HomeMy WebLinkAboutFebruary 22, 1994 Work SessionNOTICE OF OFFICIAL MEETING
Notice is hereby given that an official meeting
is to be held in the
City of Columbia Heights
as foHow~:
Meeting of:
Mayor and City Councll and City Manager
Date of Mee~l~ Tuesday, February 22, 1994
Time of Meeting:
Location of Meeting:
Purpos~ of M~ting:
7P.M.
City Hall Conference Room
590 40th Avenue N.E.
WORK SESSION
1. Roll Call
2. Discuss Sheffield Redevelopment Plan
3. Adjournment
The City of Columbia Heights does not discriminate on the basis of disability in the admission
or access to, or treatment or employment in, its services, programs, or activities. Upon request,
accommodation will be provided to allow individuals with disabilities to participate in all City
of Columbia Heights' services, programs, and act~ivities. Auxiliary aids for handicapped
persons are available upon request when the request is made at least 96 hours in advance.
Please call the City Council Secretary at 782-2800, Extension 209, to make arrangements.
(TDD/782-2806 for deaf only)
NOTICE OF OFFICIAL MEETING
Notice is hereby given that an official meeting
is to be held in thc
City of Columbia Heights
as follows:
Meeting of:
Date of MeetinK
JOINT MEETING OF THE MAYOR AND CITY COUNCIL AND
THE PARK AND RECREATION BOARD
Wednesday, February 23, 1994
Time of Meeting: 6: 30 P.M.
Location of Meeting: Murzyn Hall, Keyes Room
Purpose of Meeting: Discuss multi-purpose building proposal.
The City of Columbia Heights does not discriminate on the basis of disability in the admission
or access to, or treatment or employment in, its services, programs, or activities. Upon request,
accommodation will i~e provided to allow individuals with disabilities to participate in all City
of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped
persons are available upon request when the request is made at least 96 hours in advance.
Please call the City Council Secretary at ?82-2800, Extension 209, to make arrangements.
(TDD/?82-2806 for deaf only)
CITY OF COLUMBIA HF~IGHTS
TO:
FROM:
DATE:
RE:
MAYOR AND CITY COUNCIL MEMBERS
PATRICK HENTGES, CITY MANAGER
FEBRUARY 18, 1994
SHEFFIELD NEIGHBORHOOD REDEVELOPMENT PLAN AMENDMENTS
The final adoption of the Sheffield Neighborhood Revitalization Plan was referred to a February 22,
1994, Work Session and the hearing continued until the February 28, 1994, regular city council
meeting. Prior to the final adoption of the plan, individual council members have identified questions
or concerns. It should be emphasized that the plan and the adoption process serves to satisfy the public
hearing requirements that are necessary with both using financing tools associated with redevelopment
activity or the public hearing requirements that are necessary when undertaking a comprehensive
redevelopment program in a defined area.
Though the plan in its current format would satisfy both of these requirements, many feel that more
specific detail should be incorporated at this point, so that the actual implementation phase can move
ahead more efficiently. The following points of discussion should be addressed in the Work Session
for possible amendment into the final draft form.
Eliminate Alternatives: I request that the council consider eliminating any undesirable
alternatives that have been identified and labeled through 1 through 10. Perhaps prior to the
work session, each of you would review the list and grade them in the following manner: !-
Preferred Alternative(s); 2- Possible Alternative(s); 3-Eliminate from Plan. Please understand
that the plan can include more than one alternative. The plan should include alternatives for
both the 4600 block between Pierce/Fillmore streets and off-block redevelopment in the
surrounding neighborhood.
RECOMMENDATION: Amend draft plan by eliminating redevelopment cost alternatives g5,
#6, and #7. Consider minor changes or adjustments in the financing information identified
in the remaining redevelopment cost alternatives.
Financing Information: Questions have been raised relative to the use of Four Cities Bond
Residual Funds in light of the potential cash flow problems within the city's tax increment
funds. I have attached two Source/Use Budgets that address financing the remaining
alternatives that would be adopted in the plan. Exhibit A recommends using the HRA tax levy,
portion of 1994 CDBG funding, and liquor fund balance to finance the acquisition/clearance
alternatives on the target block. Exhibit B recommends making application to Anoka County
for HOME funds to finance the rehabilitation of three off block duplexes for single family
homes. The HOME grant funds would not have to be reimbursed, and the city's original
acquisition investment would be returned through traditional mortgage financing sources.
RECOMMENDATION: Amend the various financing schedules in plan by incorporating
Sources/Uses Budgets outlined in Exhibit A and R into the final plan.
Tax Increment Financing Fonds: Publicorp, Inc. has in the past supplied the City Council and
the HRA a report outlining the cash flow conditions of the combined tax increment funds.
Essentially, the report shows that the city will have tax flow shortages beginning in 1995
through the year 2000, at which time the fund by the year 2009 generates a $! million surplus.
Please note that this report assumes that Business Center will pay no delinquent taxes or
ongoing taxes in the future years, but does include use of the parking ramp revenues and the
Senior Housing bond money. Publicorp has provided further scenarios (see Exhibit C) showing
that in the event taxes are collected from the Business Center. Under any circumstance, it is
likely the city will have a significant reserve that could be used to repay the liquor fund or
used to finance ongoing city housing/redevelopment activities in the community or surrounding
off-block areas of Sheffield neighborhood.
RECOMMENDATION: Direct City staff to work with Publicorp and Holmes and Graven to
develop the necessary interfund loan documents that provide for the repayment of any parking
ramp revenues, Four Cities Bond Residual funds, or other funds that are used to finance the
TIF cash flow shortages. Further, prepare and present the documents necessary to establish an
ongoing community-wide housing improvement revolving fund and including the reimburse-
ment of liquor funds used in the Sheffield project.
Developer Re~_uest for Proposals. City Staff has recommended that redevelopment cost
alternatives #2 and #3 remain in the plan. Both of these alternatives involve a developer
coordinated project for the target block. A likely benefit for having developers coordinate the
project would include improved coordination, accelerated completion schedule, etc. The
developers, as the alternatives outline usually require fee/land incentives to develop in
distressed areas. I recommend that the plan be amended to only include the availability of no
cost land and that additional fee enhancements would have to come from state, federal, or other
sources other than city funding. During the implementation stage, a Request for Proposals
would be offered to interested developers, and they would have to identify the funding sources
that the City further leverage to enhance the project and their profit/risk level. During the
same time period that the RFPs are being developed, City Staff would be working on a similar
plan for the City to direct sale the lots to individual contractors and individuals interested in
constructing homes on the target block.
RECOMMENDATION: Amend alternatives #2 and #3 to eliminate the use of funds beyond
funding necessary to acquire the property and to provide up to a no-cost land incentive to the
developer interested in developing the total target block.
Implementation Schedule. For the benefit of the City Council and City Staff, the plan should
be amended to include an identification of more specific action items that will be necessary to
implement the plan. Exhibit D outlines the various action items that will be presented to the
City Council for consideration after the plan's actual adoption.. This implementation schedule
affords the City Staff the necessary administrative direction to either negotiate items or prepare
final documentation for presentation to the City Council.
RECOMMENDATION: Amend page 23, Implementation Timetable and replacing it with the
schedule outlined in Exhibit D.
Technical Amendments. In discussing this plan with Holmes and Graven and the HRA, the
following technical revisions were recommended:
1. Change the plan's name from Sheffield Neighborhood Revitalization Plan to
Sheffield Neighborhood Redevelopment and Housing Development Plan.
2. The implementation schedule that was mentioned above may want to include
a statement that each and every sale of the property must go through a required
statutory public hearing.
3. The appendix should be amended to indicate the Sheffield Neighborhood
Stabilization study is only incorporated within the plan to serve as further
documentation regarding the condition of blight and housing problems within
the neighborhood, and that the strategies outlined therein are not adopted by
the council and are not included as a part of the implementation of this plan.
RECOMMENDATION: Amend references in the plan to include the above mentioned
technical revisions.
After you have reviewed this memo and the attached exhibits, please do not hesitate to contact me
before the meeting if you have any additional questions or are in need of additional information.
EXHIBIT A REVISED02-16-94
4600(S) BLOCK BETWEEN PIERCE/FILLMORE STREET
ACOUISITION/CLEARANCE FINANCING
USES OF FUNDING:
Stauch Purchase/Closing Cost
- 10 properties on target block/S54,000 per
- Does not include 3 off block properties*
548,OOO.
Y~lrk~w Property Purchases - 2 properties/S54,000 per
- 1 year, 536,000 per yr/0%
108,000.
McNalty Purchase - 3 properties/S54,000 per
- One current tenant to be relocated
162,000.
Five O~her Purchases - 5 properties/S60,000 per
- Nine current tenants to be relocated
$ 300,000.
Ten Relocations
- $3,000 per relocation
$ 30,000.
1994 Taxes
- 20 buildings/S2,600 per
$ 52,000.
D~molition
- 20 buildings/S4,000 per
$ 80,000.
Lighting/Grading, $ 28,000.
~ $ 10.000.
TOTAL: $1,318,000.
NOTE: Rehabilitation to Single Family Homes using CDBG and Resale proceeds go to repay sewer fund.
SOURCES OF FUNDING:
Repaymeng to Sewer Fund
- HRA Levy $71,000/yr.
- 10 year repayment no interest
- 18 years repayment at 5%
$ 710,000.
1994 CDBG - For two purchases
- For tenant relocation
$ 139,000.
Liquor Fund
- Research TIF repayment*
$469,000. - $ 309,000.- $239,000.**
Purchase/Sale Fund
- $36,000 per year payments to Yurkew in 95/96
- Revenue from lot sales at $10,000 to $15,000 per lot
TOTAL
$0. - $ 160,000.- $230,000?*
$1,318,000.
NOTES:
*Preliminary discussion indicates that the year 2000 surplus in TIF could be used as a housing revolving account.
This statement is based on the Business Center paying some level of taxes.
**Identifies cost to Liquor Fund if no lot revenue is received or if up to $15,000 per lot is realized.
FUND # FUND NAME
101 GENERAL
212 STATE AID MAINTENANCE
225 CABLE TELEVISION
230 PARA TRANSIT
24O LIBRARY
270 DARE PROJECT
275 COMMUNITY POLICE
280 PROJECT PRIDE
4O~ STATE AID CONSTRUCTION
410 SHEFFIELD REDEVELOPMENT
411 CAP'L IMP GEN GOV'T BLDG
412 CAP'L IMP PARKS
413 HUSET PARK HAZD CLEAN-UP
415 CAP'L IMP PIR
TOTAL CAPITAL IMPROVEMENTS
430 INFRASTRUCTURE FUND
431 CAP'L EQP REPLACEMENT -GEN
432 CAP'L EQP REPLACEMENT -SEWER
433 CAP'L EQP REPLACEMENT -WATER
434 CAP'I_ EQP REPLACEMENT -GARAGE
TOTAL CAP'L REPLACEMENT FUND
601 WATER
602 SEWER
603 REFUSE
609 LIQUOR
651 WATER CONSTRUCTION
652 SEWER CONSTRUCTION
TOTAL WATER & SEWER CONSTRUCTION
701 GARAGE
710 ENERGY MANAGEMENT
720 DATA PROCESSING
890 COMPENSATED ABSENCES
884 INSURANCE TRUST FUND
290 PARKING RAMP ASSESSMENTS
390 FOUR CITY HOUSEING REFUNDING
404 ~ENIOR HOUSING PROJECT
405 DOWNTOWN PARKING MAINTENANCE
362 PIR BONDS
376 TAX INCREMENT BONDS
383 TAX INCREMENT BONDS
TOTAL DEBT SERVICE
TOTAL CASH BALANCE AS OF 12-31-92
CITY OF COLUMBIA HEIGHTS
CASH BALANCE OF MAJOR FUNDS AS OF 12-31-1993
PRIOR TO YEAR END ADJUSTMENTS
12-31-1993 CASH DEDICATED DESIGNATED AVAILABLE
CASH FLOW WITH SOME BY CITY FOR ANY
BALANCE NEEDS OUTSIDE COUNCIL TYPE OF USE
LIMITATIONS CAN BE
REDESIGNATED
BY COUNCIL
3,138,247 3,000,000 0 0 138,247
92,668 0 92,668 0 0
280,328 0 0 280,328 0
51,770 0 0 51,770 0
0 0 0 0 0
2,728 0 2,728 0 0
0 0 0 0 0
3.442 0 3,442 0 0
(43,210) 0 (43,210) 0 0
101,599 101,599 0 0 0
283.990 0 0 283,990 0
358,427 0 0 358,427 0
0 0 0 0 0
121,455 0 0 121,455 0
822,261 101,599 (43,210) 763,872 0
301,619 0 0 301,619 0
2.802,701 0 0 2,802,701 0
160,782 0 160,782 0 0
132,139 0 132,139 0 0
36,260 0 36.260 0 0
3,131,882 0 329,181 2,802,701 0
291,453 0 291,453 0 0
109,415 0 109,415 0 0
365,631 0 365,631 0 0
577,509 100,000 0 0 477,509
395,232 0 395,232 0 0
1,090,008 0 1,090,008 0 0
1,485,240 0 1,485,240 0 0
43,193 0 43,193 0 0
0 0 0 0 0
0 0 0 0 0
200,000 0 0 200,000 0
707,472 0 0 707,472 0
289,186 0 289,186 0 0
513,452 0 513,452 0 0
O O O 0 0
62,303 0 62,3O3 0 0
0 0 0 0 0
1,322,496 0 1,322,496 0 0
0 0 0 0 0
1,322,496 0 1,322,496 0 0
13,792,295 3,201,599 4,867,178 5,107,762 615,756
OFF-BLOCK REDEVELOPMENT
PHASE I REHABILITATION
EXHIBIT B
02-16-94
USES OF FUNDING:
Cost of Purchases/Closings - 3 properties and Value/Expenses
- 4535/37 Taylor Street
- 4519/20 Taylor Street
- 4531/33 Fillmore Street
Interior Rehabiliation - Kitchen/bathroom remodel
- Painting/woodworking
- Basement Demo
- Floor Coverings
- Entryway Changes/Door
- Weatherproofing
- Appliances
Subtotal
Extcri0r Rehabilitation
Stucco redeash
Painting Trim/Window
Aarchitectural Changes
Garage/Yard Improvements
Two Car Garage
Landscaping
$56,000 per building
$ 6,000.
$ 2,500.
$ 5o0.
$ 2,5o0.
$1,500.
$ 50O.
$1.500.
$15,000.
per building
$2,000.
$ 500.
$5.000.
$7,500. per building
$6,500.
$1.000.
$7,500. per building
$168,000.
$ 45,000.
$ 22,500.
$ 22,500.
Total:
$258,000.
SOURCES OF FUNDING:
Repayment to Sewer Fund - MI-IFA Mortgage Financing
- Local Community Bank Reinvestments
1994 HOME Program
- $349,718 availability county-wide
- Target single family rehabilitation in neighborhoods
- Household income limits
Total:
$168,000.
$ 90,000.*
$258,000.
NOTE: *See program information attachment
COUNTY OF ANOKA
Urban Anoka County Community Development Block Grant
GOVERNMENT CENTER
2100 3rd Avenue · Anoka, Minnesota 55303-2489 · (612) 323-5709
February 14, 1994
Mr. Don Schneider
Community Development Director
City of Columbia Heights
590 - 40th Avenue N.E.
Columbia Heights, Minnesota 55421
FEB 17 1~94
Re: 1994 HOME Program Applications
Dear Don:
CiTY
Anoka County will receive $349,718 of HOME funds for Fiscal Year 1994. You are invited
to submit an application for those funds to complete an eligible housing project. Please see
the attached copy of the regulations for details on eligible projects and other program
requirements.
Please keep the following in mind as you consider applying for these funds:
Eligible Projects
Acquisition, rehabilitation, and construction that provides permanent or transitional
owner-occupied or rental housing that serves Iow income households. Limited tenant
assistance is also available. ~ single family rehabilitation should target.
~nei~lhborhoods: Any requests for general city-wide housing rehabilitation will have Iow
priority.
Income Limits
All households served must be at or below 80 percent of the mean income in the
Minneapolis-St. Paul Area ($39,700 for a family of four) and further, 90 percent of
the recipient households must have incomes at or below 60 percent of median
($29,775 for a household of four).
Matching Requirements
Any applications must identify the source of a required match of 25 percent of the
amount off HOME funds provided for a project, meaning that 20 percent of the total
cost of a project must come from some dedicated source other than HOME. The
match funds must be committed to the HOME program for an indeterminate period of
time, which eliminates equity or loans as sources of match. The match requirements
are addressed in detail in the attached regulations.
Affirmative Action / Equal Opportunity Employer
Page 2.
Please call me at 323-5709 with any questions. All applications are due by A__pril 15, 1994,
with decision on funding recipients to be made by May 13.
Sincerely,
Community Development Manager
JW:sw
Enclosures
Pubhcorp Inc.
512 Crown Roller Mill
105 Fifth Avenue South
A4inneapolis, A4N 55401
(612) 341-3646
FAX (612) 341-4148
February 17, 1994
FR: Mark Ruff
FEB I8 1~4
RE: Tax Increment Projections MANAGER
¢11¥ Of' L~JLU~!IBtA ~
Attached are three projections for the HP-,A tax increment districts assuming changes in the CHBC
situation. Scenario 1 assumes that none of the $770,041 in unpaid tax increment from 1990 to
1993 is paid to tax increment fund, but the CHBC begins paying full taxes on the $4.8 million
market value in 1994. The Scenario 2 assumes that CHBc taxes become current in 1994 at $4.8
million, and all of the Unpaid tax increment is deposited into the tax increment fund. Scenario 3
assumes that the CHBC taxes become current in 1994 but at the $2.4 million value and with .50%
of the unpaid tax increment deposited into the fund.
Page 1 is a SUmmary of all tax increment districts combined after ex/sting debt service. Please note
that tax increment years run from March 1 to March 1 instead of a calendar year. ACcording to our
records, the beginning balance of the tax increment fund on March 1, 1994 will be negative. The
$410,762 of proceeds from the senior housing bonds deposited in the tax increment fund should
result in a beginning balance of $80,891 before any back taxes are paid. We should verify these
figures with the finance department. The remaining pages of each cash flow show the individual
tax increment districts income and expenses.
Please note that the best scenario is obviously if 100% of back taxes paid to the tax increment fund
and taxes at $4.8 million in value. The second best scenario is if no back tax increment is paid to
the fund but taxes continue at $4.8 million in value. An approximately break even scenario by the
year 200 would be the third scenario with 50% of current taxes and 50% in back taxes.
These cash flows are based upon 1992/1993 values and rates and October 1993 balances in funds.
If you reach the point where we should refine these cash flows to account for 1993/1994 values,
current and for various options in repayment of the senior housing bond funds after 2001, please
contact me.
02/18/94
Columbia Heights HRA: Combined Tax Increment Cash Flow
ALL DISTRICTS COMBINED: CHBC CURRENT TAXES BEGINNING IN 1994 AT $4.8 M - NO BACK TAXES TO FUND
Tax
Increment
Year
All Districts'
Net Tax Other Total
Increment Income Income
(1) (2) (3) (4)
County
Admin. Other Other Total Annual Net
Fees Expenses Expenses Expenses Income
(5) (6) (7) (8)
(11,500) 0 0 (11,500) (117,771)
(11,500) 0 0 (11,500) (170,499)
(11,500) 0 0 (11,500) (110,414)
(11,500) 0 0 (11,500) 88,940
(11,500) 0 0 (11,500) 149,360
(11,500) 0 0 (11,500) 246,335
(11,500) 0 0 (11,500) 336,735
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
0 0
1993
1994 (106,271) 4,276 (101,9951
1995 (158,999) 4,276 (154,7231
1996 (98,914) 4,276 (94,6381
1997 98,440 4,276 102,716
1998 160,860 4,276 165,136
1999 257,835 4,276 262,111
2000 348,235 4,276 352,511
2001 109,742 4,276 114,018
2002 109,742 4,276 114,018
2003 109,742 4,276 114,018
2004 109,742 4,276 114,018
2005 109,742 4,276 114,018
2006 109,742 4,276 114,018
2007 109,742 4,276 114,018
2008 109,742 4,276 114,018
2009 109,742 4,276 114,018
2010 0
Cumulative
Districts' 3/1
Balance
(9)
80,891
(36,880)
(207,379)
(317,793)
(230,853)
(81,493)
164,842
501,577
494,353 ~
487,129
479,905
472,681
465,457
458,233
451,009
443,785
436,561
Cash Flow Assumptions:
Column 1: Total expected tax increment based upon Pay 93 values and rates with scheduled class rate changes, no inflation on tax rate or values.
CH Mall at $4,000,000
Column 2: Mortgage payments from HRA acquisition included in payments to tax increment bonds.
Column 9: Balance includes $410,762 due to proceeds from senior housing bond.
Estimated Balances are as of end of the tax increment years. The first amount listed is March 1, 1994.
Outstanding Tax lncrement Due:
1990 $93,499.03
1991 $213,760.27
1992 $227,416.91
1993 $235.364.96
TOTAL $770,041.17
CO100-03 Prepared by Publicorp, Inc. Pt ~3
02/18/94
Columbia Heights HRA: Combined Tax Increment Cash Flow
Pa~ 1
ALL DISTRICTS COMBINED: CHBC CURRENT TAXES BEGINNING IN 1994 AT $2.4 M - 50% OF BACK TAX INCREMENT TO FUND
Tax
Increment
Year
All Districts'
Net Tax Other Total
Increment Income Income
(1) (2) (3)
County
Admin. Other Other Total Annual Net
Fees Expenses Expenses Expenses Income
(4) (5) (6) (7) (8)
(11,500) 0 0 (11,500) (235,454)
(11,500) 0 0 (11,500) (288,182)
(11,500) 0 0 (11,500) (228,097)
(11,500) 0 0 (11,500) (30,743)
(11,500) 0 0 (11,500) 31,678
(11,500) 0 0 (11,500) 128,653
(11,500) 0 0 (11,500) 219,053
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
0 0
1993
1994 (223,954) 4,276 (219,6781
1995 (276,682) 4,276 (272,4061
1996 (216,597) 4,276 (212,3211
1997 (19,243) 4,276 (14,9671
1998 43,178 4,276 47,454!
1999 140,153 4,278 144,429
2000 230,553 4,276 234,829
2001 109,742 4,278 114,018
2002 109,742 4,276 114,018
2003 109,742 4,276 114,018
2004 109,742 4,276 114,018
2005 109,742 4,276 114,018
2006 109,742 4,276 114,018
2007 109,742 4,276 114,018
2008 109,742 4,276 114,018
2009 109,742 4,276 114,018
2010 0
Cumulative
Districts' 3/1
Balance
(9)
465,912
230,458
(57,724}
(285,8201
(316,5631
(284,8851
(156,2331
62,820
55,596
48,372
41,148
33,924
26,700
19,476
12,252
5,028
(2,1961
Cash Flow Assumptions:
Column 1: Total expected tax increment based upon Pay 93 values and rates with scheduled class rate changes, no inflation on tax rate or values.
CH Mall at $4,000,000
Column 2: Mortgage payments from HRA acquisition included in payments to tax increment bonds.
Column 9: Balance includes $410,762 due to proceeds from senior housing bond.
Estimated Balances are as of end of the tax increment years. The first amount listed is March 1, 1994.
Outstanding Tax lncrementDue:
1990 $93,499.03
1991 $213,760.27
1992 $227,416.91
1993 $235,364.96
TOTAL $770,041.17
'Co 100-03
Prepared by Publicorp, Inc.
PR ~3
02/18/94
Columbia Heights HRA: Combined Tax Increment Cash Flow
ALL DISTRICTS COMBINED: CHBC CURRENT TAXES BEGINNING IN 1994 AT $4.8 M - ALL BACK TAX INCREMENT TO FUND
Tax
Increment
Year
All Districts' County
Net Tax Other Total Admin. Other Other Total Annual Net
Increment Income Income Fees Expenses Expenses Expenses Income
(1) (2) {3) (4) {5) .(6) {7) (8)
1993
1994 (106,271) 4,276 (101,995
1995 (158,999) 4,276 (154,723
1996 (98,914) 4,276 (94,638
1997 98,440 4,276 102,716
1998 160,860 4,276 165,136
1999 257,835 4,276 262,111
2000 348,235 4,276 352,511
2001 109,742 4,276 114,018
2002 109,742 4,276 114,018
2003 109,742 4,276 114,018
2004 109,742 4,276 114,018
2005 109,742 4,276 114,018
2006 109,742 4,276 114,018
2007 109,742 4,276 114,018
2008 109,742 4,276 114,018
2009 109,742 4,276 114,018
2010 0
(11,500) 0 0 (11,500) (117,771)
(11,500) 0 0 (11,500) (170,499)
(11,500) 0 0 (11,500) (110,414)
(11,500) 0 0 (11,500) 86,940
(11,500) 0 0 (11,500) 149,360
(11,500) 0 0 (11,500) 246,335
(11,500) 0 0 (11,500) 336,735
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
(11,500) 0 0 ( 11,500) (7,224)
(11,500) 0 0 (11,500) (7,224)
0 0
Cumulative
Districts' 3/1
Balance
(9)
850,932
733,161
562,662
452,248
539,188
688,548
934,883
1,271,818
1,264,394
1,257,170
1,249,946
1,242,722
1,235,498
1,228,274
1,221,050
1,213,826
1,206,602
Cash Flow Assumptions:
Column 1: Total expected tax increment based upon Pay 93 values and rates with scheduled class rate changes, no inflation on tax rate or values.
CH Mall at $4,000,000
Column 2: Mortgage payments from HRA acquisition included in payments to tax increment bonds.
Column 9: Balance includes $410,762 due to proceeds from senior housing bond.
Estimated Balances are as of end of the tax increment years. The first amount listed is March 1, 1994.
Outs~nding Taxlncrement Due:
1990 $93,499.03
1991 $213,760.27
1992 $227,416.91
1993 $235.364.96
TOTAL $770,041.17
iO100-03 Prepared by Publicorp, Inc. PE ~3
Publicorp Inc.
512 Crown Roller Mill
105 Fifth Avenue South
Minneapolis, MN 55401
(612) 341-3646
FAX (612) 341-4148
October 26, 1993
TO:
Pat Hentges, City of Cohnnbia Heights
Bill Elrite, City of Columbia Heights
Don Schneider, Columbia Heights HRA
FR: Mark Ruff
RE: T~ Increment Projections
Attached are the updated tax increment projections on a district by district basis and on a combined
cash flow basis.
All of the projections maintain conservative assumptions; therefore, they should be viewed as worse
case scenarios rather than a prediction of the future..Soecificail¥, the hms do not include any taxes
from the Columb~_iia Hei_ehts Business Center for the duration of the projections; no tax rate or marke~
~;alu'e increases, and no property tax class rates.
As you can see page 1 relates to the A3 and C7 Pre-1979 tax increment districts. We do recommend
that these two districts be shown as a single entity so that any C7 is clearly obligated to make debt
service payments after the year 2000. The combination of the cash flows for the two districts is
important given that pre-1979 districts are scheduled to begin t° be decertified beginning in 2001.
Pages 2 through 4 list the remaining tax increment districts. For purposes of presentation, all
projections run only through the year 2009. As you are aware, the MURP extends beyond these time
Page 5 is a compilation of ail districts including revenues and fund baiances, some of which may be
used on an interfund loan basis to cover shortfails in the cash flows. Specifically, there is $439,943
in the tax increment fund and $410,762 in the proceeds from the senior housing bond available for
debt service. In addition, there is $300,030 in current baiances in the ramp fund available on an "as-
needed" basis as is the projected $95,366 per year in ramp revenues.
Based upon the expected income and identified beginning baiances, it is possible that a shonfail of up
may occur after the 1995 tax i~crement year (ending March 1, 1996) and continue through thc year
2000. It is possible to cover the potentiai shortfall with other interfund loans, tax levy, or other
funds. As you can see, the debt service is reduced after 2000, therefore, the districts are expected to
regain a positive balance and be able to repay some of the interfund loans.
Plcasc call with questions or comments.
10/23/93 Columbia Heights HRA: Combined Tax Increment Cash Flow Page 5
All Tax Inc~ement Districts Combined
Districts Parking Total
Tax Net TI Ramp Interest Other Total Gross Administrative Other Total Annual Ending
Increment Income Revenues Income Income Revenue Fees Expenses Expenses Income Balance
Year (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
As of Sept. 30, 1993 1,150,735
1993 (779,465) 0 14.375 4,276 (760.814) (9.000) 0 (9.000] (769.814) 380.921
1994 (341,637) 95,366 17,500 4,276 (224,495) (9,000) 0 (9,000] (233,495) 147,426
1995 (394,365) 95,366 7,500 4,276 (287,223) (9,000) 0 (9,000] (296,223) (148,798)
tl)96 (334,280) 95,366 4.276 (234,638) (9,000) 0 (9,000'~ (243,638) (392.436)
1997 (136,926) 95,366 4.276 (37,284] (9,000) 0 (9,000'~ (46.284) (438,719)
1998 (74,506) 95.366 4.276 25,136 (9,000) 0 (9.000'~ 16,136 (422,583)
1999 22,469 95,366 4,276 122,111 (9,000) 0 (9,000'~ 113,111 (309,472)
2000 112,869 95,366 4,276 212,511 (9,000) 0 (9,0001 203,511 (t05,961}
2001 109,742 95,366 4,276 209,384 (9,000) 0 (9,000'~ 200,384 94,423
2002 109,742 ' 95,366 4.276 209,384 (9.000) 0 (9,000', 200,384 294,806
2003 109,742 0 4,276 114,018 (9,000) 0 (9,000', 105,018 399,824
2004 109,742 0 4,276 114,018 (9,000) 0 (9,000'. 105,018 504,841
2005 109,742 0 4,276 114,018 (9,000) 0 (9,000', 105,018 609,859
2006 109,742 0 4.276 114,018 (9,000) 0 (9,000'~ 105,0t8 714,876
2007 109,742 0 4,276 114,018 (9.000) 0 (9,000 105,018 819,894
2008 109,742 0 4,276 114,018 (9,000) 0 (9,000) 105,018 924,911
2009 109,742 0 4,276 114,018 (9,000) 0 (9,000) 105,018 1,029,929
Cash Flow Assumptions:
Column 1: Total expected income alter expenses with class rate scheduled class rate changes, no inflation on tax rate or values. CH Mall at $4.000,000.
Column 2: M future ramp revenues can be used for debt sewice on tax increment bonds as interfund loan.
Column 3: Conservative estimates of interest income based upon a 2.5% rote.
Column 4: Mortgage payments from HRA acquisition included in payments to tax increment bonds.
Column 6: Administrative fes~ include estimated fees paid to Anoka County.
Column 1 Cash Balance as of 9/30/93 includes $439,943 in tax increment fund. $300,030 in ramp fund, $410,762 in proceeds from senior housing bond.
CO100-O3
Prepared by Publicorp, Inc.
PRES1
EXHIBIT D
IMPLEMENTATION SCHEDULE
The following schedule outlines the actions and approvals necessary to implement the redevelopment
and housing development plan:
ADOPTION PROCESS:
January 31, 1994: City Council conducts a public hearing at J. P. Murzyn Hall concerning
development alternatives outlined in the plan.
February 14, 1994: City Council continues public hearing.
February 22, 1994: City Council conducts work session to review final draft of plan and
discuss proposed amendments.
February 28, 1994: City Council continues public hearing and adopts plan by resolution,
including any additional amendments.
TAROET BLocK IMPLEMENTATION PROCESS:
After February 28, 1994: City staff is directed to negotiate and present for City Council
consideration purchase agreements on the balance of private property located on the 4600(0
block between Pierce/Fillmore Street.
February 28, 1994: HRA Staff is authorized to meet with remaining tenants on the
block between Pierce/Fillmore Street regarding relocation benefits.
March 14, 1994: City Staff is directed to prepare a Request for Proposal for private
development of the 4600(s) block between Pierce/Fillmore Street.
March 14, 1994: City Staff is directed to prepare a report outlining the details to implement
alternative #3-City Marketed Lot Sales Project, including design covenants, platting\lot size
requirements, sales prices, etc.
April 11, 1994: City Council receives developer proposals and the report from City Staff on
the City-Marketed Lot Sales Alternative.
May 9, 1994: City Council has public hearing on the execution of a development contract with
private developer or alternatively consider a detailed proposal to sell individual lots to
contractors or respective owners.
After May 11, 1994: Developer and/or Cit~y go through formal land use approval process
including demolition approvals, re-platting, zoning adjustments, etc.
OFF BLOCK IMPLEMENTATION:
March 14, 1994: City staff presents HOME grant application to Anoka County for the funding
of one to three duplex building conversions into single family buildings.
March 14, 1994: City Council authorizes advertisement for eligible Columbia Heights.residents
interested in qualifying for the purposed rehabilitated single family homes under the HOME
Grant Program.
May 9, 1994: City staff presents a detailed report as to specific city development and service
commitments that can be made on the surrounding properties in an effort to further support
the target block development including other property owner covenants, rental property
management agreements, and single family rehabilitation grant under remaining CDBO funds.
NOTICE OF OFFICIAL MEETING
Notice is hereby given that au official meeting
is to be held in thc
City of Co~mb~ He~.~t~
a~ follo~:
Mee~ingo~ JOINT HEETING OF THE HAYOR AND CITY COUNCIL AND
THE PARK AND RECREATION BOARD
Dam of Meeting:
Wednesday, February 23, 1994
Time of Meeting: 6: 30 P.
Location of Meeting: Nurzyn Hal 1, Keyes Room
Pnrpose°fMeeting: Discuss multi-purpose building proPosal.
I I I '
The City of Columbia Heights does not discriminate on the basis of disability in the admission
or access to, or treatment or employment in, its services, programs, or activities. Upon request,
accommodation will be provided to allow individuals with disabilities to participate in nil City
of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped
persons are available upon request when the request is made at least 96 hours in advance.
Please call the City Council Secretary at 782-2800, Extension 209, to make arrangements.
(TDD/782- 2806 for deaf only)
II