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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