax capacity - captured TIF. (2) The impact on these taxing jurisdictions is negligible since they represent only 4.15% of the total tax rate. Year Annual Gross Tax Increment Present Value @ 6.00% 1 2011 52,253 45,610 2 2012 191,399 157,611 3 2013 230,399 178,987 4 2014 230,399 168,856 5 2015 230,399 159,298 6 2016 230,399 150,281 7 2017 230,399 141,775 8 2018 230,399 133,750 9 2019 230,399 126,179 10 2020 230,399 119,037 11 2021 230,399 112,299 12 2022 230,399 105,942 13 2023 230,399 99,945 14 2024 230,399 94,288 15 2025 230,399 88,951 16 2026 230,399 83,916 17 2027 0 0 18 2028 0 0 19 2029 0 0 20 2030 0 0 21 2031 0 0 22 2032 0 0 23 2033 0 0 24 2034 0 0 25 2035 0 0 26 2036 0 0 27 2037 0 0 28 2038 0 0 3,469,238 1,966,725 Market Value Analysis Present Value Date 06/01 Present Value Rate (Gross TIF) 6.0 Increase in EMV With TIF District $24,439,400 Less: P.V of Gross Tax Increment 1,966,725 Subtotal $22,472,675 Less: Increase in F.MV Without TIF 0 391,709,306 87.312% 86.096% 1.216% $22,472,675 Northland Securities. Inc. - 4/20/2009 at 3:42 PM TIF 042009 - MVA- Impact NORTHLAND X SECURITIES E X T E R N A L DATTi; : April 9, 2009 45 South 7`" Street Suite 2500 Minneapolis, AN 55402 (800) 851 -2920 (612) 851 -5900 Fax (612) 851 -5917 M E M O R A N D U M TO: Mr. Eric Johnson, City Administrator Members of the City Council CC: FROM: Nick Skarich, Vice President Northland Public Finance RE: Oakgreen TIF Development Dear Mr. Johnson and Council Members, I have further reviewed the Anchobaypro, Inc. proposal and have provided the attached financial analysis in efforts to aid the City in understanding the components of the proposed TIF project. I will be in attendance at the April 14' City Council meeting to further discuss the City's role in the TIF process and the required steps moving forward. The most recent proposal includes two components. The first is 48 -unit residential senior cooperative building that will be two stories in height and approximately 80,000 square feet in size. The second will be a 120 -unit assisted living facility approximately 107,000 square feet in size. The construction is expected to be completed by late spring of 2011. This would result in the first tax increments being available in taxes payable 2011 (partial based on 2009 completion). The benefits to the City include replacement of older housing stock, an addition of new housing units, including an assisted living facility and an. increased future tax base. Procedurally, the City would start by first calling for a public hearing, which would typically be held approximately 45 days in the future. At that point Northland Securities and Briggs & Morgan will start the process of preparing the required documents and notices and forwarding those to the required parties. The developer would not be able to proceed, including the pulling of a building permit, until the City passes a resolution approving the establishment of the TIF district following the public hearing. The attached timeline describes the steps involved. The current request for financial assistance includes approximately $1,200,000 of tax increments to help offset $1,600,000 of acquisition related costs of the existing homes on the property and allow for a reasonable return on investment. This amounts to 5 % of total project costs of approximately $24,000,000 which is a reasonable request. This would be accomplished based on the information provided. The assistance would be provided through a "pay -as- you -go" mechanism. This means that as taxes are paid on the property the tax increment portion would be returned to the City who would in turn reimburse the Developer on an annual basis. The payment amount would be determined by terms negotiated in the development agreement. The attached example reflects a 90% payout (10% admin to the City). The assumptions are based on 48 units assessed at an average of $225,000 and an assessed value of $15,000,000 on the assisted living as per the developer. Reimbursements are only made contingent on taxes being paid. No taxes = no TIF. This alleviates any financial risk to the City that would be assumed if the City were to issue bonds for instance. The statutory maximum duration for renewal and renovation districts is 16 years of collection. Dependent on final assumptions, the TIF district could fulfill its obligation in less than 16 years. Based on the attached analysis, and an assumed market value inflation of 0 %, it would take 9 years for the assistance to be paid in full (interest rate at 6.00 %). At that time the properties would go back on the City's tax rolls. The developer is paying out -of- pocket for an independent third party study that will determine whether property will qualify as a renewal and renovation TIF district as proposed. This report will be finalized shortly. The current draft demonstrates that the district will qualify. Overall, the project looks promising for the City of Oak Park Heights. The City will need to determine its comfort level with the nature of the project, duration of the district, etc. We look forward to working with you on this project. Feel free to contact me with any questions at (612) 851 -5907. Thank you. SCHEDULE OF EVENTS TO ADOPT TAX INCREMENT DISTRICT DOCUMENTS CITY OF OAK PARK HEIGHTS, MINNESOTA MUNICIPAL DEVELOPMENT DISTRICT NO. 1 TAX INCREMENT FINANCING (RENEWAL & RENOVATION) DISTRICT NO. 1 -1 CARRIAGE HOUSE PROJECT Documents DEADLINE ACTUAL Prepared MEETING PJIEETING DATE DATE DESCRIPTION by: TYPE TIME w . Timeline 040609 4/9/2009 4/1412009 City Council adopts Resolution calling for public hearing B &M Regular 7:00 4/26/2009 4/24/2009 Notification of County Auditor (30 days before hearing) NS 4/26/2009 4/24/2006 Notification of School Board Clerk (30 days before hearing) NS 5/11/2009 Forward Notice To Legal Paper (Stillwater Gazette) NS Deadline - one day prior 5/14/2009 Planning Commission Review and Approval Regular 7:00 Resolution B &NI TIF Documents NS 5/16/2009 5/15/2009 Publish Notice of Hearing (10 days before hearing) - 5/28/2009 5/2612009 Date of Public Hearing - Regular 7:00 5/26/2009 5/26/2009 City Council Adopts Resolution Creating Districts and Regular 7:00 Approving TIF Plan / Development Plan / Development Agreement N/A Establishing Resolutions B &M TIF Plan NS Development Plan NS Development Agreement B &M N/A 6/1/2009 File Documents With Commissioner of Revenue /State Auditor NS N/A 6/1/2009 Request District Certification From County Auditor NS w . Timeline 040609 4/9/2009 EXHIBIT III - TIF District Assumptions 'S1sl);�T11911_r •1fCa Certification Request Date 06/01/09 Decertification Date 12/31/26 (16 Years of Increment) Present Value Date 06/01/09 Present Value Rate 6.00 % Type of TIF District: Renewal and Renovation Type of Debt: Loan (Pay -as- you -;o) Fiscal Disparities Election: NA Fiscal Disparities Rate: 0.0000% Local Tax Capacity Rate: 87.312 % 2008/2009 Administration: 10,00% Pooling: 0.00% Market Value Inflator: 100.00% Base Value Information 2008/2009 2008/2009 2008/2009 CLASS RATE CLASS RAVE 2008/2009 Class PID # EMV 1st Tier 2nd Tier NTC RES 05 029 - 20 -14 -0003 175,100 1.00% 1.25% 1,999 RES 05- 029 -20 -11 -0063 119,400 1.00% 1.25% 1,303 REN 05- 029 -20 -u -0062 100 1.25 % 1.25% 1 REN 05. 029 -20 -11 -0059 219,200 1.25% 1.25% 2,740 REN 05- 029 -20 -11 -0136 100,000 1.25% 1.25% 1,250 RES 05- 029 -20 -11 -0026 182,300 1.00% 1.25% 2,089 RES 05- 029 -20 -11-0065 177,300 .1.00% 1.25% 2,026 REN 05- 029 -20 -11 -0028 168,000 1.25% 1.25% 2,100 REN 05- 029 -20 -11 -0059 219,200 1.25% 1.25% 2,740 Total 1,360,600 16,248 2010/2011 2011/2012 2012/2013 2013/2014 Base EMV Coop $654,100 $654,100 $'654,100 $654,100 Base EMV Assisted $706,500 $706,500 $706,500 $706,500 Increase in EMV Coop 7,609,425 10,145,900 10,145,900 10,145,900 Increase in ENIV Assisted 10,720,125 14,293,500 14,293,500 14,293,500 Total Estimated Market Value $19,690,150 $25,800,000 $25,849,WO $75,800,000 NTC Project I- Ist Tier RES 0 0 0 0 NTC Project 1 - 2nd Tier RES 76,094 101,459 101,459 101,459 NTC Project 2. - 1 st Tier REN 0 0 0 0 NTC Project 2 - 2nd Tier REN 134,002 178,669 17 179,669 Total Net Tax Capacity $210,096 $280,128 $280,128 $280,128 Northland Securities, Inc. - 4/9/2009 at '12:28 PM - CIF 041009 - Assumptions 7� i I� 1 V• r'1 es z u L A O �+ y G O x � a d L 0 w � o C �V V C d d V u C K F Q) y ;J z b 00 O Q a N ' P4 U N O O I. 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Local Tax Rate 38.518% 26.319% 17.638% 3.621% Difference 1.139% 0.024% 0.053% NA Hypothetical Taxes on Retained NTC 101,641 69,452 46,543 NA Statement 1: If the projected Retained Captured Net Tax Capacity of the TIF District was hypothetically available to each of the taxing jurisdictions above, the result would be a lower local tax rat (see Hypothetical Adjusted Tax Rate above) which would produce the same amount of taxes for each taxing jurisdiction. In such a case, the total local tax rate would decrease by 1.216% (see Hypothetical Adj. Local Tax Rate above). The hypothetical tax that the Retained Captured Net Tax Capacity of the TIF District would generate is also shown above Statement 2: Since the projected Retained Captured Net Tax Capacity of the TIF District is not available to the taxing jurisdictions, then there is no impact on taxes levied or local tax rates. (1) Taxable net tax capacity = total net tax capacity - captured TIF. (2) The impact on these taxing jurisdictions is negligible since they represent only 4.15% of the total tax rate. 391,709,306 87.312% 86.096% 1216% Year Annual Gross Tax Increment Present Value @ 6.00% 1 2009 169,253 165,997 2 2010 230,399 213,177 3 2011 230,399 201,110 4 2012 230,399 189,726 5 2013 230,399 178,987 6 2014 230,399 168,856 7 2015 230,399 159,298 8 2016 230,399 150,281 9 2017 230,399 141,775 10 2018 230,399 133,750 11 2019 230,399 126,179 12 2020 230,399 119,037 13 2021 230,399 112,299 14 2022 230,399 105,942 15 2023 230,399 99,945 16 2024 230,399 94,288 17 2025 0 0 18 2026 0 0 19 2027 0 0 20 2028 0 0 21 2029 0 0 22 2030 0 0 23 2031 0 0 24 2032 0 0 25 2033 0 0 26 2034 0 0 27 2035 0 0 28 2036 0 0 3,625,238 2,360,647 Market Valise Analysis Present Value Date 06/01/09 Present Value Rate (Gross TIF) 6.00% Increase in EMV With TIF District $24,439,400 Less: P.V of Gross Tax Increment 2,360,647 Subtotal $22,078,753 Less: Increase in EMV Without TIF 0 Difference $22,078,753 Northland Securities, Inc. - 4/9/2009 at 12:28 PM TIF 041009 - MVA- Impact Northland Securities, Inc. - 4/9/2009 at 12:28 PM TIF 041009 - PayGoCity Pay -as- you -go Note - �.11j' i1t t ?.31a 1'ar 1. €l einl'i ES, !�SI'i - K - Tas Increment Financing (Renewal and Renovation) District No. 1 -1 _ C?alzgreen Proj ect -_. Note Date: 07/01/09 �- - - Note Rate: 6.00 Proceeds: $1,200,000 Cash Balance: $1,741,452 Retained: 100% Semi - Annual Loan Net TIF Developer Capitalized Balance Date Principle Interest P & I Revenue Contribution Interest Outstanding 1,200,000.00 8/1/2010 0.00 0.00 0.00 0.00 0.00 78,000.00 1,278,000.00 2/1/2011 0.00 0.00 0.00 0.00 0.00 38,340.00 1,316,340.00 8/1/2011 36,398.80 39,490.20 75,889.00 75,889.00 0.00 0.00 1,279,941.00 2/1/2012 37,490.77 38,398.23 75,889.00 75,889.00 0.00 0.00 1,242,450.00 8/1/2012 66,032.50 37,273.50 103,306.00 103,306.00 0.00 0.00 1,176,418.00 2/1/2013 68,013.46 35,292.54 103,306.00 103,306.00 0.00 0.00 1,108,405.00 8/1/2013 70,053.85 33,252.15 103,306.00 103,306.00 0.00 0.00 1,038,351.00 2/1/2014 72,155.47 31,150.53 103,306.00 103,306.00 0.00 0.00 966 8/1/2014 74,320.12 28,985.88 103,306.00 103,306.00 0.00 0.00 891,876.00 2/1/2015 76,549.72 26,756.28 103,306.00 103,306.00 0.00 0.00 815,326.00 8/1/2015 78,846.22 24,459.78 103,306.00 103,306.00 0.00 0.00 736,480.00 2/1/2016 81,211.60 22,094.40 103,306.00 103,306.00 0.00 0.00 655,268.00 8/1/2016 83,647.96 19,658.04 103,306.00 103,306.00 0.00 0.00 571,620.00 2/1/2017 86,157.40 17,148.60 103,306.00 103,306.00 0.00 0.00 485,463.00 8/1/2017 88,742.11 14,563.89 103,306.00 103,306.00 0.00 0.00 396,721.00 2/1/2018 91,404.37 11,901.63 103,306.00 103,306.00 0.00 0.00 305,317.00 8/1/2018 94,146.49 9,159.51 103,306.00 103,306.00 0.00 0.00 211,171.00 2/1/2019 96,970.87 6,335.13 103,306.00 103,306.00 0.00 0.00 114,200.00 8/1/2019 99,880.00 3,426.00 103,306.00 103,306.00 0.00 0.00 14,320.00 2/1/2020 14,320.00 429.60 14,749.60 14,749.60 0.00 0.00 0.00 8/1/2020 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2/1/2021 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8/1/2021 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2/1/2022 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8/1/2022 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2/1/2023 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8/1/2023 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2/1/2024 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8/1/2024 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2/1/2025 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8/1/2025 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2/1/2026 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8/1/2026 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2/1/2027 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1 399,775.89 1,716,117.60 1,716,117.60 0.00 116,340.00 Northland Securities, Inc. - 4/9/2009 at 12:28 PM TIF 041009 - PayGoCity EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF OAK PARK HEIGHTS, MINNESOTA HELD: April 14, 2009 Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of Oak Park Heights, Washington County, Minnesota, was duly held at the City Hall on Tuesday, the 14 day of April, 2009 at 7:00 p.m. for the purpose, in part, of calling a public hearing on the proposed establishment of Municipal Development District No. 1 and the adoption of a Development Program therefor, the proposed establishment of Tax Increment Financing (Renewal and Renovation) District No. 1- 1(Carriage House Project) within Development District No. 1 and the proposed adoption of the Tax Increment Financing Plan relating thereto. The following members were present: and the following were absent: Member introduced the following resolution and moved its adoption: RESOLUTION RESOLUTION CALLING PUBLIC HEARING ON THE PROPOSED ESTABLISHMENT OF MUNICIPAL DEVELOPMENT DISTRICT NO. 1 AND THE ADOPTION OF A DEVELOPMENT PROGRAM THEREFOR, THE PROPOSED ESTABLISHMENT OF TAX INCREMENT FINANCING (RENEWAL AND RENOVATION) DISTRICT NO: 1 -1 WITHIN DEVELOPMENT DISTRICT NO. 1 (CARRIAGE HOUSE PROJECT) AND THE PROPOSED ADOPTION OF A TAX INCREMENT FINANCING PLAN RELATING THERETO BE IT RESOLVED by the City Council (the "Council ") of the City of Oak Park Heights, Minnesota (the "City "), as follows: 1. Public Hearing This Council shall meet on May 26, 2009, at approximately 7: 00 p.m., to hold a public hearing on the following matters: (a) proposed establishment of Municipal Development District No. 1, (b) the adoption of a Development Program therefore, (c) the proposed establishment of Tax Increment Financing (Renewal and Renovation) District No. 1 -1 (Carriage House Project) (the "Tax Increment Financing District ") within Development District No. 1, and (d) the proposed adoption of a Tax Increment Financing Plan relating thereto, all pursuant to and in accordance with Minnesota Statutes, Sections 469.124 through 469.134, both inclusive, as amended and Minnesota Statutes, Sections 469.174 through 469.1799, both inclusive, as amended (collectively, the "Act "). 2. Notice of Hearing; Filing of Program and Plan The City Administrator is hereby authorized to cause a notice of the hearing, substantially in the form attached hereto as Exhibit A, to be published as required by the Act and to place a copy of the proposed Tax Increment Financing Plan on file in the Administrator's Office at City Hall and to make such copies available for inspection by the public. 2325072x1 The motion for the adoption of the foregoing resolution was duly seconded by Councilmember and upon vote being taken thereon, the following voted in favor: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. 2325072v1 2 STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON ) I, the undersigned, being the duly qualified and acting City Administrator of the City of Oak Park Heights, Minnesota, DO HEREBY CERTIFY that the attached resolution is a true and correct copy of an extract of minutes of a meeting of the City Council of the City of Oak Park Heights, Minnesota duly called and held, as such minutes relate to the calling of a public hearing on the City's Tax Increment Financing District. WITNESS my had this _ day of April, 2009 City Administrator 2325072v1 3 Exhibit A CITY OF OAK PARK F-IEIOI -ITS COUNTY OF NVASFf1i GTON STATE OF MINNESOTA NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council (the "Council ") of the City of Oak Park. --Heights, Washington County, Minnesota, will hold a public hearing on Tuesday, May 26, 2009, at 7:00 p.m., at the City 1 -101, in the City of Oak Park Heights, Minnesota, relating to the proposed establishment of Municipal Development District. No. I and the adoption of a Development Program therefore, the proposed establishment of Tax Mcrement Financhig (Renewal and Renovation) District No. 1 -1 (Carriage House Project) (the "Tax Increment Financing District ") within Municipal Development District No. I and the proposed adoption of a Tax Increment Financing plan therefor, pursuant to Minnesota Statutes, Section 469.174 through 469.1799, inclusive, as ameiided. Copies o dia Development Program and Tax Increment Financing Plan as proposed to be adopted will be on f?le arnd available ioar public inspection at the office of the City Administrator at City Hall. The property proposed to be included in Development District No. I is described in the Development, Program on file in the office of the City Administrator. The property proposed to be included in the. Ta;, Irhwrers?er?t 1�h ancih?g District is described in the Tax Increment Financing Plan on file in the office of the City Admftd5s ;<?tor. A map of Municipal Development District No. 1 and the Tax Increment Financing District is set fo;! alt belovj: f E4 1 1 -A? I_ . -J- [J -L 1-1 i j t_ .il Y of 7. - -- - J All interested persons may appear at the -hearing and present their views orally or in a,rrithig prior W, the hearing. 2325072=11 REPORT OF INSPECTION PROCEDURES AND RESULTS FOR DETERMINING QUALIFICATIONS OF A TAX INCREMENT FINANCING DISTRICT AS A RENEWAL AND RENOVATION DISTRICT Carriage House TIF District Oak Park Heights, Minnesota LBB Project No. 080629 April 1, 2009 Prepared For The City of Oak Park Heights Prepared by LHB, Inc. 250 Third Avenue North, Suite 450 Minneapolis, Minnesota 55401 TABLE OF CONTENTS Page PART 1 Executive Summary ................................................. ..............................3 Purpose of Evaluation .................................. ..............................3 Scopeof Work ............................................. ..............................4 Conclusion................................................... ..............................4 PART 2 Minnesota Statute 469.174, Subdivision I Oa Requirements .................4 PART 3 Procedures Followed ................................................ ..............................7 PART4 Findings .................................................................... ..............................7 A. Coverage Test .............................................. ..............................7 B. Condition of Building Test .......................... ..............................9 1. Replacement Cost .................................. ..............................9 2. Code Deficiencies .................................. ..............................9 3. System Condition Deficiencies ............. .............................10 C. Distribution of Substandard Structures ....... .............................11 PART 5 Team Credentials .................................................... .............................12 APPENDIX A Property Condition Assessment Summary Sheet APPENDIX B Building Code and Condition Deficiencies Reports APPENDIX C Property Condition Assessment Building Replacement Cost Reports Code Deficiency Cost Reports ® Photographs Page 2 PART I — EXECUTIVE SUMMARY PURPOSE OF EVALUATION LHB was hired by the City of Oak Park Heights to inspect and evaluate the properties within a Tax Increment Financing Renewal and Renovation District ( "TIF District ") proposed to be established by the City. The proposed TIF District is located in the City of Oak Park Heights, near the intersection of Oakgreen Avenue North and 58"' Street North (Diagram 1). The purpose of LHB's work was to determine whether the proposed TIF District meets the statutory requirements for coverage, and whether buildings on ten different parcels, located within the proposed TIF District, meet the qualifications required for a Renewal and Renovation District. Diagram 1 — Proposed TIF District Page 3 SCOPE OF WORK The proposed TIF District consists of ten (10) parcels, with six (6) single family homes. All six buildings in the proposed TIF District received an on -site interior and exterior inspection. Building code and Condition Deficiency reports for each building inspected by LHB are located in Appendix B. CONCLUSION After inspecting and evaluating the properties within the proposed TIF District and applying current statutory criteria for a Renewal and Renovation District under Minnesota Statutes, Section 469.174, Subdivision 10a, it is our professional opinion that the proposed TIF District qualifies as a Renewal and Renovation District. The remainder of this report describes our process and findings in detail. PART 2 — MINNESOTA STATUTE 469.174, SUBDIVISION 10a REQUIREMENTS The properties were inspected in accordance with the following requirements under Minnesota Statutes, Section 469.174, Subdivision 10(c), which states: Interior Inspection "The municipality may not make such determination [that the building is structurally substandard] without an interior inspection of the property..." Exterior Inspection and Other Means "An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard." Documentation "Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained under section 469.175, subdivision 3(1)." Qualification Requirements Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1) requires two tests for occupied parcels: A. Coverage Test ..."parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or paved or gravel parking lots" The coverage required by the parcel to be considered occupied is defined under Minnesota Statutes, Section 469.174, Subdivision 10(e), which states: "For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, or paved or gravel Page 4 parking lots unless 15 percent of the area of the parcel contains building, streets, utilities, or paved or gravel parking lots." B. Condition of Buildings Test ... "and 20 percent of the buildings are structurally substandard; and 30 percent of the other buildings require substantial renovation or clearance to remove existing conditions such as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety, and general well -being of the community." Structurally substandard is defined under Minnesota Statutes, Section 469.174, Subdivision 10(b), which states: "For purposes of this subdivision, `structurally substandard' shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." Definition of Substantial Renovation Because "Substantial renovation" can mean different things to different people, LHB has attempted to clarify exactly what we consider to be "substantial renovation" as it relates to Minnesota Statutes, Section 469.174, Subdivision 10(a) (1). a. First we researched national standards as to how much building owners should budget for annual maintenance and repair on their buildings as a percentage of replacement cost of the building. 1. According to the University of California "Facilities Renewal Budget Model" report of 1999, building owners should budget between two and three percent of current replacement value of their buildings for maintenance and repair work. This does not include routine janitorial work and routine items such as changing light bulbs and filters. 2. According to the Building Research Board of the National Research Council, one and one -half to three percent of a building's replacement value should be budgeted for maintenance and repair. b. Based on this information, LHB utilized two and one -half percent as the desired amount of maintenance and repair that should be budgeted annually to keep a building in good working condition. We recognize through experience that only a small percentage of sophisticated building owners actually budget for and spend this amount of money every year on maintenance and repair. This is because most business owners are driven by other budgetary issues and tend to neglect the building maintenance and repair line items in their annual budgets. Page 5 c. By establishing how much a building owner should be budgeting per year for maintenance and repairs, LHB is of the opinion that we could more easily establish an amount that would be considered "substantial" in comparison. If an owner is budgeting 2.5 percent of the building's replacement cost annually, most business owners or home owners would have to take out a loan to cover the cost of a substantial building improvement. Assuming they had a fixed level of income to work with, they would have to keep the loan payment at a level very near the original 2.5 percent they should have been budgeting each year. In addition, they still would have to budget for the original. 2.5 percent on top of the loan. In most cases, the mortgage terms would have to extend out to a point beyond the life expectancy of the building they were trying to improve, as most buildings built in the past fifty years are not designed to last beyond 40 years. d. Based on the calculations described above, we have defined substantial renovation for purposes of Minnesota Statutes, Section 469.174, Subdivision 10(a)(1), as renovation with costs exceeding 20% of the building's replacement value. e. We do not count energy code deficiencies toward the thresholds required by Minnesota Statutes, Section 469.174, Subdivision 10(b) and 10(c), due to concerns expressed by the State of Minnesota Court of Appeals in the Walser Auto Sales, Inc. vs. City of Richfield case filed November 13, 2001. 2. Buildings are not eligible to be considered structurally substandard unless they meet certain additional criteria, as set forth in Subdivision 10(c) which states: "N building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence." "Items of evidence that support such a conclusion [that the building is not disqualified] include recent fire or police inspections, on -site property appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence." a. LHB counts energy code deficiencies toward the 15 percent code threshold required by Minnesota Statutes, Section 469.174, Subdivision 10(c)) for the following reasons: Page 6 • The Minnesota energy code is one of ten building code areas highlighted by the Minnesota Department of Labor and Industry website where minimum construction standards are required by law. • The index page of the 2007 Minnesota Building Code lists the Minnesota Energy Code as a "Required Enforcement" area compared to an additional list of "Optional Enforcement" chapters. • The Senior Building Code Representative for the Construction Codes and Licensing Division of the Minnesota Department of Labor and Industry confirmed that the Minnesota Energy Code is being enforced throughout the State of Minnesota. ® In a January 2002 report to the Minnesota Legislature, the Management Analysis Division of the Minnesota Department of Administration confirmed that the construction cost of new buildings complying with the Minnesota Energy Code is higher than buildings built prior to the enactment of the code. ® Proper TIF analysis requires a comparison between the replacement value of a new building built under current code standards with the repairs that would be necessary to bring the existing building up to current code standards. In order for an equal comparison to be made, all applicable code chapters should be applied to both scenarios. Since current construction estimating software automatically applies the construction cost of complying with the Minnesota Energy Code, energy code deficiencies should also be identified in the existing structures. PART 3 — PROCEDURES FOLLOWED A. LHB was able to schedule interior and exterior inspections for six buildings in the proposed TIF District. Inspections were conducted on February 2 and February 4, 2009. PART 4 — FINDINGS A. Coverage Test The total square foot area of each parcel in the proposed TIF District was obtained from City records, GIS mapping and site verification. The total square foot area of buildings and site improvements on the parcels in the proposed TIF District was obtained from City records, GIS mapping and site verification. The percentage of coverage for each parcel in the proposed TIF District was computed to determine if the 15 percent minimum requirement was met. The total square footage of parcels meeting the 15 percent requirement was divided into the Page 7 total square footage of the entire district to determine if the 70 percent requirement was met. Finding: The proposed TIF District met the coverage test under Minnesota Statutes, Section 469.174, Subdivision 10(e), which resulted in parcels consisting of 78.7 percent of the area of the proposed TIF District being occupied by buildings, streets, utilities or paved drives or parking lots (Diagram 2). This exceeds the 70 percent area coverage requirement for the proposed TIF District under Minnesota Statutes, Section 469.174, Subdivision IOo. (a) (1). Diagram 2 Shaded area denotes parcels more than 15 percent occupied by buildings, streets, utilities or paved drives or parking lots Page 8 B. Condition of Building Test 1. Replacement Cost The first step in evaluating a building to determine if it is substandard to a degree requiring substantial renovation or clearance is to determine its replacement cost. This is the cost of constructing a new structure of the same square footage and type on site. Replacement costs were researched using R.S. Means Cost Works square foot models for 2009 A replacement cost was calculated by first establishing building use (office, retail, residential, etc.), building construction type (wood, concrete, masonry, etc.), and building size to obtain the appropriate median replacement cost, which factors in the costs of construction in Oak Park Heights, Minnesota. Replacement cost includes labor, materials, and the contractor's overhead and profit. Replacement costs do not include architectural fees, legal fees or other "soft" costs not directly related to construction activities. Replacement cost for each building is tabulated in Appendix A. 2. Code Deficiencies The next step in evaluating a building is to determine what code deficiencies exist with respect to such building. Code deficiencies are those conditions for a building which are not in compliance with current building codes applicable to new buildings in the State of Minnesota. Minnesota Statutes, Section 469.174, Subdivision 10(c), specifically provides that a building cannot be considered structurally substandard if its code deficiencies are not at least 15 percent of the replacement cost of the building. As a result, it was necessary to determine the extent of code deficiencies for each building in the proposed TIF District. The evaluation was made by reviewing all available information with respect to such buildings contained in City Building Inspection records and making interior and exterior inspections of the buildings. LHB utilizes the 2006 Minnesota State Building Code as the official code for our evaluations. The Minnesota State Building Code is actually a series of provisional codes written specifically for Minnesota only requirements, adoption of several international codes, and amendments to the adopted international codes. After identifying the code deficiencies in each building, we used R.S. Means Cost Works 2009; Unit and Assembly Costs to determine the cost of correcting the identified deficiencies. We were than able to compare the correction costs with the replacement cost of each building to determine if the costs for correcting code deficiencies meet the required 15 percent threshold. Page 9 Finding: Four (4) out of six (6) buildings (66.7 percent) in the proposed TIF District contained code deficiencies exceeding the 15 percent threshold required by Minnesota Statutes, Section 469.174, Subdivision 10(c). A complete Building Code and Condition Deficiency report for each building in the proposed TIF District can be found in Appendix B of this report. 3. System Condition Deficiencies If a building meets the minimum code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), then in order for such building to be "structurally substandard" under Minnesota Statutes, Section 469.174, Subdivision 10(b), the building's defects or deficiencies should be of sufficient total significance to justify "substantial renovation or clearance." Based on this definition, LHB re- evaluated each of the buildings that met the code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), to determine if the total deficiencies warranted "substantial renovation or clearance" based on the criteria we outlined above. System condition deficiencies are a measurement of defects or substantial deterioration in site elements, structure, exterior envelope, mechanical and electrical components, fire protection and emergency systems, interior partitions, ceilings, floors and doors. The evaluation of system condition deficiencies was made by reviewing all available information contained in City records, and making interior and exterior inspections of the buildings. LHB only identified system condition deficiencies that were visible upon our inspection of the building or contained in City records. We did not consider the amount of "service life" used up for a particular component unless it was an obvious part of that component's deficiencies. After identifying the system condition deficiencies in each building, we used our professional judgment to determine if the list of deficiencies would total more than 20 percent of the replacement value of the building when added to the cost of total code deficiencies. For example, if a building with a replacement value of 100 thousand dollars had 17 percent code deficiencies, we would look at the list of system condition deficiencies and make a professional judgment that the cost of fixing the system condition deficiencies would be at least $3,000 (3 percent), in order for that building to be considered substandard. Finding: In our professional opinion, three (3) of the six (6) buildings (50 percent) in the proposed TIF District are structurally substandard to a degree requiring substantial renovation or clearance, because of defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors which defects or deficiencies are of sufficient total significance to justify Page.10 substantial renovation or clearance. This exceeds the 20 percent requirement of Subdivision 10a. (a) (1) (ii). Subdivision 10a. (a) (1) (iii) Subdivision 10a. (a) (1) (iii) requires that at least 30 percent of the other buildings (i.e., all buildings excluding the 20 percent minimum standard) meet the Subdivision 1 O (1), clause (iii) test in which the "other" buildings require substantial renovation or clearance to remove existing conditions such as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety, and general well -being of the community. Finding: Six (6) out of the, six (6) buildings (100 percent) in the proposed Renewal and Renovation District exhibit existing conditions warranting renovation or clearance as defined by Minnesota Statutes Subd. 10a. (1) (iii), described as follows: • As noted above, three buildings were found to be structurally substandard as defined by Minnesota Statutes, Section 469.174, Subdivsion 10 (b) and (c). The factors under Subdivision 10a (1), clause (iii) are broader, and include "obsolete buildings not suitable for conversion." Buildings with deficiencies significant enough to meet the structurally substandard test are, in effect, buildings that are obsolete and not suitable for improvement. Therefore, all three buildings found to be substandard in Appendix A and B also meet the lesser "obsolescence" test of Subdivsion l0a (1), clause (iii). • TIF Parcels 4, 6 and 9 — Parcels 4, 6 and 9 exhibited signs of deterioration, including code deficiencies, but not at a level warranting a substandard finding. However, the City of Oak Park Heights Comprehensive plan written in 1998 and updated in 2008 is redirecting this area to a Commercial land use, which makes the single - family houses an obsolete land -use. The value of these properties is in the underlying land, not the house sitting on the land, which over time, will lead to further deterioration of the buildings. C. Distribution of substandard structures Much of this report has focused on the condition of individual buildings as they relate to requirements identified by Minnesota Statutes, Section 469.174, Subdivision 10 and 10a. It is also important to look at the distribution of substandard buildings throughout the geographic area of the proposed TIF District. Finding: Buildings meeting the requirements of Minnesota Statutes, Section 469.174, Subdivision 10 and 10a are reasonably distributed throughout the geographic area of the proposed TIF District (Diagram 3). Page 11 Diagram 3 — Distribution of Substandard Structures Yellow Shading — Stratcturolly Substandard Building Orange Spading — Other Conditions warranting renovation or clearance (Subd. IOa. (1) (iii) PART 5 - TEAM CREDENTIALS Michael A. Fischer, AIA LEED AP - Project Prineipal/TIF Analyst Michael has nineteen years of architectural experience as project principal, project manager, project designer and project architect on municipal planning, educational, commercial and governmental projects. He is a Vice President at LHB and currently leads the Community Design Group in LHB's Minneapolis office. Michael completed a two. -year Bush Fellowship at the Massachusetts Institute of Technology in 1999, earning Masters Degrees in City Planning and Real Estate Development. Michael has served on over 35 committees, boards and community task forces, including a term as City Council President and Chair of the Duluth /Superior Metropolitan Planning organization. He is currently a Planning Commissioner in Edina, Minnesota. He was one of four architects in the country to receive the National "Young Architects Citation" from the American Institute of Architects in 1997. Page 12 10 �� R 4 (° 2 t 1 L� :.58th Street N ,. Diagram 3 — Distribution of Substandard Structures Yellow Shading — Stratcturolly Substandard Building Orange Spading — Other Conditions warranting renovation or clearance (Subd. IOa. (1) (iii) PART 5 - TEAM CREDENTIALS Michael A. Fischer, AIA LEED AP - Project Prineipal/TIF Analyst Michael has nineteen years of architectural experience as project principal, project manager, project designer and project architect on municipal planning, educational, commercial and governmental projects. He is a Vice President at LHB and currently leads the Community Design Group in LHB's Minneapolis office. Michael completed a two. -year Bush Fellowship at the Massachusetts Institute of Technology in 1999, earning Masters Degrees in City Planning and Real Estate Development. Michael has served on over 35 committees, boards and community task forces, including a term as City Council President and Chair of the Duluth /Superior Metropolitan Planning organization. He is currently a Planning Commissioner in Edina, Minnesota. He was one of four architects in the country to receive the National "Young Architects Citation" from the American Institute of Architects in 1997. Page 12 Keow Chai (K. C.) Lim, AIA —Project Manager/Inspector K.C. has seven years of international experience prior to becoming an architect in the United States and has been with LHB since 1988. His experience includes multi -story speculative offices, commercial buildings, hospitality, manufacturing, residential, and cinema renovation and design. His close attention to the client's needs has contributed to a unique relationship with the owner and the designed space. K.C. is a creative designer who also has a special focus on architectural presentation and a unique rendering skill to bring forward the intricate design idea to clients. In addition to design, K.C. has several years experience in building inspections, preparation of construction documents and project management. M: \08Prcj \080629\ADMN\TIF \Fina1 Report\Oak Park Heights TIF Final Report 04- 01- 09.doc APPENDICES Appendix A — Property Condition Assessment Summary Sheet Appendix B — Building Code and Condition Deficiencies Reports Appendix C - Property Condition Assessment Building Replacement Cost Reports Code Deficiency Cost Reports Photographs Page 13 APPENDIX A Property Condition Assessment Summary Sheet APPENDIX B Building Code and Condition Deficiencies Reports APPENDIX C Property Condition Assessments Building Replacement Cost Reports Code Deficiency Cost Reports Photographs � � @ LL � 0 ■ � O � $ n � � y \ � e w w I U) c LD ■ a. q � « � 2 _ m ) }() } ` ,! 7 ! ] _ ) ] ` � §ƒ !e! a E. � }Ez § j � |; k t ul t! ! k ! �lEff) q) ] \k\\\\\0\\ ) \ \\ \ \ }\ \ \\ \\ \\ \ \\X J . } - �o Oak Park Heights, Minnesota Carriage House TIF District CODE /CONDITION DEFICIENCY REPORT April 1, 2009 Map No. & Building Name: #1 / 5710 Oakgreen Avenue Inspection Date(s) & Time(s): Feb. 4, 2009, 12:20 a.m. Inspection Type: Interior /Exterior Summary of Deficiencies: It is our professional opinion that this building is Substandard because: - Building Code deficiencies total more than 15% of replacement cost. - Substantial renovation (more than 20% of building replacement value) is required to correct Conditions found. Estimated Replacement Cost: $195,977 Estimated Cost to Correct Building & Energy Code Deficiencies: $42,589 Percentage of Replacement Cost: 21.73% Estimated cost to correct all deficiencies exceeds (20 %): $39,195 (Estimated Cost to Correct Building and Energy Code Deficiencies is the total of code - related items priced on the `unit' and `assembly' estimate lists. The two are combined for the Total Cost. Other costs identified as `Condition Related' are not priced on those sheets). DESCRIPTION OF CONDITION DEFICIENCIES Minnesota Statutes, Section 469.174, Subdivision 10, states that a building is Structurally Substandard if it contains "defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." A. Defects in Structural Elements 1. None observed. B. Combination of Deficiencies 1. Essential Utilities and Facilities a. House - Insulate exterior walls to meet present requirements (5275/5276/5278 - 5280). b. House - Refinish paint; peeling from masonry wall (5231/5307). c. House - Replace deteriorated roof shingle (5303). d. House - Provide hood over hot vent stack at chimney to meet requirements (5323). e. House - Provide missing light bulb (5228/5323). f. House - Provide exterior weather -proof power outlet. g. House - Replace single pane windows to meet present requirements (5231/5239/5263 /5278/5307). h. Deck - Correct /replace guards to meet requirements (5300/5301/5304). i. Garage - Replace deteriorated garage door (5230/5233). j. Garage - Replace damaged siding (5232). k. Garage - Correct hot vent stack for heater to meet requirements (5320). 1. Basement - Provide fresh air - intake for furnace to meet requirements. m. Basement - Provide egress window and well in basement floor and (2) sleeping rooms IRC310.1 (5291 - 5293/5296/5297). n. Basement - Repair basement foundation walls to prevent water penetration (5275/5280/5298 /5299). o. Basement - Provide wallboard over exposed sprayed foam at window (5278). p. Basement - Provide missing ceiling light fixture (5277). q. Basement - Insulate basement rim joist at perimeter (5284). r. Basement - Connect domestic water to city main (4996). s. Basement - Provide GFI in bathroom (5288 - 5290). t. Basement - Correct headroom at sleeping rooms; Existing 7' -3" (5291/5293). u. Basement - Extend exhaust to roof of building to meet requirements (5289). v. Basement - Provide gypsum board wall adjacent to windows to make air /water -tight (5278). w. Main - Provide hard -wired smoke alarm in all (2) sleeping rooms & hall: MN299F.362. x. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. y. Main - Provide missing grille cover at outlet (5270). z. Main - Provide rails on stair to meet requirements (5244/5371/5272). aa. Main - Provide exhaust fan to vent outside of building to meet requirements (5323). bb. Main - Provide missing water closet at bathroom (5256). cc. Main - Provide GFI in bathroom (5253/5254). dd. Main - Provide GFI in kitchen (5228 - 5266 - 5268). ee. Main - Provide hard -wired smoke alarm in all (2) sleeping rooms & hall: MN299F.362. ff. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. gg. Attic - Insulate attic to meet present requirements. 2. Light and Ventilation a. No combustion/make -up air for furnace. Fire Protection/Adequate Egress a. Provide hard -wired smoke alarm in all floors: MN299F.362. b. Provide hard -wired smoke alarm in all (3) sleeping rooms & hall: MN299F.362. c. Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. d. Provide egress window and well in basement floor and all sleeping rooms IRC310.1. e. Basement - Provide wallboard over exposed sprayed foam at window (5278). Layout and Condition of Interior Partitions /Materials a. Interior condition of wall partitions is good. b. House - Replace single pane windows to meet present requirements (5231/5239/5263 /5278/5307). c. Basement - Provide fresh air - intake for furnace to meet requirements. d. Basement - Provide egress window and well in basement floor and (2) sleeping rooms IRC310.1 (5291 - 5293/5296/5297). e. Basement - Repair basement foundation walls to prevent water penetration (5275/5280/5298 /5299). f. Basement - Provide wallboard over exposed sprayed foam at window (5278). g. Basement - Provide missing ceiling light fixture (5277). h. Basement - Insulate basement rim joist at perimeter (5284). i. Basement - Connect domestic water to city main (4996). j. Basement - Provide GFI in bathroom (5288 - 5290). k. Basement - Correct headroom at sleeping rooms; Existing 7-3" (5291/5293). 1. Basement - Extend exhaust to roof of building to meet requirements (5289). m. Basement - Provide gypsum board wall adjacent to windows to make air /water -tight (5278). n. Main - Provide hard -wired smoke alarm in all (2) sleeping rooms & hall: MN299F.362. o. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. p. Main - Provide missing grille cover at outlet (5270). q. Main - Provide rails on stair to meet requirements (5244/5371/5272). r. Main - Provide exhaust fan to vent outside of building to meet requirements (5323). s. Main - Provide missing water closet at bathroom (5256). t. Main - Provide GFI in bathroom (5253/5254). u. Main - Provide GFI in kitchen (5228 - 5266 - 5268). v. Main - Provide hard -wired smoke alarm in all (2) sleeping rooms & hall: MN299F.362. w. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. x. Attic - Insulate attic to meet present requirements. Exterior Construction a. House - Insulate exterior walls to meet present requirements (5275/5276/5278 - 5280). b. House - Refinish paint; peeling from masonry wall (5231/5307). c. House - Replace deteriorated roof shingle (5303). d. House - Provide hood over hot vent stack at chimney to meet requirements (5323). e. House - Provide missing light bulb (5228/5323). f. House - Provide exterior weather -proof power outlet. g. Deck - Correct/replace guards to meet requirements (5300/5301/5304). h. Garage - Replace deteriorated garage door (5230/5233). i. Garage - Replace damaged siding (5232). j. Garage - Correct hot vent stack for heater to meet requirements (5320). k. Basement - Repair basement foundation walls to prevent water penetration (5275/5280/5298 /5299). 1. Basement - Connect domestic water to city main (4996). DESCRIPTION OF CODE DEFICIENCIES 1. House - Provide hood over hot vent stack at chimney to meet requirements (5323). 2. House - Provide missing light bulb (5228/5323). 3. House - Provide exterior weather -proof power outlet. 4. Deck - CoiTect /replace guards to meet requirements (5300/5301/5304). 5. Garage - Correct hot vent stack for heater to meet requirements (5320). 6. Basement - Provide fresh air - intake for furnace to meet requirements. 7. Basement - Provide egress window and well in basement floor and (2) sleeping rooms IRC310.1 (5291- 5293/5296/5297). 8. Basement - Repair basement foundation walls to prevent water penetration (5275/5280/5298 /5299). 9. Basement - Provide wallboard over exposed sprayed foam at window (5278). 10. Basement - Provide missing ceiling light fixture (5277). 11. Basement - Insulate basement rim joist at perimeter (5284). 12. Basement - Connect domestic water to city main (4996). 13. Basement - Provide GFI in bathroom (5288 - 5290). 14. Basement - Correct headroom at sleeping rooms; Existing T -3" (5291/5293). 15. Basement - Extend exhaust to roof of building to meet requirements (5289). 16. Basement Provide gypsum board wall adjacent to windows to make air /water -tight (5278). 17. Main - Provide hard -wired smoke alarm in all (2) sleeping rooms & hall: MN299F.362. 18. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. 19. Main - Provide missing grille cover at outlet (5270). 20. Main - Provide rails on stair to meet requirements (5244/5371/5272). 21. Main - Provide exhaust fan to vent outside of building to meet requirements (5323). 22. Main - Provide missing water closet at bathroom (5256). 23. Main - Provide GFI in bathroom (5253/5254). 24. Main - Provide GFI in kitchen (5228 - 5266 - 5268). 25. Main - Provide hard -wired smoke alarm in all (2) sleeping rooms & hall: MN299F.362. 26. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN2991 ENERGY CODE In addition to the building code deficiencies listed above, the existing building does not comply with the current energy code. These deficiencies are not included in the estimated costs to correct code deficiencies and are not considered in determining whether or not the building is substandard: - House - Insulate exterior walls to meet present requirements (5275/5276/5278 - 5280). - House - Replace single pane windows to meet present requirements (5231/5239/5263 /5278/5307). - Attic - Insulate attic to meet present requirements. M:\ 08Proj \080629\ADMN\TIF\Building Reports \080629- Substandard Building Report-5710 Oakgreen Ave.doc Oak Park Heights, Minnesota Carriage House TIF District CODE /CONDITION DEFICIENCY REPORT April 1, 2009 Map No. & Building Name: #2 / 5754 Oakgreen Avenue Inspection Date(s) & Time(s): Feb. 2, 2009,10:00 a.m. Inspection Type: Interior /Exterior Summary of Deficiencies: It is our professional opinion that this building is Substandard because: - Building Code deficiencies total more than 15% of replacement cost. - Substantial renovation (more than 20% of building replacement value) is required to correct Conditions found. Estimated Replacement Cost: Estimated Cost to Correct Building Code Deficiencies: Percentage of Replacement Cost: Estimated cost to correct all deficiencies exceeds (20 %): $120,583 $31,765 26.34% $24,117 (Estimated Cost to Correct Building Code Deficiencies is the total of code - related items priced on the `unit' and `assembly' estimate lists. The two are combined for the Total Cost. Other costs identified as `Condition Related' are not priced on those sheets). DESCRIPTION OF CONDITION DEFICIENCIES Minnesota Statutes, Section 469.174, Subdivision 10, states that a building is Structurally Substandard if it contains "defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." A. Defects in Structural Elements 1. Several cracks in basement foundation walls (4914/4917/4951). B. Combination of Deficiencies I . Essential Utilities and Facilities a. House - Insulate exterior walls to meet present requirements (4913/5017). b. House - Replace single pane windows to meet present requirements (4924). c. House - Replace deteriorated roof shingles (4910/4912). d. House - Replace /repair damage siding (4955). e. House - Replace /repair aluminum awning over side entrance; missing a support (4920). f. House - Replace metal flashing at masonry chimney (4913). g. House - Provide hood over hot vent stack at chimney (4957). h. House - Provide exterior weather -proof power outlet. i. House - Replace rotted fascia board (4910). j. House - Provide railing on steps at side entry (4918). k. House - Paint peeling from siding (4951). 1. House - Replace abandon HVAC system in. House - Replace hot and domestic water system n. House - Repair electrical system. o. House - Repair cracks in basement foundation walls (4914/4917/4951). p. Basement - Provide egress window and well in basement floor IRC310.1. q. Basement - Provide fresh air - intake for furnace to meet requirements. r. Basement - Provide hard -wired smoke alarm in floor: MN299F.362. s. Basement - Correct stair treads to meet requirements, existing 8" (4950). t. Basement - Install rails on stair to meet requirements (4937/4948). u. Main - Replace damaged glazing at side entry door (4921). v. Main - Provide landing on other side of door at basement stair to meet requirements (4936/4937). W. Main - Replace lavatory in bathroom (4925). x. Main - Repair damaged wall (4925). y. Main - Replace tub faucets (4925/4926). z. Main - Relocate existing power outlet away from tub (4926). aa. Main - Refinish basement door: paint peeling (4936). bb. Main - Refinish wall in closet and bedroom (4929/4930). cc. Main - Replace non - functioning storm door at side entry (4918). dd. Main - Provide exhaust fan to vent outside of building to meet requirements. ee. Main - Provide GFI in bathroom (4925/4926). ff. Main - Provide GFI in kitchen (4922/4932). gg. Main - Provide cover plate to power outlets (4921/4932/4934 /4935). hh. Main - Provide hard -wired smoke alarm in all (2) sleeping rooms & hall: MN299F.362. ii. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. J. Main - Remove, clean, and sanitized wall and floor finish of "waste" (4928/4931). kk. Main - Provide code compliant (20 "x30 ") attic access. 2. Light and Ventilation a. No combustion/make -up air for furnace. b. Abandoned HAVC system. c. Abandoned domestic and hot -water system. d. Abandoned electrical system. 3. Fire Protection/Adequate Egress a. House - Replace /repair aluminum awning over side entrance; missing a support (4920). a. House - Provide hood over hot vent stack at chimney (4957). b. House - Provide railing on steps at side entry (4918). c. House - Replace abandon HVAC system d. House - Replace hot and domestic water system e. House - Repair electrical system. f. Basement - Provide egress window and well in basement floor IRC310.1. g. Basement - Provide fresh air - intake for furnace to meet requirements. h. Basement - Provide hard -wired smoke alarm in floor: MN299F.362. i. Basement - Correct stair treads to meet requirements, existing 8" (4950). j. Basement - Install rails on stair to meet requirements (4937/4948). k. Main - Replace damaged glazing at side entry door (4921). 1. Main - Provide landing on other side of door at basement stair to meet requirements (4936/4937). m. Main - Relocate existing power outlet away from tub (4926). n. Main - Replace non - functioning storm door at side entry (4918). o. Main - Provide GFI in bathroom (4925/4926). p. Main - Provide GFI in kitchen (4922/4932). q. Main - Provide cover plate to power outlets (4921/4932/4934 /4935). r. Main - Provide hard -wired smoke alarm in all (2) sleeping rooms & hall: MN299F.362. s. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. t. Main - Provide code compliant (20 "x30 ") attic access. 4. Layout and Condition of Interior Partitions /Materials a. Interior condition of wall partitions is fair. b. House - Insulate exterior walls to meet present requirements (4913/5017). c. House - Replace single pane windows to meet present requirements (4924). d. House - Replace abandon HVAC system e. House - Replace hot and domestic water system f. House - Repair electrical system. g: Basement - Provide egress window and well in basement floor IRC310.1. h. Basement - Provide fresh air - intake for furnace to meet requirements. i. Basement - Provide hard -wired smoke alarm in floor: MN299F.362. j. Basement - Correct stair treads to meet requirements, existing 8" (4950). k. Basement - Install rails on stair to meet requirements (4937/4948). 1. Main - Replace damaged glazing at side entry door (4921). m. Main - Provide landing on other side of door at basement stair to meet requirements (4936/4937). n. Main - Replace lavatory in bathroom (4925). o. Main - Repair damaged wall (4925). p. Main - Replace tub faucets (4925/4926). q. Main - Relocate existing power outlet away from tub (4926). r. Main - Refinish basement door: paint peeling (4936). s. Main - Refinish wall in closet and bedroom (4929/4930). t. Main - Provide exhaust fan to vent outside of building to meet requirements. u. Main - Provide GFI in bathroom (4925/4926). v. Main - Provide GFI in kitchen (4922/4932). w. Main - Provide cover plate to power outlets (4921/4932/4934 /4935). x. Main - Provide hard -wired smoke alarm in all (2) sleeping rooms & hall: MN299F.362. y. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. z. Main - Remove, clean, and sanitized wall and floor finish of "waste" (4928/4931). aa. Main - Provide code compliant (20 "x30 ") attic access. Exterior Construction a. House - Insulate exterior walls to meet present requirements (4913/5017). b. House - Replace deteriorated roof shingles (4910/4912). c. House - Replace /repair damage siding (4955). d. House - Replace /repair aluminum awning over side entrance; missing a support (4920). e. House - Replace metal flashing at masonry chimney (4913). f. House - Provide hood over hot vent stack at chimney (4957). g. House - Provide exterior weather -proof power outlet. h. House - Replace rotted fascia board (4910). i. House - Provide railing on steps at side entry (4918). j. House - Paint peeling from siding (4951). k. House - Repair cracks in basement foundation walls (4914/4917/4951). 1. Main - Provide exhaust fan to vent outside of building to meet requirements. DESCRIPTION OF CODE DEFICIENCIES 1. House - Replace /repair damage siding (4955). 2. House - Replace /repair aluminum awning over side entrance; missing a support (4920). 3. House - Provide hood over hot vent stack at chimney (4957). 4. House - Provide exterior weather -proof power outlet. 5. House - Replace rotted fascia board (4910). 6. House - Provide railing on steps at side entry (4918). 7. House - Replace abandon HVAC system 8. House - Replace hot and domestic water system 9. House - Repair electrical system. 10. House - Repair cracks in basement foundation walls (4914/4917/4951). 11. Basement - Provide egress window and well in basement floor IRC310.1. 12. Basement - Provide fresh air - intake for furnace to meet requirements. 13. Basement - Provide hard -wired smoke alarm in floor: MN299F.362. 14. Basement - Correct stair treads to meet requirements, existing 8" (4950). 15. Basement - Install rails on stair to meet requirements (4937/4948). 16. Main - Replace damaged glazing at side entry door (4921). 17. Main - Provide landing on other side of door at basement stair to meet requirements (4936/4937). 18. Main - Replace lavatory in bathroom (4925). 19. Main - Repair damaged wall (4925). 20. Main - Replace tub faucets (4925/4926). 21. Main - Relocate existing power outlet away from tub (4926). 22. Main - Replace non - functioning storm door at side entry (4918). 23. Main - Provide exhaust fan to vent outside of building to meet requirements. 24. Main - Provide GFI in bathroom (4925/4926). 25. Main - Provide GFI in kitchen (4922/4932). 26. Main - Provide cover plate to power outlets (4921/4932/4934 /4935). 27. Main - Provide hard -wired smoke alarm in all (2) sleeping rooms & hall: MN299F.362. 28. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. 29. Main - Remove, clean, and sanitized wall and floor finish of "waste" (4928/4931). 30. Main - Provide code compliant (20 ")60 ") attic access. ENERGY CODE In addition to the building code deficiencies listed above, the existing building does not comply with the current energy code. These deficiencies are not included in the estimated costs to correct code deficiencies and are not considered in determining whether or not the building is substandard: - House - Insulate exterior walls to meet present requirements (4913/5017). - House - Replace single pane windows to meet present requirements (4924). M: \08Proj \080629 \ADMN\TIF\Building Reports \080629- Substandard Building Report-5754 Oakgreen Ave.doc Oak Park Heights, Minnesota Carriage House TIF District CODE /CONDITION DEFICIENCY REPORT April 1, 2009 Map No. & Building Name: #4 / 5762 Oakgreen Avenue Inspection Date(s) & Time(s): Feb. 2, 2009,11:20 a.m. Inspection Type: Interior /Exterior Summary of Deficiencies: It is our professional opinion that this building is Not Substandard because: - Building Code deficiencies total more than 15% of replacement cost. - Substantial renovation (more than 20% of building replacement value) is required to correct Conditions found. - However, energy code accounts for too high a percentage of the code deficiency items. Estimated Replacement Cost: $204,478 Estimated Cost to Correct Building & Energy Code Deficiencies: $41,920 Percentage of Replacement Cost: 20.5% Estimated cost to correct code and non -code condition deficiencies (20 %): $40,896 (Estimated Cost to Correct Building and Energy Code Deficiencies is the total of code - related items priced on the `unit' and `assembly' estimate lists. The two are combined for the Total Cost. Other costs identified as `Condition Related' are not priced on those sheets). DESCRIPTION OF CONDITION DEFICIENCIES Minnesota Statutes, Section 469.174, Subdivision 10, states that a building is Structurally Substandard if it contains "defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." A. Defects in Structural Elements 1. Several cracks in basement foundation walls (4991/4992). B. Combination of Deficiencies I. Essential Utilities and Facilities a. House - Insulate exterior walls to meet present requirements (4990- 4999). b. House - Insulate basement exterior walls to meet present requirements. c. House - Replace deteriorated roof shingles (4958/4959/4967 /5321/5322). d. House - Replace deteriorated fascia board at Garage (5061). e. House - Replace damaged fascia board at Garage (5322). f. House - Refinish fascia board around House (5061/5065/5067). g. House - Correct exterior grade at basement window (4962). h. House - Provide cover plate at telephone in -box (4963). i. House - Repair corner cover for siding to make air /water tight (4964). j. Garage - Replace deteriorated garage door (5010). k. Garage - Correct heater vent 1 to meet requirements (5011/5322). 1. Garage - Correct heater vent 2 to meet requirements (4960/5012/5013). m. Basement - Provide fresh air- intake for furnace to meet requirements. n. Basement - Provide egress window and well in basement floor IRC310.1. o. Basement - Repair cracks in basement foundation walls (4991/4992). p. Basement - Correct sewer pipe slope to meet requirement: Min. 1/8 " =P -0" (4990/4995/4998). q. Basement - Relocate power outlet away from water pipe to meet requirements (4995). r. Basement - Provide missing light fixture cover (4999). s. Basement - Correct sump discharged to meet requirements: Existing discharged into exterior grade (4995/4966). t. Basement - Correct discharge from washing machine into sewer in lieu of sump to meet requirements (4994/4998). u. Basement - Correct hot vent from hot -water heater to meet requirements (5001). v. Basement - Replace several electrical wiring to meet requirements (5002). w. Basement - Connect domestic water to city main (4996). x. Basement - Replace deteriorated windows to make air /water -tight (4990/4991/4997). y. Basement - Provide hard -wired smoke alarm in floor: MN299F.362. z. Basement - Correct stair risers and treads to meet requirements, existing 7.75" risers /9" tread (5004- 5006). aa. Basement - Install rails on stair to meet requirements (4989/4993). bb. Main - Provide landing at door to meet requirement (5009). cc. Main - Provide threshold and seal to second door to make air /water tight (5009). dd. Main - Provide landing on other side of door at basement stair to meet requirements. ee. Main - Remove sprayed foam on front entry door to comply with exit requirements (4984). ff. Main - Provide exhaust fan to vent outside of building to meet requirements (5321). gg. Main - Provide GFI in bathroom (4972/4973). hh. Main - Provide GFI in kitchen (4985- 4987). ii. Main - Provide hard -wired smoke alarm in all (3) sleeping rooms & hall: MN299F.362. J. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. kk. Main - Replace damaged switch cover at hallway (5007). 11. Attic Insulate attic to meet present requirements. 2. Light and Ventilation a. No combustion/make -up air for furnace. Fire Protection/Adequate Egress a. Provide hard -wired smoke alarm in all floors: MN299F.362. b. Provide hard -wired smoke alarm in all (3) sleeping rooms & hall: MN299F.362. c. Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. d. Provide egress window and well in basement floor IRC310.1. e. Remove sprayed foam on front entry door to comply with exit requirements (4984). 4. Layout and Condition of Interior Partitions/Materials a. Interior condition of wall partitions is fair to good. b. House - Insulate basement exterior walls to meet present requirements. c. House - Provide cover plate at telephone in -box (4963). d. House - Repair corner cover for siding to make air /water tight (4964). e. Garage - Replace deteriorated garage door (5010). f. Garage - Correct heater vent I to meet requirements (5011/5322). g. Garage - Correct heater vent 2 to meet requirements (4960/5012/5013). h. Basement - Provide fresh air - intake for furnace to meet requirements. i. Basement - Provide egress window and well in basement floor IRC310.1. j. Basement - Repair cracks in basement foundation walls (4991/4992). k. Basement - Correct sewer pipe slope to meet requirement: Min. 1 /8 " =1' -0" (4990/4995/4998). 1. Basement - Relocate power outlet away from water pipe to meet requirements (4995). m. Basement - Provide missing light fixture cover (4999). n. Basement - Correct sump discharged to meet requirements: Existing discharged into exterior grade (4995/4966). o. Basement - Correct discharge from washing machine into sewer in lieu of sump to meet requirements (4994/4998). p. Basement - Correct hot vent from hot -water heater to meet requirements (5001). q. Basement - Replace several electrical wiring to meet requirements (5002). r. Basement - Connect domestic water to city main (4996). s. Basement - Replace deteriorated windows to make air /water -tight (4990/4991/4997). t. Basement - Provide hard -wired smoke alarm in floor: MN299F.362. u. Basement - Correct stair risers and treads to meet requirements, existing 7.75" risers /9" tread (5004- 5006). v. Basement - Install rails on stair to meet requirements (4989/4993). w. Main - Provide landing at door to meet requirement (5009). x. Main - Provide threshold and seal to second door to make air /water tight (5009). y. Main - Provide landing on other side of door at basement stair to meet requirements. z. Main - Remove sprayed foam on front entry door to comply with exit requirements (4984). aa. Main - Provide exhaust fan to vent outside of building to meet requirements (5321). bb. Main - Provide GFI in bathroom (4972/4973). cc. Main - Provide GFI in kitchen (4985- 4987). dd. Main - Provide hard -wired smoke alarm in all (3) sleeping rooms & hall: MN299F.362. ee. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. ff. Main - Replace damaged switch cover at hallway (5007). gg. Attic - Insulate attic to meet present requirements. 5. Exterior Construction a. House - Insulate exterior walls to meet present requirements (4990- 4999). b. House - Replace deteriorated roof shingles (4958/4959/4967 /5321 /5322). c. House - Replace deteriorated fascia board at Garage (5061). d. House - Replace damaged fascia board at Garage (5322). e. House - Refinish fascia board around House (5061/5065/5067). f. House - Correct exterior grade at basement window (4962). g. House - Provide cover plate at telephone in -box (4963). h. House - Repair corner cover for siding to make air /water tight (4964). i. Basement - Connect domestic water to city main (4996). DESCRIPTION OF CODE DEFICIENCIES 1. House - Replace deteriorated fascia board at Garage (5061). 2. House - Replace damaged fascia board at Garage (5322). 3. House- Correct exterior grade at basement window (4962). 4. House - Provide cover plate at telephone in -box (4963). 5. House - Repair corner cover for siding to make air /water tight (4964). 6. Garage - Replace deteriorated garage door (5010). 7. Garage - Correct heater vent 1 to meet requirements (5011/5322). 8. Garage - Correct heater vent 2 to meet requirements (4960/5012/5013). 9. Basement - Provide fresh air - intake for furnace to meet requirements. 10. Basement - Provide egress window and well in basement floor IRC310.1. 11. Basement - Repair cracks in basement foundation walls (4991/4992). 12. Basement - Correct sewer pipe slope to meet requirement: Min. 1/8 " =1' -0" (4990/4995/4998). 13. Basement - Relocate power outlet away from water pipe to meet requirements (4995). 14. Basement - Provide missing light fixture cover (4999). 15. Basement - Correct sump discharged to meet requirements: Existing discharged into exterior grade (4995/4966). 16. Basement - Correct discharge from washing machine into sewer in lieu of sump to meet requirements (4994/4998). 17. Basement - Correct hot vent from hot -water heater to meet requirements (5001). 18. Basement - Replace several electrical wiring to meet requirements (5002). 19. Basement - Connect domestic water to city main (4996). 20. Basement - Replace deteriorated windows to make air /water -tight (4990/4991/4997). 21. Basement - Provide hard -wired smoke alarm in floor: MN299F.362. 22. Basement - Correct stair risers and treads to meet requirements, existing 7.75" risers /9" tread (5004 - 5006). 23. Basement - Install rails on stair to meet requirements (4989/4993). 24. Main - Provide landing at door to meet requirement (5009). 25. Main - Provide threshold and seal to second door to make air /water tight (5009). 26. Main - Provide landing on other side of door at basement stair to meet requirements. 27. Main - Remove sprayed foam on front entry door to comply with exit requirements (4984). 28. Main - Provide exhaust fan to vent outside of building to meet requirements (5321). 29. Main - Provide GFI in bathroom (4972/4973). 30. Main - Provide GFI in kitchen (4985- 4987). 31. Main - Provide hard -wired smoke alarm in all (3) sleeping rooms & hall: MN299F.362. 32. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.5O. 33. Main - Replace damaged switch cover at hallway (5007). ENERGY CODE In addition to the building code deficiencies listed above, the existing building does not comply with the current energy code. These deficiencies are not included in the estimated costs to correct code deficiencies and are not considered in determining whether or not the building is substandard: - House - Insulate exterior walls to meet present requirements (4990- 4999). - House - Insulate basement exterior walls to meet present requirements. - Attic - Insulate attic to meet present requirements. M: \OBProj \080629 \ADMMTIF\Building Reports \080629 - Substandard Building Report-5762 Oakgreen Ave.doc Oak Park Heights, Minnesota Carriage House TIF District CODE /CONDITION DEFICIENCY REPORT April 1, 2009 Map No. & Building Name: #6 / 5770 Oakgreen Avenue Inspection Date(s) & Time(s): February 4, 2009, 10:00 a.m. Inspection Type: Interior /Exterior Summary of Deficiencies: It is our professional opinion that this building is Not Substandard because: - Building Code deficiencies do not total more than 15% of replacement cost. - or - Substantial renovation (more than 20% of building replacement value) is not required to correct Conditions found. Estimated Replacement Cost: $240,559 Estimated Cost to Correct Building Code Deficiencies: $17,271 Percentage of Replacement Cost: 7.18% Estimated cost to correct code and non -code condition deficiencies (20 %): $48,112 (Estimated Cost to Correct Building Code Deficiencies is the total of code - related items priced on the `unit' and `assembly' estimate lists. The two are combined for the Total Cost. Other costs identified as `Condition Related' are not priced on those sheets). Description of Condition Deficiencies , Minnesota Statutes, Section 469.174, Subdivision 10, states that a building is Structurally Substandard if it contains "defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." A. Defects in Structural Elements 1. None observed. B. Combination of Deficiencies 1. Essential Utilities and Facilities a. House - Replace single pane windows to meet present requirements (5010/5090/5091). b. House - Provide exterior weather -proof power outlet. c. Garage - Replace damaged garage door to make air /water -tight (5072). d. Garage - Provide landing at entry door (5076). e. Garage - Provide rails at step at entry door (5076). f. Garage - Provide cover plate missing at power outlets (5150/5073/5078). g. Basement - Provide egress window and well in basement floor IRC310.1. h. Basement - Provide fresh air - intake for furnace to meet requirements. i. Basement - Provide hard -wired smoke alarm in floor: MN299F.362. j. Basement - Connect laundry sink waste line to sewer line to meet requirements: Existing to sump pump (5138/5139/5143). k. Basement - Provide and finish basement wall with gypsum board (5138/5142). 1. Basement - Replace damaged sump cover (5140). in Basement - Provide gypsum wallboard over exposed sprayed insulation at basement windows (5122/5141). n. Basement - Secure power outlet missing at laundry room (5142). o. Basement - Correct sump pipe to discharge to exterior grade (5143/5144). p. Basement - Replace /reinstall removed water softener (5145). q. Basement - Correct stair to meet requirements, existing exceed 3/8" riser variant: existing 6.5 "/7.75" and open risers (5118- 5120/5145/5134). r. Basement - Install rails on stair to meet requirements (5117/5121/5145). s. Basement - Connect domestic water to city main (5123/5132). t. Basement - Provide grille missing from duct (5127). u. Main - Provide guards at sliding door: existing drop greater than 18" (5066). v. Main - Provide base missing at Living room (5181). w. Main - Provide cover plate missing at power outlets (5082/5115). x. Main - Provide floor grille missing at bathroom outlet (5095). y. Main - Provide exhaust fan to vent outside of building to meet requirements (5097). z. Main - Provide GFI in kitchen (5083/5084/5086). aa. Main - Provide safety glazing at bay window to meet requirements (5089- 5091). bb. Main - Provide exhaust fan in bedroom bathroom and vent to exterior of building to meet requirements (5102 - 5105). cc. Main - Finish expose wall at basement stair (5114). dd. Main - Provide hard -wired smoke alarm in all (2) sleeping rooms & hall: MN299F.362. ee. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN2991 ff. Main - Provide code compliant (20 "x30 ") attic access. gg. Attic - Insulate attic to meet present requirements. 2. Light and Ventilation a. No combustion/make -up air for furnace. 3. Fire Protection/Adequate Egress a. Smoke detector is required in all sleeping room, hall, and floor: MN299F.50. b. CO2 detector is required 10' -0" of any sleeping room: MN299F.50. c. GFI is required in all bathroom and kitchen. d. Exterior weather -proof power outlet is required. e. Provide egress window and well in basement floor IRC310.1. 4. Layout and Condition of Interior Partitions /Materials a. Interior condition of wall partitions is fair to good. b. House - Replace single pane windows to meet present requirements (50105090/5091). c. Garage - Provide landing at entry door (5076). d. Garage - Provide rails at step at entry door (5076). e. Garage - Provide cover plate missing at power outlets (5150/5073/5078). f Basement - Provide egress window and well in basement floor IRC310.1. g. Basement - Provide fresh air - intake for furnace to meet requirements. h. Basement - Provide hard -wired smoke alarm in floor: MN299F.362. i. Basement - Connect laundry sink waste line to sewer line to meet requirements: Existing to sump pump (5138/5139/5143). j. Basement - Provide and finish basement wall with gypsum board (5138/5142). k. Basement - Replace damaged sump cover (5140). 1. Basement - Provide gypsum wallboard over exposed sprayed insulation at basement windows (5122/5141). m. Basement - Secure power outlet missing at laundry room (5142). n. Basement - Correct sump pipe to discharge to exterior grade (5143/5144). o. Basement - Replace /reinstall removed water softener (5145). p. Basement - Correct stair to meet requirements: Existing stair risers exceed 3/8" riser variant: existing 6.5 "/7.75" and open risers (5118 - 5120/5145/5134). q. Basement - Install rails on stair to meet requirements (5117/5121/5145). r. Basement - Connect domestic water to city main (5123/5132). s. Basement - Provide grille missing from duct (5127). t. Main - Provide guards at sliding door: existing drop greater than 18" (5066). u. Main - Provide base missing at Living room (5181). v. Main - Provide cover plate missing at power outlets (5082/5115). w. Main - Provide floor grille missing at bathroom outlet (5095). x. Main - Provide exhaust fan to vent outside of building to meet requirements (5097). y. Main - Provide GFI in kitchen (5083/5084/5086). z. Main - Provide safety glazing at bay window to meet requirements (5089 - 5091). aa. Main - Provide exhaust fan in bedroom bathroom and vent to exterior of building to meet requirements (5102 - 5105). bb. Main - Finish expose wall at basement stair (5114). cc. Main - Provide hard -wired smoke alarm in all (2) sleeping rooms & hall: MN299F.362. dd. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. ee. Main - Provide code compliant (20 "00 ") attic access. ff. Attic - Insulate attic to meet present requirements. 5. Exterior Construction a. House - Replace single pane windows to meet present requirements (5010/5090/5091). b. House - Provide exterior weather -proof power outlet. c. Garage - Replace damaged garage door to make air /water -tight (5072). Description of Code Deficiencies 1. House - Provide exterior weather -proof power outlet. 2. Garage - Replace damaged garage door to make air /water -tight (5072). 3. Garage - Provide landing at entry door (5076). 4. Garage - Provide rails at step at entry door (5076). 5. Garage - Provide cover plate missing at power outlets (5150/5073/5078). 6. Basement - Provide egress window and well in basement floor IRC310.1. 7. Basement - Provide fresh air - intake for furnace to meet requirements. 8. Basement - Provide hard -wired smoke alarm in floor: MN299F.362. 9. Basement - Connect laundry sink waste line to sewer line to meet requirements: Existing to sump pump (5138/5139/5143). 10. Basement - Provide and finish basement wall with gypsum board (5138/5142). 11. Basement - Replace damaged sump cover (5140). 12. Basement - Provide gypsum wallboard over exposed sprayed insulation at basement windows (5122/5141). 13. Basement - Secure power outlet missing at laundry room (5142). 14. Basement - Correct sump pipe to discharge to exterior grade (5143/5144). 15. Basement - Replace /reinstall removed water softener (5145). 16. Basement - Correct stair to meet requirements, existing exceed 3/8" riser variant: existing 6.5 "/7.75" and open risers (5118- 5120/5145/5134). 17. Basement - Install rails on stair to meet requirements (5117/5121/5145). 18. Basement - Connect domestic water to city main (5123/5132). 19. Basement - Provide grille missing from duct (5127)., 20. Main - Provide guards at sliding door: existing drop greater than 18" (5066). 21. Main - Provide base missing at Living room (5181). 22. Main - Provide cover plate missing at power outlets (5082/5115). 23. Main - Provide floor grille missing at bathroom outlet (5095). 24. Main - Provide exhaust fan to vent outside of building to meet requirements (5097). 25. Main - Provide GFI in kitchen (5083/5084/5086). 26. Main - Provide safety glazing at bay window to meet requirements (5089 - 5091). 27. Main - Provide exhaust fan in bedroom bathroom and vent to exterior of building to meet requirements (5102 - 5105). 28. Main - Finish expose wall at basement stair (5114), 29. Main - Provide hard -wired smoke alarm in all (2) sleeping rooms & hall: MN299F.362. 30. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. 31. Main - Provide code compliant (20 "x30 ") attic access. EnerU Code In addition to the building code deficiencies listed above, the existing building does not comply with the current energy code. These deficiencies are not included in the estimated costs to correct code deficiencies and are not considered in determining whether or not the building is substandard: - House - Replace single pane windows to meet present requirements (5010/5090/5091). - Attic - Insulate attic to meet present requirements. M:\ 08Proj \080629\ADMN\TIF\Building Reports \080629 -Not Substandard Building Report Template -5770 Oakgreen Ave.doex Oak Park Heights, Minnesota Carriage House TIF District CODE /CONDITION DEFICIENCY REPORT April 1, 2009 Map No. & Building Name: #8 / 5800 Oakgreen Avenue Inspection Date(s) & Time(s): Feb. 2, 2009,12:05 p.m. Inspection Type: Interior /Exterior Summary of Deficiencies: It is our professional opinion that this building is Substandard because: - Building Code deficiencies total more than 15% of replacement cost. - Substantial renovation (more than 20% of building replacement value) is required to correct Conditions found. Estimated Replacement Cost: Estimated Cost to Correct Building Code Deficiencies: Percentage of Replacement Cost: Estimated cost to correct all deficiencies exceeds (20 %): $240,959 $240,959 100% $48,192 (Estimated Cost to Correct Building Code Deficiencies is the total of code - related items priced on the `unit' and `assembly' estimate lists. The two are combined for the Total Cost. Other costs identified as `Condition Related' are not priced on those sheets). DESCRIPTION OF CONDITION DEFICIENCIES Minnesota Statutes, Section 469.174, Subdivision 10, states that a building is Structurally Substandard if it contains "defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." A. Defects in Structural Elements 1. Several cracks in basement foundation walls (5023/5027). B. Combination of Deficiencies 1. Essential Utilities and Facilities a. Total replacement cost - Gut building and recon home. Extensive mold infestation; worst on the north -half of 4- season porch; especially on ceiling and walls; spread on to the other portion of home: very heavy mold smell; pose a health haza (5032 - 5034/5036/5038- 5042). • Non - functioning HVAC • Require handrail at front steps (5058) • Missing window pane at Garage (5026) • Unconnected rain leader at rear (5025) • Provide egress window and well in basement floor IRC310.1. • Require handrail at rear steps (5025) • Damaged glazing at rear entry door (5025/5031) • Provide penetrating roof vent from toilet • Provide weather -proof power outlet • Provide GFI in bathroom and kitchen • Provide hard -wired smoke alarm in all (1) sleeping rooms, hall, & basement: MN299F.362. • Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. • Rotted woof fiber siding, especially at garage (5021/5022) • Unsecured abandon underground pipe - possible well /septic system (5054/5024) • Cracked foundation wall (5023/5027) • Missing ceiling light fixture cover (5035/5041) • Damaged exterior light fixture (5057) • Missing basement vent seal at rear (5046) • Missing vent cover at chimney (5048) • Loose wiring at garage (50501505115053) • Insulate exterior walls to meet present requirements • Provide fresh air - intake for furnace to meet requirements • Provide landing on other side of door at stair to meet requirements • Insulate attic to meet present requirements • Provide code compliant (20 "x30 ") attic access • Single pane window glazing - frosted and ice built -up on interior of glazing (5020) • Floor finished removed (5039) • Paint peel and holes on fascia board and siding (5019/5025/5056) 2. Light and Ventilation a. Total replacement cost - Gut building and reconstruct home. Extensive mold infestation; worst on the north -half of 4- season porch; especially on ceiling and walls; spread on to the other portion of home; very heavy mold smell; pose a health hazard (5032- 5034/5036/5038 - 5042). • No combustion/make -up air for furnace. Fire Protection/Adequate Egress a. Total replacement cost - Gut building and reconstruct home. Extensive mold infestation; worst on the north -half of 4- season porch; especially on ceiling and walls; spread on to the other portion of home, very heavy mold smell; pose a health hazard (5032- 5034/5036/5038- 5042). • Smoke detector is required in all sleeping room, hall, and floor: MN299F.50. • CO2 detector is required 10' -0" of any sleeping room: MN299F.50. • GFI is required in all bathroom and kitchen. • Exterior weather -proof power outlet is required. • Provide egress window and well in basement floor IRC310.1. 4. Layout and Condition of Interior Partitions /Materials a. Total replacement cost - Gut building and reconstruct home. Extensive mold infestation; worst on the north -half of 4- season porch; especially on ceiling and walls; spread on to the other portion of home; very heavy mold smell; pose a health hazard (5032 - 5034/5036/5038- 5042). • Interior condition of ceiling, wall partitions, and doors are contaminated with extensive mold. • Provide egress window and well in basement floor IRC310.1. • Provide exterior GFI outlet. • Non - functioning HVAC • Missing window pane at Garage (5026) • Damaged glazing at rear entry door (5025/5031) • Provide penetrating roof vent from toilet • Provide GFI in bathroom and kitchen • Provide hard -wired smoke alarm in all (1) sleeping rooms, hall, & basement: MN299F.362. • Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. • Missing ceiling light fixture cover (5035/5041) • Loose wiring at garage (5050/5051/5053) • Provide fire - suppression system to meet requirements • Insulate exterior walls to meet present requirements • Provide fresh air - intake for furnace to meet requirements • Insulate attic to meet present requirements • Provide code compliant (20 "x30 ") attic access • Single pane window glazing - frosted and ice built -up on interior of glazing (5020) • Floor finished removed (5039) Exterior Construction a. Total replacement cost - Gut building and reconstruct home. Extensive mold infestation; worst on the north -half of 4- season porch; especially on ceiling and walls; spread on to the other portion of home; very heavy mold smell; pose a health hazard (5032 - 5034/5036/5038 - 5042). • Insulate exterior walls to meet present requirements. • Require handrail at front steps (5058) • Missing window pane at Garage (5026) • Unconnected rain leader at rear (5025) • Require handrail at rear steps (5025) • Damaged glazing at rear entry door (5025/5031) • Provide penetrating roof vent from toilet • Provide weather -proof power outlet • Rotted woof fiber siding, especially at garage (5021/5022) • Unsecured abandon underground pipe - possible well /septic system (5054/5024) • Cracked foundation wall (5023/5027) • Damaged exterior light fixture (5057) • Missing basement vent seal at rear (5046) • Missing vent cover at chimney (5048) • Provide fresh air - intake for furnace to meet requirements • Paint peel and holes on fascia board and siding (5019/5025/5056) DESCRIPTION OF CODE DEFICIENCIES 1. Total replacement cost - Gut building and reconstruct home. Extensive mold infestation; worst on the north -half of 4- season porch; especially on ceiling and walls; spread on to the other portion of home; very heavy mold smell; pose a health hazard (5032 - 5034/5036/5038- 5042). • Non- functioning HVAC • Require handrail at front steps (5058) • Missing window pane at Garage (5026) • Unconnected rain leader at rear (5025) • Provide egress window and well in basement floor IRC310.1. • Require handrail at rear steps (5025) • Damaged glazing at rear entry door (5025/5031) • Provide penetrating roof vent from toilet • Provide weather -proof power outlet • Provide GFI in bathroom and kitchen • Provide hard -wired smoke alarm in all (1) sleeping rooms, hall, & basement: MN299F.362. • Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. • Rotted woof fiber siding, especially at garage (5021/5022) • Unsecured abandon underground pipe - possible well /septic system (5054/5024) • Cracked foundation wall (5023/5027) • Missing ceiling light fixture cover (5035/5041) • Damaged exterior light fixture (5057) • Missing basement vent seal at rear (5046) • Missing vent cover at chimney (5048) • Loose wiring at garage (5050/5051/5053) • Insulate exterior walls to meet present requirements • Provide fresh air - intake for furnace to meet requirements • Provide landing on other side of door at stair to meet requirements • Insulate attic to meet present requirements • Provide code compliant (20 "x30 ") attic access • Single pane window glazing - frosted and ice built -up on interior of glazing (5020) • Floor finished removed (5039) • Paint peel and holes on fascia board and siding (5019/5025/5056). ENERGY CODE In addition to the building code deficiencies listed above, the existing building does not comply with the current energy code. These deficiencies are not included in the estimated costs to correct code deficiencies and are not considered in determining whether or not the building is substandard: - House - Insulate exterior walls to meet present requirements. - House - Insulate basement exterior walls to meet present requirements. - Attic - Insulate attic to meet present requirements. M: \08Proj \080629 \ADMMTIF\Building Reports \080629- Substandard Building Report-5806 Oakgreen Ave.doc Oak Park Heights, Minnesota Carriage House TIF District CODE /CONDITION DEFICIENCY REPORT April 1, 2009 Map No. & Building Name: #9 / 5830 Oakgreen Avenue Inspection Date(s) & Time(s): February 4, 2009,11:00 a.m. Inspection Type: Interior /Exterior Summary of Deficiencies: It is our professional opinion that this building is Not Substandard because: - Building Code deficiencies do not total more than 15% of replacement cost. - or - Substantial renovation (more than 20% of building replacement value) is not required to correct Conditions found. Estimated Replacement Cost: $227,713 Estimated Cost to Correct Building Code Deficiencies: $14,418 Percentage of Replacement Cost: 6.33% Estimated cost to correct code and non -code condition deficiencies (20 %): $45,543 (Estimated Cost to Correct Building Code Deficiencies is the total of code - related items priced on the `unit' and `assembly' estimate lists. The two are combined for the Total Cost. Other costs identified as `Condition Related' are not priced on those sheets). Description of Condition Deficiencies Minnesota Statutes, Section 469.174, Subdivision 10, states that a building is Structurally Substandard if it contains "defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." A. Defects in Structural EIements 1. None observed. B. Combination of Deficiencies 1. Essential Utilities and Facilities a. House - Insulate exterior walls to meet present requirements. b. House - Replace single pane windows in basement to meet present requirements (5157/5161/5164). c. House - Replace deteriorated roof shingles (5156 - 5159/5162/5163). d. House - Provide hood over hot vent stack at chimney (5162). e, House - Paint peeling from siding (5162). f. House - Repair damaged step and masonry at exterior entry (5153/5166). g. House - Repair end of gutter (5162). h. Basement - Provide egress window and well in basement floor IRC310.1. i. Basement - Insulate rim joist (5201/5203/5206). j. Basement - Repair water seepage (5202). k. Basement - Remove hanging wires from floor joist (5198/5199/5203 /5204/5206). 1. Basement - Replace wiring with outlet and plug -in to meet requirements (5202). m. Basement - Insulate basement exterior walls to meet present requirements (5194/5152- 5210). n. Basement - Provide fresh air - intake for furnace to meet requirements (5107/5110). o. Basement - Provide hard -wired smoke alarm in floor: MN299F.362. p. Basement - Correct stair treads to meet requirements, existing tread 9 "; riser 7.5" (5212/5213). q. Basement - Install rails on stair to meet requirements (5190/5191). r. Basement - Connect domestic water to city main: Existing well (5202). s. Main - Provide landing on other side of door at attic stair to meet requirements (5176). t. Main - Provide GFI in bathroom (5178/5180). u. Main - Provide hard -wired smoke alarm in all (2) sleeping rooms & hall: MN299F.362. v. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. w. Main - Replace mercury type thermostat (5229). x. Attic - Provide GFI in bathroom (5225 - 5227). y. Attic - Provvide exhaust fan to vent outside of building to meet requirements. z. Attic - Provide hard -wired smoke alarm in all (1) sleeping rooms & hall: MN299F.362. aa. Attic - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. bb. Attic - Install rails on stair to meet requirements (5215). cc. Insulate attic to meet present requirements. 2. Light and Ventilation a. No combustion/make -up air for furnace. Fire Protection/Adequate Egress a. Basement - Provide egress window and well in basement floor IRC310.1. b. Basement - Remove hanging wires from floor joist (5198/5199/5203 /5204/5206). c. Basement - Replace wiring with outlet and plug -in to meet requirements (5202). d. Basement - Provide fresh air- intake for furnace to meet requirements (5107/5110). e. Basement - Provide hard -wired smoke alarm in floor: MN299F.362. f. Provide hard -wired smoke alarm in all sleeping rooms, hall, and floors: MN299F.362. g. Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. Layout and Condition of Interior Partitions/Materials a. Interior condition of wall partitions is good to excellent. b. House - Insulate exterior walls to meet present requirements. c. House - Replace single pane windows in basement to meet present requirements (5157/5161/5164). d. Basement - Provide egress window and well in basement floor IRC310.1. e. Basement - Insulate rim joist (5201/5203/5206). f. Basement - Repair water seepage (5202). g. Basement - Remove hanging wires from floor joist (5198/5199/5203 /5204/5206). h. Basement - Replace wiring with outlet and plug -in to meet requirements (5202). i. Basement - Insulate basement exterior walls to meet present requirements (5194/5152 - 5210). j. Basement - Provide fresh air - intake for furnace to meet requirements (5107/5110). k. Basement - Provide hard -wired smoke alarm in floor: MN299F.362. 1. Basement - Correct stair treads to meet requirements, existing tread 9 "; riser 7.5" (5212/5213). m. Basement - Install rails on stair to meet requirements (5190/5191). n. Basement - Connect domestic water to city main: Existing well (5202). o. Main - Provide landing on other side of door at attic stair to meet requirements (5176). p. Main - Provide GFI in bathroom (5178/5180). q. Main - Provide hard -wired smoke alarm in all (2) sleeping rooms & hall: MN299F.362. r. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. s. Main - Replace mercury type thermostat (5229). t. Attic - Provide GFI in bathroom (5225 - 5227). u. Attic - Provide exhaust fan to vent outside of building to meet requirements. v. Attic - Provide hard -wired smoke alarm in all (1) sleeping rooms & hall: MN299F.362. w. Attic - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. x. Attic - Install rails on stair to meet requirements (5215). y. Insulate attic to meet present requirements 5. Exterior Construction a. House - Replace deteriorated roof shingles (5156 - 5159/5162/5163). b. House - Provide hot vent hood at chimney (5162). c. House - Paint peeling from siding (5162). d. House - Repair damaged step and masonry at exterior entry (5153/5166). e. House - Repair end of gutter (5162). f. Basement - Provide egress window and well in basement floor IRC310.1. g. Basement - Repair water seepage (5202). Description of Code Deficiencies 1. House - Provide hood over hot vent stack at chimney (5162). 2. Basement - Provide egress window and well in basement floor IRC310.1. 3. Basement - Insulate rim joist (5201/5203/5206). 4. Basement - Repair water seepage (5202). 5. Basement - Remove hanging wires from floor joist (5198/5199/5203 /5204/5206). 6. Basement - Replace wiring with outlet and plug -in to meet requirements (5202). 7. Basement - Provide fresh air - intake for furnace to meet requirements (5107/5110). 8. Basement - Provide hard -wired smoke alarm in floor: MN299F.362. 9. Basement - Correct stair treads to meet requirements, existing tread 9 "; riser 7.5" (5212/5213). 10. Basement - Install rails on stair to meet requirements (5190/5191). 11. Main - Provide landing on other side of door at attic stair to meet requirements (5176). 12. Main - Provide GFI in bathroom (5178/5180). 13. Main - Provide hard -wired smoke alarm in all (2) sleeping rooms & hall: MN299F.362. 14. Main - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. 15. Main - Replace mercury type thermostat (5229). 16. Attic - Provide GFI in bathroom (5225 - 5227). 17. Attic - Provide exhaust fan to vent outside of building to meet requirements. 18. Attic - Provide hard -wired smoke alarm in all (1) sleeping rooms & hail: MN299F.362. 19. Attic - Provide hard -wired CO2 detector 10' -0" of any sleeping room: MN299F.50. 20. Attic - Install rails on stair to meet requirements (5215). Energy Code In addition to the building code deficiencies listed above, the existing building does not comply with the current energy code. These deficiencies are not included in the estimated costs to correct code deficiencies and are not considered in determining whether or not the building is substandard: - House - Insulate exterior walls to meet present requirements. - House - Replace single pane windows in basement to meet present requirements (5157/5161/5164). - Basement - Insulate basement exterior walls to meet present requirements (5194/5152 - 5210). - Insulate attic to meet present requirements. 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I �l1 Img_5216jpg img_52171pg T . M�il Img_5221.jpg Img_5222.jpg Img_5226.jpg Img_5227.jpg i Img_5213.jpg Img_5218.jpg i Img_5223.jpg Img_5228.jpg ,r Irng_5214.jpg Img_5219jpg Img_5224.jpg Img_5229.Jpg - -h X Img_5215.jpg img_5220.jpg Img_5225.jpg Page 3 P.O. 119 STILLWATER, MN 55082-0119 651 -430 -3981 ; MIM��� Oak Park Heights City Council City of Oak Park Heights 14168 Oak Park Blvd. N Oak Park Heights, MN 55082 RE: Tax Increment Financing Request and Future Assisted Living Facility Dear Council Members: We recently applied for Tax Increment Financing Assistance (TIF), for our Oakgreen project. In order for us to qualify we have to meet certain requirements under State law. The City has hired an expert (Michael Fischer) in these matters to assure compliance with said law. Before further discussion, I will point out flow our project complies with the City's own Tax Increment Financing Policy. The city states it will consider TIF for projects that achieve three considerations; long term benefits to the community, quality employment opportunities, and addition to the tax base, by providing a high — quality development. Our assisted living facility provides long term benefits to the city because it allows its citizen's to continue to reside locally, at an "affordable" rate in a High -class facility. We intend to provide a facility where a majority of the residents, who cannot afford a Boutwell's or Croixdale, can reside in essentially the same type of complex at a lower price. ar p�i`c�.d -row 51wt.,5'�19�ono,ouo - c1w�... The two buildings we propose will gel rate over two hundred jobs during the construction period and provide 16 filll time and 24 part time e nployment opportunities. The gross development costs on both buildings Will exceed $24,000,000, generously adding to the tax base. We are removing "blighted" homes, creating jobs, strengthening the tax base, and upgrading tlae neighborhood. One law we also must meet is the "but for" test. This essentially says that if it were not for tax increment assistance, the proposed development would not occur. We offer the following reasons we need this assistance: 1. The costs of acquiring the six homes along Oakgreen Avenue were extraordinarily higher compared with a normal market purchase. These costs cannot be recovered from the sale or rental of the units in the new project. 1 The project is using higher quality materials than similar projects in the twin cities area, such as brick and 1lardi -plank exteriors, and Andersen windows and patio doors. 3. Property acquired by us will be contributed to the city for additional right -of way improvements, which also adds costs to the project. 4. Most important, the recent economic events have made financing virtually impossible. The few remaining Lenders require much more equity than earlier. TIF is a form of such equity. We enclose project pro - formas, which demonstrate that without TIF the returns would be sub- standard and the project much more difficult if not impossible to finance. Other reasons for granting our request are: 1. The project is "pay -as- you -go ". The City is NEVER financially liable. 2. Development fits the City's comprehensive plan and further benefits the "streetscape ", namely, complementing the new City Hall and Boutwells' Landing, on the city's last developable parcel. 3. We are removing sub - standard homes, outdated septic syste117s, and old wells. 20 of 21 NOLDE TIF DOCUMENTS March 21, 2009 Page 2 4. We gave the existing homeowners along Oakgreen a "good deal ", which they otherwise never would have received. 5. The project will use limited city services due to its elderly population and existence of private streets. 6. We are only asking for a 15 year vs. 25 year financing, thereby allowing the project to reach the tax rolls earlier. OAKGREEN COMMONS ASSISTED LIVING FACILITY Oakgreen Commons is a high quality project. Soutliview Senior Living LLC will be the owner /manager. They are an experienced operator and have been in business for over 30 years. There is a large demand. for these services due to an aging population, however not everyone. can afford a Boutwell's. This project will have essentially the same services such as: full -time nursing, dining, computer and library rooms, guest room, exercise room, individual patios, Activities Director, beauty salon, community room and aMemory Care Unit. Oakgreen Commons will allow our relatives and friends to remain in their community, and live with dignity at an affordable price. It has come to our attention that Planning and /or Staff is concerned about the height of our building. In our initial negotiations and planning, we determined that allowing our Senior Cooperative building to only be two stories, thus taking advantage of the most desirable parcel (i.e. better views, water, etc.), we could achieve much needed density on the less desirable parcel. This parcel is obviously less desirable due to the power lines and the proximity to the highway and other commercial uses. We need the density to enable the project to operate in the most efficient manner. You cannot provide affordable, high - quality housing in a small building. Our neighbors and future customers do not think the building's height is obtrusive; in fact they would rather look at a nice building instead of the power lines. Precedent exists for our request, since the Boutwell project has taller buildings than we are proposing. in closing we think our request for TIF finding and the design of the Assisted Facility is reasonable. All the parties of this transaction stand to benefit. With your guidance and cooperation we can make this happen. We are excited about our concept. Thanks once again for your support and patience. Please let me know if you need anything else. Sincere Tim Nolde Anchobaypro, Inc. 21 of 21 NOLDE TIF DOCUMENTS P.O. 119 STILLWAM, MN 55082 -0119 651 -430 -3981 Oak Park Heights City Council City of Oak Park Heights 14168 Oak Park Blvd. N Oak Park Heights, MN 55082 RE: Tax Increment Financing Request Dear Council Members: Please allow this correspondence to accompany our letter submitted last week. Our consultants have determined that based upon our current schedule of costs and revenues, (which are likely to change as we further refine our plan); we believe we need $170,920.00 per year for the 15 year term of the District. This includes BOTH projects. This translates into 80% of the net revenue captured during the 15 year term of the District or a present value of $975,000.00 Without this assistance, our projects, as planned, will not be economically viable; therefore our submission is dependant on TIF approval. Please remember that once the District is established, the fifteen year time period begins. Because our Senior Cooperative project relies on pre - sales, we may not start building for awhile, thereby potentially lowering the amount of assistance we applied for. Thanks once again for your support and patience. Please let me know if you need anything else. Sincerel Tim Nolde Anchobaypro, Inc. TIF - House Research s MoftPeftw go House I Senate I Joint Departments and Commissions How TIF Works: Basic Mechanics Fur�ose. • Source. • Mecha_nics • Typical Uses e Example • Full taxes_v._captured_v_alue . Ca�tured__value • Types of Developmerit • Limitations What is the primary purpose of TIF? Pagel of 5 Legislature Home I Links to the World I Help I Advanced Search Bill Search and Status .i Statutes, Laws, and Rules Tax increment financing (TIF) is a method of financing real estate development costs- -i.e.: 1. to encourage developers to construct buildings or other private improvements, or 2. to pay for public improvements, such as streets, sidewalks, sewer and water, and similar improvements. Return to top What is the source of the financing? TIF uses the additional property taxes paid as a result of development in the district to pay for part of the development costs. When a new building is constructed, the market value of the property and its property taxes typically rise. Classic examples would be building a new store on an undeveloped parcel or replacing one or more old buildings with a hew, larger building. In both of these instances, the market value of the property will rise because the improvements add value to the parcel. Return to top How do the mechanics of TIF work? When a TIF district is created, the county auditor certifies the current tax capacity of the properties in the district as the TIF district's "original tax capacity." As the property in the district increases in value, these increases above the original tax capacity are "captured." The law refers to this amount as the district's "captured tax capacity." When a TIF district is created, the county auditor also certifies an "original tax rate." The original tax rate is total property tax rate that applies in the district, i.e., the tax rates imposed by all of the local governments that levy taxes (the city /town, county, school TIF - House Research Page 2 of 5' district, and special taxing districts). The "tax increment or increment" for the district is determined by multiplying the original tax rate by the captured tax capacity. This roughly equals the taxes paid by the captured tax capacity or the increase in taxes that occur as a result of the development. Return What are the typical uses of TIF? TIF traditionally was used as a means of redeveloping urban areas that had old or worn -out buildings in need of replacement or rehabilitation. It was initiated as a tool to help with urban renewal (redeveloping "slums" and "blighted" areas). Its use has spread to other purposes. TIF in Minnesota is generally used to: ® Redevelop areas occupied with substandard buildings Build housing for low- income and moderate - income families . Clean up pollution o Provide general economic development incentives ® Finance public infrastructure, such as streets, sewer, water, sidewalks, and similar improvements. (This is not an explicit purposes of TIF, but Minnesota cities frequently use it for this purpose.) Return tgtop What is an example of how TIF is used? Developer is considering building an office building. The city would like to redevelop a site that consists of three parcels of property (parcels A, B, and C in the FIGURE below). Parcel A is vacant and Parcels B and C contain substandard commercial buildings. Parcel D contains a building in good shape. Construction of the office building will require demolition of the two buildings, new utilities (sewer and water), and closing an alley. The cost of acquiring the property, demolishing the substandard buildings, and putting in the utility and alley improvements is $1.5 million. However, Developer could obtain a comparable site elsewhere in the area for $500,000, including special assessments for utilities. The three parcels have a tax capacity of $24,000 and pay $33,600 a year in property taxes (at a 1.4 rate). But if Developer builds the planned $5 million office building, the tax will rise to $304,000 per year (an increase of $280,000). To induce Developer to build on the site, the city designates a project area and creates a TIF district that includes the development site. The district consists of parcels A, B, C, and D (the shaded area). (Parcel D must be included to permit the site to qualify as a redevelopment district under state law.) The district is illustrated in the FIGURE. The city agrees with Developer to acquire the site, demolish the substandard buildings, and put in the utility improvements and vacate the alley. The city, in turn, sells the site to Developer for its market value of $500,000. This is commonly called "writing down" the cost of the land. The city's $1.5 million cost is 'Written down" to $500,000. (The city could write it down to zero - -in effect, giving the land to Developer.) The computation of the increment is shown in the table. The "project area" is the area in which increment may be spent (e.g., if some of the sewer and water improvements may actually be outside of the district). The extent to which this may be done is restricted by the rules on "pooling." Figure M TIF - House Research Page 3 of 5 Project Area TIF District Original Tax Parcel A (vacant land) Captured Tax Tax Rate Parcel B (substandard bldg) Parcel C (substandard bldg) Parcel D (bldg in good condition) Table Computation of Tax Increment Parcel Original Tax Post Development Captured Tax Tax Rate Capacity Tax Capacity Capacity $18,000 $224,000 F $200,000 f B $ 3,000 �C F $ 3,000 rD $124,0001 $124,000 1 0 To $148,000 $348,000 $200,000 ] Tax Rate 1.4 Tax Increment $280,000 (tax rate x captured tax capacity) ReAm to top Does the increment equal the full taxes paid by the captured value? In Minnesota this is frequently not the case. The original tax rate limits increment to the taxes generated by the tax rates in effect when the district was created. Thus, if the local governments increase their tax rates (e.g., to increase revenues or because of changes in the tax base), the increased rates do not yield more increment. Furthermore, in the Twin Cities metropolitan area and in the taconite tax relief area, increment may be reduce by the fiscal disparities contribution for the district's properties, if the city elects that option. M TIF - House Research Return-19-bop Does TIF captured value increases from inflation or general market effects, as well as those attributable to new improvements? Yes, the mechanics of TIF capture all of the increase in value of the district. Thus, increments may be attributable to: Page 4 of 5 • Construction of improvements • Overall inflation in property values unrelated to development • Market effects that are attributable to the TIF development, if the properties are in the TIF district. (Proximity to a new development, in many cases, will increase the value of surrounding properties.) • Market effects that are unrelated to the TIF development, if the properties are in the TIF districts. (Market values in areas around TIF districts may increase and these increases may be caused by factors, such as shifts in locational values or tastes, other than the TIF development. For example, some researchers have observed the tendency of cities to put TIF districts in areas that are already experiencing rising property values.) Return t0 top What types of developments are not good candidates for TIF assistance? TIF works because developments frequently increase taxable market values. For developments that do not significantly increase taxable market value, TIF will not generate enough revenues to use to help finance the development. This presents problems for: • Developments that do not increase the intensity of land uses or that decrease the intensity of land use. For example, TIF works if the development replaces an apartment building with a large office building or single family homes with large apartment buildings. But it does not work well if one wishes to replace a deteriorated apartment building with single family homes. • Tax - exempt developments (e.g., nonprofits or government buildings). Since these properties are exempt from property taxes, they do not generate increments and, thus, cannot be financed with increments, unless increments are taken from other developments. Retu - to_top What are other limitations to using TIF as a financing method? Development costs must be paid "up- front" or at the very beginning of the development, but the increased property taxes (increments) are not paid until later and, then, only in modest amounts (relative to the development costs) spread over many years. This creates an imbalance or mismatch between costs and revenues. TIF traditionally overcomes this mismatch by issuing bonds. These bonds pay for: 1. Development cost (e.g., site acquisition), 2. Interest on the bonds until increments are received. The need to pay these interest costs on borrowing, pending receipt of increments is commonly referred to as capitalizing interest. The need to capitalize interest means that increment flows must be larger to pay off this component of the cost. Before 1986, bonds were routinely used as part of TIF financing. These bonds were usually tax exempt, providing a lower interest M TIF - House Research Page 5 of 5 rate to the city and the developers. The 1986 tax reform made it more difficult to issue tax - exempt bonds for this purpose. This took away much of the incentive for the local governments to borrow in anticipation of receipt of tax increments. The practice in Minnesota now often does not use bonds, but instead expects developers to pay the costs and to be reimbursed as increments become available. This approach (called "pay -as -you go" financing) shifts the "capitalized interest" costs to the developers. In some cases, the city or development authority absorbs the cost by advancing its money (e.g., from another city or authority fund) until it can be reimbursed with the increments. If the city accepts lower or no interest on these advances, it is using these funds to assist or subsidize the development. Return to top R etu rn_ to_ Pro p e rt�Taxes Return to_House.Research_ home M Renewal and Renovation TIF Districts - House Research t� House I J Senate I Joint Departments and Commissions Renewal and Renovation TIF Districts • Duration Limit • Geographic Areas that. Qualify • Permitted Uses of Increments — -- - ------------ .--- -- ---- ._...- • Data on Use of Districts Duration Limit - Pagel of 3 Legislature Home I Links to the World I Help I Advanced Search Bill Search and Status I Statutes, Laws, and Rules How long can increments be collected from a renewal and renovation district? The law permits renewal and renovation district increments to be collected for 15 years after the receipt of the first increment. Minn. Stat,- 1469.176., subd. 1b(2). Thus, counting the first year of increment, 16 years of increment may be collected. What is the history of changes in the duration limit for renewal and renovation districts? The duration limit for renewal and renovation districts has been changed once since the Tax Increment Financing Act was passed in 1979. The current duration limit was enacted by the 1990 Legislature and applies to requests for certification made after April 30, 1990. 1990 Minn. Laws 2588 -89, ch. 604, art. 7 § 15, codified at Minn._Stat -§ 469_.176., subd. 1b. The original 1979 TIF act allowed areas meeting the criteria for renewal and renovation districts to qualify as redevelopment districts. Thus, these districts had the same 25 -year duration limits that apply to redevelopment districts. 1979 Minn. Laws 840 and 844, ch. 322 §§ 3, 5, codified at Minn. Stat. §§ 273.73, subd. 10(a)(2); 273.75, subd. 1 (1979 Suppl.). Return to.top. Geographic Areas that Qualify Where may a renewal and renovation district be created? An area must meet a "blight test' to qualify for establishment of a renewal and renovation district. This test is similar to that required for redevelopment districts. However, areas that contain lower proportions of structurally substandard buildings qualify. In return, renewal and renovation are subject to a shorter duration limit than redevelopment districts. What areas qualify under the blight test? To qualify under the blight test: 1. 70 percent of the area of the district must be occupied by buildings, streets, utilities, or other improvements. M Renewal and Renovation TIF Districts - House Research Page 2 of 3 2. 20 percent of the buildings must be structurally substandard. 3. 30 percent of the other buildings must have conditions that require clearance or substantial renovation. Minn,.Stat.__§ 469,174, subd. 10a. The statute lists the conditions that satisfy #3: inadequate street layout incompatible uses or land use relationships . overcrowding of buildings on the land . excessive dwelling unit density . obsolete buildings not suitable for improvement or conversion . other identified hazards to the health, safety, and general well -being of the community. As is the case with the blight test for redevelopment districts, application of these criteria requires a good deal of subjective judgment by the authority. How do the blight tests for redevelopment districts compare with those for renewal and renovation districts? This table compares the two blight tests. Blight Criterion Redevelopment Districts Renewal and Renovation Districts Area occupied by buildings and improvements 70% 70% Substandard buildings �— 50% 20% Obsolete Obsolete or incompatible land uses etc. NA � �30 % Return_to top Permitted Uses of Increments What are the permitted uses of renewal and renovation district increments? The spending restrictions applicable to a redevelopment district also apply to renewal and renovation districts: .90 percent of the increments must be spent for blight correction – i.e., fixing the conditions that allowed designation of the district. The statute contains a list of qualifying expenditures: ® Site acquisition of blighted sites or sites requiring pollution cleanup . Acquisition of adjacent parcels to assemble a site large enough to redevelop Cleanup of hazardous substances, pollution, or contaminants . Site preparation, such as clearing the land and installation of utilities, roads, sidewalks ® Providing parking facilities. Minn,_Stat.__ §_469.176., subd. 4j. The law explicitly provides that this is not an exhaustive list. Administrative expenses of the authority that are allocated to these activities also meet the 90 percent test. M Renewal and Renovation TIF Districts - House Research Returnto top Data on Use of Districts How many renewal and renovation districts are active? Page 3 of 3 According to the May 2003 Report_of,the_State_Auditor, there were 20 renewal and renovation districts at the end of calendar year 2001. This is less than 1 percent of all active districts, the smallest category of TIF districts. It represents a decrease of one district over the number reported in 2002. Return to top Return to Property Taxes Return_to }louse Research_home. M NVY 'SIH913H MUVd NVO AVM OJAU NaRHO SU ONIAII 03ISlSSV I dOOO RSflOH 30VIUM tm- 7)NI'O'SdAVROH:)NV Nivid -LnOAVI Il 'b .1 4 6 1 J �: "i'M ANA z m ;ri 4 gs o O O a g Ya y3 5 H26 IA V aLMON . .0 94 A H26 IA V aLMON . .0 jj 1.1 ly NOVA SCOM j Il 4 SCOTIA AV7— NORTH P A li �``', o �I OAKGREEN A VE. . NORTH — �i — < 4�6 8 g F _� s � — —., Erickson, I — F h, Fl-- - MASTER PLAN ANCHOBAYPRO, INC CARRIAGE HOUSE COOP & ASSISTED LIVING 775 GREEN TWIG WAY 1146M.MHT "TKWfW ,M,", OAK PARK HEIGHTS, MIN STII-LWAIER, M N 55882 I ]" 7r� F3 RESOLUTION OF THE PLANNING COMMISSION FINDING THE DEVELOPMENT PROGRAM FOR MUNICIPAL DEVELOPMENT DISTRICT NO. 1 AND THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (RENEWAL AND RENOVATION) DISTRICT NO. 1 -1 WITHIN MUNICIPAL DEVELOPMENT DISTRICT NO. 1 (CARRIAGE HOUSE PROJECT) CONFORMS TO THE CITY PLANS FOR DEVELOPMENT OF THE CITY AS A WHOLE WHEREAS, the City of Oak Park Heights, Minnesota (the "City "), has prepared a Development Plan for Municipal Development District No. 1 (the "Program ") and a Tax Increment Financing Plan (the "Plan ") for Tax Increment Financing (Renewal and Renovation) District No. 1 -1 (Carriage House Project) therein and has submitted the Program and the Plan to the City Planning Commission pursuant to Minnesota Statutes, Sections 469.027 and 469.126, and WHEREAS, the Planning Commission has reviewed said Program and Plan to determine conformity of said Program and Plan to the general plan for the development or redevelopment of the City as a whole, and WHEREAS, the Planning Commission is in agreement with the Program and Plan. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Oak Park Heights that the proposed Program and Plan conform to the general plan for the development or redevelopment of the City as a whole and the Commission recommends the Program and Plan to the City Council of the City for its approval. Adopted by the Planning Commission of the City of Oak Park Heights, this 14th day of May, 2009. 2327356v1