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HomeMy WebLinkAbout1989-11-13 NAC Ltr to OPH F N Northwest Associated Consultants, Inc. A C U R B A N P L A N N I N G • D E S I G N • M A R K E T R E S E A R C H MEMORANDUM TO: Dan Wilson FROM: Curt Gutoske DATE: 13 November 1989 RE: Oak Park Heights - St. Croix Mall TIF FILE NO: 798.02 - 89.09 In research of our files, I have come across the following information: Watson Centers original TIF application (see attached Exhibit. A) lists the legal description for the property involved as, "St.. Croix Mall, Block 2, Lots 1, 2, 3, 4 and 5 ". There are n(> property identification numbers rPINs) given. This dos,-ript.ic n i.9 slightly incorrect as it should read St. Croix Mall PUD 2nd Add i, t_ ion. _ Tf - is no subdivision within Oak Park fiE _i cat l_ eo xtitled "St�. ''-o--x Mall ". If the application was mistaken to rcference the "St. Croix Mall P4_.D ' subdivision ( the first aclditi.oti) , it :.roulci be found there is not a Block 2 within the first plat. Thus, it becomes apparent the application is meant to reference the St. Croix Mall PUD 2nd Addition Plat. Exhibits B and C indicate the legal description and PINs used in the preliminary and final preparation of the St. Croix Mall Tax Tncreitient Financing Plan. Exhibit D illustrates these parcels on tfie Counnty Section Map. The parcels in the TIF Plan correspond to the parcels identified in Watson's TIF application. The 5 July 1989 letter from the Washington County Assessor's Office to Brad Henning references Lot 6, Block 2 (presumed St. Croix Mall PUD Ind Addition), see Exhibit E. The exact reason for this reference is unknown, although it may have been used to determine the current value of the Mall. Lot 6 Block 2 contains the K -Mart expansion that was approved in October 1986 and completed i.n 1987. Our office never received a copy of Brad Henning's letter to determine specifically which parcels wer__- utilized in his request to the Assessor. 4601 Excelsior Blvd. • Suite 410 • Minneapolis, MN 55416 • (612) 925 -9420 • Fax 925 -2721 The 1 November 1989 letter from the Washington County Auditor - Treasurer's Office to LaVonne Wilson (Exhibit F) identifies a second parcel that was not in the original TIF application nor the TIF Plan. This parcel is Lot 10, Block 2 (St. Croix Mall 2nd Addition). The Auditor - Treasurer's letter indicates this parcel was also identified in Mr. Hennings earlier request to the County Auditor. This parcel contains a part of the rear parking lot that was improved with the 1987 K -Mart addition. The 8 November 1989 facsimile transmittal you received from the Auditor- Treasurer's Office references the same parcels listed in the TIF application and TIF Plan. No reference is made to either Lot 6 or 10, Block 2 that was presumably made in Mr. Henning's earlier contact to the Auditor's Office. If you have any further questions regarding this matter or if additional research is needed, please call. CITY OF OAK PARK HEIGHTS partners and limited partners with more than e APPLICATION FOR TAX INCREMENT ` v interest in the limited partnership: [Tf partnership k is not formed set forth as much as possible i concerning potential partners.) 4 General Partnership Stephen M. Watson j Please type Daniel A. Bergeron or print Bradley A. Henning �I I. APPLICANT (g) Name, address and telephone number of Applicant's (a) Business Name, Address, telephone number: legal counsel and accountant: • �I Legal counsel - Loren Knott 340 -2600 Stephen M. Watson Dorsey & Whitney 252 South Plaza Building 2200 First Bank Place East Minneapolis, MN .55416 (612) 544 -7768 Minneapolis, MN 55402 (b) Business Form (corporation, partnership, sole Accountant - Bonnie Sinkel 929 -2580 proprietorship, etc.), state of incorporation or Pilarski, Sinkel & Hankes, Ltd. organization and date of formation: II. PROJECT 5100 Eden Avenue S. (a) Location (state Azee a` &.h the legal Partnership - Minnesota - Not formed at 4/10/39 description of project site): St. Croix Mall (c) Brief description of nature of business, principal Block 2, Lots 1,2,3,4 & 5 products, etc.: Development and management-.6f retail properties. (b) Present ownership of project site. If project site is not currently owned by applicant, describe (d) If project is leased, list prospective lessees, arrangements by which applicant intends to acquire nature of lessee's business, and principal products, or use site: etc.: Applicant has entered into a contingent purchase agreement with current owner. See II(h) • (e) If applicant is corporation, state officers, (c) Describe Project: If Project is a building or directors, stockholders holding more than 5% of the addition to building, specify number of stories, stock of corporation (state name, address and square footage, related parking facilities, etc. If relationship to applicant): [If Corporation is not Project includes equipment, describe equipment. If formed, set forth as much as possible concerning mixed land use, describe project's physical m potential officers, directors, stockholders.) dimensions by type of land. use. (Attach site plan X and building elevations, if available): Site Plan Attached. _= N/A (f) If applicant is general partnership state general (d) Zoning: --4 partners and if limited partnership state general a ' 2 31/2 58th St. No. Osgood Ave. No. to Osman Ave. No. 58th St. No. Osman Ave. No. to end of 31/3 cul -de -sac *As found used in Street Capital Improvement Program, 1987. III. TAX INCREMENT FINANCING DISTRICT PID #k Leqal Description Current Owner 63- 61.40 2 21.50 Lot 1, Block 2. Watson Centers, Inc. St. Croix Mall PUD 2nd Addition 63-6 1402-2200 Lot 2, Block 2 Watson Centers, Inc. St. Croix Mall PUD 2nd Addition 63- 61402 - 2250 Lot 3, Block 2 Watson Centers, Inc. St. Croix Mall PUD 2nd Addition 63 -61402 - 2300 Lot 4, Block 2 Watson Centers, Inc. St. Croix Mall PUD 2nd Addition 63- 61402 -2350 Lot 5, Block 2 St. Croix Mall PUD 2nd Addition The St. Croix Mall District is within the Oak Perk Heights Redevelopment Area. See Exhibit A, TIF District Boundary Map. IV. STATUTORY AUTHORITY AND DISTRICT ELIGIBILITY AS AN ECONOMIC DEVELOPMENT DISTRICT A. Economic Development District The District is an "Economic Development District" pursuant to Minnesota Statutes, Chapter 469.174, Subdivision 12. That section of the Act defines an economic development district as any project not meeting the requirements found in the definition of redevelopment project or housing project, but which the IIRA finds to be in the public interest because: 1. It will result in increased employment in the municipality. 2. It will result in preservation and enhancement of the tax base of the municipality. EXHIBIT B - PRELIMINARY TIF PLAN 8/7/89 3 Ref. No.* Street Segment 01 /1 Oldfield Ave. No. Service Road to 57th' 05/1 Omaha Avenue No. Service Road to Pvmt Chg 06/3 Oren Avenue No. 57th to Upper 56th 32/1 57th Street No. O'Brien to Oldfield 32/2 57th Street No. Oldfield to Oldfield 32/3 57th Street No. Oldfield to Omaha 32/4 57th Street No. Omaha to Oren 33/5 Upper 56th St. No. Oren to Osgood III. TAX INCREMENT FINANCING DISTRICT PID # Legal Description Current Owner 63- 61402 -2150 Lot 1, Block 2 Watson Centers, Inc. St. Croix Mall PUD 2nd Addition 63- 61402 -2200 Lot 2, Block 2 Watson Centers, Inc. St. Croix Mall PUD 2nd Addition 63- 61402 -2250 Lot 3, Block 2 Watson Centers, Inc. St. Croix Mall PUD 2nd Addition 63- 61402 -2300 Lot 4, Block 2 Watson Centers, Inc. St. Croix Mall PUD 2nd Addition 63- 61402 -2350 Lot 5, Block 2 Watson Centers, Inc. St. Croix Mall PUD 2nd Addition The St. Croix Mall District is within the Oak Park Heights Redevelopment Area. See Exhibit A, TIF District Boundary Map. EXHIBIT C - APPROVED TIF PLAN 9/11/89 3 N //2 SEC. 4 T 29 R. 20 N SEC.4 STATE- 19 2 HWY 36 � `- � RADUENZ 4000 7� ,2 a` 2 0 3 ? 4 "ryJ JIB D h o g 3'56 31`..✓i 9 II! ZrT r p 3,52 0 _ 3 eo yy < /ii i I i ti: 222 J5O - a j' •.;i }ia., {!e)J7:::; ;: 57 }::•ri:4'r'•:;: :::•:r:. ::: / - . - - - - 7g -- --- - -- - - -L_ - . `- - 3a09i 3750 I ,, 200 �< .. }..<•::::::.; •:.; ;: ?c 3 7 w Y �. - - -- a s c`r j w�. rrs • 4 J 7 'X 4 ••f: � � t a c^ °a y — 3 9 ^ � Q b r / 0 V 4 4 r 4 :•t FF i7 j "3 8 r•dr l9 r a� ° M to { • zo r , r,v - i7 3450 .,+fir'• K. •I -- e r a..r, rer 2350 - ST. CRO /X LL P. U°D. :j III 5 / ji O ne . 4 � ••moo':• • O ':7 JI � 1 `ne•u� r ry/ � , ':, ::Y:::Y: Ci}; � :••}: ::1 O _ __ ._.. _ — I 58TH s G 59TH ST N 4 6 / T Z r.. C I bt 514!1{ ;•:::;:} • {:;:L {';•; 3 R }•. ;.ti; { •'� w t p °.;»�, New.^ c �J a p F 1 ^ 5 i yr ' 1 co x G A2 IT , N C. L _ R . JNV'fM C d 3 a 1r �o - fAEkkE;s 17 :j A.079 2 't 4 b 5 CK ;Zp ' t, 8 CWT 10, BL - - : eMdIX MALL PUD 2#V 'A N. NG � • IZI 6 s 2 r ro ° ?. s c 2 3 ' 2 W'' ? i R. L M COQ m 21b0 °1 a _11DD .`' ^ `v Q d 5WAG�R BROS. — 3RD o! _ N _ o / cc y;✓ UPPER 56TH ST r o moo... 1 .. Q 1. Za z a S �fII -- 56T� •� '� © '�'• � ' - - -- -- `� ..— - � = - H `�• .. � f - - j� - ' 55TH � I R� ST � ,• y N x `�GTON C J. Scott Renne, MAi, CAE ° \ WASHINGTON COUNTY County Assessor ° / j�� ��� G 2 779.5136 3c l l� ASSESSOR'S OFFICE Dennis Montague, CMA g ' r Assistant County Assessor GOVERNMENT CENTER 779.5137 oorar.r,ueS`' 14900 61ST STREET NORTH, P.O. BOX 6 • STILLWATER, MINNESOTA 55082.0006 6121779.5403 Judith M. Ellis, CMA Fax machine: 612/779.5498 Administrative Technician 779.5465 July 5, 1989 Brad Henning Watson Centers Inc. 252 South Plaza Building 1433 Utica Ave. So. Minneapolis, MN 55416 -1595 Subject: St. Croix Mall Dear Brad, I have reviewed the plans and financial information that you provided regarding the St. Croix Mall. The addition and renovation of the Mall will, when complete, have the following effect on the total valuation: - addition, $4,607,000 - interior and exterior renovation, $400,000 - total, $5,007,000 From looking at your average annual rate of inflation from 1984 to 1988, it appears that you are using a five year (rather than four year) period with compounded interest. In addition, your estimate of the land value on Lot 6, Block 2, is slightly off. Using the 1988 market values, with an adjustment for the K -Mart improvements on Lot 6, Block 2 (land value only for 1988 is $67,200). The total adjusted valuation for 1988 is $3,617,800. The base value for January 2, 1983 is $3,290,700. Calculating the inflation rate using an HP -12C, and using a compounding period of five years from 1983 to 1988, a compounded inflation rate of 1.91% is determined. If you have any further questions, please feel free to call me at 779 -5136. Sincerely, 'f]: sco x-12 J. Scott Renne MAI. Washington County Assessor cc: LaVonne Wilson EXHIBIT E Washington County does not discriminate on the basis of race, color, national origin, sex, religion, age and handicapped status In employment or the provision of services. 0 N CO 3J WASHINGTON COUNTY GOVERNMENT CENTER OFFICE OF AUDITOR-TREASURER `S /flY•PROGPESS• r 14900 61ST STREET NORTH STILLWATER, MINNESOTA 55082 6121779 -5408+ R. H. Stafford Mary Lou Larson T. R. Greeder Auditor- Treasurer Executive Assistant Asst. Auditor - Treasurer Pam Mattila, CPA Gary Poser Nancy McPherson Finance Manager Tax Manager License- Records- Manager November 1, 1989 LaVonne Wilson, Administrator City of Oak Park Heights 14168 57th St N. Stillwater, MN 55082 Dear LaVonne: Enclosed please find certification of your economic tax increment financing (TIF) district for the St. Croix Mall. During the certification process, the county auditor determines the economic adjustment factor. The factor has been determined to be 1.233046. The submitted TIF plan used an adjustment factor of 1.0191 in calculating the projected tax increment. The difference in the actual adjustment factor and the plan's factor is due to a combination of the following: 1. The plan's factor is taken from an inflation factor estimated by the county assessor based on a request from Mr. Brad Henning of Watson Center Inc. 2. The request lists 2 parcels (Lot 6 Block 2, Lot 10 Block 2) which are not in the submitted TIF plan. 3. The parcels in the TIF plan were created in the platting of St. Croix Mall P.U.D. 2nd Addition. In order to calculate the economic adjustment factor, the value for the 5th preceding year must be determined from the original parcel numbers before the St. Croix Mall P.U.D. 2nd Add plat. The request states the current lot and block numbers have been matched with the same land area in 1984. The request lists 3 parcels (61401 -2000, 61401 -2050, 61401 -2450) which in fact are not part of the current lot and block numbers. This results in extra value added to the 5th preceding year which results in a lower inflation factor. 4. The inflation factor was based on market values. The economic factor is to be calculated on tax capacities (formerly known as assessed value). Page 1 EXHIBIT F Washington County does not discriminate on the basis of race, color, national origin, sex, religion, age and handicapped status in employment or the provision of services. I have talked with Bob Voto, Dan Wilson and Brad Henning regarding these differences. Mr. Wilson suggested the possibility of determining an economic factor based on the increase in commercial value over the entire city over the previous 5 years. I discussed this possibility with Jerry Silkey of the Department of Revenue. It is my understanding that adjustments have been made to economic factors when the increase in value was not due to normal economic growth. This would normally happen when the classification of the property had been changed during the previous 5 years. An example would be from Agricultural to a Commercial classification. The increase in tax capacity (assessed value) would then have been partially due to the change in class. In such cases the economic factor has been calculated on the period of time the parcel was classed as commercial. In the St. Croix Mall scenario, the property has been classified as commercial throughout the entire 5 year period. Therefore the increase in value does reflect normal economic growth and an adjustment to the economic factor is not warranted. At this time the only calculation which would change the economic factor would be a change in the 1983 market values as determined by the county assessor and their corresponding tax capacities. At Mr. Henning's request, I have sent him the numbers which were used to calculate the economic factor. If the 1983 market values are changed through discussions between Mr. Henning and the county assessor, the economic factor will be recalculated and certified to you at that time. If you have any questions regarding this matter please feel free to contact me at 779 -5415. Sincerely, ary A Poser, Tax Division Manager For &H. Stafford, Auditor - Treasurer cc: R.H. Stafford Scott Renne Bob Voto Dan Wilson Brad Henning Page 2 EXHIBIT F - (CONT.)