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Housing & Redevelopment Authority Packet 10-05-2004 Special
MEETING OF OCTOBERS, 2004 AGENDA SPECIAL MEETING PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY TUESDAY, OCTOBER 5, 2004 - 7:00 p.m. WHERE: Medicine Lake Room City of Plymouth 3400 Plymouth Boulevard Plymouth, MN 55447 CONSENT AGENDA All items listed with an asterisk (*) are considered to be routine by the Housing and Redevelopment Authority and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner, citizen or petitioner so requests, in which event the item will be removed from the consent agenda and considered in normal sequence on the agenda. 1. CALL TO ORDER - 7:00 P.M. 2. CONSENT AGENDA* A. Approval of the September 16, 2004 HRA Minutes 3. NEW BUSINESS A. Review Senior Housing Market Study. B. Review Tax Increment Redevelopment District Plan for the Shops at Plymouth Creek. 4. ADJOURNMENT 3.Ae I MEMO N CITY OF PLYMOUTH \ 3400 PLYMOUTH BOUL YARD, PLYMOUTH, MN SS447" DATE: Septembu'r 28, 2004 for Housing and Redevelopmcnt Authority Meeting of October S, 2004 TO: Pousing and Redevelopment Authority le— FROM: es, Housing.Program Manager and Anne Hurlbur% Executive Director SUBJECT: Senior Apartment Project Market Demand Study BACKGROUND At the August 2004 HRA meeting, the Boar' directed staff to contract with Maxfield Research Inc. to conduct a preliminary demand market study. The t-oal of the study was to determirwif there was a need for additional market rate and subsidized senior rental housing in the City of Plymouth. Attached is the report and findings from Maxfield Research. The conclusion by Maxfield Research is that there is an unmet need in both categories. Specifically, Maxfield Research has indicated that there is room for an additional 68 market rate and 57 subsidized independent senior apartment units in the Plymouth area By 2009, Maxfield is projecting the need for 92 subsidized independent senior units, which indicates an upward trend in this category. These findings support the concept of the HRA building and owning a 60 -unit, mixed income senior facility. RECOMMENDATION Staff recommends that the Plymouth Housing and Redevelopment Authority Board of Commissioners Review the attached report. If the Board wishes to proceed, provide staff with the authority to begin the pra.ess of developing a senior apartment facility and authorize the Executive director to enter into the necessary contracts with consultants, including architectural, financial and legal services. ATTACHMENTS 1. Maxfield Research Report I I-) 0 is d arc September 24, 2004 MEMORANDUM TO: Mr. Jim Bames City of Plymouth FROM: Ricky Wong Jay Thompson Mayfield Research Inc. RE: Preliminary Demand Estimate for a Market Rate and Subsidized Independent Senior Rental Housing Project hear the intersection of Highway 55 and Vicksburg Lane in Plymouth, Minnesota Iobvdneden/Pnrpose and Scope of Research This memorandum contains a preliminary demand estimate for market rate and subsidized inde- pendent senior rental haling near the intersection of Highway 55 and Vicksburg Lane in Ply- mouth, Minnesota Maxfield Research Inc. developed demand calculations for senior housing based on estimates of the senior household base, estimates of senior household incomes and an inventory of existing and plumed competitive units in the defined Market Area. The methodologies used to calculate demand in this memorandum are proprietaki o Maxfield Research, but are consistent with standard methodologies used by analysts throub out the senior housing industry. It should be noted that the demand estimates and conclusions ct gained herein are preliminary, and are intended only to broadly assess the depth of the independet •enior housing market in the Plymouth area. This preliminary assessment is meant to deter it re whether additional units could potentially be absorbed A more thorough investigation of the unique characteristics of the Market Area, detailed in a Frill Feasibility Study, would reveal more specific factors that might impact demand and appropriate market positioning. Should a Full Feasibility Sh* be requested, we would conduct a site visit and may refine the Market Area used in this preliminary analysis. We begin this memorandum by delineating the primary draw ("market") area for independent senior housing in Plymouth and then provide an overview of the demographic and economic characteristics of the area's target market. Next, we define the various types of senior housing available in today's market and inventory existing independent senior housing in the Market Area. Finally, we present demand calculations for independent senior rental housing based on the amount and level of competitive product and our preliminary conclusions. l 612.726-0012 (15*)612.9047979 615 Fua Avow Ne.3Wte 606. MkA=P0Ik MN 33417 vw rmuliddmmcdvam f) Mt. Jim 1' •meS Septrnber 24, 2004 Gtty of Pb -mouth Parte 2 Market Area Detinitton Bond on the location of the Site, transportation rw,tes, man-made geographic boundaries, and our experience of the draw arras for independent senior bousiug, the primary draw (or "market") for this preliminary demand estimate is defined as the Cities of Plymouth, Crystal, Golden Val- ley, Medicine Lake, Medina, New Hope, and Census Tract 264.03 (north of Highway 394 in Minnetonka). The Map below illustrates the geographic areas included in the Plymouth Market Area (highlighted in orange} Plymouth Market Area 4ta Y 8swrelLr. • We estimate that approximately 75% of the market support for independent senior housing in Plymouth would come from this Market Area. The remainiug portion of the demand (25%) for a senior housing development in Plymouth will come from outside the defined Market Area. These individuals will include people currently residing just outside the Market Area who haye an orientation to the area (i.e., church, doctor, etc.); people who once resided in the area that de- h1AMELD RESEARCH INC. Mr. Jiro Bames September 24, 2004 City of Phrmouth Page 3 sire to move -back to be near friends and family, as well as parents of adult children living in the Market Area. Household Income Trends Table 1 shows estimated and projected incomes for senior households in the Market Area in 2004 and 2009. The incase estimates were made by Maxfield Research Inc., based on data from Claritas Inc., a national demographics firm. The data helps determine the demand for sen- ior housing based on the sizee of the market at specific price levels. It should be noted that the data does not account for the asset base of senior households, norsupplemental income that a senior bousehold could gain from the proceeds of a hone sale or from contributions from family members. The hailer the senior, the greater the proportion of their income they will typically spend on housing and services. Studies have shown that seniors are ohm willing to pay 400 or more of their inncomesfor market rate senior housing with little or no services, while income allocations of 50% to 65% are typical in a congregate setting, and 80% to 90RA percent or more for assisted living housing. The proceeds hom the sale of a home, as well as financial assistance from adult children are often used as supplemental iceome to afford senior housing alternatives. The following are key points regarding senior household incomes from Table 1. The median income among all age 65+ households in the Plymouth Market Area was esti- mated at 538,812 in 2000. Within this age group, the median income for households be- tween the ages of 65 and 74 was 547,474, while the median income for households age 75 and oldeiwas 531,368. The higher incomes for younger senior households (65 to 74) com- pared. to older seniors (75+) is primarily due to the higher proportion of younger seniors who are married, and more likely to have two pensions or higher Social Security benefits, while some continue to work. Households age 55 to 64, who are often in their peak eaming years, had a 2004 estimated income ofjust over 581,380. These older adults are not a primary market for age -restricted senior housing. A senior household eaming 547,474 (median income for households age 65 to 74 in 2004) could afford a monthly housing cost of 51,582, allocating 400A of the household's annual in- come towards housing, or51,978, allocating 50% of income. A senior ho@sehold coming 531,368 (median income for households age 75+) could afford a mombly housing cost of S1,307, allocating 50% of income towards housing. J MAKRELD RESEARCH INC. Mr. Jinn Banes September 24004 City of Plymouth ,2 MAXFIELD RESEARCH INC. TAKA 1 OLDER ADULT INMM9 DISIIIBUTICO PLYMOUIiI DIARM ARBA 20042009 513-61.1 6574 79+ 65+ los Ns 715 fiSAOD 20 61 966 IB. 1.306 12 1S,o0D33 999 r,-. 704 t3 Ip" 1,799 16 799 13.1 936 17- 1.749 16 983 l 0M 16 7 1,659 1 1090 766 143 1^4 17 1,771 602 11.. 331 977 3.169 775 14.368 6 1.147 10. sm 1001. IOAD 1 grg l4mro 1 H=13WIZ 99.61 79+ 6574 69+ 190 ftM14e 270sIS000261t 96s 13.3 1.175 10.3 IS oODSZti999 - 341 534 1 4,077 17A 1,391 1 376 x 694 123 977 165 IA67 14 sp06649 99b _ 1.117 It. 1031 1 Jim IL2 2.127 1 999 1.419 1 1.117 20.1 197 13.2 2014 17• 1,763 161 723 17. 410 LI 1,141 1 IOOo00rrmue 4021 4SJ 1131 20.S% 10.1 1.747 IS. 3,50140796721_ 1011 5: 11114Si 100. swim WZZ 476 W156 9561 69d4 79. T4W 69+ Ko r4k Ikel9s195 10 •13. 131 10. UrdQ815000 db •& 31 2 IS,OOO+SN,999 3S 1 130 ,21.3 s8 3.3 i01 11. 116 1 103 •17.1 23 2 32 1 999 lit I 60 196 261 1 4.999 142 A. 19 1.7 131 17.1 ISO L 7S,OOD 9.999 32 21 121 20147 208 100aoorrrr e 1232 XG 376 41. 221 62. 604 32. 279 sJ1+0637 12J 526 los 7• T. ILI leeoms 11 s+ 100 AtiCOrilmIre. Mn&M lte m L me. MAXFIELD RESEARCH INC. Mr. Jim Barnes September 24, 2004 City 4.f Plymouth Page 5 It is expected that the median income among age 65+ households will increase to 544,156 in 2009, an increase of 13.8% over five years. Among age 65 to 74 households, the median in. aome is projected to increase to 554,722 in 2009, and among age 75 and older households, it is expected that the median income will increase to 535,476. The target market far market rate independent senior housing is generally senior households age 65 and older with incomes of at least $25,000 in 2004 (plus senior homeowners with in- comes of at least 513,000 Younger seniors, ages 55 to 64, may also choose age -restricted housing, accounting far only a small portion of the overall demand within any given Market Area As of 2004, there were 7,548 senior households (ages 65+) in the Market Area with incomes of 525,000 or higher, accounting for 71% of all senior households. The number of senior households in the Plymouth Market Area is projected to increase by just over 800 households between 2004 and 2009, resulting in an increase of 7.696. The gmph below shows the number of households in 2004 and 2009, as well as the 2004 median household income by age cohort. NAMELD RFAEARCH INC. Household Income & CruvAb Comparison Plymoutb Market Area - 2004 & 2009 12 uoo SO= i"` race StOOW topoo S70AM 0.aoo i © 2aoo tncu 360aoo A 530.000 GM 540.000 8 . 006 a 530.000 s'- 520.000 2.000 510.000 0 Sa 35-64 65-74 73+ Age COW NAMELD RFAEARCH INC. 1 R 1) Mr. Jin/ Barnes September 24,.2004 City of PNMOutb Page 6 Homeownership Rate In addition to existing income solaces, many senior households are able to derive additionalin- come by investing the proceeds tram the sale of a home. This supplemental income can be used to cover the costs associated with residency in an age -restricted. facility. Table 2 shows home- owaesbip rates from the 2000 Census for senior households in the Market Area. Overall, 80% of the Market AreWs older adult and senior (age 55+) households owned their housing: in 2000. Homeownership rotes, however, decline as householders age, from 87%, among bousebolds age SS to 64,. to 85% among householdersages 65 to 74, and 63% for households age 75 and older in:2000. As seniors age, they may no longer desire, or be able to maintain their single-family homes. They may prefer to rune to housing that offers them greater freedom from maintenance and/or offers support b.:.vices. Seniors typically begin to consider moving into senior hous- ing in their early 70L PLURELD RESEARCH INC. TABLE2 OLDER ADULT HOUSEHOLD TENURE I`LYMOUTH MARKET AREA 2000 Afte of Noo:ehoWer on OMra Real 011fa OVO afltau>ololde_ 7,156__ oils ' 3_3"_01]_2, X616 7,863 _ _380 2,195' _ 1.605 Rase 8S% 83% A% 70% IV fine 87% 83% 63% 1 74% US Census Bureau. Maxfield Remich Inc. PLURELD RESEARCH INC. Mr. Jim Bames September 24, 2004 1' City of Plymouth Pane 7 SL'IDR NDISt7g11 7 7atEBYA CO1gRT PLYAgU1HMARI TTARFA-2000 i 7A00 i 90ti i S.00D 17x •. _ O atna Idl sit ottlommrtaethip I 3 aao11 3.110° M z' =,000 t,0011 33 to 64 63 to 7a 73 • A The preceding graphs show that as seniors in the Market Area age, the rate of homeownership declines. The graphs illustrate that many seniors over the age of 70 begin to choose alternatives i to the single -family home.. Home Values Maxfield Research gathered data on resale prices for all single -family housing built before 1985 in the Plymouth Market Area. Homes built prior to 1985 are more likely to be owned by seniors than more recently built homes. Data was compiled from the Regional Multiple Listing Service of Minnesota ("MLS") and reflects data from the City of Plymouth. Home values in the Market Area will dictate the amount of equity a senior will derive upon the sale of their home that can be utilized towards purchasing a new home. The tables show the total number of sales, average list- ing price and avemge sale prices, and the average time on the market between 2000 and August 2004. This data helps ascertain the strength of the overall for-sale housing market. However, it should be'noted in some circumstances a seniors home is older and its value may not obtain the 1 overall average selling price that homes in the area are commanding. The following are key j findings from Table 3. ` Average resale values of homes built prior to 1985 increased from a selling price of 5179,102 in 2000 to 5238,119 in 2003, again of 3399 in 3 years. Through Aur-st 2004, the average sale price was 5259,765 (based on 888 total sales). I Since 2000, the average time on the marke had increased by a couple of days in each of the first two years, but has remained fairly steady in the lost three years, at about 32 days. While MAXFIELD RESEARCH INC. W Mr. Jim Bames September 24, 2004 City of Plymouth page 8 this is still a relatively quick turn around time for the sale of single-family homes, it is an in- dicator that the market may be starting to slow somewhat. Still, an average sale time ofjust over a month indicates the market is a sellers market and that seniors woul6be able to sell their homes in a reasonably short period of time should they decide or need to sell their homes. Since a majority of senior homeowners will own their homes outright, they will have access to a sizeable financial resource in the equity they can realize from the sale of their homes. While the interest earned on investing these funds can help onset the monthly costs associ- ated with living in a senior housing facility, many seniors are also willing to begin spending - down assets in order to live in a facility that meets their needs. For example, a senior who owns their home outright and has a home valued at about 5259,765 (the median resale price of existing homes in the Plymouth Market Area as of August 2004) would likely be able to derive approximately 5241,581 after factoring in marketing/real estate commissions and moving costs (at 7%). Should this equity be invested in an interest-bearing account with a 4% return, it would produce an income of 59,663 annually (or 5805 per month). This income could be used to off -set the cost of senior housing, without spending down assets. MAXFIELD RESEARCHINC. TABLE 3 RESALE OF SINGLE-FAMILY HOMES BUILT BEFORE 191{5 PLYMOUTH MARKET AREA 2000.2004 LW ' Amad Sold Amad ATO. ar Sda 1086 Chw 5180,723 - PHM 179,102 Chaw DOM I52000 20011195 5199,818 10.6% 5198,261 10.7% 27 1273 5219,508 9.9% 5217,420 9.7% 32 2003 1283 240,937 9.8% 5238,119 9.5% 32 20040 888 5259,889 7.9% 5259,765 9.1% 32 Mmuga AaBast Somres NonAster MLS. Maxfield Research Inc. Since a majority of senior homeowners will own their homes outright, they will have access to a sizeable financial resource in the equity they can realize from the sale of their homes. While the interest earned on investing these funds can help onset the monthly costs associ- ated with living in a senior housing facility, many seniors are also willing to begin spending - down assets in order to live in a facility that meets their needs. For example, a senior who owns their home outright and has a home valued at about 5259,765 (the median resale price of existing homes in the Plymouth Market Area as of August 2004) would likely be able to derive approximately 5241,581 after factoring in marketing/real estate commissions and moving costs (at 7%). Should this equity be invested in an interest-bearing account with a 4% return, it would produce an income of 59,663 annually (or 5805 per month). This income could be used to off -set the cost of senior housing, without spending down assets. MAXFIELD RESEARCHINC. Mr. Jim games September 24, 2004 City of Plymouth Pap 9 Resale Data t — . Fbrmsuth Madmt Area —-sold Price 2M AIM 2000 -August 2004* IIIIIINI ' S2a0 000 I I I I i_ 1000 800 GM 400 200 MW M01 2002 2003 Me Yen Senior Housing Defined S20DAOD S16000D I sl2aaoo SWOOD Sam m Senior housing is a concept that generally refers to the integrated delivery of housing and ser- vices to seniors. As shown in Figure 1, however, senior housing can include a wide range of product types across the service -delivery spectrum. These product types range from independent apartments and/or townhomes with virtually no services to highly specialized, service -intensive, assisted living units or housing geared for people with dementia -related illnesses (termed "mem- ory care"). In general, independent senior housing attracts people age 65 and over while assisted living typically attracts people age 80 and older who need assistance with activities of daily liv- ing (ADLs). The least service -intensive projects, also termed "active adult' or "aduhlfew services" projects, are similar to general occupancy housing projects in that they offer virtually no support services or health care, but are age -restricted (t) pically 35 or 62 and over). Organized activities, trans- portation programs and common areas are typical of these prt wd% However, due to the lack of services, adult/few services projects typically do not commau c 0.e rent prerairms of more ser- vice -intensive senior bowing. 01 MAKFIELD RESEARCH INC. J Mr. Jim Barnes September 24, 2004 City of Phmouth Pape 10 FICURa 1 CONTIMI M OF HOUSING AND SERVICES FOR SENIORS or Home W Savioia` C N.WaftdW. llempyQnl id7bwAmav` '- tremiieawka" F Ipr.h4+.ra Fdbn xbut L a ew CWr asmim Ham Radua rape aaeaa tee Cangregardoprional-services projects, the next level up on the service -delivery spectrum, offer residents some support services such as reals and housekeeping, but these services are typically a-la-caete so that residents can choose whether or not to pay for them. Next on the service - delivery spectrum are co/tgregardservi . intensive projects, which include even more personal- ized support services in the rent, and attract a frailer senior population than adult or optional - services projects. As the proposed senior project in Plymouth will not offer any services, this preliminary demand study focuses on adult/few services senior housing in the Plymouth Market Area The most service -intensive product types, assisted living and memory ccwv, offer the highest level of services that arejust short of a nursing home. Typically, services covered in the fee for both of these product types include all meals, housekeeping, linen changes, personal laundry, 24- hour emergency response, and a wide range of personal care and therapeutic services (eithcr built into the fee or a -la -carte). Sponsorship by a nursing home, hospital, faith -based organiza- tion or other health care entity is common for assisted living and memory care projects (as well as for many congregatelservice-intensive projects). i Supply of Independent Senior Rental Housing Table 4 shows the existing supply, as well as any pending independent senior housing develop- ments in the Plymouth Market Area and the neighboring communities surrourding Plymouth. We have included market rate rental and ownership projects, as well as subsidized projects in the table. MAMELD-RESEARCH INC. Mr. Jim Barnes September 24, 2004 City of Plymouth Parte 11 Marker Rate Senior Housing Projects There are currently five existing market rate adult/few-service senior rental projects located in the Market Area Three of the projects are located in the City of Crystal, and the remain- ing two projects are located in the City of New Hope. The five projects combine for a total of 526 units. We have also identified five market rate adult/few-service senior owner iects within the Plymouth Market Area. Three of the projects are located in Plymouth, in Golden Valley, and one in Medina. There are a total of 317owner,-occupied senior units. Although we have included owner -occupied projects in our table, we would not consider them directly competitive with an independent rental project. We have only included a portion of the units 2096) in our demand calculations to account for some market overlap. SubsidiredSenior Housing Projexs Subsidized senior housing offers affordable rents to qualified lower income seniors and handi- capped/disabled persons. Typically, rents are tied to residents' incomes with rents based on 30% of adjusted gross income (AGI), or a rent that is below the fair market rent.. The Department of ' Housing and Urban Development (HUD) provides funding for the vast majority of subsidized senior housing projects. We identified six subsidized projects in thellarket Area with a total of 446 units. Two of the projects are located in Plymouth, two in New Hope, one. in Golden Valley, and one in Minne- tonka Five of the projects are deep subsid t were residents pay 30% to 35% of their adjusted gross income for rent. The other two project - Park Acres - is an affordable project where resi- dents pay a base rent Pending Senior Housing Projects There is currently one pending senior project and no planned senior developments in the Market Arca at this time. Anderson/Pattee Realty Services is currently building a 78 -unit independent senior project called Woodbridge Cooperative in the City of New Hope. They are all for -sale units consisting of one-, two-, and three-bedroom units, as well as some three-bedroom plus den units. Construction began in March 2004 and is expected to be completed by Spring 2005. Because Woodbridge is ownership, it is not considered to be directly competitive to the proposed rental project. There is some slight market overlap, however. We have taken this into consid- eration and have included a portion of the units in our demand calculations. J MAXFIELD RESEARCH INC. 101 J Mr. Jim Bames September 24, 2004 City of Plymouth Page 12 MAXFIELD RESEARCH INC. TABLE 4 INDEPENDENT SENIOR HOUSING DEVELOPMENTS PLYMOUTH MARKET AREA September2W4 Project Loeadoo Units Product Type . Market Rate Rental Projects Anthony James New Hope 73 AdWNFew Services Broadway Village New Hope 202 Adult/Few Services Calibre Chase Cgatsl 76 Adult/Few Services The Crystal Crystal 39 Aduh/Few Services The Heathers Estates Crystal 136 Adult/Few Services ToW Market Rate Renal 526 Market Rate Owurship Projects Comerstone Cooperative Plymouth 77 Adult/Ownership Gran ercy Park Cooperative of Plymouth Plymouth 56 AdulUOwnership Graum y Park Cooperative Northwest Plymouth 77 Adult/Ownership Gramercy Perk C •ve Elm Creek Medina 107 Adult/Ownership Total Market Rate Owe enhip 317 SmbskllaNAffordable Pro eeb Plymouth Towne Square (Subsidized) Plymouth 99 Adult/Few Services Basset Creek Commons (Subsidized) Plymouth 45 Adult/Few Services Boulevard Gardens (Subsidized) Minnetonka 46 Adult/Few Services Dover Hill (Subsidized) Golden Valley 122 Adult/Few Services North Park Plaza (Subsidized) New Hope 105 AdWI/Few Services Park Acres Affordable . New Hope 29 Adult/Few Services Total Smbsidhmd/ARordable 446 Peedhrg Semlor Homigg P -*b Woodbridge Cooperative New Hope 70 Adult/Ownership Total Uulb . ' • 1,367. Source Maifi itrimeh Inc. MAXFIELD RESEARCH INC. Mr. Jim Hames September 24, 2004 City of Mymouth Page 13 Market Rate "Adult" Senior Rental Housing Demand Estimates Table 5 presents our demand calculations for market-rate independent senior rental housing in the Plymouth Market Area in 2004 and 2009. In order to determine demand for independent senior rental housing, the potential market is reduced to those households that are both age and income qualified The age-qualified mar- ket is defined as seniors age 55 and older, although the project will primarily attract seniors age 65 and older. We calculate that the minimum income needed to afford monthly rents is 525,000, since sen- iors with this income could afford a monthly rent of SII00 based on spending 40% of their in- come. In addition, we add households with incomes between $15,000 and S25.000 who would be able to suppi. went their incomes with the proceeds from a home sale. We estimate the nutd.a of agelincome-qualified senior households in the Market Area in 2004 to be 17,149 households. Adjusting to include appropriate long-term capture rates for each age cohort (0.5% of house- holds age 55 to 64, about 5.0% of households age 65 to 74, and 10.5% of households age 75 and over) results in a local long-term demand potential for 702 independent senior rental omits in 2004. Win, we subs :t existing units in the Market Area. There are ten market rate senior projects o,.rcd in the Market Arca, however five of the projects (including the pending project) are owner-occupied and are nut considered directly competitive with market-rate senior rental housing. We have determined that about 20 percent of the ownership units are considered competitive and have included them in our demand calculations. Subtracting the total num- ber of existing (560 units) and pending (15 units) competitive units results in excess demand potential of 127 units in the Market Area. Additional demand will come from outside the Market Area. We estimate that 25% of the long-term demand for independent senior rental housing will be generated by seniors cur- rently residing outside the Market Area. This demand will consist primarily of parents of adult children living in the Market Area, individuals who live just outside the Market Area and have an orientation to the area; as well as former residents who desire to return. To- gether, the demand from Market Area seniors and demand from seniors who would relocate to the Market Arca results in a total potential demand for 170 independent senior rental units in 2004. J MAXFIELD RESEARCH INC. r L 11 J Mr. Jim Barons September 24, 2004 City of Plymouth Pare 14 MARK11T RATE ADULT SENIOR RENTAL HOUS1?%V 1111MAND PI.YMOUt11 MARKET AREA 1 of Homebt s d !acme of s15A00 to 524.909' 396 7M 1095 5.0% 459 624 1005 limes) Hommevm* Ram x 8796 81% 63% 42 87% 8S7i 63% equals) Pamw Marta - 345 M399 minims) ExioiogCempaiiveUn& 399 530 633 on) dorHounimb swib oamsofs2smot-' 7.968 1.2 7 3.791 163 8.824 4.389 3.470 rqw;es)T•nd Pmmid Utmket Base 8,313 1.8SS 3.981 9,22] 4.919 4.103 oes)LOWTe Oq—ame x 0.5% 5.(% 10.5% x &VA 5.0% rab) tamg-Tam Demand Peteeml 42 243 418 46 246 42 49TendMartelPateDemandPelemtel702 - 72.7 minims) ExioiogCempaiiveUn& 560 560 equals) Emm Shoo -Term Demand 112 - 163 minus)PeomngcompeOveIndependent units Is - Is equals) Tend Dmond Pboeotial 127 - 148 pbs) Demand tion Outside Market Area (25%) 4 42 + 49 equals) Tond L *Tam Demand 170 - 197 time) Facia capturable at PbWom6 (45%) x 40% x 40% tagmd* gum Demand bs 79 12009 hwomo-qualified flgmes aaliu ud far imasdon (ROK ar more+ bomuaamms ni/ inc. ofs20.301q t camperitive mals isehdes a0 mantel nine temd and 206of minket ate awrmhip upas m 95%omV—Y (mocker equiblrium ) No one project or site can capture 100% of the Market Area demand. We estimate that a pro- ject in Plymouth could capture about 40% of demand in the Plymouth Market Area. "ere- fore,.a 40% capture rate would equal total excess demand of 69 units in Plymouth in 2004. Adjueimg for inflation, we have estimated that households with incomes of $30,000 or more and homeowners with incomes of 520,000 to 529,909 would best qualify for market rate in- dependent senior housing in 2009. Considering deg ,wth in the older adult base, the in- come distribution of the older adult population in 2001, accounting for other pending senior projects in the development pipeline, and applying our 400A capture rate for a project in Ply- mouth, our methodology projected that there will be an excess demand for 79 adult rental units by 2009. The cbart below graphically displays demanO for adult units from 2004 to 2009. MAXFIELD RESEARCH INC. Mr. Jim Barnes September 24, 2004 City of Plymouth Parte is Addt" ta6pre6at Sensor atetd Undes Desse•d 1n WSaemtk IM ea IM 50 ta0 rase zoos mos :007 mob 20a9 Yeo Embdul Unks 0 Fe Units O Eaom Demand J Subsidized "Adult" Senior Housing Demand Estimates In general, most senior households with incomes in excess of 525,000, and senior homeowners with incomes of $15,000 or more can afford markt.. -!te senior housing without financial assis- tance and do not need subsidized housing. Subsequently, seniors with incomes less than S 15,000 and seniors with incomes between $15,000 and 525,000 who currently rent their housing are candidates for subsidized housing. Based on these factors, we estimate demand for subsidized senior housing in Plymoud . shown in Table 6. The table shows a total potential market base for senior housing of 807 households in the Plymouth Market Area for 2004. Not all of the age/incortte-gualified market senior house- holds will need or want subsidized housing, however, we estimate that 67 percent of the mar- ket base will need or want subsidized senior housing in the Market Area. Thus, demand exists for 538 subsidized senior housing units in the Plymouth Market Area. There are 395 existing subsidized senior housing units in the Market Area. SWxmcdnb the existing units results in excess demand for 143 units in the Market Area. We project that a subsidized project in Plymout:i would capture 400% of the demand from Market Area households. This equals a total demand for 57 units of subsidized senior housing in the City of Plymouth in 2004. MAXFIELD RESEARCH INC. 1) Mr. Jim Baines September 24,.2004 City ofPlymouth Page 16 TABLE6 Adjusung SUBSIDIZED SENIOR HOUSING DEMAND PLYMOUTH MARKET AREA SesdomberL091 AMR Market: 20M 2009 Senior Househohis (65+) a{incomes below 515,000 340 512 plus) Senior households Winccames between 515,000 and 525,000 Who feet their housing, + 468 424 equals) Potential market base 807 936 times) %oftnefI bole txediogftenting to-w4wome housing x 67% 67 equals) Subsiffizedlafrordable senior housing leeaod 538 624 minus) Existing occupied subsidiad units 395 395 equals) Excess loogrosm demand Q 143 229 which apta*t in Plymouth can capture x 40% 4015 l7 9 m etilied m r far is wca (Swar hsr • homco ens a ior. ors2mouL:— e: Maxfield Research Inc. for inflation, we have estimated that households with incomes of $20,000 or less and homeowners with incomes of 520,000 to $29,999 would best qualify for subsi- dizcdlafTordable independent senior housing in 2009. Considering the growth in the older adult base, and applying our 4056 capture rate for a project in Plymouth, our methodology projected that there will be an excess demand for 92 subsidized rental units by 2009. Preliminary Conclusions Our preliminary assessment of the age/income-qualified senior base and inventory of existing competitive units in the Plymouth Market Area indicate that pent-up demand. currently exists for market rate and subsidized adult senior rental housing in the City of Plymouth, In addition, there was only one pemding.development identified in the Market Area in September 2004 (an owner- ship project). Our calculations indicate that there is sufficient demand to support up to 68 mar- ket rate and 57 subsidized adult rental units in Plymouth in 2004, increasing to 79 market rate and 92 subsidized units by 2009. If the City of Plymouth chooses to pursue the proposed project, the next level of research (a full market feasibility study) could be undertaken to examine the appropriateness of the site for sen• t4XFIELD RESEARCH INC. Mr. Jim flames September 24, 2004 City of Plymouth Palle 17 for boushg6 the historical performance of other competitive bowing developments in the Market Area, theprice and positioning of the subject or competitive product. and other factors that would likely affect the market success of aproject on the subject site. A full market feasibility study helps to refine an appropriate development conceptand pricing scheme for the project and is olbm required by lenders and other fummcial institutions: C MAXnEL) RESEARCH INC. WE 1 C` 3.8. Agenda Number: aiO VSI V AND ,-. tEDTVEL.OPAdRgNT Auimbmri; `• DATE: September 28, 2004 for Housing and Redevelopment Authority Meeting of October S, 2004 TO: PI ousiug and Redevelopment Autiton FROM: Housing Manager through Anneurt, Executive Director SUBJECT: CSM Investors II, Inc. — Request for Tax Increment Financing for the Shops at Plymouth Creek located at 15905 State Highway 55. BACKGROUND: CSM Investors 4 In., has submitted an application requesting tax increment financing assistance for the redevelopment of the Dana Spicer property (see attached TEF application). At the September HRA meeting, staff informed the HRA Hoard that the City's Bond Attorney had recommended the HRA, rather than the City establish the TEF district. This was recommended because a redevelopment TEF district is more closely related to the mission and goals of a Housing ad Redevelopment Authority under Minnesota Statutes. On June 28, 2004 the Council approved the request by CSM Investors IL Inc., to mguide the Dana Spicer property located at 15905 Highway SS (see attached location map). The developer requested that 23.6 acres of the total 28.7 acre site be re -guided from Light Industrial to Commercial. At this mating, the developer provided the council with a set of sketch plans detailing the proposed project . These plans included a Lowe's Home improvement Store, Walgreen's, M&I bank, testaumnts, small shops, and space for a mid sized retailer. The council also approved mguiding approximately 5 acres of the site to LA -4, which the developer indicated would possibly be used for a daycare center or residential housing. As part of the review for re -guiding this property, the City conducted a traffic study to review multiple useoptions, as well as current traffic conditions. The results indicated that the intersection of Highway 55 and Vicksburg Lane is currently operating at a Level of Service E, which indicates is at or very near its capacity and vehicles experience substantial delays during peak traffic times. The study concluded that improvements are required to this intersection regardless of what happens to the subject site. Additionally, the traffic study reviewed the proposed entrance to the Dana Spicer site at Vicksburg Lane and 32nd Avenue. The study found that this section of the toad is currently operating at an overall Level of Service A. However, if the property were redeveloped to a more intense use, the traffic condition would worsen to a Level of Service F without any traffic improvements. CC ft=C se! TW RaPW 11-13414w Funding to make improvementsto the Highway 55/Vicksburg; Lane intersection and Vicksburg Lane/32w Avenue are not currently part of the City's CIP. However, the improvements are being considered as part of the 2005 CIP with Tax Increment Financing as the source of funds for the improvemarts. Since the June 2e Council mating, the developer has submitted their planning application for the development, which staff is currently reviewing. It is anticipated that the Planning Commission will review the development proposal and hold the public hearing on October 20, 2004. r n"Ldl I qf), I AJ1 A 1 t -T Improvements are required for the Vicksburg Lane intersections with Trunk Highway 55 and 32" d Avenue to provide for safe and efficient traffic operation in the area. Northbound, eastbound, and westbound dual left—turn lanes are required at the intersection of Vicksburg .Lane and T.H. 55. The existing traffic signal at T.H. 55 will need to be modified to accommodate the additional lanes. The estimate for this portion of the project is $438,150. The installation of a traffic signal is needed at the intersection of Vicksburg Lane and 3e Avenue. The eastbound and westbound approaches will be restriped to provide a left tum lane and shared through/dght tum lane. Dual left -turn lanes are needed for the eastbound approach. In addition, a southbound right tum lane is needed at this intersection due to the high right -tum volume. The estimate for this portion of the project is $300,150. The developer would be responsible for one-fourth of this cost, which equals $75,038. HRA SENIOR HOUSING PROJECT: The HRA mission is to "...promote and contribute to the economic health of the .:ommunity through the creation and maintenance of affordable, life cycle housing, and active participation in the City's development and redevelopment process": In keeping with this mission, the HRA has been researching potential project sites. Over the past two years, all of the potential sites have either been unsuitable or too expensive to make a project financial feasible. Early this year, the HRA expressed interestin pursuing the idea of acquiring some land from CSM to construct an independent senior apartment facility. The proposed project would consist of approximately 60 units with a mix of market. rate and. subsidized units. CSM has indicated they would be interested in selling the HRA 5 acres of land to develop an independent senior lousing apartment complex at a cost of $524,888. By structuring this project as mixed -income, the HRA would be able to minimize the annual subsidy needed to operate the property. Early feasibility studies indicate that the building would require less than $100,000 in subsidy over the next 4 years. Beginning in the fifth year, the property will begin to show a positive cash flow and would not require the HRA to commit a large annual subsidy, as is currently the case with Plymouth Towne Square. These are preliminary numbers at this time and as the project goes forward, staff would refine the numbers. .. CCsemeCreekiff aequm 11-134reoo 2 A) TAX INCREMENT FINANCING: The Tax Increment Financing District for this Project will be a Redevelopment district. Minnesota Statutes.pmvide that at least 90 percent of the revenues derived from tax increments from a redevelopment district be used to finance the cost of correcting conditions that allow designation of redevelopment districts ( or'qualifying costs). Qualifying costs that raeet the 90 percent requirement include acquisition of land, remediation necessary to development of the land and installation of utilities, roads, sidewalks, and parking facilities for the site. Administrative cgmm es also may be included in the qualifying costs.) In addition. conditions that allow designation of a redevelopment district are defined to include deficiencies in essential facilities, which, together with other structural defects and deficiencies, are of sufficient significance to justify substantial renovation. Thus, the definition of qualifying costs is quite broad, and the installation of traffic signals and other improvements to roadways to improve the flow of traffic into and out of a redevelopment project fall within this definition if they are on or adjacent to the redevelopment project site. If this project were approved, the City would issue General Obligation TEF Revenue Bonds to pay for the road improvements as well as the acquisition of the 5 -acre housing site. The reason for issuing bonds, as apposed to a pay-as-you-go TEF note, is that these improvements are considered public improvements that the City would typically pay .for under these types of circumstances. The land acquisition also needs to be funded up front for the MRA's project. The combined costs of the traffic improvements and the acquisition of the senior housing site are 51,188,151. The district would be in place for 16 years and the net interest nate of the bonds would be 5.97596. This assumes utilizing 80% of the increment during that period to assist in the traffic improvements and acquisition of the housing site. The remaining 20% will be available to offset administrative costs associated with the district and to provide approximately $433,000 for the City's Tax Increment Housing Assistance Program. (see attached TEF Assumption Scenario). An alternative option would be for the Board to consider having the Fiscal Disparities taken from outside the district, which would allow for the decertification of the district after 9 years. However, the City typically does not do this because a portion of the tax increment payments will come from all of the taxpayers. as opposed to just the taxpayers within the specific tax increment district. This will result in a slight tax increase to each resident. But -For" Analvsis The TEF laws require the City to determine that the development would not occur without the Tax Increment Financing. Staff believes that the "but for" test has been met. The traffic study clearly indicates the traffic conditions are pre-existing and regardless of the type of development that occurs, improvements will be required. The developer has stated that they would be unable to complete this project due to the additional cost burden the traffic improvements will added to the project that are not caused by the development. City staff, along with our financial and legal consultants has reviewed this project for its J financial feasibility and have determined that this project is feasible and that the costs associated with the project are justified. CC St=Cmk W aemmW 11-13-014= FINANCIAL IMPACT: . '*-) The costs of the improvements do not directly result in a financial impact on existing City or HRA finances. By creating a Tax Increment Financing District, the City will capture the `new" taxes generated by the project. These `new" taxes will then be applied towards the repayment of the bonds. After the bonds have been repaid, the TEF district will be decertified and the `new" taxes will be available to the respective jurisdictions including Hennepin County, Wayzata School District, and the City of Plymouth. RECOMMENDATION: Stats recommends that the Plymouth Housing and Redevelopment Board of Commissioners direct staff to .prepare a TEF plan and recommend that the City Council consider establishing a Tax Increment Finance Redevelopment District. NEXT STEPS: If the HRA concurs with staWs recommendation, a TIF plan and Developer Plan will be drafted for approval by the HRA at the regular October meting. Additional steps will include a public hearing by the City council, review of the TIF Plan by the Planning Commission and the marketing and sale of the bonds. Attached is the Time Schedule for the TEF Plan ATTACHN[ENTS: 1. Tax Increment Financing Application 2. Tax Increment Assumption Scenario 3. Location Map 4. Site Plan S. TEF Time Schedule J CC Q= C=& T1F ae*M 1 1•13.OlAoe 00/00/04 790 15:33 FAX 012 393 7002 Cott CORP 0002 City of Pb -Month, Minnesota Continually Developmesit Departtaent 3400 Plym ullis Boulevard Plyromth. MN 55447 76-'1) 309-5400 Fax (763) 509.5407 Revised 8-30-2004 APPWCATION FOR TAX INCREMENT F114ANC114G A. PROJECT: 1. Name: CSM Invest= U. Inc.. a Mimtcsuw Corporation Address: 500 Washington Ave. South. Suite 3000. Mpls.. MN 55415 Telephone q 612-395-7000 Fax 0: 612-395-7002 Contact RTsun: John Geldernan-612-395-7029 2. Brief Description of the project. The site currently contains a blighted 200,000 S.F. industnal building, parking ]at and approximately 10 acres of undeveloped land. The existing building and parking lot will be dertalished and a retail center and residential project will be dcvcloped. Off site improvements include the addition of left hand turn lanes on Hwy 55 and also a right turn have and traffic light at the eamum of the shopping center. 3. Address and/ur Legal Description of Site. 15905 State Highway 55 - Plymouth MN/I of 1. Block 1 Spicer Addition, Hennepin County, MN 4. Proposed Project: Building square footage. sitz of property, description of buildLtgs - ttaterials, etc. Attach site plan, if available. It is anticipated that the existing 28 -acre site will be redeveloped into The Shops at Plymouth OYeek which will contain an approximately 200.000 s.t retail center and future residential project. The primary tunara for the new center will be a 134.000 s.l: Lowes Home Improvement store. A bank drug store, pad retaillresti nant site with driarithrt, approximately 24.000 s.f. of intermediate sin retail space. and 16.000 s.L of small restatmurt/retail space will be part of the Shops at Plymouth Creek. The site plan is designed to follow the principles established for the " City Center" vision. Buildings arc located at the edge of both Vicksburg and highway 55 to reinforce an urban character. The prime corner of the developnxnt, located at the mutt intersection, groups smaller, more pedestrian scale buildings and features i large outdoor pla?a area. This amenity will encourage social interaction, provide a place for outdoor dining, and create landscaping opportunities that will act as a gateway fcattue to the entire "City Center". The overall toaster plan has successfully achieved We. pedestrian access throughout the site. 09/09/05 TRU 15:34 FAX Olt 595 7002 CSM CORP 10003 9 The anchor tenant is located in the interior of the site creating the "backdrop" of the development. Thelong fhaade of the building is broken up by introducing architectural elements such as awnings, masonry piers, undulating parapets, and changes in exterior finishes. As parsons approach the development the building will also be sofunted by the smaller scale and scope of the paitneter buildings. The southern portion of the site is a future residential project. CSM is looking at two possible options for the site: a. Daycare: Facility or Senior Housing (approx. 60 dwelling units). Both of these uses world save as a natural transition from the single family homes to thesouth of the. site. Careful attention has been paid to preserving existing wetlands and maintaining the berth and trees that form a natural buffer to the existing residential, neighborhood. The landscaping will mast the high level of quality established in the City Centcr. The architecture of all of the buildings will compliment the City Center character. Similar materials, detailing and colorswill mflcci the style of neighboring retail developments. National prototype design from the retailers will be refuted to compliment this center's standards. 5. If property is to be subdivided, describe division planned. The total acreage for the property is 28.7 acres. The developitient will be made up of six land parcels. The designation and sizes are as follows. Lot 1 is 12.2 acres and will contain the Lowe's Hume Improvement building and. parking arca. Lot 2 is 7.3 acres with a proposed intermediate sized retail building, parking ansa and detention pond. Lot 3 is 1.0 ash with two proposed smaller sized retail buildings and parking area. Lot 4 is 2.0 acres and will contain the walgreen's building and parking area. Lot 5 is I A acres with thto proposed. restauranVretail building and parking area. lot 6 is 4.8 acres with the future: residential project and detention pond. Estimate! Project Costs: (Please enclose construction profnrma, if available) a. land Aaluisitiun 57.800,000_ b. Site Development 3,988,000_ c. Building Cent 514,600,000_ d. Equipment t0. e. Architectural A En}Oncaing Fees 5325.000 E legal Fees 100,000 g. Financing Costs 875,000 h: Broker Costs 775,000 L Contingencies 200.000 j. Other (Fees, Env., lhv. Fexs. Hold Costs) 51,20000Q_ TMAL 529.863.000 7. Total Estimated Cost at completion $30,000.000 2 4 '09/09/04 TMU 15:24 FAX 612 205 7002 CSM CORP .0004 S. Source of Financing a. Equity h: Rank Loan c: Tax Increment Assistance d. Industrial Revenue Bonds e. Other (please attached description) 7.700.000 521,500,000_ Sg00,000 9. Form of tax increment financing: _x_ Pay as. You Go or Bond Issuance 10. Name & Address of architect, engineer and general contractor. Architect — CSM Corporation/Dave Wisnewski — 500 Washington Ave. S., Suite 3000. Minneapolis, MN 55415 -Mane: 612-395-7000 Designer — Kathy Anderson —Mane: 612.436-4030 Engineer, - Dan Parks — Westwood Engineering — 7599 Anagram Drive — Eden Prairie. MN 55344 —Mane: 952 937-5150 General Contractor - TBD 11. Estimated real estate taxes on pruiml site upon completion Mpro3ect. Flcasc show calculations) Residential Proiect-, 60 unit senior housing project would be non-profit, and therefore would generate no taxes. Commercial: 1. Juwes: Currently the Home Depot in Plymouth generates taxes at 5340,443. Assuming the Lowes is 1596 larger in size, the tax gm -rated by I..owes would he 5391.509. 2..RestftWtail Pad Site: 1701s.0 average value, 6,600 s.L x $1701s.f. x 3.37% (tax rate) - $34,400 3. WalV=x. The existing Walgreeas in Plymouth generates 575.000 per year in taxes. We would assume this . Walgtecas would generate the same amount. 4. M&I Rank: Assessed at 52,000.000 x- 3.37% (tax rate) - $67,400 in taxes. 5. Retail: 170 per square foot average value for the three retail buildings. 40,000 s.f. x $170/s.f. x 3.379(, tax rate) = 5229,000 in taxes. Total Taxes Generated from new development -.S797,309 Jl Taxes Generated from existing development -S288.00 Net Additional Taxes - 5509,309 3 09/09/04 7IIU 15:4 FAX 912 393 7002 CSN CORP 11005 12. Projeci construction schWulc: a. Constriction Start Date: Spring 2005 b. Construction Completion Date: Summer 2006 e. Uphased Project: 2005 Year 75% Compk:tc 2006 Ycar 25% Complete 4 09/00/04 TRU 15:34 FAX 012 395 7002 CSM CORP 11008 13. TAX MREMF.NT FIN6NCING REQUEST 1. Describe amount and purpose for which tax increment financing is required. 5500,000 for two pairs or left hand turn lanes and traffic light modifications at Hwy 55 and Vicksburg Lame. 300,000 for a right hand tum lane from suuth bound Vicksburg Lane into the project and a new traffic light on Vicksburg lane at the new entrance into the project Additionally, there is also an expense of approximately $500,000 to demolish the existing building. These tnonics however are not included in this TIF request. This building is cunaidened blighted considering the buildings current state of disrepair. 2. Statement of necessity for use of tax increment fmaneing fcv project. Based on studies mid analyses conducted by CSM Investors II, hoc., in the absence of public financing of the traffiewelated public improvements proposed to he undertaken and financed by the City through tax increment financing, it would not be financially feasible at this time for CSM Investors 11, Inc., to move forward with the proposed project, including the traffic -related public improvements, solely through private investment. 3. Please indicate how the project and use of T.I.F. would meet one or mon of the following goals: job retention, job creation, headof=household jobs. affordable housing or tax base expansion. va Job creation - the current employer that occupied the existing industrial building has moved operations out of state so the building is currently vacant and in need of major repairs. Considering the current economic downturn and the high vacancy rates for industrial buildings, it would be years (if ever) that the building would be reused. The retail project will create jobs immediately. As was noted above, the project will increase the tax base considerably. Through the city's affordable housing fund. the project will increase the cities base of affordable housing. 4. Municipal Reference (if applicable). Please: name other municipalities Wherein the applicant, or other corporations the applicant has been involved with, has completed development within the last five years. Carver Lake Business Center - Woodbury MN Centre Pointe Office Building -- Roseville Chanhassen Fast Business Center - Phase I.4 - Chanhassen Depot Office Center -Minneapolis Waters Business Center - Fagan Prairie Crossroads Corporate Center - Eden Pr Prairie Oaks Corporate Center - Eden Pr. Southwest Tech Center - Chanhassen University Industrial Center - Phase III - Minneapolis Vallcy Green Business Center - Shokopec J 091u;iO4. 21111 13:35 FAX 012 398 7002 C911 CORP S. Applicant acknowledges and agrees that all fees and expenses incurred in connection with this application or establishntertt of the TIF District. whether or not approved. will be paid by Applicant. The Applicant `hall hold the City, its officers, consultants, attorneys and agents harmless from any and all claims arising fronto, in connection with the Project, including banot limited to. any alleged or actual violations orae y state or Federal securities Iaws. Applicant recognizes and agrees that the City reserves the riltht to deny any Application far Tax Increment Finaneing.at.any stage of the proceedings prior to aftting the resolution approving thedistrict, that Applicant is not entitled to rely on any prelintinary actions of the City prior to the foal resolution, and that all eaptaiditures, obligations, costs. fc#s or liabilities incurred by the Applicant in connection with the Project me incurred by the Applicant at its sale risk and expense and not in reliance on any actions of the City. Th< uetdatsigned, a duly authorized representative of the Applicant, hereby certifies that the fwcgoing infortnation is true, correct and complete as of the date hereof and ap;Ls that theApplicantshallbeboundbythetentsandprovisionshereofandoftheCity's Policy and Procedures attached hereto. DATE. Sggprphxr 1.20.%— tran"O Applicant: QW lnvastorrx 11• Inc• By: Its: 6 0607 0 D V Wo Oly of PbmaM Housing:6 Radalrslopt -ant Ato o ft. iNnllaaota T4s ktuemant Rnwwlas (R.awtlo i nae) Madel No. 14 The shops d Pbmotdh weak Plopet Bums" B -:b ta(l)on OW - Fo 1- golkh1 dimet - TIF now a% of htorotmatt Type o1Taa lnoemad Fitanalnp Dlatda RedsYdaproN Mabaan Duddon of TIF Olstdd lei yaels fan tet ieaanrnt PrNsetid Certification Reewt Dad Es -1 ' ' Daoaotlakon Data 6=9 , - Madat Vada TMM. Fiat 5160.000 Eaoess co" Net Ta Cepetity ami: sthla, Mab-Veka tnassas in.EMV - ReW veaMMInEMY-MgWnp Told EMab. vdn Time: Fiat 516&000 Eaaas Tad Nd Ta Com* i213f64 12131122 (16 Yeaa of tmaan0ny 20002005 S7A90.000 1.50% 2.260 2.00% 146.600 5149.0;0 Clpr d Plp—lh WCAO/adaeYear IIN NO GWV 47.324% 20002006 20062000 20062007 20072008 67A90.000 87A906000 STA9&000 57.490000 0 0 4.01&000 16.610.000 0 0 0 0 57,490600 7,490600 11.600.000 623.000600 1.60% 2.250 2.250 2260 2.250 2.00% 446.600 146AW 227.000 457.000 5149660 149650 5229250 645UW Clpr d Plp—lh 23.9224. IIN NO GWV 47.324% Iso 0284 22.115% Odw. ws 3 9.256% L.oal Tam Cepa* Roes 101.617% 20032000 Fetal DLtp Wn C=Mxdm Fran TIF David 39.7909% AdmMireeas Ratsk eip Pow Ovow mum 10%) 9.00% podnG pow • load' gi ... a advide disviU 00% POWOPOON -ddedob' I 16.911% soMl Nae WAV As-you.Qo1 Baeeds Dosed 1213160 100111 Dated 1213160 Bad taws ® 6.96% (M C) 51.050.000 NoteRats 6.06% Ellob ilr4odl Cosh 61.193M17 Nate Mond S1.168,161 Present VAM OM 8 Rate 1213166 6.06% Nates J - – TOWEANCIMnOthiCkdo eesldentid aanponant - v ti aapaedd betao-eeayt 15% d a m d Inaarent Inmedad fer poring d Cko l•It1K' A-=u"L Cdadatlon:fawe6 no dtages to lutes to rates. a--* MM matt rains, =nsMmvm aahadt" ane no maks-vin idladr used. 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INDOOR am am am to AWLIS 1AaM11M 41.0011 am am am m UWAS laurel GDw>t1N am am nm Dm 30.4" t.1DU"M IIDu" am 6m am oGo AWN tARm: avow am aN11m a'mI 0Go1.m SFC.: 1.r1.7OGo DOOM as TDam amm SAMDls11M i4at" DOOM ASLO aAaGo law.: 7W7AD am LmGo+1 MOM DaaaGo AGoLO "W.: 7W7AG am 1.21t11a: MIMIM a18a18 aa: 1.01.111 1.01.0 am DSII." 40102110 VAtll ILCIA 1.01.0 aO7A0 am IJ13A*.V alDY". 3L77W Via" aOIAD 71211: am fAN3"Go 401021+1 IMILo a1So 7LW.: awAD am LIBLUM Go2121e Aml 740Km O.w.O nw.m am l7ata" ca ms 0AaO 31.11LO law. aWAa aGo 1Aai/.s Goamt Ater 3LAal SOW.: awAD 610 U0.1O0 mm3 KWm MANa 7L01AO 7LWJD am GaMat Gomm Alam 111117+.0 Tw.: MWAD am 111LW.r GURM 47.13110 01.1.E FLOW.: 7LOVAD am 11rJm117 Gomm Palo VAIO 7LO7-0 Twin am r4a7A7 mmn11 ASV aW.a ILIUM aOWAD am M Gomm MASON DO1a.O law.: 1.wADOm IMM" IDSA Sm: C.1Qm 7101.: awAD am Go1.Go1O Gomm 1141117.0 SOa117 TURN I&MIJID am NtN11I maW7 a7aO MUM 7 wAO 1.w.: to sulm Nlmlo CAaN 27ARO 1.w.: SOL: to a71al i 0018" a7m: Oma ast.: 7L01.Go am 471Aa: 1.11.18" MAafi 11.131A 1.w.: 73=0 am ams mw" 4063000 Via: FJAVM ILIMAD am Damt+ 40121" not. 1 DOOR 1.w.: aWAO am 20012.111Dat® win: LODm 1.w.: awaD as M&MIS DOOM ouas 4,417s 1.w.: aOWAG m tg1117.O 43mo 7+AM.r Usal aw. 713641111.01m lam MIM Man Una 711412:: aMlm am 610 Damm to am am ON am am o21mm am am am am am am Halm an am am am am am Gomm as to am am as am calm am m am am am m UNION, am am am m am m MINDS am am am 1.r am am Gomm am am am as nm am Gomm nm an 1..1 am am am Sola am am 1.0 am as am mo21a a: to amam am am OLVM an ON 610 610 O.Go nm lima am to aGo am am am mous am am am am am nm Gomm an as am am am am Damm m am an am am am Goa2130 m m am am am ON mnm mam am am am am mm18t m nm am am am am IMM: am am m am am am mous am am 410 em nm 1..m MAatGo GoMm: aN1AaGo VA1.0100 Mama allomfwaowl" W.11F.17 7aawlll . a:Dmm 11101 ataatteaNa" Goa:7r Ner t.aNOiwNwa 1.r Dn1.mrwarm. a arNa7e"tero s a"711wpaMwN21a 4NdN721D 6110 Mm kmnoo ed 7X011.101D711Yr Small 712171.10 DR rM1Oar aros7r IFa11t1 w aD0RFD7 a i:OR FDF1 P~IIF{alIMGo70oa1Y I Projected Bond Cash Flow Report i The aor at Pbnwutlt NauaI & A 1--aktpnwnt Audwrib, MkllwsaL Tats btaamad Flnmdng (IOadwalapneni) Md" The Shape at PlynwuM Creek Pt*a Scenario B - Sri ndlSon UM - PD wMdn dtetlt t - TIF Note 0% at' Amod Paw Amoad Tuame pt 1201/04 Fast InWed Dat CepeAed Arswd Nal AmnW Ct unitive Ending PrrJpi Rete YKared Pal htrost Rarenr' a-, Arima I,1 rn 401 211 Is) tat, m I81 rel 02101105 0 2.40% 6.834 5.934 6.900 0 0 as 02101106 0 2.65% 82.008 62008 82.000 0 a) se 02101107 0 125%. 62.008 42.006 62,00D 0 a) so owiffle 0 70%. 82,008 a2A09 42.900 39,112 4 54 02101109 65.000 4.10% 82.008 147,009 0 161.275 4.267 4.321 02101no 74000 4.15% 79343 148,561 0 151.275 1.952 am 0210mnt 75.000 4.90% 76.228 151.228 0 1s1,275 47 6.300 02101114 75.000 5.25% 72.553 147.553 0 Isli 8 3.722 10.022 021111113 mom am% 68,615 140,616 0 151,275 2.6150 12.682 02101114 85.00D 5.45% 44.335 149,335 0 151.275 1.940 14,622 02101115 90.000 5.55% 59.703 149,703 0 151.275 1.572 16,194 02101116 BLOW 5.65% 54.709 149.709 0 161.275 1.557 17.761 02/01117 100.000 5.75% 49.340 149,340 0 151.275 1.935 19.096 o2101ne 105.000 5.8514 43.580 148,590 0 151.215 2.685 22.381 02101119 110.000 am% 37.448 147.448 0 1SL27s 3,127 26.209 0210120 115.000 6.05% 30.903 mom 0 151.275 5.372 31.580 0210121 120.000 6.1S% 23.945 143,945 0 151,275 7.330 39.910 0210122 130.000 6.20% 16.565 146,565 0 151.275 4.710 43,820 0210123 135.0L,: 6.30% asps 143,505 0 151.275 7,770 51,390 02101024 0 6.35% 0 0 0 0 0 51,390 0210125 0 6.35% 0 0 0 0 0 51,390 0210126 0 6.35% 0 0 0 0 0 51,390 o21o1m o 6.35% 0 0 0 0 0 51.390 0210128 0 6.35% 0 0 0 0 0 51,390 020129 0 6.35% 0 0 0 0 0 51,390 0210100 0 5.35% 0 0 0 0 0 51.390 02101/31 0 6.35% 0 0 0 0 0 57,390 02101m 0 0.35%_ 0 0 0 0 0 51.390 61.150.000 $1.020.647 =2.170.647 =213,800 62.309,237 $51,390 b k dBs 95% d pajetl vd tax h w w evaftle far TIF Bond 5% rw7ad tar aanr6r Bad law sunvnwv Amoad Dad Oats 1201/04 Fast InWed Dat 02IMM gond rears 17.445.93 AvSWMdwhy 12.03 Arrooll " 51,020.647 piaaswd 1,"% 621.710 Net tatra-.Cod 1.042.397 Not' - Rab 5.975% Prepared by:.Sp6gatd ln=WMbd (phtd en 9/808004 d 3:39 PM) P"Mth TIF SM 80%093O04ads 10) J Amoad E5W!rla Prdear Coat 51,19&617 a2.32% Clg0a0aed.hdaast 213,600 14.74% Urdawrbm Dkeamt 21.750 1.50% Cat of bauwm 20,833 1.41% Other 0 0.00% Other 0 0.00% Tabl Bad taw 1,450.000 100.00% Prepared by:.Sp6gatd ln=WMbd (phtd en 9/808004 d 3:39 PM) P"Mth TIF SM 80%093O04ads 10) J I vocation map - nF Recrevemp ISM Investors ll, Inc. the Shops at Plymouth Creeii 15905 Staie Highway 55 Un"Ast far R2 PUMP PP M Site i # Iii :s!! !1111,:! uwi! iiI" ,", ll I full miza fill oil 1 w;, 11• PJIJr! - I' 74. Ic s . 1 r • '_` I. 2.r,: w 1 \\ X1,1 r 1 . J, s I L rr t tU • ` 1 ! j 111 tro nl 1 + Ell. 1,.: 0 D Plymouth HRA - City of Plymouth, Minnesota Establishment of Tax Increment Financing (Redevelopment) District No. 14 And Creation of Redevebnont Project Area No.1 CSM Lowes RedeveI-11. Project) Time Schedule TIF Plan Approved November 23, 2004 Week of October 44, 2004 HRA reviews TIF documents TBD) OnlBefore Monday, October 11 County Commissioner receives notification letter sent by SPRiNGSTEr l 30 days prior to pubncatlon of natke of public hearing Tuesday. October 12 City Council cans for public hearing resolution provided by Dorsey & Whitney) WKInesday, October 20 City Planning Commission holds public heamV to Pm ravfew development proposal Thursday. October 21 HRA approves TIF Plan and Redevelopment Plan TIF documents provided by SPRINGSTED) resolution provided by Dorsey & Whitney) OnlBefore Friday, October 22 County and School District receive impact letters & draft TIF plan (sent by SPRINGSTED) 30 days prior to public hearing Wednesday, November 3 City Planning Commission reviews TIF documents Q 7pm (TIF documents provided by SPRINGSTED) resolution provided by Dorsey & Whitney) Tuesday, November City Council reviews and considers development proposal Thursday. November 11 Publication of notice of public hearing Deadline: Thum, Nov. 4 10-30 days prior to public hearing Tuesday, November 23 City Council holds public hearing, and adopts resolution establishing TIF District and creating Redevelopment Project Area (resolution provided by Dorsey & Whitney) After Tuesday, November 23 State filing and request for county certification completed by SPRINGSTED) 9/1312004