HomeMy WebLinkAboutCity Council Packet 01-12-2010 Special.pdfCITY OF PLYMOUTH
AGENDA
SPECIAL COUNCIL MEETING
JANUARY 12, 2010) 5:30 p.m.
MEDICINE LAKE CONFERENCE ROOM
1. CALL TO ORDER
2. DISCUSSION TOPICS
A. Discuss Modifications of Development Program for Development District
Number 7 and Tax Increment Financing District 7-6 and Redevelopment Plan
for Redevelopment Project Area Number 1 and Tax Increment Financing
District 1-1 (tabled from November 24, 2009)
B. Visit Minneapolis North
3. SET FUTURE STUDY SESSIONS
4. ADJOURN
Special Council Meeting 1 of 1 January 12, 2010
City of Agenda 2 . APlymouthNumber:
Adding Qkelity to Life
To: Laurie Ahrens, City Manager
SPECIAL
COUNCIL MEETING Prepared by: Jim Barnes, Housing Programs Manager
January 12, 2010 Reviewed by: Steve Juetten, Community Development Director
Item: TIF District Management Review and Analysis.
1. ACTION REQUESTED:
Review the updated Management Review and Analysis for the City of Plymouth's and the
Plymouth Housing and Redevelopment Authority's Tax Increment Financing Districts.
2. BACKGROUND:
At the November 24, 2009 Council meeting, the Council directed staff to have Ehlers and
Associates review and update the analysis of all of the City's and HRA's Tax Increment
Financing Districts. Ehlers and City staff have reviewed the report and made the necessary
updates to each district.
We have attached the report for the Council's review and discussion. Representatives from
Ehler's will be in attendance to review the report with the Council. In addition to the Ehler's
report, we have attached an internal spreadsheet that staff uses to track the long range financial
viability of the project.
3. ATTACHMENTS:
Updated Management Review and Analysis of the Tax Increment Financing Districts
Long Range Financial Tracking Spreadsheet
Page 1
Economic Development and Redevelopment
January, 2010
Management Review & Analysis
Tax Increment Financing Districts
City of Plymouth, Minnesota
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EHLERS
LEADERS IN PUBLIC FINANCE
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Minnesota phone 651-697-8500 3060 Centre Pointe Drive
Offices also in Wisconsin and Illinois fax 651-697-8555 Roseville, MN 55113-1122
toll trae 8170-552-1171 Page 2
Table of Contents
ExecutiveSummary ..........................................................................................................................3
Management Review & Analysis -Tax Increment Financing Districts....................................................................................... 3
TIFas an Economic Development Tool..................................................................................................................................... 3
TIFFinancial Plan: History....................................................................................................................................................... 5
Assumptions................................................................................................................................................................................ 5
TIFSummary.............................................................................................................................................................................. 6
Recommendations....................................................................................................................................................................... 7
Summary of Outstanding Non -Pooled Obligations (Estimated as of 12/31/09) ....................................................................... 10
Summary of Uncommitted Balances Through Maximum Life of TIF District........................................................................ 11
Tax Increment Financing Districts......................................................................................................................................... 12
TIF1-1 — Shops at Plymouth Creek..................................................................................................................................... 12
TIF1-2 — Vicksburg Commons............................................................................................................................................ 16
TIF 1-3 — Plymouth Crossroads Station................................................................................................................................ 22
TIF7-4 — Hoyt...................................................................................................................................................................... 26
TIF7-5A — Village at Bassett Creek..................................................................................................................................... 31
TIF7-6 — Berkshire............................................................................................................................................................... 36
TIF7-7 — Stone Creek Village.............................................................................................................................................. 41
DebtService Schedules............................................................................................................... 46
Mapof the TIF Districts................................................................................................................ 48
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 2
Page 3
Executive Summary
Management Review & Analysis -Tax Increment Financing Districts
Revenue from tax increment financing (TIF) districts is a financial asset of the City of Plymouth for the projects which were initially assisted
and for the City as a whole. This revenue will first be used to pay debt service on outstanding bonds and developer financed obligations. A
portion (but not all) of the remaining revenues can be used to participate in other eligible development projects. Ehlers & Associates worked
with City staff to create the following plan for the management of TIF districts and the related obligations.
The management of TIF districts is an ongoing activity. TIF requires administrative oversight for reporting, tracking parcel information,
compliance with use restrictions in the TIF law and the development agreements, and annual income and debt service. The factors that
produce tax increment revenues such as tax rates, assessor's values, and class rates change every year. The state property tax laws have
changed significantly since 1997, including the major reforms enacted in 2001. Despite reductions in revenue due to the reform, the City has
adequate cash flow to pay for all outstanding general obligation (G.O.) tax increment financing bonds. One of the districts for which project
costs were paid through a "pay-as-you-go" may not meet scheduled principal and interest payments, depending upon future values and rates.
The City has no obligation to make up shortfalls for the "pay-as-you-go" notes.
The revenues from the City's districts are largely site specific, meaning that the revenues are restricted by law and/or by contract with the
developers. The TIF must be used primarily to address housing or redevelopment needs for the parcels in the TIF district within a specified
period of time.
The Office of the State Auditor (OSA) has a TIF division which is mandated by state law to collect annual reporting forms and, if necessary,
audit the use of TIF. Such audits could result in a letter to the county attorney or attorney general for enforcement actions. To date the City
has not been audited and its letters received from the OSA regarding inquiries have related to general questions about the reporting forms
themselves rather than concerns about the use of tax increment in the City.
TIF as an Economic Development Tool
Plymouth has utilized TIF for key redevelopment and housing projects. Is the City using the tool too much or not enough? One good way to
measure use of TIF is to compare with similar cities in the use of TIF. A common measure of the use of TIF is the percentage of the gross tax
base is captured in TIF districts. Below is a chart which demonstrates the City of Plymouth's current and projected tax base which is captured
in TIF districts and similar cities' situation.
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 3
Page 4
City of Plymouth
Projected Captured TIF Tax Capacity and Comparison with Other Cities
City of Plymouth
87,446,859 95,479,173 103,482,274 113,032,369 122,238,410 123,048,441 125,931,061 128,876,670 131,886,634 134,524,367 137,214,854 139,959,152
Percentage of Tax Base in TIF
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Captured TIF Tax Capacity 537,046 599,534 692,981 874,733 1,202,261 1,501,641 1,501,641 1,531,674 1,562,307 1,562,307 1,593,553 1,625,425
New Districts 0 0 0
Future Captured TIF Tax Capacity 537,046 599,534 692,981 874,733 1,202,261 1,501,641 1,501,641 1,531,674 1,562,307 1,562,307 1,593,553 1,625,425
Total Tax Capacity (Gross) 87,446,859 95,479,173 103,482,274 113,032,369 122,238,410 123,048,441 125,931,061 128,876,670 131,886,634 134,524,367 137,214,854 139,959,152
Percentage of Tax Base in TIF 0.6% 0.6% 0.7% 0.8% 1.0% 1.2% 1.2% 1.2% 1.2% 1.2% 1.2% 1.2%
Assumes 2% annual increase in tax base and TIF
10,041,598,400 6.63%
Comparable Cities Captured TIF as a % of Tax Base City Tax Rate City Bond Rating
Minneapolis 15.2% 57.05% Aa1/AAA
Brooklyn Park 10.8% 39.65% AA+
Golden Valley 10.6% 45.91% Aa1
Edina 8.4% 22.45% Aaa/AAA
Bloomington 6.5% 34.34% Aaa/AAA
Minnetonka 1.6% 28.87% Aaa
Maple Grove 3.3% 31.26% Aa1
Eden Prairie 2.6% 27.09% Aaa
Plymouth 1.2% 24.37% Aaa
Today, the City is below average today versus similar cities in the use of TIF. Also shown are comparable cities' tax rates and bond ratings.
Although this is a small sample of municipalities, the amount of TIF used by a City does not seem to correlate directly with a City's tax rate
or bond rating. In conversations with rating agencies, we do know that market value growth is an important factor in maintaining Plymouth's
Aaa bond rating. Redevelopment plays an important factor in market value growth. Following is a table which demonstrates the historical
market value growth of the City of Plymouth.
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 4
Page 5
Taxable Percent Change
Tax Year Payable Market Value From Prior Year
2009 10,031,989,800 0.10%
2008 10,041,598,400 6.63%
2007 9,417,202,000 9.07%
2006 8,634,475,000 8.63%
2005 7,948,847,200 11.10%
2004 7,154,421,600 9.82%
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 4
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TIF Financial Plan: History
1. The City has seven existing tax increment financing districts, with the earliest district established in 1995.
2. The 2001 State Legislature enacted significant property tax system changes. Reductions in class rates decreased the taxable (tax
capacity) value of property in all TIF districts from pay 2001 to pay 2002 by over 25%. TIF from District 7-4 and 7-6 were modified to
be able to supplement District 7-5A to fund any potential bond payment shortfalls resulting from the 2001 tax reform.
3. In addition to the tax system changes, the Legislature eliminated the LGA/HACA penalty and the alternative qualifying local
contribution. This is an overall benefit to the City. There is no current penalty or cap in place by the State limiting the use of tax
increment and no general fund dollars are required to supplement TIF.
Assumptions
Before discussing the findings of the current TIF analysis, it is important to understand the assumptions used in making these projections.
1. Cash balances shown for debt service funds are based on estimated amounts for December 31, 2009.
2. Pay 2009 tax increment revenues are based on City reported actual revenue collections. Pay 2010 revenues are based upon taxable
values for pay 2010 from Hennepin County reports, using actual 2009 tax rates.
3. Projected revenues do not account for additional development (except the developments under a development agreement) or inflation
of existing values.
4. For districts with residential homestead property, a portion of the TIF revenue shown is actually received from the State of Minnesota
through market value homestead credit payments. The State payments will not be made with the semi-annual tax increment
collections, but will be paid in October and December.
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 5
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TIF Summary
The following is a brief summary of each TIF district:
TIF 1-3: The county shows this as A election. TIF documents indicate B election. This will be changed to B election for taxes payable 2011.
TIF 1-3: No development obligation incurred yet
TIF 7-4: Duration is based on any pooling that is necessary for TIF 7-5A. Increments returned periodically to the County
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 6
Page 7
TIF 1-1 TIF 1-2 TIF 1-3 TIF 7-4 TIF 7-5A TIF 7-6 TIF 7-7
Shops at Vicksburg Plymouth Hoyt Village at Berkshire Stone Creek
District Plymouth Creek Commons Crossroads Bassett Creek Village
TIF Authority HRA HRA HRA City City City Cit
District Type Redevelopment Qualified Housing Redevelopment Redevelopment Housing Redevelopment Housing
Retail/Senior Vicksburg Plymouth Plymouth
Project Housing Commons Crossroads Station Technology Park
Adopted 11/23/2004 6/13/2006 10/24/2006 8/1/1995 9/2/1998 10/10/2000 5/14/2002
Legal max term 12/31/2031 12/31/2033 12/31/2033 12/31/2022 12/31/2026 12/31/2028 12/31/2028
Anticipated term 12/31/2031 12/31/2033 12/31/2033 TBD 12/31/2023 12/31/2028 12/31/2028
TIF Plan term 12/31/2022 12/31/2033 12/31/2033 12/31/2022 12/31/2023 12/31/2027 12/31/2015
Obligation end date 2023 2016 TBD — TBD-- 2023 2016 2018
First Increment July 2006 July 2007 July 2009 July 1998 July 2001 July 2003 July 2003
2003 Tax
Vicksburg Increment
Commons PAYG 2009 GO Tax Revenue Note to
2005A GO Tax and Vicksburg Increment Continential Property Plymouth Leased
Current Obligations Increment Bonds Interfund Loan Interfund Loan None Refunding Bonds Group PAYGO Housing
Paygo $251,770
Amount outstanding Interfund loan
at 12/31/2009 1,315,000 226,400 138,500 2,490,000 814,660 1,280,878
Pooling for Senior
Pooling for Senior Pooling to 7-5A for Housing Bonds and
Other Uses Housing Bonds deficits pooling to 7-5A
2010 Estimated TIF
Revenue 214,569 93,742 46,031 242,795 143,578 216,220 135,944
Fiscal Disparities
Election B "inside" A "outside" A "outside" B "inside" A "outside" A "outside" A "outside"
Increased property
tax as a result of
fiscal disparities
election N/A 2,464 2,228 N/A 0 21,375 0
Projected ending
2009 fund balance 511,179 21,656 73,725 69,500 7,411 258,176 24,713
County Number 2074 1 2075 2076 2069 1 2071 1 2072 1 2073
TIF 1-3: The county shows this as A election. TIF documents indicate B election. This will be changed to B election for taxes payable 2011.
TIF 1-3: No development obligation incurred yet
TIF 7-4: Duration is based on any pooling that is necessary for TIF 7-5A. Increments returned periodically to the County
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 6
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Recommendations
Budget Modifications
TIF 1-1 Budget Modifications
The Plymouth Housing and Redevelopment Authority (HRA) and the City of Plymouth approved the creation of Redevelopment Project
Area No. 1 and Tax Increment Finance Redevelopment District No. 1-1 in November of 2004 to facilitate road improvements related to the
development of the Shops at Plymouth Creek and to assist with the acquisition of the site for Vicksburg Crossing, one of the HRA's senior
apartment buildings.
The TIF Plan for 1-1 also provides for pooling of a portion of the tax increment received for affordable housing rental projects, which the
HRA and City pledged to help Vicksburg Crossing in the event the rental revenues were insufficient to cover all of the costs associated with
operating the facility.
Although it was always planned that TIF 1-1 would have increment to assist Vicksburg Crossing if needed, there are some modifications that
can be implemented to better ensure the assistance is available and in sufficient amounts.
The modifications that are being proposed include the following:
1. Extend the duration of TIF district 1-1 to the full 26 years. Currently, TIF district 1-1 is anticipated to expire in 2022, which is 16
years from the first receipt of increment. The TIF Plan anticipated the future need to extend the district past the 16 years. This modification
clarifies that intent. The projections below and the chart above show the duration to the statutory maximum.
2. Modify the budget. By extending the life of the district, we will also be modifying the budget that will add additional increment to be
used to assist Vicksburg Crossing or other eligible affordable housing.
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 7
Page 8
3. Clarify the intent to use the 10% pooling for affordable housing. Again this was contemplated in the original TIF Plan. We are
simply clarifying the intent to use the full 10% available under statute to assist with affordable rental housing projects, namely Vicksburg
Crossing.
4. Removal of Parcel from the district. In order to maximize the ability to utilize the 10% of increment for affordable housing staff is
requesting that the parcel that Vicksburg Crossing occupies be removed from TIF district 1-1.
While these modification requests will place the HRA and the City in a better position to assist Vicksburg Crossing, they will not jeopardize
the City's obligation to pay for the TIF bonds, which are outstanding for the road improvements completed in 2004 to assist the project. In
addition, there will be no impact on the current budget for either the City or the HRA.
TIF 7-6 Budget Modifications
TIF 7-6 was originally established to assist with the Continental Properties development. There are additional revenues available above the
pay-as-you-go payments to the developer that can be used for affordable housing purposes. TIF statutes allow for up to 25% of revenues to
be used for redevelopment costs of a parcel outside of the TIF district boundaries. An additional 10% can be used for parcels outside the
TIF district boundaries if the parcel meets affordable housing requirements in state law. It is recommended that 7-6 be modified to allow
TIF to be utilized for the Vicksburg Crossing project or another affordable housing project.
Administrative authority for TIF. The City Council may want to discuss its preferred role in the administration of TIF districts. Currently
both the HRA and the City Council administer different TIF districts.
A Housing and Redevelopment Authority is established pursuant to Minnesota Statutes Sections 469.001 to 469.047. HRA's redevelop
blighted areas and promote affordable housing. The statute gives an HRA the power to construct projects, acquire property, levy taxes and
issue bonds. The HRA may designate a geographic area as a Project Area, in which tax increment districts may be created. The types of TIF
projects for an HRA include redevelopment projects, housing projects and housing development projects. The Plymouth HRA is the TIF
authority for TIF districts 1-1, 1-2 and 1-3, which were created within the Redevelopment Project Area No. 1. The City Council must hold a
public hearing and approve a TIF plan during the establishment of a TIF district which is administered by the HRA. After the District is
established, the HRA can act independently of the City Council in matters relating to TIF as long as the HRA stays within the original
budget and the HRA's authorizing resolution.
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 8
Page 9
The City of Plymouth is the TIF authority for TIF districts 7-4, 7-5A, 7-6 and 7-7. These districts were created within the Municipal
Development District No. 7, which was established in 1988. A Municipal Development District is established pursuant to Minnesota
Statutes Sections 469.124 to 469.134. The City may adopt a development program for the area, acquire land or easements, and/or negotiate
the sale of land or lease of property.
HRA Districts financial status.
District 1-1 does have outstanding G.O. TIF Bonds which should be monitored on an annual basis. At this time, there appears to be
adequate income to meet the debt obligations. For 2010, the projected increment is $214,569 and the annual debt service is $124,518.
District 1-2 is obligated to pay increment according to a development agreement with Vicksburg Commons Limited Partnership. In it, the
HRA agreed to loan $250,000 to the developer, which would be repayable from 50% of the tax increment received from the TIF district.
This district is also obligated to pay an interfund loan, which is repayable through the remaining 50% of increment.
District 1-3 has been authorized to receive a $138,500 interfund loan from the Water Resource Fund. These funds have not been advanced to
the district at this time and the repayment hasn't been included in the projection. If, at some future date, the interfund loan is advanced, the
repayment will be included in the projection.
City Districts financial status.
District 7-4 has paid off its original obligations. Its only remaining obligation is to supplement debt service for TIF district 7-5A if a shortfall
occurs. Pursuant to the TIF modification in December 2001, the amount that 7-4 can contribute is limited to $6.9M. Because the original
obligations were repaid, TIF must either be used to supplement 7-5A or be returned to the County. Annually the City has and should
continue to determine how much is necessary for TIF 7-5A and how much should be returned to Hennepin County for redistribution.
District 7-5A. At the time of the 2001 legislative changes to the property tax system, the City was concerned that the reduced TIF revenues
may be inadequate to cover debt service on the 1998A Bonds. To date, revenues have been sufficient and transfers from District 7-4 have
not been necessary. At the end of 2009, the 1998A Bonds were refinanced to reduce annual debt service payments through lower interest
rates. The savings were approximately $17,000 per year. The district is anticipated to have a surplus of $7,400 at year end 2009.
District 7-6. The City has approximately 35% of the TIF to use for pooling for redevelopment and housing purposes in the City and the
Development District on an annual basis if the budget modifications discussed above are approved.
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 9
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TIF 7-7. Like all housing districts, the City should regularly monitor development agreement obligations and income restrictions.
Summary of Outstanding Non -Pooled Obligations (Estimated as of 12/31/09)
TIF 1 -1 -Shops at Plymouth Creek
2005A GO Tax Increment Bonds 1,315,000
TIF 1-2-Vickburg Commons
Vicksburg Commons Note 243,229
Vicksburg Commons Interfund Loan 234,474
TIF 1 -3 -Plymouth Crossroads
Interfund loan 138,500
TIF 7-4 Hoyt N/A
TIF 7-5A Village at Basset Creek
2009 GO Tax Increment Refunding Bonds 2,565,000
TIF 7-6 Berkshire
Continental Property Group Note 770,362
TIF 7-7 Stone Creek Village
2003 Tax Increment Revenue Note 1,280,878
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 10
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Summary of Uncommitted Balances Through Maximum Life of TIF District
Fund Balance Analysis
Redevelopment Districts
TIF 1 -1 -Shops at Plymouth Creek
TIF 1 -3 -Plymouth Crossroads
TIF 7-4 Hoyt
TIF 7-6 Berkshire
Subtotal Redevelopment
Housing
TIF 1-2-Vickburg Commons
TIF 7-5A Village at Basset Creek
TIF 7-7 Stone Creek Village
Subtotal Housing
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
2,166,007
1,420,075
486
1,386,963
4,973,531
1,815,776
411,079
1,468,735
3,695,590
January, 2010
Page 11
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Tax Increment Financing Districts
TIF 1-1 — Shops at Plymouth Creek
Description:
The Shops at Plymouth Creek is a Redevelopment District established in 2004. The Plymouth Housing and Redevelopment Authority is
responsible for this district. The District is located within the Redevelopment Project Area No. 1, which was established in 2004, which
appears to include all but the northwestern corner of the City. Originally, the district encompassed one 28 acre parcel of land, lot 1, block 1,
Spicer Addition, PID 20-118-22-14-0002 and was established to facilitate the redevelopment of the parcel into a combination of retail and
senior housing.
Adopted: 11/23/2004
Requested Date: 12/21/2004
Certified Date: 04/04/2005
Decertifies: 12/31/2031
Modifications: to be considered on 1/26/2010
Obligation end date: 2023
Parcels:
Original Parcels
o 20-118-22-14-0002
Current Parcels
o 20-118-22-14-0005
o 20-118-22-14-0006
o 20-118-22-14-0007
o 20-118-22-14-0008
o 20-118-22-14-0009
o 20-118-22-14-0010
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 12
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Fiscal Disparities Election:
The City elected to calculate fiscal disparities from inside (B election) the district.
Original and Current Tax Rate:
Original: 97.3490%
Current 2009: 94.3160%
Allowable Uses:
MN Statute 469.176 sub 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax
increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses
include property acquisition, demolition, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and
allowable administrative expenses.
Obligations:
In 2005, the City of Plymouth issued the $1,370,000 GO Tax Increment Bonds of 2005A to finance public improvements in the District. As
of December 31, 2009, $1,315,000 was outstanding on the bonds. The bonds are fully repaid in 2023, or 8 years before the District is
required to expire.
Three Year Rule:
MN Statute 469.176 sub 1 a was repealed in 2005. However, the requirement is still effective for districts which were adopted when the rule
was in place. Thus, the Shops at Plymouth Creek are still required to comply with the three year rule. The three year rule states that, within
three years from certification date, bonds must be issued, the authority has acquired land or has caused public improvements to be
constructed in the district. TIF 1-1 met the requirement when the 2005A GO Tax Increment Bonds were issued in April 2005.
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 13
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Four Year Rule:
MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel
with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. If these activities have not
taken place within the required time, the parcel is `knocked down' from the district, meaning, that no increment may be collected from that
individual parcel for the duration of the district. The law, does, however allow for reinstatement procedures should the required activity later
occur on the parcel. TIF 1-1 Four Year Rule original deadline was April 4, 2009 and by a recent law change for TIF districts in this era was
extended to 2011. This District was certified on April 4, 2005.
Five Year Rule:
MN Statute 469.1763 places limits on the amount and the length of time in which revenues from the TIF district may be used for activities
outside the district. In general, for the TIF 1-1 redevelopment district, at least 80% of tax increment revenues must be used to pay for
qualified costs within the district. This is considered the `in district' percent. Subdivision 3 of this section of the statute further specifies that
within five years, tax increment must actually be paid for activities, bonds issued, contracts entered into in order for revenues to be
considered to have been spent. The original five year deadline is April 2010. This District was certified on April 4, 2005 and therefore, the
new date by which qualifying activities must take place is April 4, 2015 under recent law changes for districts of this era.
Geographic Enlargements:
MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the
certification date. TIF 1-1 may not be enlarged after April of 2010.
Recommendations:
TIF District 1-1 does have outstanding G.O. TIF Bonds which should be monitored annually. The current cash flow projections for the
Shops at Plymouth Creek TIF District appear in the table below.
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 14
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City of Plymouth
Fund Balance Analysis
TIF 1-1 Shops at Plymouth Creek
Redevelopment
City approved: 11123/2004
Cert Request: 12121/2004
Certified: 04104/2005
Decenifies:12131 /2031
Obligation end date: 2023
Funds 427 and 308
Beginning Fund Balance
Revenues
Bond proceeds
Tax increment
Interest
Reimbursements
Transfer In
Total Revenues
Expenditures
Land/building
Site
Public utilities
Social/recreational
Streets/sidewalks
Bond
Principal
Interest
Admin
Paygo
Pdncipal
Interest
Capitalized interest
Bond discount
10% pooling
15% pooling
Transfer out
Total Expenditures
Estimated Ending Balance
Acctd for
In Prior Estimated Projected
End of
District
Projected
Actual Original
Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Budget
347,713 511,179 370,199 401,796 431,447 464,322 495,662 530,617 564,422 597,344 629,636 666,436 702,967 739,481 776,240 813,514 973,898 1,136,688 1,301,920 1,469,630 1,639,856 1,812,635 1,988,006
1,370,000 1,370,000 1,500,000
418,224 267,774 214,569 214,600 214,600 214,600 214,600 214,600 214,600 214,600 214,600 214,600 214,600 214,600 214,600 214,600 214,600 214,600 214,600 214,600 214,600 214,600 214,600 214,600 5,407,167 2,900,000
21,269 5,697 10,224 7,404 8,036 8,629 9,286 9,913 10,612 11,288 11,947 12,593 13,329 14,059 14,790 15,525 16,270 19,478 22,734 26,038 29,393 32,797 36,253 39,760 407,324 168,000
96,797 96,797
0
1,906,290 273,471 224,793 222,004 222,636 223,229 223,886 224,513 225,212 225,888 226,547 227,193 227,929 228,659 229,390 230,125 230,870 234,078 237,334 240,638 243,993 247,397 250,853 254,360 7,281,288 4,568,000
525,000 525,000 525,000
688,448 688,448
3,168 3,168
45,062 45,062
74,316 74,316 665,000
0
10,000 45,000 75,000 75,000 80,000 80,000 85,000 85,000 90,000 95,000 100,000 100,000 105,000 110,000 115,000 120,000 1,370,000 1,500,000
174,227 51,355 49,518 47,137 44,558 41,778 38,806 35,661 32,335 28,726 24,850 20,825 16,647 12,212 7,515 2,550 628,700 1,050,000
26,026 13,650 15,020 15,022 15,022 15,022 15,022 15,022 15,022 15,022 15,022 15,022 15,022 15,022 15,022 15,022 15,022 15,022 15,022 15,022 15,022 15,022 15,022 15,022 370,158 145,000
0
0
0
0 250,000
12,330 12,330
93,776 22,200 22,264 22,323 22,389 22,451 22,521 22,589 22,655 22,719 22,793 22,866 22,939 23,012 23,087 23,408 23,733 24,064 24,399 24,740 25,085 25,436 581,449
132,459 31,047 31,142 31,231 31,330 31,424 31,529 31,630 31,729 31,826 31,936 32,046 32,155 32,265 32,377 32,858 33,347 33,842 34,346 34,856 35,375 35,901 816,650
0 433,000
1,558,577 110,005 365,773 190,407 192,986 190,354 192,546 189,558 191,407 192,967 194,255 190,392 191,398 192,146 192,631 192,850 70,486 71,288 72,102 72,928 73,767 74,618 75,482 76,359 5,115,281 4,568,000
347,713 511,179 370,199 401,796 431,447 464,322 495,662 530,617 564,422 597,344 629,636 666,436 702,967 739,481 776,240 813,514 973,898 1,136,688 1,301,920 1,469,630 1,639,856 1,812,635 1,988,006 2,166,007 2,166,007
10% pooling for non redevelopment costs within the district
15% pooling for qualified costs outside the district, after deducting administrative costs
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 15
Page 16
TIF 1-2 — Vicksburg Commons
Description:
Vicksburg Commons is a Qualified Housing District established in 2006. The Plymouth Housing and Redevelopment Authority is
responsible for this district. The District is located within the Redevelopment Project Area No. 1, which was established in 2004, which
appears to include all but the northwestern corner of the City. Originally, the district encompassed a 19.53 acre parcel of land and was
established to facilitate the development of a 50 unit town home project.
Adopted: 06/13/2006
Requested Date: 06/29/2006
Certified Date: 07/17/2006
Decertifies: 12/31/2033
Obligation end date: 2016.
Parcels:
Original Parcels
o 04-118-22-22-0001
Current Parcels
0 04-118-22-22-0005
0 04-118-22-22-0007
0 04-118-22-22-0132
0 04-118-22-22-0133
Fiscal Disparities Election:
The City elected to calculate fiscal disparities from outside (A election) the district. This election can be changed once through a resolution
of the City. The election may only be changed from A (outside) to B (inside).
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 16
Page 17
Original and Current Tax Rate:
Original: 93.6530%
Current 2009: 92.8270%
Allowable Uses:
MN Statute 469.176 sub 4d specifies the activities on which tax increment from a housing district may be spent. In general, tax increment
must be spent solely to finance the cost of the housing project. Allowable uses include public improvements that are directly related to the
housing project and allowable administrative expenses.
Obligations:
In October of 2006, the HRA entered into a development agreement with Vicksburg Commons Limited Partnership. In it, the HRA agreed
to loan $250,000 to the developer, which would be repayable from 50% of the tax increment received from the TIF district. In addition, the
HRA agreed to reimburse the developer for public improvement costs and issued a Tax Increment Note in the amount of $250,000, payable
from the remaining 50% of tax increment revenues at 6% interest from August 1, 2008 through February 1, 2034.
Other Development Agreement Compliance:
The development agreement contains specific requirements concerning income restrictions. The developer agreed to comply with income
and rent requirements for the rental units. The City should monitor that the developer has submitted by February 1 of each year the
Compliance Certificate related to this restriction. The developer also agreed to a minimum assessment value of the project of $2,643,000 by
January 2, 2007 and $6,835,000 by January 2, 2008. The pay 2010 market value of the district is $10,120,800.
Four Year Rule:
MN Statute 469.176 sub 6 requires that within four years from certification date, certain activities must have taken place on each parcel
with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. If these activities have not
taken place within the required time, the parcel is `knocked down' from the district, meaning, that no increment may be collected from that
individual parcel for the duration of the district. The law, does, however allow for reinstatement procedures should the required activity later
Management Review & Analysis - Tax Increment Financing Districts January, 20100Plymouth, Minnesota Page 17
Page 18
occur on the parcel. TIF 1-2 Four Year Rule deadline is July 17, 2010. This District was certified in July 2006, and therefore, according to
recent changes in state laws, the new date by which qualifying activities must take place on or adjacent to any parcel in the District is July
of 2012.
Five Year Rule:
MN Statute 469.1763 places limits on the amount and the length of time in which revenues from the TIF district may be used for activities
outside the district. In general, for the TIF 1-2 redevelopment district, at least 80% of tax increment revenues must be used to pay for
qualified costs within the district. This is considered the `in district' percent. Subdivision 3 of this section of the statute further specifies that
within five years, tax increment must actually be paid for activities, bonds issued, contracts entered into in order for revenues to be
considered to have been spent. Subsequent State Legislatures have broadened the ability to use tax increment from a housing district for
housing purposes, notwithstanding this provision. The original five year deadline is July 17, 2011. This district qualifies for an extension of
the five year rule to July of 2016.
Geographic Enlargements:
MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the
certification date. TIF 1-2 may not be enlarged after July of 2011.
Recommendations:
The cashflow is presented as follows:
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 18
Page 19
City of Plymouth
Fund Balance Analysis
TIF 1.2 Vicksburg Commons
Qualified Housing
City approved: 611312006
Cert Request: 0612912006
Cenif ed:0711712006
Decertifies: 1213112033
Obligation end date: TBD
Fund 428
Beginning Fund Balance
Revenues
Bond proceeds
Tax increment
Interest
Transfer In
Total Revenues
Expenditures
Landlbuilding
site
Loan
Principal
Interest
Admin
Paygo
Principal
Interest
Capitalized interest
Other project area improvements
Transfer out
Total Expenditures
Estimated Ending Balance
Acctd for
In Pdor Estimated Protected
End of
District
Projected
Actual Original
Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Budget
8,218) 21,656) 13,652) 964 535) 1,736 2,879 2,799 46,758 139,519 229,451 321,181 414,745 510,181 607,526 706,817 808,095 911,398 1,016,767 1,124,243 1,233,869 1,345,687 1,459,742 1,576,078 1,694,740
0
24,828 71,771 93,742 93,700 93,700 93,700 93,700 93,700 93,700 93,700 93,700 93,700 93,700 93,700 93,700 93,700 93,700 93,700 93,700 93,700 93,700 93,700 93,700 93,700 93,700 93,700 2,345,441 1,360,000
662) 10 433) 273) 19 11) 35 58 56 935 2,790 4,589 6,424 8,295 10,204 12,151 14,136 16,162 18,228 20,335 22,485 24,677 26,914 29,195 31,522 33,895 281,735 20,000
0
24,166 71,781 93,309 93,427 93,719 93,689 93,735 93,758 93,756 94,635 96,490 98,289 100,124 101,995 103,904 105,851 107,836 109,862 111,928 114,035 116,185 118,377 120,614 122,895 125,222 127,595 2,627,176 1,380,000
0 300,000
0 200,000
0
25;977 27,989 29,674 31,482 38,154 40,478 42,943 32,755 0 269,451
7,862 16,410 14,195 12,491 10,683 8,696 6,372 3,907 1,292 0) 81,908
16,660 450 937 937 937 1,874 1,874 1,874 1,874 1,874 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 134,235 68,000
0
26,222 28,004 29,690 47,016 39,117 41,499 44,026 13,876 0) 269,451 500,000
7,862 16,161 14,180 6,018 5,101 3,577 2,369 1,086 0 0 56,354 741,579
0 70,421
0
0
32,384 85,219 85,305 78,810 95,218 91,418 92,592 93,837 49,797 1,874 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 6,559 811,400 1,880,000
8,218) 21,656) 13,652) 964 535) 1,736 2,879 2,799 L8,758 139,519 229,451 321,181 414,745 510,181 607,526 706,817 808,095 911,398 1,016,767 1,124,243 1,233,869 1,345,687 1,459,742 1,576,078 1,694,740 1,815,776 1,815,776
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 19
Page 20
City of Plymouth
Principal Ledger - Vicksburg Commons
Maximum amount
Date
250,000.00
Interest Due
Total Tax
Increment
Available
Tax Increment
Available at
50.00%
Interest Rate
Total Payments
6.00%
Note Balance
250,000.00
10/31/2006 250,000.00
2/1/2007 3,780.82 253,780.82
8/1/2007 7,613.42 261,394.25
2/1/2008 7,841.83 269,236.07
8/1/2008 8,077.08 7,862.00 7,862.00 269,451.16
2/1/2009 8,083.53 8,291.88 16,153.88 269,242.81
8/1/2009 8,077.28 34,091.00 50,244.88 243,229.10
2/1/2010 7,296.87 42,183.90 21,091.95 71,336.83 229,434.02
8/1/2010 6,883.02 42,183.90 21,091.95 92,428.78 215,225.09
2/1/2011 6,456.75 42,165.00 21,082.50 113,511.28 200,599.34
8/1/2011 6,017.98 42,165.00 21,082.50 134,593.78 185,534.82
2/1/2012 5,566.04 42,165.00 21,082.50 155,676.28 170,018.37
8/1/2012 5,100.55 42,165.00 36,599.99 192,276.27 138,518.93
2/1/2013 4,155.57 46,850.00 23,425.00 215,701.27 119,249.49
8/1/2013 3,577.48 46,850.00 23,425.00 239,126.27 99,401.98
2/1/2014 2,982.06 46,850.00 23,425.00 262,551.27 78,959.04
8/1/2014 2,368.77 46,850.00 23,425.00 285,976.27 57,902.81
2/1/2015 1,737.08 46,850.00 23,425.00 309,401.27 36,214.89
8/1/2015 1,086.45 46,850.00 23,425.00 332,826.27 13,876.34
2/1/2016 416.29 28,585.26 14,292.63 347,118.90 0.00
8/11/2016 0.00 347,118.90 0.00
97,118.91 562, 713.06 347,118.90
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 20
Page 21
City of Plymouth
Internal Loan from Reserve Fund
Principal Ledger - Vicksburg Commons
Maximum amount
Date
250,000.00
Interest Due
Total Tax
Increment
Available
Tax Increment
Available at
50.00%
Interest Rate
Total Payments
6.00%
Note Balance
250,000.00
10/31/2006 250,000.00
2/1/2007 3,780.82 253,780.82
8/1/2007 7,613.42 261,394.25
2/1/2008 7,841.83 269,236.07
8/1/2008 8,077.08 7,862.00 7,862.00 269,451.16
2/1/2009 8,083.53 7,862.00 277,534.69
8/1/2009 8,326.04 42,386.24 50,248.24 243,474.49
2/1/2010 7,304.23 42,183.90 21,091.95 71,340.19 229,686.78
8/1/2010 6,890.60 42,183.90 21,091.95 92,432.14 215,485.43
2/1/2011 6,464.56 42,165.00 21,082.50 113,514.64 200,867.49
8/1/2011 6,026.02 42,165.00 21,082.50 134,597.14 185,811.02
2/1/2012 5,574.33 42,165.00 21,082.50 155,679.64 170,302.85
8/1/2012 5,109.09 42,165.00 21,082.50 176,762.14 154,329.43
2/1/2013 4,629.88 46,850.00 23,425.00 200,187.14 135,534.32
8/1/2013 4,066.03 46,850.00 23,425.00 223,612.14 116,175.35
2/1/2014 3,485.26 46,850.00 23,425.00 247,037.14 96,235.61
8/1/2014 2,887.07 46,850.00 23,425.00 270,462.14 75,697.67
2/1/2015 2,270.93 46,850.00 23,425.00 293,887.14 54,543.60
8/1/2015 1,636.31 46,850.00 23,425.00 317,312.14 32,754.91
2/1/2016 982.65 46,850.00 23,425.00 340,737.14 10,312.56
8/1/2016 309.38 21,243.88 10,621.94 351,359.08 0.00)
101,359.07 602,221.68 351,359.08
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 21
Page 22
TIF 1-3 — Plymouth Crossroads Station
Description:
Plymouth Crossroads is a Redevelopment District established in 2006. The Plymouth Housing and Redevelopment Authority is responsible
for this district. The District is located within the Redevelopment Project Area No. 1, which was established in 2004, which appears to
include all but the northwestern corner of the City. Originally, the district encompassed 18.26 acres on 6 parcels of land and was established
to facilitate the redevelopment of the Plymouth Crossroads Station.
Adopted: 10/24/2006
Requested Date: 02/01/2007
Certified Date: 05/10/2007
Decertifies: 12/31/2033
Obligation end date: TBD
Parcels:
Original Parcels
0 36 -118 -22 -23 -0006 -Southeast quarter of NE quarter, Section 35, Town 118, Range 22
0 38 -118 -22 -23 -0006 -Southwest quarter of NW quarter, Section 36, Town 118, Range 22
0 36-118-22-23-0007
0 36-118-22-23-0008
0 35-118-22-14-0026
o Vacated Highway R/W, State Trunk Highway No. 55
Current Parcels
0 35-118-22-14-0026
0 36-118-22-23-0006
0 36-118-22-23-0007
0 36-118-22-23-0008
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 22
Page 23
Fiscal Disparities Election:
County reports show the district as having an A election. TIF Plan documents indicate B election. Staff has reviewed this and the County
agrees that it should be B election. The County will change this for taxes payable 2011.
Original and Current Tax Rate:
Original: 90.5330%
Current 2009: 93.3620%
Allowable Uses:
MN Statute 469.176 sub 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax
increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses
include property acquisition, demolition, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and
allowable administrative expenses.
Obligations:
Originally, the City signed a development agreement with Dove Capital I, LLC on May 1, 2007. Dove Capital, however, has gone out of
business and the property has reverted to the bank. There is currently no executed note. The District is obligated to pay an interfund loan of
138,500 to the Water Resource Fund. The interfund loan was approved in order to finance improvements to a culvert that goes under
Highway 55. The interfund loan has not been advanced at year end 2009.
Other Development Agreement Compliance:
The developer agreed to redevelop an 18 acre site located in the City to include four retail buildings, restaurant(s), office building and other
related public improvements. The developer also entered into the Voluntary Investigation and Cleanup and Petroleum Brownfields Program
with the Minnesota Pollution Control Agency because of known contamination factors on the site. The project subsequently fell into
foreclosure and is currently being marketed by the bank.
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 23
Page 24
Four Year Rule:
MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel
with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. If these activities have not
taken place within the required time, the parcel is `knocked down' from the district, meaning, that no increment may be collected from that
individual parcel for the duration of the district. The law, does, however allow for reinstatement procedures should the required activity later
occur on the parcel. The TIF 1-3 original Four Year Rule deadline is May 2011. This district qualifies for extension of the four year rule to
May 2013. The extension has been automatically granted by legislative action and no specific resolution is necessary.
Five Year Rule:
MN Statute 469.1763 places limits on the amount and the length of time in which revenues from the TIF district may be used for activities
outside the district. In general, for the TIF 1-3 redevelopment district, at least 80% of tax increment revenues must be used to pay for
qualified costs within the district. This is considered the `in district' percent. Subdivision 3 of this section of the statute further specifies that
within five years, tax increment must actually be paid for activities, bonds issued, contracts entered into in order for revenues to be
considered to have been spent. The original five year deadline is May 2012. This district qualifies for extension to May of 2017. The
extension has been automatically granted by legislative action and no specific resolution is necessary.
Geographic Enlargements:
MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the
certification date. TIF 1-3 may not be enlarged after approximately May of 2012.
Recommendations:
The cashflow is as follows
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 24
Page 25
City of Plymouth
Fund Balance Analysis
TIF 1-3 Plymouth Crossroads
Redevelopment
City approved: 1012412006
Cert Request: 2101/20017
Certified: 511012007
Decer6fes:1213113033
Obligation end date: TBD End of
Fund 429 District
Acrid for Projected
In Prior Estimated Projected Actual Original
Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Budget
Beginning Fund Balance 36,336) 73,725 118,008 163,148 209,191 256,155 304,058 352,920 402,758 453,593 505,445 558,334 612,281 667,306 723,432 780,681 839,075 898,636 959,389 1,021,357 1,084,564 1,149,035 1,214,796 1,281,872 1,350,289
Revenues
Bond proceeds 0
Tax increment 16,106 131,011 46,031 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 46,000 1,251,148 4,595,918
Interest 675) 433 1,475 2,360 3,263 4,184 5,123 6,081 7,058 8,055 9,072 10,109 11,167 12,246 13,346 14,469 15,614 16,781 17,973 19,188 20,427 21,691 22,981 24,296 25,637 27,006 319,359 35,714
Transfer In 0
Total Revenues 15,431 131,444 47,506 48,360 49,263 50,184 51,123 52,081 53,058 54,055 55,072 56,109 57,167 58,246 59,346 60,469 61,614 62,781 63,973 65,188 66,427 67,691 68,981 70,296 71,637 73,006 1,570,507 4,631,632
Expenditures
Landlbuilding 0
Site 32,880 15,500 48,380 849,491
Public utilities 0 873,222
Loan 0
Principal 0
Interest 0
Admin 18,887 5,883 3,222 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 102,052 459,593
Paygo 0
Principal 0
Interest 0 2,188,103
Capital¢ed interest 0 261,223
Other project area improvements 0
Transfer out 0
Total Expenditures 51,767 21,383 3,222 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220 150,432 4,631,632
EstlmaledEnding Balance (36,336) 73,725 118,008 163,148 209,191 256,155 304,058 352,920 402,758 453,593 505,445 558,334 612,281 667,306 723,432 780,681 839,075 898,636 959,389 1,021,357 1,084,564 1,149,035 1,214,796 1,281,872 1,350,289 1,420,075 1,420,075
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 25
Page 26
TIF 7-4 — Hoyt
Description:
The Hoyt TIF District is a Redevelopment District established in 1995. The City of Plymouth is responsible for this district. The District is
located within the Municipal Development District No. 7, which appears to include all but the northwestern edge of the City. Originally, the
district encompassed one parcel of land and was established to facilitate the construction of public infrastructure improvements in the
Plymouth Technology Park.
Adopted: 08/01/1995
Requested Date: 08/17/1995
Certified Date: 03/07/1996
Decertifies: 12/31/2022
Obligation end date: To be determined. This district is currently allowed to pool to TIF 7-5A for bond payments and may need to remain
open until 2022 in order to provide funds for the bonds, which are paid in 2023.
Modifications: December 2, 1998
May 9, 2000
December 18, 2001 -This modification allowed for pooling for anticipated deficits in the 7-5A TIF District.
Parcels:
Original Parcel:
0 10-118-22-23-0004
0 10-118-22-24-0010
Current Parcels:
0 10-118-22-23-0006
0 10-118-22-23-0008
0 10-118-22-23-0009
0 10-118-22-23-0010
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 26
Page 27
0 10-118-22-24-0011
0 10-118-22-24-0012
Fiscal Disparities Election:
The City elected to calculate fiscal disparities from inside (B election) the district.
Original and Current Tax Rate:
Original: 123.1040%
Current 2009: 99.6820%
Allowable Uses:
MN Statute 469.176 sub 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax
increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses
include property acquisition, demolition, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and
allowable administrative expenses.
Obligations:
634,500 Taxable Limited Tax Increment Revenue Note dated August 1, 1995. This note was issued in conjunction with the
Development Agreement with Hoyt Properties. The term of the note was from December 31, 1998 to December 31, 2000 at 8%
interest. 90% of tax increment received from the development property was pledged to pay the debt. A subsequent amendment to the
Development Agreement was approved in December 1998, which assigned the project to Plymouth Partners II and reduced the total
debt to $500,000. This note is no longer outstanding.
250,000 Taxable Limited Tax Increment Revenue Note dated December 17, 1998 payable to State Bank of Independence, WI at
6.5% interest payable with 95% of tax increment revenues received from the development property. The note was fully paid as of
July 1, 2001.
250,000 Taxable Limited Tax Increment Revenue Note dated December 17, 1998 payable to Capital Bank, MN at 6.5% interest
payable with 95% of tax increment revenues received from the development property. The note was fully paid as of July 1, 2001.
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 27
Page 28
Three Year Rule:
The three year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has
caused public improvements to be constructed in the district. TIF 7-4 met the requirement when the Development Agreement with Hoyt
Properties was signed on August 1, 1995 and a Tax Increment Revenue Note was issued.
Four Year Rule:
MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel
with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. TIF 7-4 Four Year Rule was
satisfied as of March 7, 2000.
Five Year Rule:
At least 80% of tax increment revenues generated within TIF 7-4 must be used to pay for qualified costs within the district. The Five Year
rule timeline has passed for TIF 7-4, which was March 7, 2001.
Geographic Enlargements:
MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the
certification date. This timeline has passed for TIF 7-4, which was March 7, 2001.
Cashflow Assumptions:
The cashflow was constructed using the actual estimated ending balances at December 31, 2009. Future increments were projected using the
anticipated 2010 revenues, which were calculated using the pay 2010 tax capacity and payable 2009 rates. The only allowable use for
remaining increments is for pooling for deficits, which was allowed through a modification dated December 18, 2001. The City has
returned excess increment to Hennepin County on a yearly basis, after analyzing debt service needs in the 7-5A TIF District. The cashflow
does assume increment return to Hennepin County.
Management Review & Analysis - Tax Increment Financing Districts January, 20100Plymouth, Minnesota Page 28
Page 29
Recommendations:
TIF district 7-4 has paid off its original obligations. Its only remaining obligation is to supplement debt service for TIF district 7-5A when a
shortfall occurs. To date, no transfers have occurred. Pursuant to the TIF modification in December of 2001, the amount that 7-4 can
contribute is limited to $6,900,000. Because the original obligations were repaid, TIF must either be used to supplement 7-5A or be
returned to the County. Annually the City has and should continue to determine how much is necessary for TIF 7-5A and how much should
be returned to Hennepin County for redistribution.
District 7-5A should be monitored for deficits and increments from TIF 7-4 should be transferred.
The current cash flow projections for the Hoyt Redevelopment TIF District appear in the table below
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 29
Page 30
Fund Balance Analysis
TIF 7-4 Hoyt
Redevelopment
City approved: 08/01/1995
Cert Request: 08/17/1995
Certified: 03/07/1996
Decertifies: 12/31/2022
Obligation end date: 2023 "
Fund 422
Beginning Fund Balance
Revenues
Bond proceeds
Tax increment
Interest
Transfer In
Total Revenues
Expenditures
Land/building
Site
Loan
Principal
Interest
Admin
Paygo
Principal
Interest
Return to county
Bond discount
Other project area improvements
Transfer out -pool to 7-5A
Total Expenditures
Estimated Ending Balance
Acctd for
In Prior Estimated Projected
End of
District
Projected Cumulative
Actual Modifiied
Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Budget
597,208 69,500 46,689 23,427 34,700 3,198 8,066 2,031 1,876 2,717 3,575 2,951 13,814 90,894 158,516
0
2,843,511 261,433 242,795 242,800 242,800 242,800 242,800 242,800 242,800 242,800 242,800 242,800 242,800 242,800 242,800 6,261,339 7,661,000
253,105 11,456 1,390 934 469 694 64 161 41 38 54 72 59 276 1,818 3,170 273,800
0
3,096,616 272,889 244,185 243,734 243,269 243,494 242,864 242,961 242,841 242,838 242,854 242,872 242,859 243,076 244,618 3,170 6,535,139 7,661,000
0
634,500 634,500 634,500
0
0
69,396 69,396 56,000
26,989 597 16,996 16,996 16,996 16,996 16,996 16,996 16,996 16,996 16,996 16,996 16,996 16,996 16,996 0 248,534 70,500
0
0
0
1,768,523 800,000 250,000 250,000 200,000 190,000 140,000 140,000 130,000 110,000 110,000 105,000 80,000 4,273,523
0
0
15,000 68,000 81,000 92,000 96,000 115,000 115,000 121,500 135,000 149,000 160,000 161,200 1,308,700 6,900,000
2,499,408 800,597 266,996 266,996 231,996 274,996 237,996 248,996 242,996 241,996 241,996 243,496 231,996 165,996 176,996 161,200 6,534,653 7,661,000
597,208 69,500 46,689 23,427 34,700 3,198 8,066 2,031 1,876 2,717 3,575 2,951 13,814 90,894 158,516 486 486
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 30
Page 31
TIF 7-5A — Village at Bassett Creek
Description:
The Village at Bassett Creek Housing District established in 1998. The City of Plymouth is responsible for this district. The District is
located within the Municipal Development District No. 7, which appears to include all but the northwestern edge of the City. Originally, the
district encompassed three parcels of land and was established to facilitate the construction of owner occupied town homes and senior rental
housing in the Village at Bassett Creek project.
Adopted: 09/02/1998
Requested Date: 11/09/1998
Certified Date: 04/19/1999
Decertifies 12/31/2026
Obligation end date: 2023
Modifications: December 18, 2001
Parcels:
Original Parcels:
0 36-118-22-24-0003
0 36-118-22-24-0004
0 36-118-22-24-0005
Current Parcels:
36-118-22-24-0011 36-118-22-24-0029 36-118-22-24-0047 36-118-22-24-0065 36-118-22-24-0083
36-118-22-24-0012 36-118-22-24-0030 36-118-22-24-0048 36-118-22-24-0066 36-118-22-24-0084
36-118-22-24-0013 36-118-22-24-0031 36-118-22-24-0049 36-118-22-24-0067 36-118-22-24-0085
36-118-22-24-0014 36-118-22-24-0032 36-118-22-24-0050 36-118-22-24-0068 36-118-22-24-0086
36-118-22-24-0015 36-118-22-24-0033 36-118-22-24-0051 36-118-22-24-0069 36-118-22-24-0087
36-118-22-24-0016 36-118-22-24-0034 36-118-22-24-0052 36-118-22-24-0070 36-118-22-24-0088
36-118-22-24-0017 36-118-22-24-0035 36-118-22-24-0053 36-118-22-24-0071
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 31
Page 32
36-118-22-24-0018 36-118-22-24-0036 36-118-22-24-0054 36-118-22-24-0072
36-118-22-24-0019 36-118-22-24-0037 36-118-22-24-0055 36-118-22-24-0073
36-118-22-24-0020 36-118-22-24-0038 36-118-22-24-0056 36-118-22-24-0074
36-118-22-24-0021 36-118-22-24-0039 36-118-22-24-0057 36-118-22-24-0075
36-118-22-24-0022 36-118-22-24-0040 36-118-22-24-0058 36-118-22-24-0076
36-118-22-24-0023 36-118-22-24-0041 36-118-22-24-0059 36-118-22-24-0077
36-118-22-24-0024 36-118-22-24-0042 36-118-22-24-0060 36-118-22-24-0078
36-118-22-24-0025 36-118-22-24-0043 36-118-22-24-0061 36-118-22-24-0079
36-118-22-24-0026 36-118-22-24-0044 36-118-22-24-0062 36-118-22-24-0080
36-118-22-24-0027 36-118-22-24-0045 36-118-22-24-0063 36-118-22-24-0081
36-118-22-24-0028 36-118-22-24-0446 36-118-22-24-0064 36-118-22-24-0082
Fiscal Disparities Election:
The City elected to calculate fiscal disparities from outside (A election) the district. This election does not have a financial effect on the
district because it contains only non commercial properties, which do not contribute to the fiscal disparities pool.
Original and Current Tax Rate:
Original: 123.1510%
Current 2009: 93.0360%
Allowable Uses:
MN Statute 469.176 sub 4d specifies the activities on which tax increment from a housing district may be spent. In general, tax increment
must be spent public improvements directly related to housing projects and administrative expenses.
Obligations:
2,900,000 GO Tax Increment Bonds of 1998A issued on October 15, 1998. These bonds were refinanced by the, $2,490,000 G.O. TIF
Refunding Bonds, Series 2009, on November 24, 2009.
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 32
Page 33
Three Year Rule:
The three year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has
caused public improvements to be constructed in the district. TIF 7-5A met the requirement when the City issued the 1998A GO Tax
Increment Bonds.
Four Year Rule:
MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel
with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. TIF 7-4 Four Year Rule was
satisfied as of April of 2003.
Five Year Rule:
At least 80% of tax increment revenues generated within TIF 7-5A must be used to pay for qualified costs within the district. However,
pursuant to MN Statute 469.1763 sub 2 (b), activities for housing projects spent in the project area is considered an activity within the
district. The five year deadline was April of 2004.
Geographic Enlargements:
MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the
certification date. This timeline has passed for TIF 7-5A which was April 16, 2004.
Compliance Requirements:
Income limitations are required to be monitored on an on-going basis for a Housing District. The Authority is required to substantiate that
the applicable income limitations and rent restrictions are being met on an annual basis for rental units and for the first purchasers of an
owner occupied housing unit. The compliance must be completed regardless of whether the project receives tax credits or not, pursuant to
469.174 sub 11.
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 33
Page 34
Cashflow Assumptions:
The cashflow was constructed using the estimated ending balances at 12/31/2009. Future increments were projected using the anticipated
tax capacity values at 2010 and the payable 2009 tax rates. Increments generated in the district are not expected to be sufficient to cover
outstanding debt. The cashflow was constructed using this assumption and transfers in of increment from Districts 7-4 for deficits for bond
payments.
Recommendations:
The district is anticipated to have a small surplus at the end of 2009. The refinancing of the bonds in 2009 may mitigate transfers from
District 7-4. The district should be monitored routinely for deficits and transfers should be made as appropriate.
The current cash flow projections for the Village at Basset Creek Housing TIF District appear in the table below
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 34
Page 3 5
City of Plymouth
Fund Balance Analysis
TIF 7-5A Village at Basset Creek
Housing
City approved: 09/02/1998
Cert Request: 11/0911998
Certified: 04/19/1999
Decerfifies:12/31/2026
Obligation end date: 2023
Funds 307 and 423
Beginning Fund Balance
Revenues
Bond proceeds
Tax increment
Interest
MVHC
Sales/lease proceeds
Intergovernmental
Reimbursements
Transfer In
Total Revenues
Expenditures
Land/building
Site
Public utilities
Social/recreational
Streets/sidewalks
Bond
Principal
Interest
Admin
Paygo
Principal
Interest
Return to county
Bond discount
Other project area improvements
Transfer out
Total Expenditures
Estimated Ending Balance
Acctd for
In Prior Estimated Projected
End of
District
Projected Cumulative
Actual Modified
Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total Budget
60,406 7,411 85,170 49,927 2,130 126 208 866 487 4,739 5,663 454 1,605 441 4,617 51 134,356 271,348
2,856,778 2,856,778 2,856,500
1,019,851 134,206 132,778 132,800 132,800 132,800 132,800 132,800 132,800 132,800 132,800 132,800 132,800 132,800 132,800 132,800 132,800 132,800 132,800 3,411,635 2,412,608
118,021 2,622 148 1,703 999 43 3 4 17 10 95 113 9 32 9 92 1 2,687 5,427 126,791
84,439 10,816 10,800 10,800 10,800 10,800 10,800 10,800 10,800 10,800 10,800 10,800 10,800 10,800 10,800 10,800 10,800 10,800 10,800 278,855
0
0
27,924 27,924
0 0 15,000 68,000 81,000 92,000 96,000 115,000 115,000 121,500 135,000 149,000 160,000 161,200 1,308,700 2,550,738
4,107,013 142,400 143,726 145,303 159,599 211,643 224,603 235,604 239,617 258,610 258,695 265,213 278,609 292,632 303,609 304,892 143,601 146,287 149,027 8,010,683 7,819,846
0
2,393,351 2,393,351 2,400,000
0
0
0
0
260,000 75,000 90,000 120,000 130,000 145,000 160,000 170,000 190,000 200,000 220,000 235,000 260,000 275,000 295,000 2,825,000 2,900,000
1,249,709 117,444 56,673 81,250 78,100 74,350 70,225 65,650 60,700 55,062 48,475 41,126 33,162 24,500 15,137 5,162 2,076,725 2,369,846
143,547 2,951 9,294 9,296 9,296 9,296 9,296 9,296 9,296 9,296 9,296 9,296 9,296 9,296 9,296 9,296 9,296 9,296 9,296 304,528 150,000
0
0
0
0
0
0
0
4,046,607 195,395 65,967 180,546 207,396 213,646 224,521 234,946 239,996 254,358 257,771 270,422 277,458 293,796 299,433 309,458 9,296 9,296 9,296 7,599,604 7,819,846
60,406 7,411 85,170 49,927 2,130 126 208 866 487 4,739 5,663 454 1,605 441 4,617 51 134,356 271,348 411,079 411,079
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 35
Page 36
TIF 7-6 — Berkshire
Description:
The Berkshire District is a Redevelopment District established in 2000. The City of Plymouth is responsible for this district. The District is
located within the Municipal Development District No. 7, which appears to include all but the northwestern edge of the City. Originally, the
district encompassed three parcels of land and was established to facilitate the construction of an upgrade to an already existing structure. It
was anticipated to have been office and warehouse/production facility.
Adopted: 10/10/2000
Requested Date: 06/05/2001
Certified Date: 06/20/2001
Decertifies: 12/31/2028
Obligation end date: 2016
Modifications: 12/18/2001 -This modification allowed for pooling from TIF 7-4 and TIF 7-6 for anticipated deficits in TIF 7-5A.
To be considered on 1/26/2010 to allow for additional pooling
Parcels:
Original Parcels:
0 27-118-22-24-0001
0 27-118-22-24-0002
0 27-118-22-24-0008
Current Parcel:
o 27-118-22-21-0012
Fiscal Disparities Election:
The City elected to calculate fiscal disparities from outside (A election) the district.
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 36
Page 37
Original and Current Tax Rate:
Original: 106.110%
Current 2009: 93.3620%
Allowable Uses:
MN Statute 469.176 sub 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax
increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses
include property acquisition, demolition, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and
allowable administrative expenses.
Other Development Agreement Compliance:
The developer agreed to renovate an existing 240,000 square foot office/warehouse/production facility and maintain it in good order and
pay all property taxes promptly.
Obligations:
900,000 Taxable Limited Tax Increment Revenue Note dated December 18, 2001. This note was issued in conjunction with the
Development Agreement with Continental Property Group. The term of the note was from July 31, 2002 to December 31, 2027 at 8.5%
interest. 73% of tax increment received from the development property was pledged to pay the debt. The amount outstanding at 12-31-2009
was $770,362.
Three Year Rule:
The three year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has
caused public improvements to be constructed in the district. TIF 7-6 met the requirement when the City authorized the issuance of the
900,000 Taxable Limited Revenue Tax Increment Note on December 18, 2001.
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 37
Page 38
Four Year Rule:
MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel
with the TIF district. TIF 7-6 Four Year Rule deadline was June 20, 2005.
Five Year Rule:
At least 80% of tax increment revenues must be used to pay for qualified costs within the district. Statute further specifies that within five
years, tax increment must actually be paid for activities, bonds issued, contracts entered into in order for revenues to be considered to have
been spent. The five year deadline was June of 2006.
Geographic Enlargements:
MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the
certification date. TIF 7-6 may not be enlarged after June 20, 2006.
Recommendations:
The City has approximately 35% of the annual TIF to use for housing purposes in the City and the Development District. The HRA and
City entered into an agreement to pledge these funds to the Vicksburg Crossing project. If not used for other activities, the annual TIF can
be used to supplement TIF 7-5 (and decertify 7-4) or be annually returned to Hennepin County.
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 38
Page 39
City of Plymouth
Fund Balance Analysis
TIF 7-6 Berkshire
Redevelopment
City approved: 1011012000
Cert Request: 0610512001
Certified: 0612012001
Decertif es:12f3112028
Obligation end date: 2016"
Fund 424
Beginning Fund Balance
Revenues
Bond proceeds
Tax increment
Interest
Total Revenues
Expenditures
Land/building
Site
Admin
Loan
Principal
Interest
10% Pooling for senior bonds
10% Other pooling
15% Pooling for qualified costs
Transfer out
Total Expenditures
Estimated Ending Balance
Acctd for
In Prior 2009 2010 2011 2012 2013 2014 2015 1 2016 1 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Years 267,141 258,176 (76,284) (77,504) (78,744) (80,004) (81,284) (82,585)1 4,565 2,464 28,974 157,017 286,724 418,117 551,219 686,051 822,636 960,996 1,101,155 1,243,136
End of
District Current
Projected Cumulative
Actual Modified
804,970 216,220 216,220 216,200 216,200 216,200 216,200 216,200 216,200 216,200 216,200 216,200 216,200 216,200 216,200 216,200 216,200 216,200 216,200 216,200 216,200 5,129,010 5,130,000
17,592 4,168 5,164 1,526) 1,550) 1,575) 1,600) 1,626) 1,652) 91 49 579 3,140 5,734 8,362 11,024 13,721 16,453 19,220 22,023 24,863 142,656 266,000
822,562 220,388 221,384 214,674 214,650 214,625 214,600 214,574 214,5481 216,291 216,249 216,779 219,340 221,934 224,562 227,224 229,921 232,653 235,420 238,223 241,063 5,271,666 5,396,000
33,889 741,722 759,700
0
0
86,433 109,338 94,322 102,495 111,392 121,062 131,571 142,992 66,528 0
27,728 11,576 15,135 15,134 15,134 15,134 15,134 15,134 15,134 15,134 15,134 15,134 15,134 15,134
441,260 108,439 63,518 55,331 46,434 36,764 26,255 14,834 2,827 (0)
0 126,433 21,467 21,465 21,463 21,460 21,457 21,455 21,629 21,625 21,678 21,934 22,193
0 126,433 21,467 21,465 21,463 21,460 21,457 21,455 1 21,629 21,625 21,678 21,934 22,193
0 130,000 0 0 0 0 0 0 160,000 131,355 30,247 30,631 31,020
555,421 229,353 555,843 215,895 215,890 215,885 215,880 215,8751 127,3991 218,392 189,739 88,737 89,633 90,541 91,461 92,392 93,336 94,292 95,261 96,242 97,236 3,884,703 6,396,000
267,141 258,176 (76,284) (77,504) (78,744) (80,004) (81,284) (82,585) 4,565 2,464 28,974 157,017 286,724 418,117 551,219 686,051 822,636 960,996 1,101,155 1,243,136 1,386,963 1,386,963
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 39
Page 40
966,134 2,172,600
15,134 15,134 15,134 15,134 15,134 15,134 15,134 326,851 350,000
0
0 1,000,000
795,662 1,034,700
22,456 22,722 22,992 23,265 23,542 23,822 24,106 527,167 539,500
22,456 22,722 22,992 23,265 23,542 23,822 24,106 527,167 539,500
31,414 31,814 32,218 32,628 33,043 33,463 33,889 741,722 759,700
0
0
555,421 229,353 555,843 215,895 215,890 215,885 215,880 215,8751 127,3991 218,392 189,739 88,737 89,633 90,541 91,461 92,392 93,336 94,292 95,261 96,242 97,236 3,884,703 6,396,000
267,141 258,176 (76,284) (77,504) (78,744) (80,004) (81,284) (82,585) 4,565 2,464 28,974 157,017 286,724 418,117 551,219 686,051 822,636 960,996 1,101,155 1,243,136 1,386,963 1,386,963
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 39
Page 40
City of Plymouth
TIF 7-6
Principal Ledger - Continental PAYGO
Maximum amount
Date
900,000.00
Interest Due
Total Tax
Increment
Available
Tax Increment
Available at
73.00%
Interest Rate
Total Payments
8.50%
Note Balance
900,000.00
12/18/2001 2,724.66 902,724.66
7/31/2002 38,365.80 941,090.46
12/31/2002 39,996.34 981,086.80
7/31/2003 41,696.19 55,712.27 40,669.96 40,669.96 982,113.03
12/31/2003 41,739.80 55,712.27 40,669.96 81,339.92 983,182.87
7/31/2004 41,785.27 68,673.88 50,131.93 131,471.85 974,836.21
12/31/2004 41,430.54 68,673.88 50,131.93 181,603.78 966,134.82
7/31/2005 41,060.73 64,985.70 47,439.56 229,043.34 950,779.82
12/31/2005 40,408.14 64,985.70 47,439.56 276,482.90 935,424.82
7/31/2006 39,755.56 63,411.68 46,290.53 322,773.43 928,889.85
12/31/2006 39,477.82 63,411.68 46,290.53 369,063.95 922,077.14
7/31/2007 39,188.28 67,596.50 49,345.45 418,409.40 911,919.98
12/31/2007 38,756.60 67,596.50 49,345.45 467,754.84 901,331.13
7/31/2008 38,306.57 82,105.00 59,936.65 527,691.49 879,701.06
12/31/2008 37,387.29 82,105.00 59,936.65 587,628.14 857,151.70
7/31/2009 36,428.95 108,110.00 78,920.30 666,548.44 814,660.35
12/31/2009 34,623.06 108,110.00 78,920.45 745,468.89 770,362.96
7/31/2010 32,740.43 108,110.00 78,920.30 824,389.19 724,183.09
12/31/2010 30,777.78 108,110.00 78,920.30 903,309.49 676,040.57
7/31/2011 28,731.72 108,100.00 78,913.00 982,222.49 625,859.29
12/31/2011 26,599.02 108,100.00 78,913.00 1,061,135.49 573,545.31
7/31/2012 24,375.68 108,100.00 78,913.00 1,140,048.49 519,007.99
12/31/2012 22,057.84 108,100.00 78,913.00 1,218,961.49 462,152.83
7/31/2013 19,641.50 108,100.00 78,913.00 1,297,874.49 402,881.32
12/31/2013 17,122.46 108,100.00 78,913.00 1,376,787.49 341,090.78
7/31/2014 14,496.36 108,100.00 78,913.00 1,455,700.49 276,674.14
12/31/2014 11,758.65 108,100.00 78,913.00 1,534,613.49 209,519.79
7/31/2015 8,904.59 108,100.00 78,913.00 1,613,526.49 139,511.38
12/31/2015 5,929.23 108,100.00 78,913.00 1,692,439.49 66,527.61
7/31/2016 2,827.42 108,100.00 69,355.30 1,761,794.79 0.26)
876, 369.21 2, 858, 929.86 1, 761, 794.79
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 40
Page 41
TIF 7-7 — Stone Creek Village
Description.
The Stone Creek Village Housing District was established in 2002. The City of Plymouth is responsible for this district. The District is
located within the Municipal Development District No. 7, which appears to include all but the northwestern edge of the City. Originally, the
district encompassed three parcels of land and was established to facilitate the construction of 130 units of affordable rental units.
Adopted: 05/14/2002
Requested Date: 05/31/2002
Certified Date: 06/06/2002
Decertifies 12/31/2028
Obligation end date: 2028
Parcels:
Original Parcels:
0 35-118-22-11-0036
0 35-118-22-11-0017
0 35-118-22-11-0018
Current Parcel:
o 35-118-22-11-0039
Fiscal Disparities Election:
The City elected to calculate fiscal disparities from outside (A election) the district.
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 41
Page 42
Original and Current Tax Rate:
Original 109.2460%
Current 2009: 93.3620%
Allowable Uses:
MN Statute 469.176 sub 4d specifies the activities on which tax increment from a housing district may be spent. In general, tax increment
must be spent public improvements directly related to housing projects and administrative expenses.
Obligations:
1,159,000 Tax Increment Revenue Note dated April 18, 2003 payable to Stone Creek Village. In December 2005, this note was assigned to
the MMA Mortgage Investment Corporation. The note is payable from 90% of the increment received on the project. The amount
outstanding at 12-31-2009 was $1,280,878. There is no obligation to pay the note after 2/1/2018.
Other Development Agreement Compliance:
The development agreement has many specific requirements concerning the construction of 130 unit apartment development and the site
improvements related to it. The City should monitor whether the developer has complied with the annual income and rent requirements as
specified in the Development Agreement.
Three Year Rule:
The three year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has
caused public improvements to be constructed in the district. TIF 7-7 met the requirement when the City approved the Development
Agreement with Plymouth Leased Housing Associates, Limited on April 18, 2003. A Tax Increment Financing Note was authorized on
April 18, 2003, which was subsequently assigned to MMA Mortgage Investment Corporation in December 2005.
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 42
Page 43
Four Year Rule:
MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel
with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. TIF 7-7 Four Year Rule was
deadline was June 6, 2006.
Five Year Rule:
At least 80% of tax increment revenues generated within TIF 7-7 must be used to pay for qualified costs within the district. However,
pursuant to MN Statute 469.1763 sub 2 (b), activities for housing projects spent in the project area is considered an activity within the
district. The five year deadline was June 2007.
Geographic Enlargements:
MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the
certification date. The district may not be enlarged after June 2007.
Compliance Requirements:
Income limitations are required to be monitored on an on-going basis for a Housing Districts. The City is required to substantiate that the
applicable income limitations and rent restrictions are being met on an annual basis for rental units and for the first purchasers of an owner
occupied housing unit. The compliance must be completed regardless of whether the project receives tax credits or not, pursuant to 469.174
sub 11.
Cashflow Assumptions:
The cashflow was constructed using the anticipated ending balances at 12/31/2009. Future increments were projected using the anticipated
2010 tax capacities and the payable 2009 tax rates.
Recommendations:
Like all housing districts, the City should regularly monitor development agreement obligations and income restrictions.
Management Review & Analysis - Tax Increment Financing Districts January, 20100Plymouth, Minnesota Page 43
Page 44
City of Plymouth
Fund Balance Analysis
TIF 1.7 Stone Creek Village
Housing
City approved: 0511412002
Cert Request: 0513112002
Certified: 0610612002
Decertifies:1213112028
Obligation end date: 2028
Fund 426
Beginning Fund Balance
Revenues
Bond proceeds
Tax increment
Interest
Total Revenues
Expenditures
Land/building
Site
Admin
Loan
Principal
Interest
Total Expenditures
Estimated Ending Balance
Acctd for
In Prior Estimated Projected
End of
District
Projected
Actual Original
Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Total Budget
89,996 24,713 17,682 16,264 14,818 13,343 11,838 10,304 8,738 7,142 69,593 197,371 327,706 460,647 596,247 734,559 875,637 1,019,537 1,166,314 1,316,028
0
472,009 147,060 135,944 135,900 135,900 135,900 135,900 135,900 135,900 135,900 135,900 135,900 135,900 135,900 135,900 135,900 135,900 135,900 135,900 135,900 135,900 3,201,213 2,087,000
5,536 693 494 354 325 296 267 237 206 175 143 1,392 3,947 6,554 9,213 11,925 14,691 17,513 20,391 23,326 26,321 143,999
477,545 147,753 136,438 136,254 136,225 136,196 136,167 136,137 136,106 136,075 136,043 137,292 139,847 142,454 145,113 147,825 150,591 153,413 156,291 159,226 162,221 3,345,212 2,087,000
0
52,021 60,260 36,246 33,070 35,662 38,457 41,471 44,722 48,227 52,007 27,513 0 0 0 0 0 0 0 0 0 0 469,655 993,600
17,058 450 9,516 9,513 9,513 9,513 9,513 9,513 9,513 9,513 9,513 9,513 9,513 9,513 9,513 9,513 9,513 9,513 9,513 9,513 9,513 198,258 104,400
0
0
318,470 152,327 97,707 95,088 92,496 89,701 86,687 83,437 79,931 76,152 36,567 0 0 0 0 0 0 0 0 0 0 1,208,563 1,121,300
387,549 213,036 143,469 137,671 137,671 137,671 137,671 137,671 137,671 137,671 73,592 9,513 9,513 9,513 9,513 9,513 9,513 9,513 9,513 9,513 9,513 1,876,476 2,219,300
89,996 24,713 17,682 16,264 14,818 13,343 11,838 10,304 8,738 7,142 691593 197,371 327,706 460,647 596,247 734,559 875,637 1,019,537 1,166,314 1,316,028 1,468,735 1,468,735
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 44
Page 45
City of Plymouth
TIF 7-7
Principal Ledger - Stone Creek Village PAVGO
MMA Mortgage Corporation
Maximum amount 1,159,000.00 Interest Rate 7.69%
Total Tax Tax Increment
Increment Available at
Date Interest Due Available 90.00% Total Payments Note Balance
4/18/2003 1,159,000.00
8/1/2003 25,639.30 1,184,639.30
2/1/2004 45,549.38 1,230,188.68
8/1/2004 47,300.75 1,277,489.44
2/1/2005 49,119.47 1,326,608.91
8/1/2005 51,008.11 33,616.74 30,255.07 30,255.07 1,347,361.95
2/1/2006 51,806.07 30,350.42 27,315.38 57,570.45 1,371,852.64
8/1/2006 52,747.73 66,185.34 59,566.81 117,137.26 1,365,033.56
2/1/2007 52,485.54 63,635.00 60,009.99 177,147.25 1,357,509.11
8/1/2007 52,196.23 63.,635.00 60,009.99 237,157.25 1,349,695.34
2/1/2008 51,895.79 63,635.00 60,453.63 297,610.88 1,341,137.49
8/1/2008 51,566.74 63,635.00 72,879.73 370,490.61 1,319,824.50
2/1/2009 50,747.25 73,530.00 69,853.25 440,343.86 1,300,718.50
8/1/2009 50,012.63 73,530.00 69,853.25 510,197.11 1,280,877.88
2/1/2010 49,249.75 67,972.00 69,853.25 580,050.36 1,260,274.38
8/1/2010 48,457.55 67,972.00 64,099.93 644,150.29 1,244,632.00
2/1/2011 47,856.10 67,950.00 64,079.19 708,229.48 1,228,408.91
8/1/2011 47,232.32 67,950.00 64,079.19 772,308.67 1,211,562.05
2/1/2012 46,584.56 67,950.00 64,079.19 836,387.85 1,194,067.42
8/1/2012 45,911.89 67,950.00 64,079.19 900,467.04 1,175,900.13
2/1/2013 45,213.36 67,950.00 64,079.19 964,546.23 1,157,034.30
8/1/2013 44,487.97 67,950.00 64,079.19 1,028,625.42 1,137,443.08
2/1/2014 43,734.69 67,950.00 64,079.19 1,092,704.60 1,117,098.58
8/1/2014 42,952.44 67,950.00 64,079.19 1,156,783.79 1,095,971.83
2/1/2015 42,140.12 67,950.00 64,079.19 1,220,862.98 1,074,032.76
8/1/2015 41,296.56 67,950.00 64,079.19 1,284,942.17 1,051,250.13
2/1/2016 40,420.57 67,950.00 64,079.19 1,349,021.35 1,027,591.51
8/1/2016 39,510.89 67,950.00 64,079.19 1,413,100.54 1,003,023.22
2/1/2017 38,566.24 67,950.00 64,079.19 1,477,179.73 977,510.27
8/1/2017 37,585.27 67,950.00 64,079.19 1,541,258.92 951,016.36
2/1/2018 36,566.58 67,950.00 64,079.19 1,605,338.10 923,503.75
1 , 369, :841.85 1,686,946.51 1,605,338.10
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 45
Page 46
Debt Service Schedules
City of Plymouth
2005A G.O. Tax Increment Bonds
Annual Bonds
Date* Principal Rate Interest P8J Debt Service Outstanding
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 46
Page 47
1,370,000
2/1/2006 43,592.00 43,592.00 43,592.00 1,370,000
8/2/2006 26,155.00 26,155.00 1,370,000
2/1/2007 26,155.00 26,155.00 52,310.00 1,370,000
8/1/2007 26,155.00 26,155.00 1,370,000
2/1/2008 10,000 2.80% 26,155.00 36,155.00 62,310.00 1,360,000
8/1/2008 26,015.00 26,015.00 1,360,000
2/1/2009 45,000 3.00% 26,015.00 71,015.00 97,030.00 1,315,000
8/1/2009 25,340.00 25,340.00 1,315,000
2/1/2010 75,000 3.10% 25,340.00 100,340.00 125,680.00 1,240,000
8/1/2010 24,177.00 24,177.00 1,240,000
2/1/2011 75,000 3.25% 24,177.00 99,177.00 123,354.00 1,165,000
8/1/2011 22,959.00 22,959.00 1,165,000
2/1/2012 80,000 3.40% 22,959.00 102,959.00 125,918.00 1,085,000
8/1/2012 21,599.00 21,599.00 1,085,000
2/1/2013 80,000 3.55% 21,599.00 101,599.00 123,198.00 1,005,000
8/1/2013 20,179.00 20,179.00 1,005,000
2/1/2014 85,000 3.65% 20,179.00 105,179.00 125,358.00 920,000
8/1/2014 18,628.00 18,628.00 920,000
2/1/2015 85,000 3.75% 18,628.00 103,628.00 122,256.00 835,000
8/1/2015 17,034.00 17,034.00 835,000
2/1/2016 90,000 3.85% 17,034.00 107,034.00 124,068.00 745,000
8/1/2016 15,301.00 15,301-00 745,000
2/1/2017 95,000 3.95% 15,301.00 110,301.00 125,602.00 650,000
8/1/2017 13,425.00 13,425.00 650,000
2/1/2018 100,000 4.00% 13,425.00 113,425.00 126,850.00 550,000
8/1/2018 11,425.00 11,425.00 550,000
2/1/2019 100,000 4.05% 11,425.00 111,425.00 122,850.00 450,000
8/1/2019 9,400.00 9,400.00 450,000
2/1/2020 105,000 4.10% 9,400.00 114,400.00 123,800.00 345,000
8/1/2020 7,248.00 7,248.00 345,000
2/1/2021 110,000 4.15% 7,248.00 117,248.00 124,496.00 235,000
8/1/2021 4,965.00 4,965.00 235,000
2/1/2022 115,000 4.20% 4,965.00 119,965.00 124,930.00 120,000
8/1/2022 2,550.00 2,550.00 120,000
2/1/2023 120,000 4.25% 2,550.00 122,550.00 125,100.00
Totals 1,370,000 1,998,702 1,998,702
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 46
Page 47
City of Plymouth
2009 G.O. Tax Increment Refunding Bonds
Annual Bonds
Date* Principal Rate Interest P&I Debt Service Outstanding
Refunded the 1998A GO Tax Increment Bonds
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 47
Page 48
2,910,000 -
2/1/2003 25,000 4.15% 562,423.00 587,423.00 587,423.00 2,885,000
8/1/2003 64,376.00 64,376.00 2,885,000
2/1/2004 30,000 4.15% 64,376.00 94,376.00 158,752.00 2,855,000
8/1/2004 63,754.00 63,754.00 2,855,000
2/1/2005 40,000 4.15% 63,754.00 103,754.00 167,508.00 2,815,000
8/1/2005 62,924.00 62,924.00 2,815,000
2/1/2006 45,000 4.15% 62,924.00 107,924.00 170,848.00 2,770,000
8/1/2006 61,990.00 61,990.00 2,770,000
2/1/2007 55,000 4.15% 61,990.00 116,990.00 178,980.00 2,715,000
8/1/2007 60,849.00 60,849.00 2,715,000
2/1/2008 65,000 4.15% 60,849.00 125,849.00 186,698.00 2,650,000
8/1/2008 59,500.00 59,500.00 2,650,000
2/1/2009 75,000 4.15% 59,500.00 134,500.00 194,000.00 2,575,000
8/1/2009 57,944.00 57,944.00 2,575,000
2/1/2010 85,000 4.20% 57,944.00 142,944.00 200,888.00 2,490,000
8/1/2010 56,673.00 56,673.00 2,490,000
2/1/2011 90,000 3.00% 41,300.00 131,300.00 187,973.00 2,400,000
8/1/2011 39,950.00 39,950.00 2,400,000
2/1/2012 120,000 3.00% 39,950.00 159,950.00 199,900.00 2,280,000
8/1/2012 38,150.00 38,150.00 2,280,000
2/1/2013 130,000 3.00% 38,150.00 168,150.00 206,300.00 2,150,000
8/1/2013 36,200.00 36,200.00 2,150,000
2/1/2014 145,000 3.00% 36,200.00 161,200.00 217,400.00 2,005,000
8/1/2014 34,025.00 34,025.00 2,005,000
2/1/2015 160,000 3.00% 34,025.00 194,025.00 228,050.00 1,845,000
8/1/2015 31,625.00 31,625.00 1,845,000
2/1/2016 170,000 3.00% 31,625.00 201,625.00 233,250.00 1,675,000
8/1/2016 29,075.00 29,075.00 1,675,000
2/1/2017 190,000 3.25% 29,075.00 219,075.00 248,150.00 1,485,000
8/1/2017 25,988.00 25,988.00 1,485,000
2/1/2018 200,000 3.50% 25,987.00 225,987.00 251,975.00 1,285,000
8/1/2018 22,488.00 22,488.00 1,285,000
2/1/2019 220,000 3.50% 22,487.00 242,487.00 264,975.00 1,065,000
8/1/2019 18,638.00 18,638.00 1,065,000
2/1/2020 235,000 3.50% 18,637.00 253,637.00 272,275.00 830,000
8/1/2020 14,525.00 14,525.00 830,000
2/1/2021 260,000 3.50% 14,525.00 274,525.00 289,050.00 570,000
8/1/2021 9,975.00 9,975.00 570,000
2/1/2022 275,000 3.50% 9,975.00 284,975.00 294,950.00 295,000
8/1/2022 5,163.00 5,163.00 295,000
2/1/2023 295,000 3.50% 5,162.00 300,162.00 305,325.00
Refunded the 1998A GO Tax Increment Bonds
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 47
Page 48
Map of the TIF Districts
Plymouth Housing & Redevelopment Authority
Project Area No' Ir9k-[ ts mikitytsfPty— -h. 'L-..1' Lake
fhinne ta
Open TIF Districts
C
1 C 5 0 _ 4
Mf les
Management Review & Analysis - Tax Increment Financing Districts January, 2010
Plymouth, Minnesota Page 48
Page 49
R
dd Exd
g
City of Plymouth
Development District filo.. 7rp) Open TIF Districts
Di-sitnur Boundw-y
Lake
L - 2 3 4
pml
Management Review & Analysis - Tax Increment Financing Districts
Plymouth, Minnesota
January, 2010
Page 49
Page 50
Vicksburg Crossings
HRA Tax Levy Only
5% annual expense increase
rnrrnmr=
11124/2009
Income Escalator 103%
Expense Escalator 105%
nnu Anna Win onii Wni-) WWI OMA 9ni6 Onin On47 9nin Inao
Apartment Rental Revenue $ 710 076.00 880 641.00 984 629.00 1,014,167.87 1,044,592.91 1,075.930.69 1,108,208.61 1,141,454.87 1,175,698.52 1,210,969.47 1,247,298.56 1,284,717.52 1,323,259.04 1,362 956.81
Apartment Rental Revenue -County $ 33 533.00 29 000.00 33,531.00 33 531.00 33 531.00 33 531.00 33 531.00 33 531.00 33 531.00 33,53J.00 33 531.00 33 531.00 33 531.00 33 531.00
Rent Concession $ 9,223.00) 7,000.00 1,200.00)
8,616.00 11,425.00 12 720.00 13 356.00 17 898.32 1 B.793.23
HRA Subsid -Tax LevV
20,719.54 21 755.52
Housekeeping 12,862.00 12 978.00 12 600.00 13 230.00 13,891.5a 74 586.08 15 315.38 16 081.15 76 885.21 17 729.47
HRA Subsidy, -SIF
19 546.74 20,524.07 21 550.28
Repairs and Maintenance 152 617.00 140 000.00 154,099.00 161 803.95 169 894.15 178 388.85 187 308.30 196 673.71 206 507.40
Garage Rental $ 29 434.00 35 213.00 34 020.00 35 040.60 36 091.82 37,174.57 38 289.81 39 438.50 40 621.66 41 840.31 43 095.52 44 388.38 45,720.04 47,091.64
Guest Suite Revenue 2,246,00 51 3,195.00 1,560.00 1.200.00 1.200.00 1.200.00 1,200.00 1.200.00 1.200.01) 1,200.00 1,200.00 1.200.00 1.200.00 1,200.00
Late Fee Revenue $ 34.00 240.00 240.00 240.00 240.00 240.00 240.00 240.00 240.00 240.00 240.00 240.00 240.00 240.00
Application Fee Revenue 274.00 525.00 840.00 720.00 720.00 720.00 720.04 720.00 720.00 720.00 720.00 720.00 720.00 720.00
Transfer Fee Revenue $ 295.00 775.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00
Smoker's Fee Revenue 1,714,00 1,000.00
300 000.00 1 $ 325,000.90
Investment Income $ 25 143.00 2,115.00 2,040.00 2,040.00 2,040.00 2,040.00 2,040.40 2.040.00 2,040.00 2,040.00 2,040.00 2,040.00 2,040.00 2,040.00
Miscellaneous Revenue 2,674.00 2,640.00 2 640.00 2,640.00 2,640.00 2,640.00 2,640,00 2,640,00 2,640.00 2,640,00 2,640,00 2,640.00 2,640.00 2,640.00
796,140.00 $ 948,344.00 $ 1,058,650.00 $ 1,089,929.47 $ 1,121,405.72 $ 1,153,826.27 $ 1,167,219.42 $ 1,221,614.38 $ 1,257,041.18 $ 1,293,530.78 $ 1,331,115.08 $ 1,369,B26.90 $ 1,409,700.08 $ 7,450,769.45
rvnr=uccc
Property Administration 157 887.00 152,225.00 163 362.00 171 530.10 184 106.61 189111.94 198 567.53 208 495.91 218 920.7o 229,866.74 241 360.08 253 428.08 26fi 099.48 279 404.46
Resident Services 2,722.00 4,000.00 5,350.00 5,61T50 5,898.38 6,193.29 6,502.96 6,828,11 7169.51 7,527.99 7,904.39 8,299.61 8,714.59 9,150.32
Marketing &I -easing 8,616.00 11,425.00 12 720.00 13 356.00 14 023.80 14 724.99 15 461.24 16 234.30 17 046.02 17 898.32 1 B.793.23 19 732.89 20,719.54 21 755.52
Housekeeping 12,862.00 12 978.00 12 600.00 13 230.00 13,891.5a 74 586.08 15 315.38 16 081.15 76 885.21 17 729.47 18 615.94 19 546.74 20,524.07 21 550.28
Repairs and Maintenance 152 617.00 140 000.00 154,099.00 161 803.95 169 894.15 178 388.85 187 308.30 196 673.71 206 507.40 216 832.77 227 674.41 239 058.13 257 011.03 263 561.58
Interest Expense 483,125.00 483 736.00 478 437.50 473.1 7.60 467 562.50 460 975.00 1 453,575.00 445,375.00 436,575.00 426,975A0 417 575.00 407,056.25 395,712.50 382 962.50
Proe 8 Liabili Insurance 26 021.00 32 349.00 32,349.00 33 966.45 35,664.77 37 448.01 39 320.41 41 286.43 43 350.75 45 518.29 47 794.21 50 183.92 52 693.11 55,327.77
Pa inert in Lieu pf Takes 98,000.00 38,831.00 50 908.00 52 384.94 53 906.20 55 473.06 57 086.98 58 749.29 60,467.48 62,225.02 B4 041.48 1 65,912.43 67,839.50 69 824.39
Re lacement Reserves 60 000.00 60 OOD.00 60 000.00 120 OOO.DD 720,000.00 720,000.00 720 000.00 120 000.00 120 000.00 120 000.00 120 000.00 120 000.00 720 000.00 120,000.00
Principal 1 $ 125,000.00 1$ 140,000.00 1$ 150 000.00 1 $ 170 000.00 185 000.00 205 000.00 1$ 220,000.00 1 $ 240,000.00 1 $ 235,000.00 1 255,000.00 1$ 275,000.00 300 000.00 1 $ 325,000.90
1,001,B50.uu $ 1,060,544.00 $ 1,109,825.50 $ 1,195,076.44 $ 1,230,947.90 $ 1,261,901.24 $ 1,298,137.80 $ 11329,723.90 $ 1,366,916.07 $ 1,379,573.59 $ 1,418,758.73 $ 1,456,218.04 $ 11503,313.83 $ 1,548,536.81
REVENUE OVER EXPENSES 205 710.00 112 200.00 $ 51 175.50 $ 105 146.97 $ 109 542.17 108 074.98)1 $ (110,91B.37)] (108109.53 109 874.69 $ 86 042AII 87 643.65 (88,391j4)1 93 613.75 97 767,36)
mrccrnv
HRA SUBSIDY 22 855.00 $ 44 000.00 100,000m $ 10D.000.00 1 $ 100,000.00 Is 100.m.00-1 $ 100 000.00 $ 100 000.00 $ 100 000.00 $ 100 000.00 $ 100 000.00 $ 100 000.00 $ 100 000.00 $ 100,000.00
Debt Service Account 182 855.00 $ 679,959.00
TIF DISTRICT 1-1
TIF DISTRICT 7-6
205,710.00 $ 719,959.00 $ 100,000.00 $ iDD,000.00 $ 100,000,00 $ 100,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 $ 1001000.00 $ 100,000.00 $ 100,000.00
Annual Balance $ $ 607,759.00 $ 48,824.50 $ (5,146.97) $ (9,542.17) $ (8,074.98) $ (10,918.37) $ (8,109.53) $ (9,874.89) $ 13,957.19 $ 12,356.35 $ 11,608.86 $ 6,386.25 $ 2,232.64
Cumulative Balance $ $ 607,759.00 $ 656,583.50 $ 651,436.53 $ 641,894.36 $ 633,819.38 $ 622,901.00 $ 614,791.48 $ 604,910.59 $ 618,873.78 $ 631,230.13 $ 642,838.99 $ 649,225.24 $ 651,457,88
Note: Vicksburg Crossing is 96% leased at the start of 2010 (90 units)
Apartment Rental Revenue increases 3% starting 2011 (2010 is based on 2009 prices and 96% leased. 2011 is 3% higher then 2010).
Garage Rental Increases 3% annually starting in 2010 (2010 is 3% higher then 2009)
Guest Revenue, Late Fee Revenue, Application Fee Revenue, Transfer Fee Revenue, Smokers Fee Revenue, Investment Income and Miscellaneous Revenue are held constant throughout.
Page 51
7n77 7n7R 7n7d 7n7F 7n7a 7ro7 7n7A on7o 7n4n 7n4I 7n49 7n44 WAA gnu 2n3F
1,403,845.52 1,446,960.88 1,489,339.71 1,534,019.90 1,580,040.50 1,627 441.71 1,676,264.96 1,726 552.91
433,448.02
1,778,349.50 1,831,699.98 1 886 650.98 1,943,250.51 2,001,548.03 2,061,594.47 2,123,442.30
33,531.00 33 531.00 33,531.00 33,531.00 33 531.00 33 531.00 33 531.00 33 531.00
14 904.90
33,531M 33 531.00 33.531.00 33,531.00 33 531.00 33 531.00 33 531.00
25 184.73 37,209.32 43 074.43
26,194.5t) 27,504.22 28,879.43 30,323.40 31 839.57 33 431.55 35 103.13 36 858.29 38 701.20 44 636.26 42,668.07 44,801.48
276 739.66 290,576.65 305,105.48 320,360.75 336 378.79 353 197.73 370 857.62 389 400.50 408,870.52 429,314.05 450,779.75 473 318.74 496 984.68 521 833.91 547 925.61
369,150.00 353 618.75 336 993.75 320,150.00_ 301 475.00
48,504.39 49 959.52 51 458.30 53,002.05 54,592.11 56 229.88 57,916.77 59 654.28
42,000.00
61 443.90 63 287.22 65185.84 67141.41 69 155.66 71 230.33 73,3B7.23
1,200.00 1,200.00 1,200.00 1,200.00 1.200.00 1.200.00 1.200.00 1,200.00
115 022.46
1,200.00 1,200.00 1,200,00 1,200.00 1,200.00 1,200.00 1,200.00
240.00 240.00 240.00 240.00 240.00 240.00 240.00 240.00 240.00 240.00 240.00 240.00 240.00 240.00 240.00
720.00 720.00 720.00 720.00 720.00 720.00 720.00 720.00
355 000.00
720.D0 720.00 720.00 720.00 720.00 720.00 720.00
350.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00
2,040.00 2,040.00 2,040.00 2,040.00 2,040.00 2,040A0 2,040.00 2,040.00 2,040.00 2,040.00 2,040,00 2,040.00 2,040M 2,04o.00 2,040.00
2,640.00 2,640.00 2,640.00 2,640.00 2,640.00 2,640,00 2,640.00 2,640.00 2,640.00 2,640.00 2,640.00 2,640.00 2,640,00 2,640.00 2,640.00
1,493,07D.9U $ 1,536,641.40 $ 1,581,519.U1 $ 1,627,742.95 $ 1,675,353.61 $ 1,724,392.59 $ 1,774,902.74 $ 1,826,928.19 $ 1,880,514.40 $ 1,935,708.21 $ 1,992,557.82 $ 2,051,112.93 $ 2,111,424.66 $ 2,173,545.79 $ 2,237,530.54
293 374.68 308 043.42 323 445.59 339 617.87 356 598.76 374 428.70 393,150.13 412,807.64 433,448.02 455,120.42 477,876A4 501,770.26 526,858.78 553 201.72 580 861.80
9,607.83 10 088.22 10 592.63 11 122.27 11,678.38 12,262.3Q 12,875.41 13 519.18 19 195.14 14 904.90 15.650A4 16 432.65 17 254.28 18,117.00 19,D22.85
22 843.29 23,985,46 25 184.73 26 ,443.97 27 766.16 29 154.47 30 612.20 32,142.81 33,749.95 35,437.44 37,209.32 39,069.78 41 023.27 43 074.43 45 228.16
22,627.79 23 759.18 24 947.14 26,194.5t) 27,504.22 28,879.43 30,323.40 31 839.57 33 431.55 35 103.13 36 858.29 38 701.20 44 636.26 42,668.07 44,801.48
276 739.66 290,576.65 305,105.48 320,360.75 336 378.79 353 197.73 370 857.62 389 400.50 408,870.52 429,314.05 450,779.75 473 318.74 496 984.68 521 833.91 547 925.61
369,150.00 353 618.75 336 993.75 320,150.00_ 301 475.00 281,225.00 259,625.00 236,225.00 211 250.00 184 250.00 152 250.00 118 000.00 81,250M 42,000.00
58,094-16 60,998.86 1 $ 64,048.81 67,251,25 70 613.81 74144.50 77 851.73 5 81 744.31 85,831.53 90 123.10 94,629.26 99,360.72 104 328.76 199 545.20 115 022.46
71,868.83 73 979.59 76 143.54 78 377.54 84 678.57 83,048.64 85,489.80 88,004.20 90,594.02 93 261.55 96 009.10 98 839.08 101,753.95 104,756.27 107 848.67
OQQ.00120606 120,000.00 120 000.00 120,000.00 120 DDD.00 120 000.00 120 000.00 120 000.00 120 000.00 120,040.00 120,000.00 120,000.00 120.00 120 000.00 120 000.00
355 000.00 380 000.00 385 000.00 A15 OOO.OQ 450 000.00 480 000.00 520,DDD.00 555,000.00 600,000.00 640 000.00 685 000.00 735,OOD.QO 785,000.00 840,000.00
TO 1,599,3$6.24 $ 1,645,U45.13 $ l,till,46LtiFi $ 1,124,516.14 $ 1,761,693.7$ 4i 1,636,340.77 $ 1,9UU,755.28 $ 1,96$,663.21 $ 2,031,370.74 $ 2,U97,514.60 $ 2,166,262.3U $ 2,240,492.43 $ 2,315,U89.98 $ 2,395,196.60 $ 1,56U,711.01
Is 106 235.34 $ 108 403.73 $ 89,942.65 $ 96 775.19 107 340.09 111 948.18 $ 125 882.55 133,755.02 $ 150,856.33 $ (161,806.39)l $ (173,7b4 --48 )F$ 189,379.51 $ 203 665.29 $ C221,650.81)1 $ 656 819.53
100 006.00 $ 100,DDD.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 $ 100 000.00 $ 100 000.00 100 000.00 $ 100,000.Do $ 100,000.00 $ 100 000.00 100 000.00 $ 100 000.00 $
100,000.00 100,080.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 1001000.00 100,000.00 100,000.00 10D,000.00
6,235.34) 8,403.73) 10,057.35 3,224.81 7,340.09) 11,9A8.18) 25,882.55) 33,755.02) 50,856.33) 61,806.39) 73,704.48) 89,379.51) 103,665.29) 121,650.81) 656,819.53
645,222.54 636,818.81 646,876.16 650,100.97 642,760.88 630,812.70 604,930.15 571,175.14 520,318.80 458,512.41 384,807.94 295,428.43 191,763.14 70,112.33 726,931.86
Page 52
rp) City of
Plymouth
Adding QoaWy to Life
SPECIAL
COUNCIL MEETING
January 12, 2009
Agenda 2. BNumber:
To: Mayor and City Council
Prepared by: Laurie Ahrens, City Manager
Item: Visit Minneapolis North
1. ACTION REQUESTED:
Receive information on Visit Minneapolis North and provide direction to staff if further action is
desired.
2. BACKGROUND:
David Looby, Executive Director of Visit Minneapolis North, has requested that the City of
Plymouth consider joining Visit Minneapolis North. Visit Minneapolis North is designated as a
Destination Marketing Organization (DMO) by the State of Minnesota and engages in advertising,
consumer travel and industry trade show exhibition, direct marketing, and production of marketing
materials. The primary market segments include individual and group leisure travel, meetings,
conventions, and sports.
Visit Minneapolis North derives its funding from a local Option Lodging Tax collected from
individual guests of hotel/motel properties and administered by the local governments of the member
cities. The lodging tax collected is 3 percent of gross room revenue.
Minnesota Statute 269.190 allows communities to collect this tax upon approval of the city council.
The Statute is very specific on how the organization can use this funding. The city retains 5 percent
of the collected fee to cover administrative costs, and the remaining dollars go to Visit Minneapolis
North for marketing and promotion to attract visitors to the area.
Staff met with representatives of Visit Minneapolis North and identified several benefits to the City
if the Council decided to proceed:
1) Visit Minneapolis North produces very nice promotional materials, destination guides, and
visitor guides. We receive requests on a daily basis for this type of material about Plymouth from
residents and from people planning to visit the area and are currently unable to provide it. The
cost of producing these types of publications is significant.
2) Some of the hotels/motels currently served by the program testified that they have increased
business due to the efforts of Visit Minneapolis North. In addition to lodging, there would be
benefits for restaurants and other commercial establishments.
Page 1
3) The Plymouth Creek Center, Plymouth Ice Center, and the Fieldhouse could expand rentals with
the sports and conference promotions done by Visit Minneapolis North.
About a decade ago, the TwinWest Chamber facilitated a discussion about the possibility of a
convention and visitor bureau for the western suburbs. At the time, the Plymouth Council indicated that
if there was support from the Plymouth hotels and motels, the Council would consider establishing the
local option lodging tax. We have received one email in support from Comfort Inn Plymouth. I have
spoken with two additional establishments that indicated they were somewhat interested but did not
want to commit. I believe the commitment is difficult because it is something that cannot be done on a
trial basis for only a few months and then rescinded. It would take some time to develop the marketing
materials and promote the area to fairly determine the impact — likely, an initial period of 18-24 months.
In conclusion, staff believes there is value in this endeavor, but that it is important to have the support of
the local hotels/motels which would be affected. We are currently unsure of their interest.
3. ALTERNATIVES:
The Council could direct staff to prepare the necessary documents for consideration in joining Visit
Minneapolis North, decline the offer to join, or request feedback on the proposal from each hotel/motel
in Plymouth to determine their interest. The Council may also have questions that require additional
research.
Page 2
Laurie Ahrens
From: Kim Fischer [kfischer@timmhotelgroup.com]
Sent: Tuesday, September 29, 2009 4:29 PM
To: Laurie Ahrens
Subject: Visit Minneapolis North
Dear Ms. Ahrens -
Good afternoon! My name is Kim Fischer and I am the Director of Sales of the Comfort Inn here in Plymouth. On behalf
of myself and our General Manager, Dan Sink, I would like to express our interest and support in joining Visit Minneapolis
North.
We have met with the Executive Director of Visit Minneapolis North (VMN), Dave Looby, a number of times now and he
has answered most of the questions that we have about the association. We strongly believe that VMN would greatly
increase the hotel's revenue and the amount of business that is brought into the Plymouth area. Our hotel is owned by a
small company based out of Eden Prairie and we do not have the ability to spend large amounts of money on marketing
and advertising like the larger companies in the Minneapolis area. Visit Minneapolis North would allow the hotel as well
as the Plymouth area to be advertised to a large number of tourists and markets that may not think of staying here
otherwise. While staying at our property they will more than like eat at a local restaurant, possibly hold a meeting at The
Reserve, see a play at the Plymouth Playhouse, and shop at our local grocery stores and gas stations.
As far as the 3% lodging tax goes, the Comfort Inn would not oppose the additional tax in regards to what we will be
getting back in terms of revenue, marketing, and brand awareness. Most of our main competitors (Maple Grove hotels)
are part of VMN and are therefore currently charging the 3% lodging tax. Therefore, most of our clients and customers
would not be surprised to see the lodging tax on their bills. Personally, I have approximately 10 years in the hotel
business and it is very common for people to pay anywhere from 10% to 16% tax on their hotel room bill. Currently, with
our tax rate at 7.28%, that would still put us on the low end of tax percentages.
Together with the City Council, we would be extremely interested in discussing the positives and negatives of joining Visit
Minneapolis North. Please let myself of Dan know if there is anything that we can do to move forward with this.
Thank you,
Kim Fischer
Director of Sales
Comfort Inn Plymouth
3000 Harbor Lane
Plymouth, MN 55447
kfischeOntimmhotelgroup.com
Phone: 763-559-1222
Fax: 763-559-7819
Page 3
1,2P City of
Plymouth
Adding Quality to Life
January 5, 2009
Address)
Re: "Visit Minneapolis North"
The Plymouth City Council will be conducting a study session on Tuesday,
January 12, 2010 at 5:30 p.m. at Plymouth City Hall located at 3400
Plymouth Blvd. The City Council will be meeting with representatives of
Visit Minneapolis North" to determine if this program would be beneficial,
and the City Council invites your input.
If you have any questions regarding the study session please feel free to
contact me at 763-509-5080 or sengdaht@ci.plymouth.mn.us
Sincerely,
Sandy Engdahl
Plymouth City Clerk
3400 Plymouth Blvd • Plymouth, Minnesota 55447-1482 • Tel: 763-509-5000 • www.ci.plymouth.mn.us 4
Page 4
Radisson Hotel and Conference Center Minneapolis
3131 Campus Drive
Plymouth MN 55441
Comfort Inn
3000 Harbor Lane
Plymouth MN 55447
Best Western Kelly Inn
2705 N Annapolis Lane
Plymouth MN 55441
Country Inn Et Suites
210 Carlson Parkway N
Plymouth MN 55447
Red Roof Inn
2600 Annapolis Lane N
Plymouth MN 55441
Residence Inn Marriott
2750 Annapolis Circle
Plymouth MN 55441
Days Inn Plymouth
2955 Empire Lane
Plymouth MN 55447
Page 5
City of
Plymouth
Adding Qkelity to Life
SPECIAL
COUNCIL MEETING
January 12, 2010
Agenda
Number:
To: Laurie Ahrens, City Manager
Prepared by: Sandy Engdahl, City Clerk
Reviewed by: Cal Portner, Administrative Services Director
Item: Set Future Study Sessions
1. ACTION REQUESTED:
Review the pending study session topics list, and set study sessions or amend the topics list as
desired.
2. ATTACHMENTS:
Pending Study Session Topic List
Official Calendars
Page 1
Pending Study Session Topics
at least 3 Council members have approved the following study items on the list)
Discuss Future Transit Service
Other requests for study session topics:
Update with the City Manager (spring)
Meet with prosecutor for update (fall) (TB)
Consider incentives to encourage tree preservation
Lake sediment deltas report
Architectural guidelines (fall)
Review dangerous dog regulations/process (JW/JJ)
Page 2
r Plymouth
Adding Quality to Life
January 2010
Modified on 01/08/ 10
Page 3
1 2
NEW YEAR'S DAY
CITY OFFICES
CLOSED
3 4 5 6 7 8 9
7:00 PM
PLANNING
COMMISSION
MEETING
Council Chambers
10 11 12 5:30 PM 13 14 15 16
7:00 PM 7:00 PM
SPECIAL COUNCIL
ENVIRONMENTAL PARK ft REC
MEETING*
QUALITY ADVISORY
Medicine Lake Room
COMMITTEE COMMISSION
EQC) MEETING PRAC) MEETING
7.00 PM Council Chambers Council Chambers
REGULAR COUNCIL
MEETING
Council Chambers
17 18 19 20 21 22 23Cancelled
PLANNING
COMMISSION
MARTIN LUTHER MEETING
KING JR.
B I RTH DAY
Observed
CITY OFFICES
CLOSED
24 25 26 5:30 PM 27 28 29 30
SPECIAL COUNCIL
7: 7:00 PM
MEETING"*
PLYMOUTHH HRA MEETING
Medicine Lake Room
ADVISORY Medicine Lake Room
COMMITTEE ON
7:00 PM TRANSIT (PACT)
REGULAR COUNCIL MEETING
MEETING Medicine Lake Room Discuss Visit Minneapol's North,
Council Chambers and Discuss TIF Disl ricts 7-6 and 1-1
2010 Council Goals anc Legislative Priorities
Modified on 01/08/ 10
Page 3
r Plymouth
Adding Quality to Life
February 2010
Modified on 01108110
Page 4
1 2 3 4 5 6
7:00 PM 7:00 PM 2:00-7:00 PM
PLANNING HUMAN RIGHTS Fire and Ice
PRECINCT COMMISSION COMMISSION Festival
CAUCUSES MEETING MEETING Parkers Lake
Council Chambers Parkers Lake Room
7 8 9 5:30 PM 10 11 12 13
SPECIAL COUNCIL
7:00 PM
ENVIRONMENTAL
7:00 PM
PARK 13 REC
MEETING
QUALITY ADVISORY
Medicine Lake Room
City Assessor Update COMMITTEE COMMISSION
EQC) MEETING PRAC) MEETING
7:00 PM Council Chambers Council Chambers
REGULAR COUNCIL
MEETING
Council Chambers
14 15 16 17 7:00 PM 18 6:00 PM 19 20
PLANNING BOARD AND
PRESIDENTS
COMMISSION COMMISSION
DAY
MEETING RECOGNITION
Council Chambers EVENT
Plymouth Creek
CITY OFFICES
Center
CLOSED
21 22 23 24 25 26 275:30 PM
7:PM 7:00 PM
SPECIAL COUNCIL
PLYMOUTH HRA MEETING
MEETING ADVISORY Medicine Lake Room
Medicine Lake Room
Review City Fees COMMITTEE ON
TRANSIT (PACT)
7:00 PM MEETING
REGULAR COUNCIL Medicine Lake Room
MEETING
Council Chambers
28
Modified on 01108110
Page 4
City of
Plymouth
Adding Quality to Life
March 2010
Modified on 01108110
Page 5
1 2 3 7:30-9:30 AM 4 5 6
STATE 9:00 AM -1:00
OF THE CITY PM
MEETING RECYCLING
Medicine Lake Room TOUR
Waste Management
7:00 PM Facility
PLANNING
COMMISSION
MEETING
Council Chambers
7 8 9 7:00 PM 10 11 Cancelled 12 13
REGULAR COUNCIL PARK It REC
MEETING ADVISORY
Council Chambers COMMISSION
7:00 PM PRAC) MEETING
ENVIRONMENTAL
QUALITY
COMMITTEE (EQC)
MEETING
Council Chambers
14 Daylight 15 16 17 7:00 PM 18 19 20
Savings PLANNING
Commences
Set Clocks Ahead COMMISSION
1 Hour MEETING
Council Chambers
21 22 23 7:00 PM 24 7:00 PM 25 7:00 PM 26 27
REGULAR COUNCIL PLYMOUTH HRA MEETING
MEETING ADVISORY Medicine Lake Room
Council Chambers COMMITTEE ON
TRANSIT (PACT)
MEETING
Medicine Lake Room
28 29 30 31
PASSOVER
Begins at Sunset
Modified on 01108110
Page 5