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Home My WebLink About05/10/16 City of Fanriington A Proud Past-A Promising 430 Thn-d Sireet Future Famrington,NIN 55024 Committed to Providing High Quality, 2'zmely and Responsive Service to All of Our Customers AGENDA PLANNING COMIVIISSION May 10, 2016 7:00 PM City Hall Council Chambers 1. CALL TO ORDER 2. APPROVAL OF MINUTES (a) Approve Planning Commission Minutes (April 12, 2016) 3. PUBLIC HEARINGS (a) Conditional Use Permit to allow the expansion of a School within the R-1 Zoning District (b) Urban Chicken Permit Application-Travis Johnson (5845 Upper 183rd Street W) (c) Urban Chicken Permit Application-Scott Mitchell (19382 Euclid Path) 4. DISCUSSION (a) Trident Development TIF Request Comp Plan Review 5. ADJOURN ��F�R�i�,� City of Farmington f,k a,,�,�a� 430 Third Street ;c,,,. .',:��\�� Farmington,Minnesota .�o �, 651.280.6800 -Fax 651.280.6899 �.,�„�,�'�`' www.ci.farmington.mn.us TO: Planning Comrnission FROM: Tony Wippler, Planning Manager SUBJECT: Approve Plamiing Cominission Minutes (April 12, 2016) DATE: May 10, 2016 INTRODUCTION Attached, are the minutes from the April 12, 2016 regular meeting. DISCUSSION NA ACTION REOUESTED Approve the minutes from the April 12, 2016 regular meeting. ATTACHMENTS: Type Description o Backup Material April 12, 2016 Planning Commission Minutes 1'lanuing Conamission Minutes Regular Meeting April 12,201G 1. Cafl to order Chai�•Rotty called the mee#ing to order at 7:00 p�n Metnbers present: Rotty,Frailceschelli,Kuyper,Bjorge Metnbers Absent: Rich Also Present: 'I'ony Wippler,Planning Managea•,John I'raiilc&Jerri Jolly with St.Michaels Church, Parishoner Gerten,and Roger Fink,Trident. 2. App�roval of Minu#es a. Motion by�'ranceschelli secoiid by Kuyper to approve the minutes of MaccI�8,2016. Voting for: Francescl�elli,Rotty,Kuypex,Abstain: Bjorge,Motion Carwied. 3. Public Hearing- Chair Rotty opened the public hearings I a) Site Plan,Variance&Final Plat—Trident Deve[oprnent—Farmington Assisted Living Facilrfy— Site Plan-Plat�ning Manager Wippler reviewed with the cominission the site plan foa•the proposed developinent'I'hey need an access agreement fi•oin St.Michaels Clu�rch as tlie County r�ill not approve a separate access for this developnr�ent. Plaiming Manager Wippler reviewed the request for off street j pa.rlcing requirements. It was noted tliat due to the type of development and the occupants,mairy won't have vehicles: Motion by Bjorge second by I�uyper to close Public Hearing. APIF,Motion Carried. Motion by Kuyper second Bjorge to approve the site plan witli the following contingencies: 1. Submittal and approval of a sign permit application for all signage to be placed on the property;2.The applicant obtaining a pennanent access easement from St.Michael's Church;3. Satisfaction of all Engineering, Plaiming and�'ire Deparhnent comments. APIF,Motion Carried. Variance Motion by Franceschelli second by Kuyper to approve the variance with the contingency that fhe appIicant provide a proof of parlciiig plan. APn'+,Motion Carried. Final Plat—Motian by I�ttype�•,second by Franceschefli to recommend approval of the final plat and forward to City Council for action. APlF,Motion Carried. 4. Discussion—The final Downtown Redevelopment plan will be on tlie April 18,2016 City Cotrncil meeting. Planning Matiager invited the members to attend. 5. Motion by Fra�zceschelli second by Kuyper to adjourn at 7:41pm. APIF,Motion Carried. Respeetfiilly Submitted, l�- � �� 1 '��.�.'��!� Stte Miller Administrative Assistant �,,4��ro�R�i�, City of Farmington �',,,�.,�"` °``��Q 430 Third Street c.a , � Farnungton, Miunesota � �, 651.280.6800 -Fax 651.280.6899 '�.,,,,�a�° www.ci.farmiugton.mn.us TO: Planning Coininission FROM: Tony Wippler, Planning Manager SUBJECT: Conditional Use Permit to allow the expansion of a School within the R-1 Zoning District DATE: May 10, 2016 INTRODUCTION Independent School District 192 is requesting approval of a conditional use permit[CUP]to allow far the expansion of Meadowview Elementary School located at 6100 195th Street W. Planning Review Applicant: Independent School District 192 20655 F]agstaffAvenue Farmington, MN 55024 Attachments: • Sheet C 1.0-Demolition, Grading, Drainage, and Erosion Control Plan • Sheet 2.0-Watershed Plan • Sheet A1.20-Main Level Floor Plan Area"G" • Sheet A1.21 -Main Level Floor Plan Area"F" • Sheet A2.01 -Exterior Elevations • Site aerial • Pictometry Image Location: 6100 195th Street W(Meadowview Elementary School) Surrounding Land Uses: A single-family residential properiy is adjacent to the east. Adjacent parcels to the south and west are owned by the School District. Cultivated land is adjacent to the north. Current Land Use: Elementary School Existing Zozung: R-1 (Low Density Residential) Comprehensive Plan: Low Density Residential DISCUSSION The applicant, Independent School District 192, is seeking approval of a conditional use petmit to allow the expansion of a school within the R-1 (Low Density Residential)zoning district. The expansion will consist of an approximately 3,000 square foot addition. The expansion will largely consist of adding 2 kindergarten classrooms. The expansion area is on the southeastern portion of the existing school(see attached aerial). Building Elevations Attached as Sheet A2.01, are the proposed building elevations for the expansion. The building materials will consist of brick and ahnninum paneling. Setback and Lot Coverage The subject properiy is zoned R-1 (Low Densiry Residential)and is subject to the following setbacks: Front Yard: 20 feet Side Yard: 6 feet Rear Yard: 6 feet The proposed addition exceeds the required setbacks. The inaximum lot coverage requirement for the R-1 zoning district is 30%. The existing coverage of building to school properiy at this location is approximately 11.14%. With the proposed 3,000 square foot addition the coverage will increase to 11.37%,well below the maximum of 30%that is allowed. Conditional Use Per�nit The city code provides criteria that must be satisfied far the planning commission to grant a conditional use permit. Those criteria are: L The proposed use conforms to the district permitted and conditional use provisions and all general regulations of this title. 2. The proposed use shall not involve any element or cause any conditions that may be dangerous, injurious or noxious to any other properiy or person and shall comply with the performance standards listed below. 3. The proposed use shall be constructed, designed, sited, oriented and landscaped to produce harmonious relationship of buildings and grounds to adjacent buildings and properties. 4. The proposed use shall produce a total visual impression and environment which is consistent with the environment of the neighborhood. 5. The proposed use shall organize vehicular access and parking to minitnize traffic congestion in the neighborhood. 6. The proposed use shall preserve the objectives of this title and shall be consistent with the comprehensive plan. City staff has reviewed the conditional use permit application and has determined that the request meets all applicable city requirements for granting approval of the CUP. ACTION REQUESTED Approve the conditional use permit allowing the expansion of the school located at 6100 195th Street W., subject to the following condition: 1. The applicant shall obtain all necessary building permits for the proposed expansion. ATTACHMENTS: Type Description o Backup Material Engineering and Architectural Drawings o Backup Material Site Aerial o Backup Material Pictometry Image , W � y a � • ��o E�o W 4� � _ �� a � o �i o G 3 { '_ �W . s V N� na � m {Y �-!: _�_� ■ Wa� �� ,NS� �C9 �sa � 1��ppp� w: e :K ` r:+ � �i��'�� i ��o� /r� �S�O a: Z S g£ • L.� ; � Z J ��$.5 � Z C C� 1 a� : A A J=W� V p W r�' �u � � h � _ '_ �+a�� a S . 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' - - r�''�. �, -'�# _��* � ' � , � .`�;.�1} 'A�, `4 �: ' r• � .�� '� R ��• �� 1�i� � . .1 N��,�J ..�' � . . � y.� t � , s ' ' " ' , � .�+ �y- • .._'_' . � �:. . � . , , SC '��r` '"'�.S MP�+? � .. :ry :y� .}";nph.� .��:� �.f,"'-+�` �� a ��" , i, '''�, ., ,,, , ; ; �, :, .'f�;z � � f _ ,�.� :�;� � ;,� :� �.� ; _ _� � ��. -�. , � � � �-"�a "�;� �'. �r � � � 3 � x.. � ��r � .. ,.r �F �' �e k .� l '� � � �� t r �.r{ : . �� ' . �� ' �� p, �„ � . �; .�'' � , �� K+��''.�r�'� .� . � c-1,{� '�� 't �+t � �a` ,�� . ...ii� , __._ , �. O N � N V 0 ,��F�►��r,�,� City of Farmington �,� �� p 430 Third Street c,� 9r � � � Fatmnigton, Mirulesota ��a 651.280.6800 -Fax 651.280.6899 ''�.,,�,�a�'° www.ci.fannington.mn.us TO: Planning Coinmission FROM: Tony Wippler, Planning Manager SUBJECT: Urban Chicken Pernut Application-Travis Johnson(5845 Upper 183rd Street W) DATE: May 10, 2016 INTRODUCTION Travis &Danielle Johnson are seeking approval of an Urban Chicken Permit. The subject property is 5845 Upper 183rd Street W. Planning Review Site Address: 5845 Upper 183rd Street W Property Owner/Applicant: Travis &Danielle Johnson 5845 Upper 183rd Street W Farmington, MN 55024 Attachments: 1. Application(E�bit A) 2. AeriaUSite Plan(Exhibits B) 3. Picture of coop (E�bit C) Legal Description: Lot Six(6), Block Two (2), HILLVIEW 2ND ADDITION Lot Area: 12,060 square feet(0.28 acres) Existing Land Use: Single-family residence Surrounding Land Uses: The subject properry is completely surrounded by sirzgle-family homes. Existing Zoning: R-1 (Low Density Residential) DISCUSSION Travis &Danielle Johnson have applied for an Urban Chicken Permit. The pernut is requesting the keeping of 3 hen chickens on the properiy located at 5845 Upper 183rd Street W. The proposed coop, as shown in Exhibit C, is approximately 10.74 square feet in size(3' x 3' -7")and 4' -3" tall. The run, which will be attached to the side of the coop is approximately 27.46 square feet in size and is 3 feet tall. The coop and run as proposed meet the size requirements identified in Section 10-6-29 of the city code. As shown in E�bit B, the coop and run are proposed to be located in the rear of the properly towards the northwest corner of the properiy. The applicant is showing the placement of the coop and run adjacent to the rear properiy line abutting the existing 6 foot high privacy fence. Code requires that all coops and runs be setback a minimum of 10 feet from all property lines and also be a minimum distance of 25 feet from any principal structure on an adjacent lot. A condition of approval should be that the coop and run must be located on the lot to meet the required setbacks as outlined above and in the city code. The lot coverage with the proposed coop will be approximately 16%. The maYimum lot coverage allowed in the R-1 zoning district is 30%. Section 10-6-29(K)6 states that any chicken coop or run must be screened from view with a solid fence or landscaped buffer with a minimum height of 4 feet. The rear of this property is currently fenced with a 6 foot high vinyl privacy fence. No additional screening is required for this application. ACTION RE�UESTED Approve the Urban Chicken Permit subject to the following conditions: 1. A renewal perniit shall be applied for and administratively approved every year after the Urban Chicken Permit has been approved that chickens are kept on the property. 2. The coop and run must be setback a minimum of 10 feet from all properiy lines and at least 25 feet from any principal structure on an adjacent lot. 3. All other requirements specified in Section 10-6-29 of the city code shall be abided by. ATTACHM ENTS: Type Description a Backup Material Exhibit A-Application o Backup Material Exhibit B -Aerial Site Plan � Backup Material Exhibit C- Picture of coop Yo�FA��iy,�, City of Farmington A b � � 430 Tl�ird 5t��eer I�Pn Q 8 �Q�6 Fflrinington,Minnesote ��,�4�� 651.280.b800•Fux G51,280,6894 www.ci.(a rminglan.mn,us URBAN CHICKEN PERMYT APPLICAT�ON u Please identify coop aud�vu informatian on a scaled sife plan or p�•operfp survey that sho�vs lot lines,sts•actures and existiiag conditions. Site Address for chickens: �U�J� « ��.o.�r��`=� J�• �•, rar N1� TUi� �'"�� b'� ! The above referenced properry's Homeownel's Association riiles,if any,do not proiubit the keeping of chickens on the propeity: (please initiat) Yes No Not Applicable, D,� App�icant: �(�l?/f�� Y'Q V/.S �(y r�'o✓t Pl�oue: �S�-373'(,�7� Address: S_v�S_�,�n�r 18 3 r�d 5f Ge� Fd+�m,1 t/if.t��. /`�[� �`��Z 7'" Street �T City State Zip Cade Property O►vner Name:�yJC �{ ,�Q/�le'fL" 170��'('L�(, Phone: '37 "�7� Address: J�� .0hnr �g��c.��i � �al"11�(t1Gi�b trl � S s�Z� St�•eet City State Zip Code Propea�ty Owner Signature (If different than applicant): Date: Current Zoning District: �� Current Land�CJse: �{•5i�CIr1�l Gl.� Coop/Run Information Ntunbe3•of Chickens:,� i « [ ' Di�nension of chicicen coop: � x�t� +�X � � �i�Q��_(detailed plans&elevations z�equired) �7 r ,. i, � , Dimansion of chicken run: / � x � �� (detailed pIans&elevations required) r f /� 1 Desci7ption of e terior materiats for the c9op arid run: L�C��' 4^ �i�� },�K-fn iN�r� , ��u;n�t�� Sf,�'PU.�S .,_�_� �C�/ S ��' �,�Xi 1��i4,J Will a fence be added in addition to the coop and run7 Yes No , + If yes,describe location,size and inaterials for fence: � r � : !'�V�i1 e, t/I�� l T hereby acMowledge that this infor�natioi�►is complete and acct�rate;that th�worlc will be in confonnance with tlle ordinances a�id codes of the City of It a�•mingfion;that I uudei•stand this is not a pertuit,but ouly an application for a pecinit. I acknowledge tl�at sfructu��es wiIl be ca�str��eted in accordance with the approved plans. � V rrn�� 5 ti �j v n�F��P � t�"►n Stxrl /'�L. l v-- �°Z7'f�u Applicant's Printed Naine Applica 's Signaftu•e Date i XC�IJSE OI�TLY.:; :- , ; FOR OFF Request sutirnttted to Plannu�g staff on ! - Publtc Heatin�set for -� !: Adveitised�n Local Newspapel ,: �lai��gCgmm�ssionAcnon Appiovet� - Demed FeePait�,`- C�ry Coi�ncil Action(if necessary) ;' Apptoved Dented $lQQ bate for I�enewal,if appt oved ' ` � �pm�nen�s : - - r - , COndxtaQ��>S� ; ' <: ;; : _ : :; : , . . ; - ,.. ..:,: . ..,:: :; _... .. -- � ;:. �, Plannm�D�v�sion - ` � � ]�ate nr�.v��r�D�a�: City of Farmington 430 Third Street ParmingYon,MN 55024 2 4l612096 Qakota County-GIS Dalcota Cotrnly, VIN �� i �� .� � � �a� £";�'�`,�A�� , � _ , +a�_ � �� , �� , � �q n =. r � � � �' � � , '` �`� t�r" r �'°� } . � ' � � � �` , 4 � � .,, . .y�.. �e� g�, �"�e �r �r�, .3 �„ ^ �.+ :° � �� 4S� ir �'��`� w�ey ' + e ��s _s�z �'� . . �+" #� �r s:t�1�r'� � � "� " n�3 �' � "$' 4^- �*� g`• ..�, y� :ra.! i �@��' '' �� *#,� .,R�� *, +�i. 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'�"' t � Disalainser:�11rtp aitd patcel drrla ru-e believed lo be accurnle,but accin�ac��is uol Map SCa C ��'F�,�`#�-�� guar rtnieed. 1'hi.s i,c rlot a legal docurnrnt re�td shn��ld nnt he s[t6slih�tetl fnr a title 1 lRCli=54 fCCt 4�'""''� `��`' searclr,appraisnl,swvey:or fa�zorring ver�catiar�. 4/6/2016 http:/lgis.co.dakola.mn.uslDCGIS/ 1/1 (,i r {,��"_�.� , ' �' � . ,� � _ � "� ':� � 4xt � t ` ` `�� ' �� : ' ��,�-�>� _ � - . f >�--��' --- " -- �"_�-=-___ - - __----- �� k . �/ '—_ — ' f .i` . �� u.�^ � � �. s - „f� � �4 ��x � � � _ � � Xr" _ _ - ' " -- ,� �� `'.a � vi� �.i� i — . �� _a , �'..I � �' � 'q, � � i.>.� �' c. '�'�?�"� t � i�, � � ti:!I � � �"' � i � „¢�' [,�� '� - ..��.�� ... a �� .�;'_.. .. :�. ,: .: :. . �.K...� . ,o�F�►R�e�, City of Farmington ��;'�,,�► �� pt p�� 430 Third Street �� a , Farninigton, Mimiesota 651.280.6800 -Fax 65L280.6899 �'�a. �'�`'� www.ci.farmin�}on.mn.us A� b` TO: Planning Cominission FROM: Tony Wippler, Planning Manager SUBJECT: Urban Chicken Pertnit Application- Scott Mitchell(19382 Euclid Path) DATE: May 10, 2016 INTRODUCTION Scott Mitchell is seeking approval of an Urban Chicken Pernut. The subject property is 19382 Euclid Path. Planning Review Site Address: 19382 Euclid Path Property Owner/Applicant: Scott Mitchell 19382 Euclid Path Farmington,MN 55024 Attachments: 1. Application(E�chibitA) 2. Aerial/Site Plan(Exhbit B) 3. Plans for coop and run(Exhibit C) Legal Description: Lot Nine(9), Block One(1), FAIR HILLS Lot Area: 14,925 square feet(0.34 acres) Existing Land Use: Single-family residence Surrounding Land Uses: The subject property has single-family homes adjacent to the north, west and south. Pilot Knob Road is adjacent to the east. Existing Zoning: R-1 (Low Density Residential) DISCLTSSION Scott Mitchell has applied for an Urban Chicken Pernzit. The permit is requesting the keeping of 3 hen chickens on the properiy located at 19382 Euclid Path. The proposed coop, as shown in E�ibit C, is approximately 30 square feet in size(5' x 6'). A run is proposed to be attached to the coop and would be 39 square feet in size. The run and coop meet the size limitations as outlined in the City Code. The height of the proposed run and coop would be 6 feet. As shown in E�ibit B, the coop and run are proposed to be located in the rear of the property towards the southeast corner of the property. Code requires that all coops and runs be setback a minimum of 10 feet from all property lines and also be a minimum distance of 25 feet from any principal structure on an adjacent lot. It appears the placement as shown in Exhibit B meets these requirements. Lot coverage with a coop of 30 square feet would be approximately 13.39%. The maximum lot coverage allowed in the R-1 zoning district is 30%. Section 10-6-29(K)6 states that any chicken coop or run must be screened from view with a solid fence or landscaped buffer with a minimum height of 4 feet. The property is currently not fenced and the applicant has indicated that no fencing will be added. The side and rear of the property is heavily landscaped with mature trees. Staff is comfortable with the landscapmg that is currently in place. ACTION RE�UESTED Approve the Urban Chicken Pernut subject to the following conditions: 1. A renewal permit shall be applied for and administratively approved every year after the Urban Chicken Permit has been approved that chickens are kept on the property. 2. All other requirements specified in section 10-6-29 of the city code shall be abided by. ATTACHMENTS: Type Description a Backup Material Exhibit A-Application a Backup Material Exhibit B -Aerial Site Plan a Backup Material Exhibit C- Plan for Coop and Run oti �� City of Farmington � �� Q34 Third Sireet Fannington,MinnesoFa n + � � 651.280.b800•Fox 6SI,280.6899 �r� F � Z�� ''"'"0`n� ww�vci.farmin6ton.mn.us URBAN CHICKEN PERMYT APPLICA,TION a Please identify caop and run information on a scaled site plan or prope�-ty su�vey t1�at st�ows lot lines,structores and existing conditions. . Sife Address for cliicl�ens: l g.� g� �� p�' 1 The above referenced property's Iiomeotu�ies's Association rtiles,if any,do not p�'ol�iUit the keeping of c ickens on the prope��ty: (please initial} Yes No Not Applicabie l �,�-r �.saS' � �3�� Applicant: �� Phone: 193�� .�e,�f�� `� �l Y Address: �"�� '� �� 5t��eet Cily State zip Cade f 3 Property Owner Name: �� /-� � �`^ `�` / Phone• �� $` � " Address:.l��0� ��fn%C,�C,�' ��' ��t!"I�l�/1�Yo>i JZ�"1 ��( Street City State Zip Code Property Owner Signature /,�/� , /! (If different�han applicant): Date: � /U Current Zoning District: �'�t Current Land Use: � � � Coop/Run Information Number of Chickens: � ' r� / Dimension of chicken caop: : �J x � (detailed plans&elevations required) � 1 � PI Di�nension of chicken run:_ _ � �Z x �4 (detailed plat�s&elevations re ttired) Descri tion of exterior material fo the coop aud run: C�.- �L��dh��'J •� , � ��o� c�.i'�-Q ,��"t Will a fence be added in addition to the coop and run? Yes No� If yes,desciibe lacation,size and materiais for fence: 1 I hereby acluiowledge that tlus infonnatioz�is coz�apiete and accurate;that the wark will be iii confonnance wit��the ordina�lces and codes of the City of Farining#on;that I unde��sfand this is not a pernut,but o�ily an application for a perinit. I ackr��owledge tlaat structures will he constructed ir�accordance with the ap�roved plans. c' �r � �� l/ ��L��''�2�� y•/�``� � �� Applicant's Printed Nalne Applicant's Signatut�e Date . - . : ' ;: . ; SE ; ; ,,, _ „ - ,. V � � �'OR Q�F�CE NLY Request submattedto Plannii�g staff on � '' = Pulihc Hea�•mg set�'or r: . Advei tiserl in Local Newspapei Plannmg Commtssion A.ctton App�ot�ed Demed Fee Patd;�� C1ty Cortncil Actiou�ifnecessaty) ; �#p�zovecl Detued :; $i00 , , ;. Date�or Renawal,if app�aved : : Comments'- :; :,; ;.: ... .:. , - - Coridil�ons Set, :: : � - if Plamm�g Tlivision ; : '; ' < Date I�RAFTED BY: City ofFa�•mington 430 Third St��eet Facmington,MN 55624 2 C. S. A. �i. 31 ( PILOT KNO.� ROAD} PR�PERTY EXHIBIT FAl�MINGT�N, MN �� ,,. .� � � . ��°� � , �� ' � � ,q Y W � �a .o y 4� Y � F �'! ' � � . � � � 3 . i� � � . � . �.. � �� - �"' r �`i 4i"�r ��.§' ,,, "� � � "E .; `. ..�,.,g r �.,,,.:r..' ,�`� 'a a �•; e a- ( , a�i e�� $.„ �' ""� ��<�`� � �'4�� ,f� � �;` � t ty i i q� � � �Y �, � �� i .�4 :.: �r � � �... �^ �,'t� .k�`i y��e �.��F�. N .. � > �'i � £:x ti'p'', �,,.�""�.�., fik�5 � �x"F&S�.` �� !". ( ' � � 3S ��, �' =�; �; a � ., . , � ��: ��* � �tk � '�: a � y �. �� > s,w ��_ �,�s�, ..; i �,: ,�, �° 1 � �� Y a >`'"�'" f�:e' �,� '�� r .� � �� ~� ' � � •;,� ,��_ ��:� •,� . � ,�i ' I .� � . � � ,�5. � . �� ,..�°' �` � - �� =�� w�g �- �_, � � E� ' ,, � �'_�'`�� .s _� �� ; � � ' r a .,, � . � f • ,� E, t ��, _ : � � � f�`S�� „�', r�� .-�'�� , �,�. :. �..��' `t� �. 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W I 1' i � � �� { � � � ` I � i !� � i �I t �• �` � � -_::_.� ; �� { � �{, �.�} � y-� � i i� 4E��-�§ � �:� f �1�`� �.a"� I . i � , t; � ; �I; �: � { � . �.1.._.._�.�� 4rha 5 � �i s C} f � �. . ._� _ � � I� !,` I � �- �- °� � i� ;� � 3 � s �-----__-- --- � � � ��ti�F�►R�i%,� City of Farmington �� ; ; �� 430 Third Street �� ; Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 '�"►�.,��'" www.ci.farinington.mn.us TO: Planning Commission FROM: Tony Wippler, Planning Manager SUBJECT: Trident Development TIF Request Comp Plan Review DATE: May 10,2016 INTRODUCTION Attached, for the cominissions review is a proposed modification to the Redevelopment Plan for the Downtown Redevelopment Project and the Tax Increment Financing Plan for the establishment of Tax Increment Financing(TIF)District No. 14-Trident Housing. DISCUSSION Trident Development, LLC has been working with the city council and EDA to modify the Redevelopment Plan for the Downtown Redevelopment Project and the Tax Increment Financing Plan. The substantive change in the modification to the plan is the creation of Tax Increment Financing District No.14-Trident Housing. As the coinmission is aware, Trident Development, LLC is proposing to construct a 70 unit senior assisted facility on a parcel located south the St. MichaePs Church off of Denmark Avenue. The planning commission is statutorily required to review the modification and to determine if the TIF plan (as attached)is in conforn�ance with the ciry's comprehensive plan. Approvals have been made by both the city council and planning comtnission regarding the following land use items as applied for by Trident Development, LLC: • Comprehensive Plan amendment from Public/Semi-Public to High Density Residential; • Rezoning from R-1 (Low Density Residential)to R-5 (High Density Residential); • Site Plan; • Final Plat; • Easement Uacation Being that the above mentioned land use actions have been previously approved by the city it is staffs recommendation that the plannnig cointnission find the mod�cation(establishing TIF District No. 14- Trident Housing)as proposed m the attached TIF Plan is in conformance with the city's comprehensive plan. ACTION RE(�UESTED Execute the attached resolution fmding that the modification proposed is in conformance with the city's comprehensive plan. ATTACHMENTS: Type Description a Backup Material Tax Increment Financing Plan- District 14 - Trident Housing o Resolution TIF Resolution a Backup Material Trident TIF Schedule As of May 2, 2016 Draft for Planning Commission Modification to the Redevelopment Plan for the Downtown Redevelopment Project and the Tax Increment Financing Plan for the establishment of Tax Increment Financing District No. 14 - Trident Housing (a housing district) - within the Downtown Redevelopment Project Farmington Economic Development Authority City of Farmington Dakota County State of Minnesota Public Hearing: June 6,2016 Adopted: E H L E RS Prepared by: EHLERS&ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com Table of Contents (for reference purposes only) Section 1 - Modification to the Redevelopment Plan for the Downtown Redevelopment Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-4 Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-4 Section 2 -Tax Increment Financing Plan for Tax Increment Financing District No. 14 -Trident Housing . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-1. Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-2. Statutory Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-3. Statement of Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-4. Redevelopment Plan Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired . 2-2 Subsection 2-6. Classification of the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-2 Subsection 2-7. Duration and First Year of Tax Increment of the District . . . . . . . . . . . 2-3 Subsection 2-8. Original Tax Capacity,Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements . . . . . . . . . . . . . . . . 2-4 Subsection 2-9. Sources of Revenue/Bonds to be Issued . . . . . . . . . . . . . . . . . . . . . . 2-5 Subsection 2-10. Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5 Subsection 2-11. Fiscal Disparities Election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-6 Subsection 2-12. Business Subsidies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-7 Subsection 2-13. County Road Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-8 Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions . . . . . . . . . . . . . . . . . 2-8 Subsection 2-15. Supporting Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-10 Subsection 2-16. Definition of Tax Increment Revenues . . . . . . . . . . . . . . . . . . . . . . . 2-10 Subsection 2-17. Modifications to the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-10 Subsection 2-18. Administrative Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-11 Subsection 2-19. Limitation of Increment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-12 Subsection 2-20. Use of Tax Increment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-12 Subsection 2-21. Excess Increments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-13 Subsection 2-22. Requirements for Agreements with the Developer . . . . . . . . . . . . . . 2-13 Subsection 2-23. Assessment Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-14 Subsection 2-24. Administration of the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-14 Subsection 2-25. Annual Disclosure Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-14 Subsection 2-26. Reasonable Expectations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-14 Subsection 2-27. Other Limitations on the Use of Tax Increment . . . . . . . . . . . . . . . . . 2-14 Subsection 2-28. Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-15 Appendix A Project Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 Appendix B Map of the Downtown Redevelopment Project and the District . . . . . . . . . . . . . . . . . . . . B-1 Appendix C Description of Property to be Included in the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-1 Appendix D Estimated Cash Flow for the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D-1 Appendix E Housing Qualifications for the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-1 Appendix F Findings for the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-1 Section 1 -Modification to the Redevelopment Plan for the Downtown Redevelopment Project Foreword The following text represents a Modification to the Redevelopment Plan for the Downtown Redevelopment Project. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for the Downtown Redevelopment Project. Generally,the substantive changes include the establishment of Tax Increment Financing District No. 14-Trident Housing. For further information,a review of the Redevelopment Pian for the Downtown Redevelopment Project is recommended. It is available from the City Administrator at the City of Farmington. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within the Downtown Redevelopment Project. Farmington Economic Development Authority Modification to the Redevelopment Plan for the Downtown Redevelopment Project 1-1 Secfion 2- Tax Increment Financing Plan for Tax Increment Financing District No. 14- Trident Housing Subsection 2-1. Foreword The Farmington Economic Development Authority(the"EDA"),the City of Farmington(the "City"),staff and consultants have prepared the following information to expedite the establishment of Taac Increment Financing District Na 14 - Trident Housing (the "District"), a housing tax increment financing district, located in the Downtown Redevelopment Project. Subsection 2-2. Statutory Authority Within the City, there exist areas where public involvement is necEssary to cause development or redevelopment to occur. To this end,the EDA and City have certain statutory powers pursuant to Minnesota Statutes ("M.S.'), Sections 469.001 to 469.047, M.S., Sections 469.090 to 469.1082, and M.S., Sections 469.174 to 469.1794,all inclusive,as amended(the °Tax Increment Financing Act"or"TIF Act"),to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Redevelopment Plan for the Downtown Redevelopment Project. Subsection 2-3. Statement of Objectives The District currently consists of one parcel of land and adjacent and internal rights-of-way. The District is being created to facilitate the construction of approximately 70 assisted-living,memory care and independent senior housing units in the City,of which 20%of the units will be affordable to persons with incomes at or below 50%of the AMI. Please see Appendix A for further District information. The EDA will be entering into a development agreement with Trident Development LLC. for construction of the project and development will commence in 2016. This TIF Plan is expected to achieve many of the objectives outlined in the Redevelopment Plan for the Downtown Redevelopment Project. The activities contemplated in the Modification to the Redevelopment Plan and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of the Downtown Redevelopment Project and the District. Subsection 2-4. Redevelopment Plan Overview 1. Property to be Acquired-Selected property located within the District may be acquired by the EDA or City and is further described in this TIF Plan. 2. Relocation- Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements,the EDA or City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The EDA or City may perform or provide for some or all necessary acquisition,construction, relocation,demolition,and required utilities and public street work within the District. Farmington Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No.14-Trident Housing 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed in Appendix C ofthis TIF Plan. Please also see the map in Appendix B for further information on the location of the District. The EDA or City may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the EDA or City only in order to accomplish one or more of the following:storm sewer improvements;provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The EDA or City may acquire property by gift, dedication,condemnation or direct purchase from willing sellers in order to achieve the objectives ofthis TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 2-6. Classification of the District The EDA and City,in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1799, as amended, inclusive, find that the District, to be established, is a housing district pursuant to M.S., Section 469.174, Subd. 11 and M.S., Section 469.1761 as defined below: M.S., Section 469.174, Subd.11: "Housing district"means a type of tax increment financing district which consists of a project, or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income, as defined in chapter 462A, Title II of the National Housing Act of 1934, the National Housing Act of 1959, the United States HousingAct of 1937,as amended, Title V of the HousingAct of 1949, as amended, any other similar present or future federal, state, or municipal legislation, or the regulations promulgated under any of those acts, and that satisfies the requirements of M.S., Section 469.1761. Housing project means a project, or portion of a project, that meets all the qualifications of a housing a'istrict under this subdivision, whether or not actually established as a housing district. M.S., Section 469.1761: Subd. 1. Requirement imposed. (a) In order for a tax increment financing district to qualify as a housing district: (1) the income limitations provided in this section must be satisfied;and (2) no more than 20 percent of the square footage of buildings that receive assistance from tax increments may consist of commercial, retail, or other nonresidential uses. (b) The requirements imposed by this section apply to property receiving assistance financed with tar increments, including interest reduction, land transfers at less than the authority's cost of acquisition, utiliry service or connections, roads, parking facilities, or other subsidies. The provisions of this section do not apply to districts located within a targeted area as defined in Section 462C.02 Subd 9, clause(e). Farmington Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No.14-Trident Housing 2-2 (c)For purposes of the requirements ofparagraph (a), the authority may elect to treat an addition to an existing structure as a separate building f (1) construction of the addition begins more than three years after construction of the existing structure was completed; and (2)for an addition that does not meet the requirements of paragraph(a), clause(2),if it is treated as a separate building, the addition was not contemplated by the tax increment financing plan which includes the existing structure. Subd. 2. Owner occupied housing. For owner occupied residential property, 95 percent of the housing units must be initially purchased and occupied by individuals whose family income is less than or equal to the income requirements for qualified mortgage bond projects under section 143(� of the Internal Revenue Code. Subd. 3. Rental property. For residential rental properry, the property must satisfy the income requirements for a qualified residential rental project as defined in section 142(d) of the Internal Revenue Code. The requirements of this subdivision apply for the duration of the tax increment financing district. Subd. 4. Noncompliance; enforcement. Failure to comply with the requirements of this section is subject to M.S., Section 469.1771. In meeting the statutory criteria the EDA and City rely on the following facts and findings: • The District consists of one parcel. • The development will consist of 70 assisted-living and independent senior housing units. • 20%of the units will be occupied by person with incomes less than 50%of inedian income Pursuant to M.S., Section 469.176, Subd. 7,the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7. Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1,the duration and first year of tax increment ofthe District must be indicated within the TIF Plan. Pursuant to M.S.,Section 469.176,Subd. 1 b., the duration of the District will be 25 years after receipt of the first increment by the EDA or City(a total of 26 years of taY increment). The EDA ar City elects to receive the first tax increment in 2018,which is no later than four years following the year of approval of the District. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes,would terminate after 2043,or when the TIF Plan is satisfied. The EDA or City reserves the right to decertify the District prior to the legally required date. Subsection 2-8. Original Tax Capacity,Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuant to M.S.,Section 469.174,Subd. 7 and M.S.,Section 469.177,Subd. 1,the Original Net Tax Capacity Farmington Economic Development Authority Tax Increment Financing Plan for Tax lncrement Financing District No.14-Trident Housing 2-3 (ONTC)as certified for the District will be based on the market values placed on the property by the assessor in 2015 for taxes payable 2016. Pursuant to M.S., Section 469.177, Subds. 1 and 2,the County Auditar shall certify in each year(beginning in the payment year 2018)the amount by which the original value has increased or decreased as a result o£ 1. Change in taa�exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; 3. Change due to adjustments,negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates;or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity(NTC)value of the District declines below the ONTC,no value will be captured and no tax increment will be payable to the EDA or City. The original local tax rate far the District will be the local tax rate far taxes payable 2016, assuming the request for certification is made before June 30,2016. The ONTC and the Original Local TaY Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within the Downtown Redevelopment Project, upon completion of the projects within the District,will annually approximate tax increment revenues as shown in the table below. The EDA and City request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures,beginning in the tax year payable 2018. The Project Tax Capacity(PTC)listed is an estimate of values when the projects within the District are completed. Project Estimated Tax Capacity upon Completion (PTC) $197,034 Original Estimated Net Tax Capacity(ONTC) $1,804 Estimated Captured Tax Capacity(CTC) $195,230 Original Loca1 Tax Rate 1.49173 Pay 2016 Estimated Annual Tax Increment(CTC x Local Tax Rate) $291,230 Percent Retained by the EDA 100% Tax capacity includes a 2%inflation factor for the duration of the District.The tax capacitx included in this chart is the estimated tax capacity of the District in year 25. The tax capacity of the Distnct in year one is estimated to be$61,250. Pursuant to M.S., Section 469.177, Subd. 4, the EDA shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175,Subd. 4,with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen(]8)months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S.,Section 469.175,Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and found no parcels for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the Farmington Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No.14-Trident Housing 2-4 City. Subsection 2-9. Sources of Revenue/Bonds to be Issued The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The EDA or City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed,the projects within the District will be financed by a pay-as-you-go note and/or interfund loans or transfers as needed. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the EDA or City to incur debt. The EDA or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The total estimated tax increment revenues for the District are shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $5,853,380 Interest 5$5 338 TOTAL $6,438,718 The EDA or City may issue bonds(as defined in the TIF Act)secured in whole or in part with tax increments from the District in a maximum principal amount of$4,513,848. Such bonds may be in the form of pay-as- you-go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. Subsection 2-10. Uses of Funds Currently under consideration for the District is a proposal to facilitate the construction of approximately 70 assisted-living,memory care and independent senior housing units. The EDA and City have determined that it will be necessary to provide assistance to the project(s)for certain District costs,as described. The EDA has studied the feasibility of the development ar redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District,this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the table on the following page. Farmington Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No.14-Trident Housing 2-5 USES OF TAX INCREMENT FUNDS TOTAL LandBuilding Acquisition $700,000 Site Improvements/Preparation $500,000 Utilities $250,000 Affordable Housing $2,378,510 Other Qualifying Improvements $100,000 Administrative Costs(up to 10%� 585 338 PROJECT COST TOTAL $4,513,848 Interest $1924,870 PROJECT AND INTEREST COSTS TOTAL $6,438,718 The total project cost,including financing costs(interest)listed in the table above does not exceed the total projected tax increments for the District as shown in Subsection 2-9. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification,the budget above pursuant to the applicable statutory requirements. The EDA or City may expend funds for qualified housing activities outside of the District boundaries. Subsection 2-11. Fiscal Disparities Election Pursuant to M.S.,Section 469.177,Subd. 3,the EDA or City may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to M.S., Section 469.177, Subd. 3, clause b,(within the District)are followed,the following method of computation shall apply: (1) The original net tax capacity shall be determined before the application of the fiscal dispariry provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial-industrial net tax capaciry increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6. Where the original net tax capacity is equal to or greater than the current net tax capacity,there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capaciry, the difference between the original net tax capacity and the current net tczx capaciry is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2) The county auditor shall exclude the retained captured net tax capacity of the authoriry from the net tax capaciry of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capaciry of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the less of(A)the local taxing district tax rates or(B)the original local tax rate to the retained captured net tax capacity of the authoriry is the tax increment of the authority. Farmington Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No.14-Trident Housing 2-6 The EDA will choose to calculate fiscal disparities by clause b. It is not anticipated that the District will contain commercial/industrial property. As a result, there should be no impact due to the fiscal disparities provision on the District. According to M.S., Section 469.177, Subd. 3: (c) The method of computation of tax increment applied to a district pursuant to paragraph(a)or (b)shall remain the same for the duration of the district, except that the governing body may elect to change its election from the method of computation in paragraph (a) to the method in paragraph (b). Subsection 2-12. Business Subsidies Pursuant to M.S., Section 116J.993, Subd. 3,the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of less than$150,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business,size,location,or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Redevelopment property polluted by contaminants as defined in M.S., Section 116J.S52,Subd. 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts,provided that the assistance is equal to or less than 50%of the total cost; (6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) Assistance for housing; (8) Assistance for pollution control or abatement,including assistance for a taac increment financing hazardous substance subdistrict as defined under M.S., Section 469.174, Subd. 23; (9) Assistance for energy conservation; (10) Tax reductions resulting from conformity with federal tax law; (11) Workers'compensation and unemployment compensation; (12) Benefits derived from regulation; (13) Indirect benefits derived from assistance to educational institutions; (14) Funds from bonds allocated under chapter 474A,bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 1986,as amended through December 31, 1999; (15) Assistance for a collaboration between a Minnesota higher education institution and a business; (16) Assistance for a tax increment financing soils condition district as defined under M.S., Section 469.174, Subd. 19; (17) Redevelopment when the recipient's investment in the purchase ofthe site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) General changes in tax increment financing law and other general taac law changes of a principally technical nature; (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; Farmington Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No.14-Trident Housing 2-7 (21) Business loans and loan guarantees of$I50,000 or less; (22) Federal loan funds provided through the United States Department of Commerce,Economic Development Administration;and (23) Property tax abatements granted under M.S., Section 469.1813 to property that is subject to valuation under Minnesota Rules,chapter 8100. The EDA will comply with M.S., Sections 116J.993 to 116J.995 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. Subsection 2-13. County Road Costs Pursuant to M.S., Section 469.175, Subd. 1 a,the county board may require the EDA or City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by taac increment will,in the judgment of the county,substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads,it must notify the EDA or City within forty- five days of receipt of this TIF Plan. In the opinion of the EDA and City and consultants, the proposed development outlined in this TIF Plan will have little or no impact upon county roads.The EDA and City are aware that the county could claim that tax increment should be used for county roads,even after the public hearing. Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However,the EDA or City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore,the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for"test was not met: IMPACT ON TAX BASE 2015/Pay 2016 Estimated Captured Total Net Tax Capacity(CTC) Percent of CTC Tax Capacitv Upon Completion to Entity Total Dakota County 404,931,089 195,230 0.0482% City ofFarmington 16,227,923 195,230 1.2031% Farmington ISD No. 192 27,609,545 195,230 0.7071% Farmington Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No.14-Trident Housing 2-8 IMPACT ON TAX RATES Pay 2016 Percent Potential Extension Rates of Total CTC Taxes Dakota County 0.285620 19.15% 195,230 55,762 CityofFarmington 0.592390 39.71% 195,230 115,652 Farmington ISD No. 192 0.575700 38.59% 195,230 112,394 Other 0.038020 2.55% 195,230 7,423 Total 1.491730 100.00% 291,230 The estimates listed above display the captured tax capacity when all construction is completed. The taY rate used for calculations is the final Pay 2016 rate. The total net capacity for the entities listed above are based on final Pay 2016 figures. Pursuant to M.S. Section 469.175 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is$5,853,380; (2) Probable impact of the District on city_provided services and abilitv to issue debt. An impact of the District on police protection is not expected.With any addition of new residents or businesses,police calls for service may be increased. New developments add an increase in traffic, and additional overall demands to the call load. The City does not expect that the proposed development, in and of itself,will necessitate new capital investment. The probable impact ofthe District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area.The current infrastructure for sanitary sewer,storm sewer and water will be able to handle the additional volume generated from the proposed development. Based on the development plans,there are no additional costs associated with street maintenance, sweeping,plowing,lighting and sidewalks. However,lighting operating costs are yet to be determined. The probable impact of any District general obligation tax increment bonds on the ability to issue debt far general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project,therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total 1oca1 tax rate far all taxing jurisdictions remained the same,is$2,258,819; (4) Estimated amount of tax increment attributable to countv levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies,assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same,is$1,120,922; Farmington Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No.14-Trident Housing 2-9 (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county ar school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. Subsection 2-15.Supporting Documentation Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the findings are required in the resolution approving the District. Following is a list ofreports ancl studies on file at the City that support the EDA and City's findings: • A list of applicable studies will be listed here prior to the public hearing. Subsection 2-16. Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174,Subd.25,tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: ]. Taxes paid by the captured net tax capacity,but excluding any excess t�es,as computed underM.S., Section 469.177; 2. The proceeds from the sale or lease of property,tangible or intangible,to the extent the property was purchased by the authority with tax increments; 3. Principal and interest received on loans or other advances made by the authority with tax increments; 4. Interest or other investment earnings on or from tax increments; 5. Repayments or return of tax increments made to the Authority under agreements for districts far which the request for certification was made after August 1, 1993;and 6. The market value homestead credit paid to the Authority under M.S., Section 273.1384. Subsection 2-17. Modifications to the District In accordance with M.S., Section 469.175, Subd. 4,any: 1. Reduction or enlargement of the geographic area of the District, if the reduction does not meet the requirements ofM.S., Section 469.175, Subd. 4(e); 2. Increase in amount of bonded indebtedness to be incurred; 3. A determination to capitalize interest on debt if that determination was not a part of the original TIF Plan; 4. Increase in the portion of the captured net tax capacity to be retained by the EDA or City; 5. Increase in the estimate ofthe cost ofthe District,including administrative expenses,that will be paid or financed with tax increment from the District;or 6. Designation of additional property to be acquired by the EDA or City, shall be approved upon the notice and after the discussion,public hearing and findings required for approval of the original TIF Plan. Pursuant to M.S.Section 469.175 Subd. 4(�,the geographic area ofthe District may be reduced,but shall not Farmington Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No.14-Trident Housing 2-10 be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a housing district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. I1 must be documented. The requirements of this paragraph do not apply if(1)the only modification is elimination of parcel(s)from the District and(2)(A)the current net tax capacity of the parcel(s)eliminated from the District equals or exceeds the net tax capacity of those parcel(s)in the District's original net tax capacity or(B)the EDA agrees that, notwithstanding M.S.,Section 469.177,Subd. 1,the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s)eliminated from the District. The EDA or City must notify the County Auditor of any modif cation to the District. Modifications to the District in the form of a budget modification ar an expansion of the boundaries will be recorded in the TIF Plan. Subsection 2-18.Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the EDA or City,other than: 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services,including architectural and engineering services, directly conneeted with the physical development of the real property in the District; 3. Relocation benefits paid to or services provided for persons residing ar businesses located in the District; 4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses(1)to(3). For districts for which the request for certification were made before August 1, 1979,or after June 30, 1982, and before August 1,2001,administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments,as defined by M.S.,Section 469.174,Subd.25,clause (1), from the District,whichever is less. For districts for which certification was requested after July 31,2001,no tax increment may be used to pay any administrative expenses for District costs which exceed ten percent of total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments,as defined in M.S.,Section 469.174,Subd. 25, clause(1), from the District,whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits ofM.S.,Section 469.176,Subd. 3. The county may require payment ofthose expenses by February 15 ofthe year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11,the County Treasurer shall deduct an amount(currently 36 percent) of any increment distributed to the EDA or City and the County Treasurer shall pay the amount deducted to the State Commissioner of Management and Budget for deposit in the state general fund to be Farmington Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No.14-Trident Housing 2-11 appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. Subsection 2-19. Limitation of Increment The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tcrx incrementfinancingdistrictpursuanttoM.S.,Section 469.177,nodemolition,rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authoriry or by the owner oftheparcel in accordance with the tax incrementfinancing plan, no additional tczx increment may be taken from that parcel, and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition,rehabilitation or renovation or other site preparation on thatparcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax incrementfinancingplan,the authority shall cert�to the county auditor that the activity has commenced and the county auditor shall cert�the net tar capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity ofthe tax increment financing district. The county auditor must enforce the provisions ofthis subdivision. The authority must submit to the county auditor evidence that the required activiry has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and(3)substantial reconstruction or rebuilding of an existing street. The EDA or City or a property owner must improve parcels within the District by approximately June 2020 and report such actions to the County Auditor. Subsection 2-20. Use of Tax Increment The EDA or City hereby determines that it will use 100 percent of the captured net tax capaciTy of taxable property located in the District for the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project; 2. To finance,or otherwise pay the cost of redevelopment of the the Downtown Redevelopment Project pursuant to M.S., Sections 469.001 to 469.047 and M.S., Sections 469.090 to 469.1082; 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance,or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. To pay principal and interest on any loans,advances or other payments made to or on behalf of the Farmington Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No.14-Trident Housing 2-12 EDA or City ar for the benefit of the Downtown Redevelopment Project by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan ar pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165,and/or M.S., Sections 469.178; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165,and/or M.S., Sections 469.178. Revenues derived from tax increment from a housing district must be used solely to finance the cost of housing projects as defined in M.S., Sections 469.174, Subd. 11 and 469.1761. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the EDA or City may be included in the cost of a housing project. These revenues shall not be used to circumvent any levy limitations applicable to the City nor far other purposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Dakota County to the EDA for the Tax Increment Fund of said District. The EDA or City will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements,demolition and relocation,site preparation,and administration. Remaining increment funds will be used for EDA or City administration (up to 10 percent) and for the costs of public improvement activities outside the District. Subsection 2-21. Excess Increments Excess increments,as defined in M.S., Section 469.176, Subd. 2,shall be used only to do one or more of the following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds;or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The EDA or City must spend or return the excess increments under paragraph(c)within nine months after the end of the year. In addition,the EDA or City may, subject to the limitations set forth herein,choose to modify the TIF Plan in order to finance additional public costs in the Downtown Redevelopment Project or the District. Subsection 2-22. Requirements for Agreements with the Developer The EDA or City will review any proposal for private development to determine its conformance with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested far review and approval: site plan, construction, mechanical, and electrical system drawings,landscaping plan,grading and storm drainage plan,signage system plan,and any other drawings or narrative deemed necessary by the EDA or City to demonstrate the conformance of the development with City plans and ordinances. The EDA or City may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. S, no more than 10 percent, by acreage, of the property to be Farmington Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No.14-Trident Housing 2-13 acquired in the District as set forth in the TIF Plan shall at any time be owned by the EDA or City as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments from property acquired is pledged,unless prior to acquisition in excess of 10 percent of the acreage,the EDA or City concluded an agreement for the development of the property acquired and which provides recourse for the EDA or City should the development not be completed. Subsection 2-23.Assessment Agreements Pursuant to M.S., Section 469.177,Subd. 8,the EDA or City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications far the improvements to be constructed,review the market value previously assigned to the land upon which the improvements are to be constructed and,so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. Subsection 2-24.Administration of the District The EDA will be the authority for the District.The administration of the District will be handled by the EDA Executive Director,the City Administratar,and/or the City Finance Director. Subsection 2-25.Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subds. 5, 6, and 6b the EDA or City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor,County Board and County Auditor on or before August 1 of each year. M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M.S., Section 469.175 Subd. S and Subd. 6, the Office of the State Auditor will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 2-26. Reasonable Expectations As required by the TIF Act,in establishing the District,the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon EDA and City staffawareness ofthe feasibility of developing the project site(s)within the District. Subsection 2-27.Other Limitations on the Use of Tax Increment 1. General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used to finance, or otherwise pay the cost of redevelopment of the the Downtown Redevelopment Project pursuant to M.S., Sections 469.001 to 469.047 and M.S., Sections 469.090 to 469.1082. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality,county,school district,or any other local unit of government or the state or federal government. This provision does not Farmington Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No.14-Trident Housing 2-14 prohibit the use of revenues derived from tax increments far the construction or renovation of a parking structure. 2. Housing District Exceptions to Restriction on Pooling; Five Year Limit. Pursuant to M.S., Section 469.1763, (1)At least 80%of the tax increment derived from the District must be expended on Public Costs incurred within said district, and up to 20%of said tax increments may be spent on public costs incurred outside of the District but within the Downtown Redevelopment Project; provided that in the case of a housing district,a housing project,as defined in M.S.,Section 469.174, Subd. 11, is deemed to be an activity in the District,even if the expenditure occurred after five years. Subsection 2-28. Summary The Farmington Economic Development Authority is establishing the District to provide an impetus for residential development and provide safe and decent life cycle housing in the City. The TIF Plan for the District was prepared by Ehlers&Associates,Inc.,3060 Centre Pointe Drive,Roseville,Minnesota 55113- 1105,telephone(651)697-8500. Farmington Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No.14-Trident Housing 2-15 Appendix A Project Description Trident Development LLC.is proposing to construct a 70-unit senior,rental housing complex that will consist of 15 independent living units,34 assisted living units and 31 memory care units. 20 percent of the units will be affordable to persons at or below 50 percent of the area median income. Construction is expected to start in 2016 and be completed by the end of 2018. The City will be issuing a pay-as-you-go TIF note to the developer to assist in financing the affordability of the project. Appendix A-1 Appendix B Map of the Downtown Redevelopment Project and the District Appendix B-1 4� �1��JY� � � ' �O � ' t7Yfit1 ST�W ,�� tn . r f97f{gT 1ya �` M `� '�.,`^� � �� `�L� � 1 'S.�fl ST W �� y 4 Q �� \�;�y �`R �� if� 5��$�"� �p �"V, . �rf �JS � �� fl. � A . �*� � 7$x� � 18E,TM�T� Tj- fi �, y t ��.°9 �� LY � � ��if�t �" �� t Sl'W t9f3T�T 1M1' � -g � • ti ,,, � � `�� 4 F� � .. F� tie��0'�� ' � � h� �4`� e . v I • i3Jft�'s� �id5�H ST 1A' L�,.�-�� -� q ' [5 '� 4 �S ' M,�`?e a �, � • , . ��: � � , Q t��'�� 1,�3t�s�r w fl � � � 4 �"�� . .� .�� . . • .� ,�sr w a �or � � `�` zo�sx sr w � a e sr yy� ; � A 4q ,� .� ,,;6� � ,�� . �� z�xr�sr . I A � .�a C� � R � o •a : o � ' rr�st w � � 2a�rt�sr v� . r'/ � ' � � iA�l1iD1M S ' ,�; y �c�v��, �:��►,t� zsz � = i ��ar�s�`t�r i Tax Increment Financing District � � �+� � No. 14-Trident Housing ��,� ��' � ��, � � �� +D � �� y a w`f.l.� � � � . .� .� ; . �. �� . � S' � ` -. � � CiR ' 04 �t Downtown Redevelopment Project �' � � ' ar �r�ss w � � � � � I� � � 9$ ` ��, � Tax Increment Financing District No. 14 - Trident Housing Downtown Redevelopment Project City of Farmington Dakota County, Minnesota Appendix C Description of Property to be Included in the District The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcel listed below. Parcel Numbers Address Owner 14-65250-00-050 22120 Denmark Ave Church of St.Michael Appendix C-1 Appendix D Estimated Cash Flow for the District Appendix D-1 5/2/2016 Base Value Assumptions -Page 1 EHLERS cc�4[asxN ru8t�c rrRapGt The Legacy-2% Inflation City of Farmington 70 Assisted Living and Independent Sr.Housing Units • � DistrictType: Housing Tax Rates District Name/Number: County District#: 6cempt Class Rate(Exempt) 0.00% First Year Construction or Inflation on Value 2016 Commercial Industrial Preferred Class Rate(C/I Pref.) Existing District - Specify No.Years Remaining First $150,000 1.50% Inflation Rate-Every Year: 2.00% Over $150,000 2.00% Interest Rate: 3.00% Commercial Industrial Class Rate(C/I) 2.00% Present Value Date: 1-Aug-16 Rental Housin9 Class Rate(Rental) 1.25% First Period Ending 1-Feb-17 Affordable Rental Housing Class Rate(Aff.Rentai) Tax Year District was Ceftrfied: Pay 2016 First $100,000 0.75% Cashflow Assumes First Tax Increment For Development: 2018 Over $100,000 0.25% Years of Tax Increment 26 Non-Homestead Residential(Non-H Res.1 Unit) Assumes Last Year of Tau Increment 2043 First $SD0,000 1.00% Fiscai Dispardies Election[Outside(A), Inside(B),or NA] Inside(B) Over $500,000 1.25% Incremental or Total Fiscal Disparities Incremental Homestead ResideMal Class Rate(Hmstd.Res.) Fiscal Disparities Contribution Ratio 34.8094% Pay 2016 First $500,000 1.00°6 Fiscal Disparities Metro-Wide Tau Rate 150.2620% Pay 2016 Over $500,000 1.25°� Maximum/Frozen Local Tax Rate: 149.173% Pay 2016 Agriculfural Non-Homestead 1.00% Current Local Tax Rate:(Use lesser of Current or Max.) 149.173% Pay 2016 State-wide Tax Rate(Comm./Ind.only used for total taxes) 48.6410% Pay 2016 Market Value Tax Rate(Used for total taxes) 0.19065% Pay 2016 •' • • ... Building Total Percentage Tax Year Property Current Class After Land Market Market Of Value Used dr7ghtat Original Tax Original After Conversion Area/ Ma # PID Owner Address Market Value Value Value for District Market Value Market Value Class Tax Ca aci Conversion Ori ,Tax Ca . Phase 1 1a-eszso-oo-oso CurchofSLMichael $ 144,300 144,300 100% 144,300` Pay2016 Exempt - Rental 1,604 3�t,39D b Sd4.3ttD 194,300 U 1$Q4 Note: 1. Base values are for pay 2016 based upon review of County website on 3-9-16. 2. Located in SD#192 and Vermillian Watershed Prepared by Ehlers&Associates,Inc.-Estimates Only N:\MinnsoW\Farmington\Housing-Economic-RedevelopmenhTIF1TIF Dishick\TIF 14-Tritlen[Housing\TIF Runs\TIF Plan Run 4-26-i 6-FINAL.xIs 5/2/2016 Base Value Assumptions -Page 2 ENLER� � teAo�aS ire roet�c rinutr,� The Legacy-2% Inflation City of Farmington 70 Assisted Living and Independent Sr.Housing Units '• •' • ... Estimated Tauable �: TotalTaxabte�'- Property � Percentage Percentage Percentage Percentage FirstYear Market Value MatkCt Vatue' Total Market Tax project Project Tax Completed Completed Completed Completed Full Taxes Area/Phase New Use Per Sq.Ft./Unit Per Sq.;Ft.lUnit Sq.Ft./Units Value Class T�Gapacity Capacity/Unit 2016 2017 2078 2019 Payable Sr.Hs 140,000 140,000: 70 9800,000 Rental :122,500 1,750 50% 100% 100% 100% 2019 Subtotal Residential 70 9,800,000 122,500 Subtotal Commercialllnd. 0 ��-0 � 0 �� Note: 1.Market values are based upon estimates from County Assessor on 3-31-16. . . . � o a isca oca oca isca ate-wi e ar e Tax Disparities Tax Property Disparities Property Value Totai Taxes per Naw Uq Ca aci Tax Ca aci Ca aci Taxes Taxes Taxes Taxes Ta�ces ��: S .Ft./Unit Sr.Hs 122,500 0 122,500 182,737 D 0 16,684 201,421 2,677.44 , � , . Note: 1. Taxes and tax increment will vary signfcantly from year to year depending upon values,rates,state law,fiscal disparities and other factors which cannot be predicted. � � '• Total Property Taxes 201,421 less State-wide Taxes 0 less Fiscal Disp.Adj. 0 less Market Value Taxes (18,684) less Base Value Taxes 2,691 Annual Gross TIF Prepared by Ehlers&Associates,Inc.-Estimates Onty N:\Minnsota\Farmington\Housing-Economic-RedevelopmentlTlFlTiF Districts\TIF 14-Trident Housing\TIF Runs\TIF Plan Run 4-26-16-FINAL.xIs 5/2/2016 Tax Increment Cashflow-Page 3 EHI.ERS kU?1tdS�p P�18(IC f YFtIK{ The Legacy-2°lo Inflation City of Farmington 70 Assisted Living and Independent Sr. Housing Units . � Project Orlglnal Fiscal Captured Local Annual Semi-Annual State Admin. Semi-Annual Semi-Annual PERIOD %of Tax Tax Disparities Tax Tax Gross Tax Gross Tax Auditor at Net Tax Present ENDING Tax Payment OTC Ca aci Ca aci Incremental Ca acI Rate Increment Increment 0.36% 11ff% Increment Value Yrs. Year Date ....-..... � � 02/01/17 - - - - 08/01/17 - - - - 02/01/16 100% 61,250 (1,804) - 59,446 149.173% 88,678 44,339 (160) (4,418) 39,761 37,462 0.5 2018 08/01/18 44,339 (160) (4,418) 39,761 74,371 1 2018 02/01/19 100% 122,500 (1,804) - 120,696 149.173°/ 160,046 90,023 (324) (6,970) 80,729 148,202 1.5 2019 OB/01/19 90,023 (324) (8,970) 80,729 220,941 2 2019 02/01/20 100% 124,950 (1,804) - 123,146 149.173% 163,701 91,850 (331) (9,152) 62,368 294,060 2.5 2020 OB/01/20 � 91,650 (331) (9,152) 82,368 366,098 3 2020 02/01/21 100% 127,449 (1,804) - 125,645 149.173% 187,429 93,714 (337) (9,336) 84,039 438,512 3.5 2021 08l01/21 93,714 (337) (9,336) 84,039 509,855 4 2D21 021�1l22 100% 129,996 (1,804) - 128,194 149.173% 191,231 95,616 (344) (9,527) 85,744 581,571 4.5 2022 08/01/22 95,616 (344) (9,527) 85,744 652,226 5 2022 02/01/23 100% 132,598 (1,604) - 130,794 149.173% 195,110 97,555 (351) (9,720) 87,483 723,250 5.5 2023 08/01/23 97,555 (351) (9,720) 87,483 793,223 6 2023 02/01/24 100% 135,250 (1,604) - 133,446 149.173% 199,066 99,533 (358) (9,917) 69,257 863,561 6.5 2024 08/01/24 99,533 (358) (9,917) 89,257 932,858 7 2024 02/01/25 100% 137,955 (1,604) - 136,151 149.173% 203,101 101,550 (366) (10,118) 91,066 1,002,516 7.5 2025 OB/OV25 101,550 (366) (10,118) 91,066 1,071,144 8 2025 02/01/26 100% 140,714 (1,604) - 136,910 149.173% 207,217 103,608 (373) (10,324) 92,912 1,140,129 6.5 2026 OB/01/26 103,608 (373) (10,324) 92,912 1,208,093 9 2026 02/01/27 100% 143,528 (1,604) - 141,725 149.173% 211,415 105,707 (361) (10,533) 94,794 1,276,410 9.5 2027 OB/OV27 105,707 (361) (10,533) 94,794 1,343,718 10 2027 OZ01/26 100% 146,399 (1,604) - 144,595 149.173% 215,697 107,848 (388) (10,746) 96,714 1,411,373 10.5 2026 OB/01/26 107,848 (368) (10,746) 96,714 1,476,029 11 2026 02/01/29 100% 149,327 (1,604) - 147,523 149.173% 220,065 110,032 (396) (10,964) 98,673 1,545,030 11.5 2029 08/01/29 110,032 (396) (10,964) 98,673 1,611,041 12 2029 02/01l30 100% 152,313 (1,604) - 150,510 149.173% 224,520 112,260 (404) (11,186) 100,670 1,677,392 12.5 2030 OB/01I30 112,260 (404) (11,186) 100,670 1,742,763 13 2030 02/01/31 100% 155,360 (1,604) - 153,556 149.173% 229,064 114.532 (412) (11,412) 102,708 1,808,472 13.5 2031 OB/01/31 114,532 (412) (11,412) 102,708 1,873,209 14 2031 02/01/32 100% 156,467 (1,604) - 156,663 149.173% 233,699 116,649 (421) (11,643) 104,786 1,938,281 14.5 2032 D8/01/32 116,649 (421) (11,643) 104,766 2,002,390 15 2032 02/01/33 100% 161,636 (1,604) - 159,832 149.173% 238,427 119,213 (429) (11,876) 106,906 2,066,830 15.5 2033 OB/01/33 119,213 (429) (11,878) 106,906 2,130,318 16 2033 02/01/34 100% 164,869 (1,804) - 163,065 149.173% 243,249 121,625 (438) (12,119) 109,068 2,194,133 16.5 2034 08/01l34 121,625 (438) (12,119) 109,068 2,257,004 17 2034 02/01/35 100% 168,166 (1,804) - 166,362 149.173% 248,168 124,084 (447) (12,364) 111,274 2,320,199 17.5 2035 08/01/35 . 124,084 (447) (12,364) 111,274 2,362,460 16 2035 02/01/36 100% 171,530 � (1,804) - 169,726 149.173% 253,185 126,593 (456) (12,614) 113,523 2,445,041 18.5 2036 08/01/36 126,593 (456) (12,614) 113,523 �2,506,697 19 2036 02/01/37 100% 174,960 (1,804) - 173.15fi 149.173% 258,303 129,151 (465) (12,869) 115,818 2,568,670 19.5 2037 08/01/37 129,151 (465) (12,869) 115,818 2,629,727 20 2037 02/01/38 100% 178,459 (1,804) - 176,656 149.173% 263,522 131,761 (474) (13,129) 118,156 2,691,097 20.5 2038 08/01/38 131,761 (474) (13,129) 118,156 2,751,561 21 2038 02/Ot/39 100% 182,029 (1,804) - 180,225 149.173% 268,847 134,423 (484) (13,394) 120,54fi 2,612,334 21.5 2039 OB/01/39 134,423 (484) (13,394) 120,546 2,672,209 22 2039 02/01/40 100% 185,669 (1,804) - 183,865 149.173% 274,277 137,139 (494) (13,665) 122,981 2,932,391 22.5 2040 OB/01/40 137,139 (494) (13,665) 122,981 2,991,684 23 2040 02I01/41 100% 169,383 (1,804) - 187,579 149.173% 279,817 139,908 (504) (13,940) 125,464 3,051,260 23.5 2041 OB/01/41 139,908 (504) (13,940) 125,464 3,109,995 24 2041 02I01/42 100% 193,170 (1,804) - 191,366 149.173% 285,467 142,734 (514) (14,222) 127,998 3,169,011 24.5 2042 OB/01/42 142,734 (514) (14,222) 127,998 3,227,155 25 2042 02/01/43 100% 197,034 (1,804) - 195,230 149.173% 291,230 145,615 (524) (14,509) 130,582 3,285,596 25.5 2043 OB/01/43 145,615 524 14,509 13D,582 3,343,173 26 2043 02I01/44 . , ,.� - ,: . t . � .. ,. .. . .� . . . . • : �"` ;,: .,-.a. �_. ` . � �� ;, �. � , ,,. � , � ' . � ,P � .,- `=� �, .. . ; �.' �� u �� Y �� ...,..., Preparetl by Ehlere&Associates,Inc.-Estimates Only N1Minnsota\Farming[on\Housing-Economic-RetlevelopmenflTIF1TIF D'stricts\TIF 14-Trident Housing\TIF Runs\TIF Plan Run 4-26-16-FINAL.bs Appendix E Housing Qualifications for the District � �o�� 6�E a �� ' q�� I��ii��I��i) � n��Uil �it iii �� I��II��T�s i� � c� ��y�� H�� i�4� ��f t � . {i�i it�k�y,'��,��p i ") � i t� ii � i:� � i ��i�u'��'t�� i [ w�i�l�il�� ,�i�i��" �= ��E��.. '��1"�@xGf�?,o- No. of Persons 50%of Median Income 60%of Median Income 1-person $30,050 $36,060 2-person $34,350 $41,220 3-person $38,650 $46,380 4- erson $42,900 $51,480 Source: Department of Housing and Urban Development and Minnesota Housing Finance Agency The two options for income limits on a standard housing district are 20% of the units at 50% of inedian income or 40%of the units at 60%of inedian income. There are no rent restrictions for a housing district. ***PLEASE NOTE: THESE NUMBERS ARE ADJUSTED ANNUALLY. ALL INCOME FIGURES REPORTED ON THIS PAGE ARE FOR 2016 Appendix E-1 Appendix F Findings for the District To be added prior to the public hearing Appendix F-1 PLANNING COMMISSION CITY OF FARMINGTON,MINNESOTA RESOLUTION NO. RESOLUTION OF THE CITY OF FARMINGTON PLANNING COMMISSION FINDING THAT A MODIFICATION TO THE REDEVELOPMENT PLAN FOR DOWNTOWN REDEVELOPMENT PROJECT AND A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 14 - TRIDENT HOUSING CONFORM TO THE GENERAL PLANS FOR THE DEVELOPMENT AND REDEVELOPMENT OF THE CITY. WHEREAS, the Farmington Economic Development Authority (the "EDA") and the City of Farmington (the "City") have proposed to adopt a Modification to the Redevelopment Plan for the Downtown Redevelopment Project (the "Redevelopment Plan Modification") and a Tax Increment Financing Plan for T� Increment Financing District No. 14 - Trident Housing (the "TIF Plan")therefor (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Plans") and have submitted the Plans to the City Planning Commission (the "Commission") pursuant to Minnesota Statutes,Section 469.175, Subd. 3,and WHEREAS, the Commission has reviewed the Plans to determine their conformity with the general plans far the development and redevelopment of the City as described in the comprehensive plan far the City. NOW, THEREFORE, BE IT RESOLVED by the Commission that the Plans conform to the general plans far the development and redevelopment of the City as a whole. Dated: May 10,2016 Chair ATTEST: Secretary SCHEDULE OF EVENTS FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY OF FARMINGTON DAKOTA COUNTY,MINNESOTA FOR THE MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE DOWNTOWN REDEVELOPMENT PROJECT AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 14 (a housing district) March 21,2016 Project information for drafting necessary documentation sent to Ehlers. March 24,2016 EDA requests that the City Council call for a public hearing on the Modification to the Redevelopment Plan for the Downtown Redevelopment Project and the establishment of Tax Increment Financing District No. 14. Apri14,2016 City Council calls for a public hearing on the modification to the Redevelopment Plan for the Downtown Redevelopment Project and the establishment of Tax Increment Financing District No. 14. April 19,2016 Letter received by County Commissioner giving notice of potential housing tax increment financing district modification (at least 30 days prior to publication of public hearing notice.) [Ehlers will fccr and mail on or before April 19, 2016.J Apri128,2016 EDA meets to discuss term sheet for development agreement. May 6,2016 Fiscal/economic implications received by School Board Clerk and County Auditor(at least 30 days prior to public hearing). [Ehlers will fax&mail on or before May 6, 2016J May 9,2016 City Council work session to discuss term sheet for development agreement. May 10,2016 Planning Commission reviews the Plans to determine if they are in compliance with City's comprehensive plan. May 16,2016 Ehlers&Associates conducts internal review of the Plans. May 19,2016 Date of publication of hearing notice and map (at least 10 days but not more than 30 days prior to hearing). [Ehlers will e-mail notice & map to the Farmington Independent by Mcry 16, 2016 to legals 1 @ farmingtonindependent.comJ An action under subdivision i,paragraph(a),contesting the validity of a determination by an authority under section 469.175, subdivision 3,must be commenced within the later of: (1)180 days after the municipality's approval under section 469.175,subdivision 3;ar (2)90 days after the request for certification of the district is filed with the county auditor under section 469.177,subdivisionl. SCHEDULE OF EVENTS - PAGE TWO FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY OF FARMINGTON DAKOTA COUNTY,MINNESOTA FOR THE MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE DOWNTOWN REDEVELOPMENT PROJECT AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 14 (a housing district) May 26,2016 EDA adopts a resolution approving the TIF Plan. EDA approves the Development Agreement. June 6,2016 City Council holds public hearing at 7:00 p.m. on the modification to the Redevelopment Plan for the Downtown Redevelopment Project and the establishment of TIF District No. 14 and passes resolution approving the Plans. [Ehlers will email council packet information on or before May 30, 2016J City Council approves the Development Agreement. By June 30,2016 Ehlers files Plans with the MN Department of Revenue, OSA and Dakota County. An action under subdivision 1,paragraph(a),contesting the validity of a determination by an authority under section 469.175, subdivision 3,must be commenced within the later of: (1) 180 days after the municipality's approval under section 469175,subdivision 3;or (2)90 days a8er the request for certification of the district is filed with the county auditor under section 469.177,subdivisionl.