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HomeMy WebLinkAbout2016-07-19 HRA Work SessionAgenda Housing and Redevelopment Authority Work Session Meeting City of Edina, Minnesota Edina City Hall Community Room Tuesday, July 19, 2016 5:30 PM I.Call to Order II.Roll Call III.Project Updates IV.Grandview 2 Plan for Tax Increment Financing V.Southeast Edina Redevelopment Area Plan - Updated VI.Adjournment The Edina Housing and Redevelopment Authority wants all participants to be comfortable being part of the public process. If you need assistance in the way of hearing ampli*cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: July 19, 2016 Agenda Item #: III. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Project Updates Discussion Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: No action needed. For discussion purposes only. INTRODUCTION: Staff will provide updates on redevelopment projects of interest to the Commissioners. Anticipated topics include: Affordable Housing and 7001 York Library Site. Date: July 19, 2016 Agenda Item #: IV. To:Chair & Commissioners of the Edina HRA Item Type: From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Grandview 2 Plan for Tax Increment Financing Information Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: This is being distributed to the HRA/City Council. No discussion or action needed. INTRODUCTION: The Plan for the Grandview 2 Tax Increment Financing (TIF) District has been completed. Since the District was approved in March 2016, City staff and Ehlers Associates have incorporated several editorial clarifications to address the questions posed during the Public Hearing. Each of the changes are non- technical in nature. The final TIF Plan is attached for informational purposes only. No further action is needed at this time. ATTACHMENTS: Description Grandview 2 TIF Plan FINAL FOR FILING Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area and the Tax Increment Financing Plan for the establishment of the Grandview 2 Redevelopment Tax Increment Financing District (a redevelopment district) within the Southeast Edina Redevelopment Project Area Edina Housing and Redevelopment Authority City of Edina Hennepin County State of Minnesota Public Hearing: March 2, 2016 Adopted: March 2, 2016 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 Southeast Edina Redevelopment Project Area ........................... 1-1 Foreword ............................................................. 1-1 Section 2 - Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District .............. 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 ........... 2-4 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 ........................................... 2-6 Subsection 2-11. Fiscal Disparities Election.................................. 2-7 Subsection 2-12. Business Subsidies....................................... 2-7 Subsection 2-13. County Road Costs ....................................... 2-8 Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions................. 2-9 Subsection 2-15. Supporting Documentation ................................ 2-11 Subsection 2-16. Definition of Tax Increment Revenues ....................... 2-11 Subsection 2-17. Modifications to the District................................ 2-12 Subsection 2-18. Administrative Expenses .................................. 2-12 Subsection 2-19. Limitation of Increment ................................... 2-13 Subsection 2-20. Use of Tax Increment .................................... 2-14 Subsection 2-21. Excess Increments ...................................... 2-14 Subsection 2-22. Requirements for Agreements with the Developer .............. 2-15 Subsection 2-23. Assessment Agreements ................................. 2-15 Subsection 2-24. Administration of the District ............................... 2-15 Subsection 2-25. Annual Disclosure Requirements ........................... 2-15 Subsection 2-26. Reasonable Expectations ................................. 2-15 Subsection 2-27. Other Limitations on the Use of Tax Increment................. 2-16 Subsection 2-28. Summary.............................................. 2-16 Appendix A Project Description ...................................................... A-1 Appendix B Map of the Southeast Edina Redevelopment Project Area 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 Minnesota Business Assistance Form ....................................... E-1 Appendix F Redevelopment Qualifications for the District .................................. F-1 Appendix G Findings Including But/For Qualifications..................................... G-1 Section 1 - Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area Foreword The following text represents a Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for the Southeast Edina Redevelopment Project Area. Generally, the substantive changes include the establishment of the Grandview Redevelopment Tax Increment Financing District. For further information, a review of the Redevelopment Plan for the Southeast Edina Redevelopment Project Area, most recently modified on February 18, 2014, is recommended. It is available from the HRA Executive Director at the City of Edina. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within the Southeast Edina Redevelopment Project Area. Edina Housing and Redevelopment Authority Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area 1-1 Section 2 - Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District Subsection 2-1. Foreword The Edina Housing and Redevelopment Authority (the "HRA"), the City of Edina (the "City"), staff and consultants have prepared the following information to expedite the establishment of the Grandview 2 Redevelopment Tax Increment Financing District (the "District"), a redevelopment tax increment financing district, located in the Southeast Edina Redevelopment Project Area. Subsection 2-2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause redevelopment to occur or to promote a greater degree of development that allows fulfillment of City objectives. To this end, the HRA and City have certain statutory powers pursuant to Minnesota Statutes ("M.S."), Sections 469.001 to 469.047, inclusive, as amended, and M.S., Sections 469.174 to 469.1794, 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 a separate document: the Redevelopment Plan for the Southeast Edina Redevelopment Project Area adopted September 29, 1977 and modified from time-to-time. Subsection 2-3. Statement of Objectives The District currently consists of fifteen parcels of land and adjacent and internal rights-of-way. As a part of the City’s vision for the Grandview Area featuring 74,000 square feet of civic use, the District is being created to facilitate the multi-phased construction of approximately 68,000 square feet of mixed-use development and 321 units of housing in the City. Please see Appendix A for further District information. The HRA has not entered into an agreement or designated a developer at the time of preparation of this TIF Plan, but development is likely to occur in phases starting by 2018. This TIF Plan is expected to achieve many of the objectives outlined in Subsection 3-4 of the Redevelopment Plan for the Southeast Edina Redevelopment Project Area. 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 Southeast Edina Redevelopment Project Area and the District. Subsection 2-4. Redevelopment Plan Overview 1. Property to be Acquired - The HRA or City currently owns six parcels of property within the District. The remaining property or portions thereof located within the District may be acquired by the HRA 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 HRA 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 or similar business entity. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-1 4. The HRA 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. 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 of this TIF Plan. Please also see the map in Appendix B for further information on the location of the District. The HRA 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 HRA 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; or to carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The HRA or City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this 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 HRA and City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1794, as amended, inclusive, find that the District, to be established, is a redevelopment district pursuant to M.S., Section 469.174, Subd. 10(a)(1) as defined below: (a) "Redevelopment district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists: (1) parcels consisting of 70 percent of the area in the district are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; (2) The property consists of vacant, unused, underused, inappropriately used, or infrequently used rail yards, rail storage facilities or excessive or vacated railroad rights-of-way; (3) tank facilities, or property whose immediately previous use was for tank facilities, as defined in Section 115C, Subd. 15, if the tank facility: (i) have or had a capacity of more than one million gallons; (ii) are located adjacent to rail facilities; or (iii) have been removed, or are unused, underused, inappropriately used or infrequently used; or (4) a qualifying disaster area, as defined in Subd. 10b. (b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-2 ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. (c) A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard. (d) A parcel is deemed to be occupied by a structurally substandard building for purposes of the finding under paragraph (a) or by the improvement described in paragraph (e) if all of the following conditions are met: (1) the parcel was occupied by a substandard building or met the requirements of paragraph (e), as the case may be, within three years of the filing of the request for certification of the parcel as part of the district with the county auditor; (2) the substandard building or the improvements described in paragraph (e) were demolished or removed by the authority or the demolition or removal was financed by the authority or was done by a developer under a development agreement with the authority; (3) the authority found by resolution before the demolition or removal that the parcel was occupied by a structurally substandard building or met the requirement of paragraph (e) and that after demolition and clearance the authority intended to include the parcel within a district; and (4) upon filing the request for certification of the tax capacity of the parcel as part of a district, the authority notifies the county auditor that the original tax capacity of the parcel must be adjusted as provided by § 469.177, subdivision 1, paragraph (f). (e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots or other similar structures. (f) For districts consisting of two or more noncontiguous areas, each area must qualify as a redevelopment district under paragraph (a) to be included in the district, and the entire area of the district must satisfy paragraph (a). In meeting the statutory criteria the HRA and City rely on the following facts and findings: • The District is a redevelopment district consisting of fifteen parcels. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-3 • An inventory shows that parcels consisting of more than 70 percent of the area in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures. • An inspection of the buildings located within the District finds that more than 50 percent of the buildings are structurally substandard as defined in the TIF Act. (See Appendix F). 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 of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b., the duration of the District will be 25 years after receipt of the first increment by the HRA or City (a total of 26 years of tax increment collection). The HRA or City elects to receive the first tax increment in 2020, 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 2045, or when the TIF Plan is satisfied. The HRA 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 (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 Auditor shall certify in each year (beginning in the payment year 2020) the amount by which the original value has increased or decreased as a result of: 1. Change in tax 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 HRA or City. The original local tax rate for the District will be the local tax rate for taxes payable 2016, assuming the request for certification is made before June 30, 2016. The ONTC and the Original Local Tax Rates for the District appear in the tables on the following page. 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 Southeast Edina Redevelopment Project Area, upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The HRA 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 2020. The Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-4 Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. Tax Increment District Parcels in Watershed No. 1 (Nine Mile Creek Watershed) Project Estimated Tax Capacity upon Completion (PTC)$371,572 Original Estimated Net Tax Capacity (ONTC)$46,817 Fiscal Disparities Reduction $103,651 Estimated Captured Tax Capacity (CTC)$221,104 Original Local Tax Rate 1.18106 EstimatedPay 2016 Estimated Annual Tax Increment (CTC x Local Tax Rate) $261,137 Percent Retained by the HRA 100% Tax capacity includes a 2% inflation factor for the duration of the District. The tax capacity included in this chart is the estimated tax capacity of the District in year 25. The tax capacity of the District in year one is estimated to be $89,940. Tax Increment District Parcels in Watershed No. 3 (Minnehaha Creek Watershed) Project Estimated Tax Capacity upon Completion (PTC) $1,207,886 Original Estimated Net Tax Capacity (ONTC)$10,379 Fiscal Disparities Reduction $15,703 Estimated Captured Tax Capacity (CTC)$1,181,804 Original Local Tax Rate 1.18593 EstimatedPay 2016 Estimated Annual Tax Increment (CTC x Local Tax Rate) $1,401,537 Percent Retained by the HRA 100% Tax capacity includes a 2% inflation factor for the duration of the District. The tax capacity included in this chart is theestimated tax capacity of the District in year 25. The tax capacity of the District in year one is estimated to be $187,219. Pursuant to M.S., Section 469.177, Subd. 4, the HRA 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 (18) 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 City. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-5 Subsection 2-9. Sources of Revenue/Bonds to be Issued The total estimated tax increment revenues for the District are calculated in Appendix D and shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $32,479,295 Interest $3,247,929 TOTAL $35,727,224 The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The HRA or City reserves the right to incur bonds or other indebtedness to help achieve the objectives of the TIF Plan. The projects within the District are anticipated to be financed by a pay-as-you-go note and/or a possible bond issue. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the HRA or City to incur debt. The HRA 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 HRA 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 $21,170,290. 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 The conceptual development program for this portion of the Grandview area included in the District is the construction of approximately 68,000 square feet of mixed-use development and 321 units of housing in the City. The HRA and City have determined that it will be necessary to provide assistance to the project(s) for certain District costs, as described. The HRA has studied the feasibility of the development or 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 following table. These estimates establish a budget for the maximum amount of expenditures, but the HRA and City are not obligated to expend the full amount. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-6 USES OF TAX INCREMENT FUNDS TOTAL Land/Building Acquisition $1,500,000 Site Improvements/Preparation $1,500,000 Utilities $1,200,000 Other Qualifying Improvements $13,800,000 Administrative Costs (up to 10%)$3,170,290 PROJECT COST TOTAL $21,170,290 Interest $14,556,934 PROJECT AND INTEREST COSTS TOTAL $35,727,224 The project costs utilizing tax increment, 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 as permitted by M.S., Section 469.175. 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. Pursuant to M.S., Section 469.1763, Subd. 2, no more than 25 percent of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside of the District but within the boundaries of the Southeast Edina Redevelopment Project Area, (including administrative costs, which are considered to be spent outside of the District) subject to the limitations as described in this TIF Plan. Subsection 2-11. Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, the HRA 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 disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial-industrial net tax capacity 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 capacity, the difference between the original net tax capacity and the current net tax capacity 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 authority from the net tax capacity 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 capacity Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-7 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 authority is the tax increment of the authority. The HRA will choose to calculate fiscal disparities by clause b. 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 M.S., Section 116J.993 to 116J.995 defines a business subsidy as a “grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease or other obligation, or any preferential use of government facilities given to a business.” Also included in the definition are many forms of economic assistance. 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.552, 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 tax 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; Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-8 (17) Redevelopment when the recipient's investment in the purchase of the 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 tax 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; (21) Business loans and loan guarantees of $150,000 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 HRA 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. 1a, the county board may require the HRA or City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax 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 HRA or City within forty- five days of receipt of this TIF Plan. In the opinion of the HRA and City and consultants, the proposed development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan was not forwarded to the county 45 days prior to the public hearing. The HRA 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 HRA 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 on the next page if the "but for" test was not met: Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-9 IMPACT ON TAX BASE IF “BUT FOR” IS NOT MET FOR PARCELS IN WATERSHED NO. 1 (Nine Mile Creek Watershed) Estimated 2015/Pay 2016 Total Net Tax Capacity Estimated Captured Tax Capacity (CTC) Upon Completion Percent of CTC to Entity Total Hennepin County 1,467,566,893 221,104 0.0151% City of Edina 112,555,594 221,104 0.1964% Edina ISD No. 273 93,768,481 221,104 0.2358% IMPACT OF TAX RATES IF “BUT FOR” IS NOT MET Estimated Pay 2016 Extension Rates Percent of Total Rate CTC Potential Annual Taxes Hennepin County 0.453140 38.37% 221,104 100,191 City of Edina 0.271220 22.96% 221,104 59,968 Edina ISD No. 273 0.348980 29.55% 221,104 77,161 Other 0.107720 9.12%221,104 23,817 Total 1.181060 100.00%261,137 IMPACT ON TAX BASE IF “BUT FOR” IS NOT MET FOR PARCELS IN WATERSHED NO. 3 (Minnehaha Creek Watershed) Estimated 2015/Pay 2016 Total Net Tax Capacity Estimated Captured Tax Capacity (CTC) Upon Completion Percent of CTC to Entity Total Hennepin County 1,467,566,893 1,181,804 0.0805% City of Edina 112,555,594 1,181,804 1.0500% Edina ISD No. 273 93,768,481 1,181,804 1.2603% Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-10 IMPACT OF TAX RATES IF “BUT FOR” IS NOT MET Estimated Pay 2016 Extension Rates Percent of Total Rate CTC Potential Annual Taxes Hennepin County 0.453140 38.21% 1,181,804 535,523 City of Edina 0.271220 22.87% 1,181,804 320,529 Edina ISD No. 273 0.348980 29.43% 1,181,804 412,426 Other 0.112590 9.49%1,181,804 133,059 Total 1.185930 100.00%1,401,537 The estimates listed above display the Captured Tax Capacity (CTC) when all construction is completed. The tax rate used for calculations is the estimated Pay 2016 rate as obtained from Hennepin County. The total net capacity for the entities listed above are based on actual Pay 2016 figures. The District will be certified under the actual Pay 2016 rates, which were unavailable at the time this TIF Plan was prepared. 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 $32,479,295; (2) Probable impact of the District on city provided services and ability to issue debt. Based upon input from the respective City of Edina departments, probable impacts of the District were obtained. An impact of the District on police protection is not expected. With any addition of new residents or businesses, police calls for service will 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 of the District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. However, with an increase in residents and traffic, an increase in medical related calls is anticipated. The existing buildings, which will be eliminated by the new development, have public safety concerns that include several unprotected old buildings with issues such as access, hydrant locations, and converted structures. It is expected that the contemplated public improvements will improve access for emergency response vehicles. The impact of the District on public infrastructure is expected to be moderate. The development is not expected to significantly impact any traffic movements external to the area, but new infrastructure is proposed to enhance traffic movement throughout the District. 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 minimal additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. The development in the District is expected to contribute sanitary sewer (SAC) and water (WAC) connection fees. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. The City may issue GO TIF Bonds at some point during the District, but it is not anticipated at this time. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-11 (3) Estimated amount of tax increment attributable to school district levies. M.S., Section 469.175 Subd. 2(b) requires the TIF Plan to calculate “the estimated 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 local tax rate for all taxing jurisdictions remained the same.” 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 local tax rate for all taxing jurisdictions remained the same, is $9,564,599. The amount is calculated by multiplying the total estimated increment of $32,479,295 by the percent of the total tax rate attributable to the school district based on the estimated Pay 2016 tax rate of 0.34898; (4) Estimated amount of tax increment attributable to county levies. M.S., Section 469.175 Subd. 2(b) requires the TIF Plan to calculate “the estimated 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.” 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 $12,418,262. The amount is calculated by multiplying the total estimated increment of $32,479,295 by the percent of the total tax rate attributable to the county based on the estimated Pay 2016 tax rate of 0.45314; (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 or 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. A copy of the proposed TIF Plan was furnished to the county and school district for comment on the anticipated fiscal impacts. Edina Public Schools raised a concern with the proposed TIF Plan. The City responded to the concerns at the public hearing and with clarifications to the final version of this TIF Plan. 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 determination set forth in M.S. Section 469.175, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. Following is a list of reports and studies on file at the City that support the HRA and City's findings: • Grandview District Development Framework - April 5, 2012 • Sanitary Sewer Analysis - Barr Engineering February 21, 2014 • Water Distribution System Analysis - Short Elliot Hendrickson Inc. February 21, 2014 • Transportation Summary - WSB & Associates March 6, 2014 • Redevelopment TIF District Qualifications Report - LHB • Edina Housing and Redevelopment Authority Resolution 2013-04 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: 1. Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M.S., Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-12 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 for 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 of M.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 HRA or City; 5. Increase in the estimate of the cost of the 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 HRA 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(f), the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a redevelopment 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. 10(a), must be documented in writing and retained. 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 HRA 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 HRA or City must notify the County Auditor of any modification to the District. Modifications to the District in the form of a budget modification or 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 HRA 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 connected with the physical development of the real property in the Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-13 District; 3. Relocation benefits paid to or services provided for persons residing or 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 of M.S., Section 469.176, Subd. 3. The county may require payment of those expenses by February 15 of the 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 HRA 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 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 tax increment financing district pursuant to M.S., Section 469.177, no demolition, 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 authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax 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 Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-14 increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity 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 HRA or City or a property owner must improve parcels within the District by approximately March 2020 and report such actions to the County Auditor. Subsection 2-20. Use of Tax Increment The HRA 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 public redevelopment costs of the the Southeast Edina Redevelopment Project Area pursuant to M.S., Sections 469.001 to 469.047; 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 HRA or City or for the benefit of the Southeast Edina Redevelopment Project Area 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 or 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. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Hennepin County to the HRA for the Tax Increment Fund of said District. The HRA 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 HRA 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: Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-15 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. Pursuant to M.S., Section 469.176, Sudb. 2, “The authority shall annually determine the amount of excess increments for a district, if any. This determination must be based on the tax increment financing plan in effect on December 31 of the year and the increment and other revenues received as of December 31 of the year. The authority must spend or return the excess increments under paragraph (c) within nine months after the end of the year.” In addition, the HRA 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 Southeast Edina Redevelopment Project Area or the District. Subsection 2-22. Requirements for Agreements with the Developer The HRA 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 for 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 HRA or City to demonstrate the conformance of the development with City plans and ordinances. The HRA or City may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 25 percent, by acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the HRA 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 25 percent of the acreage, the HRA or City concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the HRA or City should the development or redevelopment not be completed. Subsection 2-23. Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the HRA 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 for 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 Administration of the District will be handled by the HRA Executive Director. Subsection 2-25. Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subds. 5, 6, and 6b the HRA or City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board and County Auditor Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-16 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. 5 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 and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. In making said determination, reliance is placed upon HRA and City staff awareness of the feasibility of developing the project site(s) within the District and will be confirmed upon written representation made by the developer to such effects. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. 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 public redevelopment costs of the the Southeast Edina Redevelopment Project Area pursuant to M.S., Sections 469.001 to 469.047. 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 prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. 2. Pooling Limitations. At least 75 percent of tax increments from the District must be expended on activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the District. 3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 75 percent test set forth in paragraph (2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of the District, 75 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5. 4. Redevelopment District. At least 90 percent of the revenues derived from tax increment from a Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-17 redevelopment district must be used to finance the cost of correcting conditions that allow designation of redevelopment and renewal and renovation districts under M.S., Section 469.176 Subd. 4j. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of the land, the removal of hazardous substances or remediation necessary for development of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the HRA or City, including the cost of preparation of the development action response plan, may be included in the qualifying costs. Subsection 2-28. Summary The Edina Housing and Redevelopment Authority is establishing the District to preserve and enhance the tax base, redevelop substandard areas, and provide employment opportunities in the City. The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113, telephone (651) 697-8500. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District 2-18 Appendix A Project Description The Grandview 2 Tax Increment District is a significant redevelopment effort of the City of Edina. The total development costs is estimated to be in excess of $200 million. The project is focused on revitalizing the site of the City’s vacant and substandard former public works facility along with public and outdated private use sites adjacent to the property. The City envisions a 74,000 square foot civic use for a portion of the public site with the redevelopment goal to create a vibrant neighborhood center with regional connections to catalyze high quality, integrated public and private development. The redevelopment is expected to occur in stages over the next two to six years. The City adopted the Grandview Development Framework in 2012 to help guide the potential area of change. Central to the redevelopment effort is the creation of a central commons area consisting of civic, residential, office and other uses. The City has sought partnership with Frauenshuh Commercial Real Estate Group to collaboratively plan the re-use of the site, but has not formally entered into any redevelopment agreements with any developers. The City expects to solicit private partners to maximize economic vitality of the site to complement the public improvements. Complimenting the civic use, the framework recommends mixed use development consisting of approximately 50,000 square feet of office, 18,000 square feet of retail, and 321 units of residential housing on multiple sites throughout the District. Potential public improvements include pavement, sidewalk, utility, and street improvements along Eden and Arcadia Avenues adjacent to the site; intersection improvements to Eden/Vernon, Eden/Arcadia, and Eden/Sherwood; district-wide shared parking structure; new street and pedestrian transportation connections; and district storm water solutions. Anticipated Improvement Projects Potentially Funded with Tax Increment District-Wide Public Improvements Roadway Improvements • Eden Avenue • Arcadia Avenue • New East-West Street • New bridge over railway • New roadway to City-owned parking ramp Intersection Improvements • Vernon & Eden • Eden & Sherwood • Eden & Arcadia Structured Parking Site Specific Improvements: Environmental Remediation Site Preparation Structured Parking The public costs associated with the project is anticipated to be financed by a combination of city funds and/or bonds for public infrastructure, and pay-as-you-go notes issued to private developers to reimburse qualifying costs to facilitate the redevelopment. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District A-1 Appendix B Map of the Southeast Edina Redevelopment Project Area and the District Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District B-1 æ ¹» ¹» æ æ æ æ æ¹»æ æ ¹º¹º ¹º ñ ñ ñ ¹»æ æ æ ¹º ¹º æ æ ¹º æ æ ¹º ¹º æ æ æ ñ æ ¹º ñ æ ñ TR A C Y A V E VERN O N A V E WO O D D A L E A V E HA N S E N R D VA L L E Y V I E W R D 70TH ST W FR A N C E A V E S Mud Lake LakeEdina Mirr o r L a k e Lake Cornelia ArrowheadLake HighlandsLake IndianheadLake Mel o d y L a k e LakePamela HawkesLake Harvey Lake Ce n t e n n i a l L a k e Minneha h a C r e e k Nine Mile Creek Nine Mile C r e e k Can a d i a n P a c i f i c R a i l r o a d Ca n a d i a n P a c i f i c R a i l r o a d CityHall St Peters Lutheran Church & School FireStation Public Works &Park Maintenance GraceChurchPublicLibrary ConcordSchool EdinaCovenant CorneliaSchool ColonialChurch HighlandSchool CalvaryLutheran EdinaHighSchool Our Lady ofGrace Church& School SouthviewJr High CrossviewLutheran CountrysideSchool St Albans Episcopal Valley ViewJr High Creek Valley School NormandaleLutheran ColonyParkBaptist St PatricksCatholic CreekValley Baptist NormandaleElementary St StephensEpiscopal EdinaCommunityCenter GoldenYearsMontessor CalvinChristianSchool GoodSamaritanMethodist EdinaMorningsideChurch ChristPresbyterianChurch ChapelHillsCongregtional Shepard of the HillsLutheran Edina Community Lutheran Church FireStation BL A K E R D SC H A E F E R R D VERNO N A V E CA H I L L R D 66TH ST W YO R K A V E S INTERLACHEN BLVD MALONEY AVE 44TH ST W 50TH ST W 54TH ST W 58TH ST W GL E A S O N R D 70TH ST W 76TH ST W DEWEY HILL RD VALLEY V I E W R D VALLEY VIEW RD MINNESOTA DR78TH ST W I-494 I-494 HW Y 1 0 0 HW Y 1 6 9 HW Y 1 6 9 HW Y 1 0 0 HWY 62 HWY 62 / Engineering Dept. January, 2016 Project Area Southeast Edina Redevelopment Project Areaand Grandview 2 TIF District Grandview 2 TIF District ?úA@ EDEN AV E VE R N O N A V E AR C A D I A A V E BR O O K S I D E A V E 2811721310016 2811721340002 2811721340005 2811721340004 2811721340016 2811721310051 2811721310021 2811721340025 2811721340024 2811721310015 2811721310014 2811721310022 2811721310018 2811721340014 2811721340017 City of EdinaGrandview 2 Tax Increment Financing Redevelopment District / Engineering Dept January, 2016 Grandview 2 TIF District EDEN AV E VER N O N A V E AR C A D I A A V E BR O O K S I D E A V E GUS YOUNG LANE CA N A D I A N P A C I F I C R A I L R O A D SHERW O O D R O A D Appendix C Description of Property to be Included in the District The Grandview 2 TIF District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed below. Parcel Numbers Address Owner 28-117-21-31-0014 5146 Eden Ave City of Edina 28-117-21-31-0015 5146 Eden Ave City of Edina 28-117-21-31-0016 5146 Eden Ave City of Edina 28-117-21-34-0002 5145 Eden Ave Church of Our Lady Grace 28-117-21-31-0018 NA SOO Line Railroad Corp (Canadian Pacific Railway) 28-117-21-34-0014 NA SOO Line Railroad Corp (Canadian Pacific Railway) 28-117-21-34-0005 5150 Brookside Ave ISD #273 28-117-21-34-0004 5220 Eden Ave ISD #273 28-117-21-34-0017 NA Jerry’s Enterprises, Inc 28-117-21-34-0025 5201 Vernon Ave Jerry’s Enterprises, Inc 28-117-21-34-0024 5203 Vernon Ave Drs. JT Beecher & JA Rohde 28-117-21-34-0016 5205 Vernon Ave Realty Income Props 3 LLC 28-117-21-31-0021 5116 Brookside Ave City of Edina 28-117-21-31-0022 5120 Brookside Ave City of Edina 28-117-21-31-0051 NA City of Edina Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District C-1 Appendix D Estimated Cash Flow for the District This Appendix contains detailed calculations to estimate the cash flow of incremental taxes to be collected over the life of the District. These estimates are used to determine the revenue sources pursuant to M.S., Section 469.175, Subd. 1. These calculations are estimates only. Actual tax increment collected may differ based on the actual market values assigned to each parcel within the District as determined by the Assessor, tax rates, and annual changes to tax rates. Please note that actual taxes levied against these parcels and collected could be higher or lower than these estimates. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District D-1 2/1 7 / 2 0 1 6 Base Value Assumptions - Page 1 Gr a n d v i e w R e d e v e l o p m e n t Ci t y o f E d i n a , M N 50 , 0 0 0 s q . f t . C o m m e r c i a l O f f i c e a n d 1 0 , 0 0 0 s q . f t . R e t a i l AS S U M P T I O N S A N D R A T E S Di s t r i c t T y p e : Re d e v e l o p m e n t Di s t r i c t N a m e / N u m b e r : SD 2 7 3 / W D 1 Co u n t y D i s t r i c t # : Ex e m p t C l a s s R a t e ( E x e m p t ) 0.00% Fi r s t Y e a r C o n s t r u c t i o n o r I n f l a t i o n o n V a l u e 20 1 8 Co m m e r c i a l I n d u s t r i a l P r e f e r r e d C l a s s R a t e ( C / I P r e f . ) Ex i s t i n g D i s t r i c t - S p e c i f y N o . Y e a r s R e m a i n i n g Fir s t $ 1 5 0 , 0 0 0 1.50% In f l a t i o n R a t e - E v e r y Y e a r : 2. 0 0 % Ov e r $ 1 5 0 , 0 0 0 2.00% In t e r e s t R a t e : 4. 0 0 % Co m m e r c i a l I n d u s t r i a l C l a s s R a t e ( C / I ) 2.00% Pr e s e n t V a l u e D a t e : 1- A u g - 1 6 Re n t a l H o u s i n g C l a s s R a t e ( R e n t a l ) 1.25% Fi r s t P e r i o d E n d i n g 1- F e b - 1 7 A ff o r d a b l e R e n t a l H o u s i n g C l a s s R a t e ( A f f . R e n t a l ) Ta x Y e a r D i s t r i c t w a s C e r t i f i e d : Pa y 2 0 1 6 Fir s t $ 1 0 0 , 0 0 0 0 . 7 5 % Ca s h f l o w A s s u m e s F i r s t T a x I n c r e m e n t F o r D e v e l o p m e n t : 2 0 2 0 O v e r $ 1 0 0 , 0 0 0 0 . 2 5 % Ye a r s o f T a x I n c r e m e n t 2 6 N o n - H o m e s t e a d R e s i d e n t i a l ( N o n - H R e s . 1 U n i t ) A ss u m e s L a s t Y e a r o f T a x I n c r e m e n t 20 4 5 Fir s t $ 5 0 0 , 0 0 0 1.00% Fi s c a l D i s p a r i t i e s E l e c t i o n [ O u t s i d e ( A ) , I n s i d e ( B ) , o r N A ] In s i d e ( B ) Ov e r $ 5 0 0 , 0 0 0 1.25% In c r e m e n t a l o r T o t a l F i s c a l D i s p a r i t i e s In c r e m e n t a l Ho m e s t e a d R e s i d e n t a l C l a s s R a t e ( H m s t d . R e s . ) Fi s c a l D i s p a r i t i e s C o n t r i b u t i o n R a t i o 31 . 9 1 6 8 % P a y 2 0 1 6 P r e l i m Fir s t $ 5 0 0 , 0 0 0 1.00% Fi s c a l D i s p a r i t i e s M e t r o - W i d e T a x R a t e 15 0 . 2 6 2 0 % P a y 2 0 1 6 P r e l i m Ov e r $ 5 0 0 , 0 0 0 1.25% Ma x i m u m / F r o z e n L o c a l T a x R a t e : 11 8 . 1 0 6 % P a y 2 0 1 6 P r e l i m A gr i c u l t u r a l N o n - H o m e s t e a d 1.00% Cu r r e n t L o c a l T a x R a t e : ( U s e l e s s e r o f C u r r e n t o r M a x . ) 1 1 8 . 1 0 6 % P a y 2 0 1 6 P r e l i m St a t e - w i d e T a x R a t e ( C o m m . / I n d . o n l y u s e d f o r t o t a l t a x e s ) 4 9 . 0 0 0 0 % P a y 2 0 1 6 P r e l i m Ma r k e t V a l u e T a x R a t e ( U s e d f o r t o t a l t a x e s ) 0. 2 0 6 2 2 % P a y 2 0 1 6 P r e l i m Bu i l d i n g T o t a l P e r c e n t a g e Ta x Y e a r P r o p e r t y C u r r e n t Class After La n d Ma r k e t M a r k e t O f V a l u e U s e d O r i g i n a l O r i g i n a l Ta x Or i g i n a l After Conversion Ma p # P I D Ow n e r A d d r e s s M a r k e t V a l u e V a l u e Va l u e f o r D i s t r i c t M a r k e t V a l u e M a r k e t V a l u e C l a s s T a x C a p a c i t y C o n v e r s i o n O r i g . T a x C a p . 28 1 1 7 2 1 3 1 0 0 1 8 0 0 0 10 0 % 0 P a y 2 0 1 6 E x e m p t - E x e m p t - 28 1 1 7 2 1 3 4 0 0 1 4 0 0 0 10 0 % 0 P a y 2 0 1 6 E x e m p t - E x e m p t - 28 1 1 7 2 1 3 4 0 0 0 5 29 7 , 5 2 1 0 2 9 7 , 5 2 1 10 0 % 2 9 7 , 5 2 1 P a y 2 0 1 6 E x e m p t - C/I 5,950 28 1 1 7 2 1 3 4 0 0 0 4 23 3 , 8 2 1 0 2 3 3 , 8 2 1 10 0 % 2 3 3 , 8 2 1 P a y 2 0 1 6 E x e m p t - C/I 4,676 28 1 1 7 2 1 3 4 0 0 1 7 11 6 , 0 0 0 0 1 1 6 , 0 0 0 10 0 % 1 1 6 , 0 0 0 P a y 2 0 1 6 C / I 2, 3 2 0 C/I 2,320 28 1 1 7 2 1 3 4 0 0 2 5 35 6 , 0 0 0 0 3 5 6 , 0 0 0 10 0 % 3 5 6 , 0 0 0 P a y 2 0 1 6 C / I 7, 1 2 0 C/I 7,120 28 1 1 7 2 1 3 4 0 0 2 4 36 2 , 4 0 0 5 0 2 , 5 0 0 8 6 4 , 9 0 0 10 0 % 8 6 4 , 9 0 0 P a y 2 0 1 6 C / I P r e f . 16 , 5 4 8 C/I Pref.16,548 28 1 1 7 2 1 3 4 0 0 1 6 53 0 , 9 0 0 1 6 , 7 0 0 5 4 7 , 6 0 0 10 0 % 5 4 7 , 6 0 0 P a y 2 0 1 6 C / I P r e f . 10 , 2 0 2 C/I Pref.10,202 28 1 1 7 2 1 3 1 0 0 2 1 0 0 0 10 0 % 0 P a y 2 0 1 6 E x e m p t - E x e m p t - 28 1 1 7 2 1 3 1 0 0 2 2 0 0 0 10 0 % 0 P a y 2 0 1 6 E x e m p t - E x e m p t - 28 1 1 7 2 1 3 1 0 0 5 1 0 0 0 10 0 % 0 P a y 2 0 1 6 E x e m p t - E x e m p t - 1, 8 9 6 , 6 4 2 5 1 9 , 2 0 0 2 , 4 1 5 , 8 4 2 2, 4 1 5 , 8 4 2 3 6 , 1 9 0 46,817 No t e : 1. R e v i e w o f C o u n t y w e b s i t e o n 1 . 7 . 2 0 1 6 s h o w s $ 0 v a l u e a s s i g n e d t o e x e m p t p a r c e l s . P r o j e c t i o n s a s s u m e l a n d b a s e v a l u e e s t i m a t e a t $ 7 p e r s q u a r e f o o t f o r p a r c e l s e n d i n g i n - 0 0 0 4 a n d - 0 0 0 5 . Area/ Phase Ta x R a t e s B A S E V A L U E I N F O R M A T I O N ( O r i g i n a l T a x C a p a c i t y ) Pr e p a r e d b y E h l e r s & A s s o c i a t e s , I n c . - E s t i m a t e s O n l y N: \ M i n n s o t a \ E D I N A \ H o u s i n g E c o n o m i c R e d e v e l o p m e n t \ T I F \ T I F D i s t r i c t s \ G r a n d v i e w - 2 0 1 6 \ G r a n d v i e w T I F R u n _ R e d e v e l o p m e n t D i s t r i c t P r elim WD 1 (1.7.2016) 2/1 7 / 2 0 1 6 Base Value Assumptions - Page 2 Gr a n d v i e w R e d e v e l o p m e n t Ci t y o f E d i n a , M N 50 ,00 0 s q . f t. C om m e r c i a l Of f i ce a n d 10 ,00 0 s q . f t. R et a il Es t i m a t e d T a x a b l e To t a l T a x a b l e P r o p e r t y Pe r c e n t a g e P e r c e n t a g e P e r c e n t a g e P e r c e n t a g e F i r s t Y e a r Ma r k e t V a l u e M a r k e t V a l u e T o t a l M a r k e t T a x P r o j e c t C o m p l e t e d C o m p l e t e d C o m p l e t e d C o m p l e t e d F u l l T a x e s Ar e a / P h a s e N e w U s e P e r S q . F t . / U n i t P e r S q . F t . / U n i t S q . F t . / U n i t s V alu e Cl a s s T a x C a p a c i t y 20 1 8 20 1 9 2020 2021 P a y a b l e Ed e n Of f i c e 20 0 20 0 4 2 , 0 0 0 8 , 4 0 0 , 0 0 0 C/I 16 8 , 0 0 0 25 % 50 % 100%100%2022 Ed e n Re t a i l 20 0 20 0 6 , 0 0 0 1 , 2 0 0 , 0 0 0 C/I 24 , 0 0 0 25 % 50 % 100%100%2022 Ve r n o n C o m m . L a n d 1 5 15 3 1 , 4 6 5 4 7 2 , 0 0 0 C/I 9, 4 4 0 10 0 % 10 0 % 100%100%2020 Ve r n o n O f f i c e 20 0 20 0 4 , 5 0 0 9 0 0 , 0 0 0 C / I P r e f . 1 7 , 2 5 0 10 0 % 10 0 % 100%100%2020 Ve r n o n R e t a i l 20 0 20 0 4 , 0 0 0 8 0 0 , 0 0 0 C / I P r e f . 1 5 , 2 5 0 10 0 % 10 0 % 100%100%2020 TO T A L 11 , 7 7 2 , 0 0 0 23 3 , 9 4 0 Su b t o t a l C o m m e r c i a l / I n d . 87 , 9 6 5 1 1 , 7 7 2 , 0 0 0 23 3 , 9 4 0 No t e : 1. M a r k e t v a l u e s a r e b a s e d u p o n c u r r e n t e s t i m a t e s p r o v i d e d b y t h e C i t y a s s e s s o r ' s o f f i c e . To t a l F i s c a l L o c a l L o c a l F i s c a l S t a t e - w i d e M a r k e t Ta x D i s p a r i t i e s T a x P r o p e r t y Di s p a r i t i e s P r o p e r t y V al u e To t a l T a x e s P e r Ne w U s e Ca p a c i t y Ta x C a p a c i t y Ca p a c i t y Ta x e s Ta x e s Ta x e s Ta x e s Ta x e s S q . F t . / U n i t Of f i c e 1 6 8 , 0 0 0 5 3 , 6 2 0 1 1 4 , 3 8 0 1 3 5 , 0 8 9 8 0 , 5 7 1 8 2 , 3 2 0 17 , 3 2 2 3 1 5 , 3 0 3 7. 5 1 Re t a i l 2 4 , 0 0 0 7, 6 6 0 16 , 3 4 0 1 9 , 2 9 8 1 1 , 5 1 0 1 1 , 7 6 0 2, 4 7 5 45 , 0 4 3 7. 5 1 Co m m . L a n d 9 , 4 4 0 3, 0 1 3 6, 4 2 7 7,5 9 1 4, 5 2 7 4,6 2 6 97 3 17 , 7 1 7 0. 5 6 Of f i c e 1 7 , 2 5 0 5, 5 0 6 11 , 7 4 4 1 3 , 8 7 1 8, 2 7 3 8,4 5 3 1, 8 5 6 32 , 4 5 2 7. 2 1 Re t a i l 1 5 , 2 5 0 4, 8 6 7 10 , 3 8 3 1 2 , 2 6 3 7, 3 1 4 7,4 7 3 1, 6 5 0 28 , 6 9 9 7. 1 7 TO T A L 2 3 3 , 9 4 0 7 4 , 6 6 6 1 5 9 , 2 7 4 1 8 8 , 1 1 2 1 1 2 , 1 9 5 1 1 4 , 6 3 1 24 , 2 7 6 4 3 9 , 2 1 4 No t e : 1. T a x e s a n d t a x i n c r e m e n t w i l l v a r y s i g n f i c a n t l y f r o m y e a r t o y e a r d e p e n d i n g u p o n v a l u e s , r a t e s , s t a t e l a w , f i s c a l d i s p a r i t i e s a n d o t h e r f a c t o r s w h i c h c a n n o t b e p r e d i c t e d . To t a l P r o p e r t y T a x e s 43 9 , 2 1 4 le s s S t a t e - w i d e T a x e s (1 1 4 , 6 3 1 ) le s s F i s c a l D i s p . A d j . (1 1 2 , 1 9 5 ) le s s M a r k e t V a l u e T a x e s (2 4 , 2 7 6 ) le s s B a s e V a l u e T a x e s (3 7 , 6 4 6 ) An n u a l G r o s s T I F 15 0 , 4 6 6 W H A T I S E X C L U D E D F R O M T I F ? TA X C A L C U L A T I O N S PR O J E C T I N F O R M A T I O N ( P r o j e c t T a x C a p a c i t y ) Pr e p a r e d b y E h l e r s & A s s o c i a t e s , I n c . - E s t i m a t e s O n l y N: \ M i n n s o t a \ E D I N A \ H o u s i n g E c o n o m i c R e d e v e l o p m e n t \ T I F \ T I F D i s t r i c t s \ G r a n d v i e w - 2 0 1 6 \ G r a n d v i e w T I F R u n _ R e d e v e l o p m e n t D i s t r i c t P r elim WD 1 (1.7.2016) 2/ 1 7 / 2 0 1 6 Tax Increment Cashflow - Page 3 Gr a n d v i e w R e d e v e l o p m e n t Ci t y o f E d i n a , M N 50 , 0 0 0 s q . f t . C o m m e r c i a l O f f i c e a n d 1 0 , 0 0 0 s q . f t . R e t a i l TA X I N C R E M E N T C A S H F L O W Pr o j e c t O r i g i n a l F i s c a l C a p t u r e d Lo c a l A nn u a l S e m i - A n n u a l S t a t e A d m i n . S e m i - A n n u a l S e m i - A n n u a l P E R I O D % o f T a x Ta x D i s p a r i t i e s T a x Ta x G r o s s T a x G r o s s T a x A u d i t o r at Ne t T a x P r e s e n t E N D I N G T a x P a y m e n t OT C C a p a c i t y C a p a c i t y I n c r e m e n t a l C a p a c i t y Ra t e I n c r e m e n t I n c r e m e n t 0 . 3 6 % 10 % I n c r e m e n t V a l u e Y r s . Y e a r D a t e - - - - 02/01/17 - - - - 08/01/17 - - - - 02/01/18 - - - - 08/01/18 - - - - 02/01/19 - - - - 08/01/19 - - - - 02/01/20 10 0 % 8 9 , 9 4 0 (46 , 8 1 7 ) (13 , 7 6 4 ) 29 , 3 6 0 11 8 . 1 0 6 % 3 4 , 6 7 5 17 , 3 3 8 (62 ) (1,7 2 8 ) 15 , 5 4 8 13 , 2 7 0 0.5 2 0 2 0 0 8 / 0 1 / 2 0 10 0 % 8 9 , 9 4 0 (46 , 8 1 7 ) (13 , 7 6 4 ) 29 , 3 6 0 11 8 . 1 0 6 % 3 4 , 6 7 5 17 , 3 3 8 (62 ) (1,7 2 8 ) 15 , 5 4 8 26 , 2 8 0 1 2 0 2 0 0 2 / 0 1 / 2 1 10 0 % 1 3 8 , 7 7 9 (46 , 8 1 7 ) (28 , 7 5 1 ) 63 , 2 1 1 11 8 . 1 0 6 % 7 4 , 6 5 6 37 , 3 2 8 (13 4 ) (3,7 1 9 ) 33 , 4 7 4 53 , 7 4 0 1.5 2 0 2 1 0 8 / 0 1 / 2 1 10 0 % 1 3 8 , 7 7 9 (46 , 8 1 7 ) (28 , 7 5 1 ) 63 , 2 1 1 11 8 . 1 0 6 % 7 4 , 6 5 6 37 , 3 2 8 (13 4 ) (3,7 1 9 ) 33 , 4 7 4 80 , 6 6 3 2 2 0 2 1 0 2 / 0 1 / 2 2 10 0 % 2 3 5 , 6 3 4 (46 , 8 1 7 ) (60 , 2 6 5 ) 12 8 , 5 5 3 11 8 . 1 0 6 % 1 5 1 , 8 2 9 75 , 9 1 4 (27 3 ) (7,5 6 4 ) 68 , 0 7 7 13 4 , 3 4 1 2.5 2 0 2 2 0 8 / 0 1 / 2 2 10 0 % 2 3 5 , 6 3 4 (46 , 8 1 7 ) (60 , 2 6 5 ) 12 8 , 5 5 3 11 8 . 1 0 6 % 1 5 1 , 8 2 9 75 , 9 1 4 (27 3 ) (7,5 6 4 ) 68 , 0 7 7 18 6 , 9 6 7 3 2 0 2 2 0 2 / 0 1 / 2 3 10 0 % 2 4 0 , 3 4 7 (46 , 8 1 7 ) (61 , 7 6 9 ) 13 1 , 7 6 2 11 8 . 1 0 6 % 1 5 5 , 6 1 8 77 , 8 0 9 (28 0 ) (7,7 5 3 ) 69 , 7 7 6 23 9 , 8 4 8 3.5 2 0 2 3 0 8 / 0 1 / 2 3 10 0 % 2 4 0 , 3 4 7 (46 , 8 1 7 ) (61 , 7 6 9 ) 13 1 , 7 6 2 11 8 . 1 0 6 % 1 5 5 , 6 1 8 77 , 8 0 9 (28 0 ) (7,7 5 3 ) 69 , 7 7 6 29 1 , 6 9 3 4 2 0 2 3 0 2 / 0 1 / 2 4 10 0 % 2 4 5 , 1 5 4 (46 , 8 1 7 ) (63 , 3 0 3 ) 13 5 , 0 3 4 11 8 . 1 0 6 % 1 5 9 , 4 8 4 79 , 7 4 2 (28 7 ) (7,9 4 5 ) 71 , 5 0 9 34 3 , 7 8 4 4.5 2 0 2 4 0 8 / 0 1 / 2 4 10 0 % 2 4 5 , 1 5 4 (46 , 8 1 7 ) (63 , 3 0 3 ) 13 5 , 0 3 4 11 8 . 1 0 6 % 1 5 9 , 4 8 4 79 , 7 4 2 (28 7 ) (7,9 4 5 ) 71 , 5 0 9 39 4 , 8 5 3 5 2 0 2 4 0 2 / 0 1 / 2 5 10 0 % 2 5 0 , 0 5 7 (46 , 8 1 7 ) (64 , 8 6 8 ) 13 8 , 3 7 2 11 8 . 1 0 6 % 1 6 3 , 4 2 6 81 , 7 1 3 (29 4 ) (8,1 4 2 ) 73 , 2 7 7 44 6 , 1 5 8 5.5 2 0 2 5 0 8 / 0 1 / 2 5 10 0 % 2 5 0 , 0 5 7 (46 , 8 1 7 ) (64 , 8 6 8 ) 13 8 , 3 7 2 11 8 . 1 0 6 % 1 6 3 , 4 2 6 81 , 7 1 3 (29 4 ) (8,1 4 2 ) 73 , 2 7 7 49 6 , 4 5 8 6 2 0 2 5 0 2 / 0 1 / 2 6 10 0 % 2 5 5 , 0 5 8 (46 , 8 1 7 ) (66 , 4 6 4 ) 14 1 , 7 7 7 11 8 . 1 0 6 % 1 6 7 , 4 4 8 83 , 7 2 4 (30 1 ) (8,3 4 2 ) 75 , 0 8 0 54 6 , 9 8 5 6.5 2 0 2 6 0 8 / 0 1 / 2 6 10 0 % 2 5 5 , 0 5 8 (46 , 8 1 7 ) (66 , 4 6 4 ) 14 1 , 7 7 7 11 8 . 1 0 6 % 1 6 7 , 4 4 8 83 , 7 2 4 (30 1 ) (8,3 4 2 ) 75 , 0 8 0 59 6 , 5 2 1 7 2 0 2 6 0 2 / 0 1 / 2 7 10 0 % 2 6 0 , 1 5 9 (46 , 8 1 7 ) (68 , 0 9 2 ) 14 5 , 2 5 0 11 8 . 1 0 6 % 1 7 1 , 5 4 9 85 , 7 7 5 (30 9 ) (8,5 4 7 ) 76 , 9 1 9 64 6 , 2 7 5 7.5 2 0 2 7 0 8 / 0 1 / 2 7 10 0 % 2 6 0 , 1 5 9 (46 , 8 1 7 ) (68 , 0 9 2 ) 14 5 , 2 5 0 11 8 . 1 0 6 % 1 7 1 , 5 4 9 85 , 7 7 5 (30 9 ) (8,5 4 7 ) 76 , 9 1 9 69 5 , 0 5 4 8 2 0 2 7 0 2 / 0 1 / 2 8 10 0 % 2 6 5 , 3 6 3 (46 , 8 1 7 ) (69 , 7 5 3 ) 14 8 , 7 9 3 11 8 . 1 0 6 % 1 7 5 , 7 3 3 87 , 8 6 7 (31 6 ) (8,7 5 5 ) 78 , 7 9 5 74 4 , 0 4 3 8.5 2 0 2 8 0 8 / 0 1 / 2 8 10 0 % 2 6 5 , 3 6 3 (46 , 8 1 7 ) (69 , 7 5 3 ) 14 8 , 7 9 3 11 8 . 1 0 6 % 1 7 5 , 7 3 3 87 , 8 6 7 (31 6 ) (8,7 5 5 ) 78 , 7 9 5 79 2 , 0 7 1 9 2 0 2 8 0 2 / 0 1 / 2 9 10 0 % 2 7 0 , 6 7 0 (46 , 8 1 7 ) (71 , 4 4 7 ) 15 2 , 4 0 6 11 8 . 1 0 6 % 1 8 0 , 0 0 1 90 , 0 0 0 (32 4 ) (8,9 6 8 ) 80 , 7 0 9 84 0 , 3 0 1 9.5 2 0 2 9 0 8 / 0 1 / 2 9 10 0 % 2 7 0 , 6 7 0 (46 , 8 1 7 ) (71 , 4 4 7 ) 15 2 , 4 0 6 11 8 . 1 0 6 % 1 8 0 , 0 0 1 90 , 0 0 0 (32 4 ) (8,9 6 8 ) 80 , 7 0 9 88 7 , 5 8 5 10 2 0 2 9 0 2 / 0 1 / 3 0 10 0 % 2 7 6 , 0 8 3 (46 , 8 1 7 ) (73 , 1 7 4 ) 15 6 , 0 9 2 11 8 . 1 0 6 % 1 8 4 , 3 5 4 92 , 1 7 7 (33 2 ) (9,1 8 5 ) 82 , 6 6 1 93 5 , 0 6 3 10.5 2 0 3 0 0 8 / 0 1 / 3 0 10 0 % 2 7 6 , 0 8 3 (46 , 8 1 7 ) (73 , 1 7 4 ) 15 6 , 0 9 2 11 8 . 1 0 6 % 1 8 4 , 3 5 4 92 , 1 7 7 (33 2 ) (9,1 8 5 ) 82 , 6 6 1 98 1 , 6 1 1 11 2 0 3 0 0 2 / 0 1 / 3 1 10 0 % 2 8 1 , 6 0 5 (46 , 8 1 7 ) (74 , 9 3 7 ) 15 9 , 8 5 1 11 8 . 1 0 6 % 1 8 8 , 7 9 4 94 , 3 9 7 (34 0 ) (9,4 0 6 ) 84 , 6 5 1 1,0 2 8 , 3 4 4 11.5 2 0 3 1 0 8 / 0 1 / 3 1 10 0 % 2 8 1 , 6 0 5 (4 6 , 8 1 7 ) (7 4 , 9 3 7 ) 15 9 , 8 5 1 11 8 . 1 0 6 % 1 8 8 , 7 9 4 94 , 3 9 7 (3 4 0 ) (9 , 4 0 6 ) 84 , 6 5 1 1,0 7 4 , 1 6 1 12 2 0 3 1 0 2 / 0 1 / 3 2 10 0 % 2 8 7 , 2 3 7 (4 6 , 8 1 7 ) (7 6 , 7 3 4 ) 16 3 , 6 8 6 11 8 . 1 0 6 % 1 9 3 , 3 2 3 96 , 6 6 1 (3 4 8 ) (9 , 6 3 1 ) 86 , 6 8 2 1,1 2 0 , 1 5 8 12.5 2 0 3 2 0 8 / 0 1 / 3 2 10 0 % 2 8 7 , 2 3 7 (4 6 , 8 1 7 ) (7 6 , 7 3 4 ) 16 3 , 6 8 6 11 8 . 1 0 6 % 1 9 3 , 3 2 3 96 , 6 6 1 (3 4 8 ) (9 , 6 3 1 ) 86 , 6 8 2 1,1 6 5 , 2 5 2 13 2 0 3 2 0 2 / 0 1 / 3 3 10 0 % 2 9 2 , 9 8 2 (4 6 , 8 1 7 ) (7 8 , 5 6 8 ) 16 7 , 5 9 7 11 8 . 1 0 6 % 1 9 7 , 9 4 2 98 , 9 7 1 (3 5 6 ) (9 , 8 6 1 ) 88 , 7 5 3 1,2 1 0 , 5 1 9 13.5 2 0 3 3 0 8 / 0 1 / 3 3 10 0 % 2 9 2 , 9 8 2 (4 6 , 8 1 7 ) (7 8 , 5 6 8 ) 16 7 , 5 9 7 11 8 . 1 0 6 % 1 9 7 , 9 4 2 98 , 9 7 1 (3 5 6 ) (9 , 8 6 1 ) 88 , 7 5 3 1, 2 5 4 , 8 9 8 14 2 0 3 3 0 2 / 0 1 / 3 4 10 0 % 2 9 8 , 8 4 1 (4 6 , 8 1 7 ) (8 0 , 4 3 8 ) 17 1 , 5 8 6 11 8 . 1 0 6 % 2 0 2 , 6 5 4 10 1 , 3 2 7 (3 6 5 ) (1 0 , 0 9 6 ) 90 , 8 6 6 1, 2 9 9 , 4 4 3 14.5 2 0 3 4 0 8 / 0 1 / 3 4 10 0 % 2 9 8 , 8 4 1 (4 6 , 8 1 7 ) (8 0 , 4 3 8 ) 17 1 , 5 8 6 11 8 . 1 0 6 % 2 0 2 , 6 5 4 10 1 , 3 2 7 (3 6 5 ) (1 0 , 0 9 6 ) 90 , 8 6 6 1, 3 4 3 , 1 1 4 15 2 0 3 4 0 2 / 0 1 / 3 5 10 0 % 3 0 4 , 8 1 8 (4 6 , 8 1 7 ) (8 2 , 3 4 6 ) 17 5 , 6 5 6 11 8 . 1 0 6 % 2 0 7 , 4 6 0 10 3 , 7 3 0 (3 7 3 ) (1 0 , 3 3 6 ) 93 , 0 2 1 1, 3 8 6 , 9 4 4 15.5 2 0 3 5 0 8 / 0 1 / 3 5 10 0 % 3 0 4 , 8 1 8 (4 6 , 8 1 7 ) (8 2 , 3 4 6 ) 17 5 , 6 5 6 11 8 . 1 0 6 % 2 0 7 , 4 6 0 10 3 , 7 3 0 (3 7 3 ) (1 0 , 3 3 6 ) 93 , 0 2 1 1,4 2 9 , 9 1 5 16 2 0 3 5 0 2 / 0 1 / 3 6 10 0 % 3 1 0 , 9 1 5 (4 6 , 8 1 7 ) (8 4 , 2 9 2 ) 17 9 , 8 0 6 11 8 . 1 0 6 % 2 1 2 , 3 6 2 10 6 , 1 8 1 (3 8 2 ) (1 0 , 5 8 0 ) 95 , 2 1 9 1,4 7 3 , 0 3 8 16.5 2 0 3 6 0 8 / 0 1 / 3 6 10 0 % 3 1 0 , 9 1 5 (4 6 , 8 1 7 ) (8 4 , 2 9 2 ) 17 9 , 8 0 6 11 8 . 1 0 6 % 2 1 2 , 3 6 2 10 6 , 1 8 1 (3 8 2 ) (1 0 , 5 8 0 ) 95 , 2 1 9 1,5 1 5 , 3 1 7 17 2 0 3 6 0 2 / 0 1 / 3 7 10 0 % 3 1 7 , 1 3 3 (4 6 , 8 1 7 ) (8 6 , 2 7 6 ) 18 4 , 0 4 0 11 8 . 1 0 6 % 2 1 7 , 3 6 2 10 8 , 6 8 1 (3 9 1 ) (1 0 , 8 2 9 ) 97 , 4 6 1 1,5 5 7 , 7 4 2 17.5 2 0 3 7 0 8 / 0 1 / 3 7 10 0 % 3 1 7 , 1 3 3 (4 6 , 8 1 7 ) (8 6 , 2 7 6 ) 18 4 , 0 4 0 11 8 . 1 0 6 % 2 1 7 , 3 6 2 10 8 , 6 8 1 (3 9 1 ) (1 0 , 8 2 9 ) 97 , 4 6 1 1,5 9 9 , 3 3 5 18 2 0 3 7 0 2 / 0 1 / 3 8 10 0 % 3 2 3 , 4 7 6 (4 6 , 8 1 7 ) (8 8 , 3 0 1 ) 18 8 , 3 5 8 11 8 . 1 0 6 % 2 2 2 , 4 6 2 11 1 , 2 3 1 (4 0 0 ) (1 1 , 0 8 3 ) 99 , 7 4 8 1,6 4 1 , 0 6 9 18.5 2 0 3 8 0 8 / 0 1 / 3 8 10 0 % 3 2 3 , 4 7 6 (4 6 , 8 1 7 ) (8 8 , 3 0 1 ) 18 8 , 3 5 8 11 8 . 1 0 6 % 2 2 2 , 4 6 2 11 1 , 2 3 1 (4 0 0 ) (1 1 , 0 8 3 ) 99 , 7 4 8 1,6 8 1 , 9 8 5 19 2 0 3 8 0 2 / 0 1 / 3 9 10 0 % 3 2 9 , 9 4 5 (4 6 , 8 1 7 ) (9 0 , 3 6 5 ) 19 2 , 7 6 3 11 8 . 1 0 6 % 2 2 7 , 6 6 4 11 3 , 8 3 2 (4 1 0 ) (1 1 , 3 4 2 ) 10 2 , 0 8 0 1,7 2 3 , 0 3 7 19.5 2 0 3 9 0 8 / 0 1 / 3 9 10 0 % 3 2 9 , 9 4 5 (4 6 , 8 1 7 ) (9 0 , 3 6 5 ) 19 2 , 7 6 3 11 8 . 1 0 6 % 2 2 7 , 6 6 4 11 3 , 8 3 2 (4 1 0 ) (1 1 , 3 4 2 ) 10 2 , 0 8 0 1,7 6 3 , 2 8 4 20 2 0 3 9 0 2 / 0 1 / 4 0 10 0 % 3 3 6 , 5 4 4 (4 6 , 8 1 7 ) (9 2 , 4 7 2 ) 19 7 , 2 5 5 11 8 . 1 0 6 % 2 3 2 , 9 7 1 11 6 , 4 8 5 (4 1 9 ) (1 1 , 6 0 7 ) 10 4 , 4 5 9 1,8 0 3 , 6 6 2 20.5 2 0 4 0 0 8 / 0 1 / 4 0 10 0 % 3 3 6 , 5 4 4 (4 6 , 8 1 7 ) (9 2 , 4 7 2 ) 19 7 , 2 5 5 11 8 . 1 0 6 % 2 3 2 , 9 7 1 11 6 , 4 8 5 (4 1 9 ) (1 1 , 6 0 7 ) 10 4 , 4 5 9 1,8 4 3 , 2 4 8 21 2 0 4 0 0 2 / 0 1 / 4 1 10 0 % 3 4 3 , 2 7 5 (4 6 , 8 1 7 ) (9 4 , 6 2 0 ) 20 1 , 8 3 8 11 8 . 1 0 6 % 2 3 8 , 3 8 3 11 9 , 1 9 1 (4 2 9 ) (1 1 , 8 7 6 ) 10 6 , 8 8 6 1,8 8 2 , 9 5 9 21.5 2 0 4 1 0 8 / 0 1 / 4 1 10 0 % 3 4 3 , 2 7 5 (4 6 , 8 1 7 ) (9 4 , 6 2 0 ) 20 1 , 8 3 8 11 8 . 1 0 6 % 2 3 8 , 3 8 3 11 9 , 1 9 1 (4 2 9 ) (1 1 , 8 7 6 ) 10 6 , 8 8 6 1,9 2 1 , 8 9 1 22 2 0 4 1 0 2 / 0 1 / 4 2 10 0 % 3 5 0 , 1 4 0 (4 6 , 8 1 7 ) (9 6 , 8 1 1 ) 20 6 , 5 1 2 11 8 . 1 0 6 % 2 4 3 , 9 0 3 12 1 , 9 5 2 (4 3 9 ) (1 2 , 1 5 1 ) 10 9 , 3 6 1 1,9 6 0 , 9 4 4 22.5 2 0 4 2 0 8 / 0 1 / 4 2 10 0 % 3 5 0 , 1 4 0 (4 6 , 8 1 7 ) (9 6 , 8 1 1 ) 20 6 , 5 1 2 11 8 . 1 0 6 % 2 4 3 , 9 0 3 12 1 , 9 5 2 (4 3 9 ) (1 2 , 1 5 1 ) 10 9 , 3 6 1 1,9 9 9 , 2 3 2 23 2 0 4 2 0 2 / 0 1 / 4 3 10 0 % 3 5 7 , 1 4 3 (4 6 , 8 1 7 ) (9 9 , 0 4 6 ) 21 1 , 2 8 0 11 8 . 1 0 6 % 2 4 9 , 5 3 4 12 4 , 7 6 7 (4 4 9 ) (1 2 , 4 3 2 ) 11 1 , 8 8 6 2,0 3 7 , 6 3 5 23.5 2 0 4 3 0 8 / 0 1 / 4 3 10 0 % 3 5 7 , 1 4 3 (4 6 , 8 1 7 ) (9 9 , 0 4 6 ) 21 1 , 2 8 0 11 8 . 1 0 6 % 2 4 9 , 5 3 4 12 4 , 7 6 7 (4 4 9 ) (1 2 , 4 3 2 ) 11 1 , 8 8 6 2,0 7 5 , 2 8 5 24 2 0 4 3 0 2 / 0 1 / 4 4 10 0 % 3 6 4 , 2 8 6 (4 6 , 8 1 7 ) (1 0 1 , 3 2 6 ) 21 6 , 1 4 3 11 8 . 1 0 6 % 2 5 5 , 2 7 8 12 7 , 6 3 9 (4 6 0 ) (1 2 , 7 1 8 ) 11 4 , 4 6 2 2,1 1 3 , 0 4 7 24.5 2 0 4 4 0 8 / 0 1 / 4 4 10 0 % 3 6 4 , 2 8 6 (4 6 , 8 1 7 ) (1 0 1 , 3 2 6 ) 21 6 , 1 4 3 11 8 . 1 0 6 % 2 5 5 , 2 7 8 12 7 , 6 3 9 (4 6 0 ) (1 2 , 7 1 8 ) 11 4 , 4 6 2 2,1 5 0 , 0 6 8 25 2 0 4 4 0 2 / 0 1 / 4 5 10 0 % 3 7 1 , 5 7 2 (4 6 , 8 1 7 ) (1 0 3 , 6 5 1 ) 22 1 , 1 0 3 11 8 . 1 0 6 % 2 6 1 , 1 3 6 13 0 , 5 6 8 (4 7 0 ) (1 3 , 0 1 0 ) 11 7 , 0 8 8 2,1 8 7 , 1 9 6 25.5 2 0 4 5 0 8 / 0 1 / 4 5 10 0 % 3 7 1 , 5 7 2 (4 6 , 8 1 7 ) (1 0 3 , 6 5 1 ) 22 1 , 1 0 3 11 8 . 1 0 6 % 2 6 1 , 1 3 6 13 0 , 5 6 8 (4 7 0 ) (1 3 , 0 1 0 ) 11 7 , 0 8 8 2,2 2 3 , 5 9 6 26 2 0 4 5 0 2 / 0 1 / 4 6 T o t a l 4, 9 7 0 , 0 0 3 (1 7 , 8 9 2 ) (4 9 5 , 2 1 1 ) 4, 4 5 6 , 8 9 9 Pr e s e n t V a l u e F r o m 0 8 / 0 1 / 2 0 1 6 P r e s e n t V a l u e R a t e 4 . 0 0 % 2, 4 7 9 , 5 8 9 (8 , 9 2 7 ) (2 4 7 , 0 6 6 ) 2, 2 2 3 , 5 9 6 Pr e p a r e d b y E h l e r s & A s s o c i a t e s , I n c . - E s t i m a t e s O n l y N:\ M i n n s o t a \ E D I N A \ H o u s i n g E c o n o m i c R e d e v e l o p m e n t \ T I F \ T I F D i s t ric t s \ G r a n d v i e w - 2 0 1 6 \ G r a n d v i e w T I F R u n _ R e d e v e l o p m e n t D i s t r i c t P r elim WD 1 (1.7.2016) 2/1 8 / 2 0 1 6 Base Value Assumptions - Page 1 Gr a n d v i e w R e d e v e l o p m e n t Ci t y o f E d i n a , M N Gr a n d v i e w H i g h H o u s i n g D e n s i t y C o n c e p t : 8 , 0 0 0 s q . f t . r e t a i l a n d 3 0 9 u n i t s R e s i d e n t i a l . 1 2 u n i t s t o w n h o m e s . AS S U M P T I O N S A N D R A T E S Di s t r i c t T y p e : Re d e v e l o p m e n t Di s t r i c t N a m e / N u m b e r : SD 2 7 3 / W D 3 Co u n t y D i s t r i c t # : Ex e m p t C l a s s R a t e ( E x e m p t ) 0.00% Fi r s t Y e a r C o n s t r u c t i o n o r I n f l a t i o n o n V a l u e 20 1 8 Co m m e r c i a l I n d u s t r i a l P r e f e r r e d C l a s s R a t e ( C / I P r e f . ) Ex i s t i n g D i s t r i c t - S p e c i f y N o . Y e a r s R e m a i n i n g Fir s t $ 1 5 0 , 0 0 0 1.50% In f l a t i o n R a t e - E v e r y Y e a r : 2. 0 0 % Ov e r $ 1 5 0 , 0 0 0 2.00% In t e r e s t R a t e : 4. 0 0 % Co m m e r c i a l I n d u s t r i a l C l a s s R a t e ( C / I ) 2.00% Pr e s e n t V a l u e D a t e : 1- A u g - 1 6 Re n t a l H o u s i n g C l a s s R a t e ( R e n t a l ) 1.25% Fi r s t P e r i o d E n d i n g 1- F e b - 1 7 A ff o r d a b l e R e n t a l H o u s i n g C l a s s R a t e ( A f f . R e n t a l ) Ta x Y e a r D i s t r i c t w a s C e r t i f i e d : Pa y 2 0 1 6 Fir s t $ 1 0 0 , 0 0 0 0 . 7 5 % Ca s h f l o w A s s u m e s F i r s t T a x I n c r e m e n t F o r D e v e l o p m e n t : 2 0 2 0 O v e r $ 1 0 0 , 0 0 0 0 . 2 5 % Ye a r s o f T a x I n c r e m e n t 2 6 N o n - H o m e s t e a d R e s i d e n t i a l ( N o n - H R e s . 1 U n i t ) A ss u m e s L a s t Y e a r o f T a x I n c r e m e n t 20 4 5 Fir s t $ 5 0 0 , 0 0 0 1.00% Fi s c a l D i s p a r i t i e s E l e c t i o n [ O u t s i d e ( A ) , I n s i d e ( B ) , o r N A ] In s i d e ( B ) Ov e r $ 5 0 0 , 0 0 0 1.25% In c r e m e n t a l o r T o t a l F i s c a l D i s p a r i t i e s In c r e m e n t a l Ho m e s t e a d R e s i d e n t a l C l a s s R a t e ( H m s t d . R e s . ) Fi s c a l D i s p a r i t i e s C o n t r i b u t i o n R a t i o 31 . 9 1 6 8 % P a y 2 0 1 6 P r e l i m . Fir s t $ 5 0 0 , 0 0 0 1.00% Fi s c a l D i s p a r i t i e s M e t r o - W i d e T a x R a t e 15 0 . 2 6 2 0 % P a y 2 0 1 6 P r e l i m . Ov e r $ 5 0 0 , 0 0 0 1.25% Ma x i m u m / F r o z e n L o c a l T a x R a t e : 11 8 . 5 9 3 % P a y 2 0 1 6 P r e l i m . A gr i c u l t u r a l N o n - H o m e s t e a d 1.00% Cu r r e n t L o c a l T a x R a t e : ( U s e l e s s e r o f C u r r e n t o r M a x . ) 1 1 8 . 5 9 3 % P a y 2 0 1 6 P r e l i m . St a t e - w i d e T a x R a t e ( C o m m . / I n d . o n l y u s e d f o r t o t a l t a x e s ) 4 9 . 0 0 0 0 % P a y 2 0 1 6 P r e l i m . Ma r k e t V a l u e T a x R a t e ( U s e d f o r t o t a l t a x e s ) 0. 2 0 6 2 2 % P a y 2 0 1 6 P r e l i m . Bu i l d i n g T o t a l P e r c e n t a g e Ta x Y e a r P r o p e r t y C u r r e n t Class After La n d Ma r k e t M a r k e t O f V a l u e U s e d O r i g i n a l O r i g i n a l Ta x Or i g i n a l After Conversion Ma p # P I D Ow n e r A d d r e s s M a r k e t V a l u e V a l u e Va l u e f o r D i s t r i c t M a r k e t V a l u e M a r k e t V a l u e C l a s s T a x C a p a c i t y C o n v e r s i o n O r i g . T a x C a p . 28 1 1 7 2 1 3 1 0 0 1 4 63 , 0 0 0 0 63 , 0 0 0 10 0 % 63 , 0 0 0 P a y 2 0 1 6 E x e m p t - C/I 1,260 28 1 1 7 2 1 3 1 0 0 1 5 63 , 0 0 0 0 63 , 0 0 0 10 0 % 63 , 0 0 0 P a y 2 0 1 6 E x e m p t - E x e m p t - 28 1 1 7 2 1 3 1 0 0 1 6 88 8 , 9 7 2 0 8 8 8 , 9 7 2 50 % 4 4 4 , 4 8 6 P a y 2 0 1 6 E x e m p t - R e n t a l 5,556 28 1 1 7 2 1 3 1 0 0 1 6 88 8 , 9 7 2 0 8 8 8 , 9 7 2 50 % 4 4 4 , 4 8 6 P a y 2 0 1 6 E x e m p t - E x e m p t - 28 1 1 7 2 1 3 4 0 0 0 2 35 6 , 2 7 2 0 3 5 6 , 2 7 2 10 0 % 3 5 6 , 2 7 2 P a y 2 0 1 6 E x e m p t - H m s t d . R e s . 3,563 2, 2 6 0 , 2 1 6 0 2 , 2 6 0 , 2 1 6 1, 3 7 1 , 2 4 4 0 10,379 No t e : 1. R e v i e w o f C o u n t y w e b s i t e o n 1 . 7 . 2 0 1 6 s h o w s $ 0 v a l u e a s s i g n e d t o e x e m p t p a r c e l s . P r o j e c t i o n s a s s u m e l a n d b a s e v a l u e e s t i m a t e a t $ 7 p e r s q u a r e f o o t . Area/ Phase Ta x R a t e s B A S E V A L U E I N F O R M A T I O N ( O r i g i n a l T a x C a p a c i t y ) Pr e p a r e d b y E h l e r s & A s s o c i a t e s , I n c . - E s t i m a t e s O n l y N: \ M i n n s o t a \ E D I N A \ H o u s i n g E c o n o m i c R e d e v e l o p m e n t \ T I F \ T I F D i s t r i c t s \ G r a n d v i e w - 2 0 1 6 \ G r a n d v i e w T I F R u n _ R e d e v e l o p m e n t D i s t r i c t P r elim WD 3 (1.7.2016) 2/1 8 / 2 0 1 6 Base Value Assumptions - Page 2 Gr a n d v i e w R e d e v e l o p m e n t Ci t y o f E d i n a , M N G ra n d v i ew Hi g h H ou s i ng D en s i ty C on c e p t : 8 ,00 0 s q . f t. r e t a il a n d 30 9 u n i ts R es id en t i a l . 12 u n i ts t o w n h om e s . Es t i m a t e d T a x a b l e T o t a l T a x a b l e P r o p e r t y Pe r c e n t a g e P e r c e n t a g e P e r c e n t a g e P e r c e n t a g e F i r s t Y e a r Ma r k e t V a l u e M a r k e t V a l u e T o t a l M a r k e t T a x P r o j e c t C o m p l e t e d C o m p l e t e d C o m p l e t e d C o m p l e t e d F u l l T a x e s Ar e a / P h a s e N e w U s e P e r S q . F t . / U n i t P e r S q . F t . / U n i t S q . F t . / U n i t s V alu e Cl a s s T a x C a p a c i t y 20 1 8 20 1 9 2020 2021 P a y a b l e Re s i d e n t i a l 1 8 5 , 5 9 9 18 5 , 5 9 9 30 9 5 7 , 3 5 0 , 0 0 0 R e n t a l 71 6 , 8 7 5 25 % 50 % 100%100%2022 Re t a i l 20 0 20 0 8 , 0 0 0 1 , 6 0 0 , 0 0 0 C/I 32 , 0 0 0 25 % 50 % 100%100%2022 To w n h o u s e s 1 6 5 , 0 0 0 14 2 , 6 1 0 12 1, 7 1 1 , 3 2 0 H m s t d . R e s . 1 7 , 1 1 3 0% 50 % 100%100%2022 TO T A L 60 , 6 6 1 , 3 2 0 76 5 , 9 8 8 Su b t o t a l R e s i d e n t i a l 32 1 5 9 , 0 6 1 , 3 2 0 73 3 , 9 8 8 Su b t o t a l C o m m e r c i a l / I n d . 8,0 0 0 1 , 6 0 0 , 0 0 0 32 , 0 0 0 No t e : 1. M a r k e t v a l u e s a r e b a s e d u p o n c u r r e n t e s t i m a t e s p r o v i d e d b y t h e C i t y a s s e s s o r ' s o f f i c e . To t a l F i s c a l L o c a l L o c a l F i s c a l S t a t e - w i d e M a r k e t Ta x D i s p a r i t i e s T a x P r o p e r t y Di s p a r i t i e s P r o p e r t y V al u e To t a l T a x e s P e r Ne w U s e Ca p a c i t y Ta x C a p a c i t y Ca p a c i t y Ta x e s Ta x e s Ta x e s Ta x e s Ta x e s S q . F t . / U n i t Re s i d e n t i a l 7 1 6 , 8 7 5 0 71 6 , 8 7 5 8 5 0 , 1 6 4 0 0 11 8 , 2 6 7 9 6 8 , 4 3 1 3 , 1 3 4 . 0 8 Re t a i l 3 2 , 0 0 0 1 0 , 2 1 3 2 1 , 7 8 7 2 5 , 8 3 7 1 5 , 3 4 7 1 5 , 6 8 0 3, 3 0 0 60 , 1 6 4 7. 5 2 To w n h o u s e s 1 7 , 1 1 3 0 17 , 1 1 3 2 0 , 2 9 5 0 0 3, 5 2 9 23 , 8 2 4 1 , 9 8 5 . 3 5 TO T A L 7 6 5 , 9 8 8 1 0 , 2 1 3 7 5 5 , 7 7 5 8 9 6 , 2 9 6 1 5 , 3 4 7 1 5 , 6 8 0 12 5 , 0 9 6 1 , 0 5 2 , 4 1 9 No t e : 1. T a x e s a n d t a x i n c r e m e n t w i l l v a r y s i g n f i c a n t l y f r o m y e a r t o y e a r d e p e n d i n g u p o n v a l u e s , r a t e s , s t a t e l a w , f i s c a l d i s p a r i t i e s a n d o t h e r f a c t o r s w h i c h c a n n o t b e p r e d i c t e d . To t a l P r o p e r t y T a x e s 1, 0 5 2 , 4 1 9 le s s S t a t e - w i d e T a x e s (1 5 , 6 8 0 ) le s s F i s c a l D i s p . A d j . (1 5 , 3 4 7 ) le s s M a r k e t V a l u e T a x e s (1 2 5 , 0 9 6 ) le s s B a s e V a l u e T a x e s (1 1 , 8 3 2 ) An n u a l G r o s s T I F 88 4 , 4 6 4 TA X C A L C U L A T I O N S PR O J E C T I N F O R M A T I O N ( P r o j e c t T a x C a p a c i t y ) W H A T I S E X C L U D E D F R O M T I F ? Pr e p a r e d b y E h l e r s & A s s o c i a t e s , I n c . - E s t i m a t e s O n l y N: \ M i n n s o t a \ E D I N A \ H o u s i n g E c o n o m i c R e d e v e l o p m e n t \ T I F \ T I F D i s t r i c t s \ G r a n d v i e w - 2 0 1 6 \ G r a n d v i e w T I F R u n _ R e d e v e l o p m e n t D i s t r i c t P r elim WD 3 (1.7.2016) 2/ 1 8 / 2 0 1 6 Tax Increment Cashflow - Page 3 Gr a n d v i e w R e d e v e l o p m e n t Ci t y o f E d i n a , M N Gr a n d v i e w H i g h H o u s i n g D e n s i t y C o n c e p t : 8 , 0 0 0 s q . f t . r e t a i l a n d 3 0 9 u n i t s R e s i d e n t i a l . 1 2 u n i t s t o w n h o m e s . TA X I N C R E M E N T C A S H F L O W Pr o j e c t O r i g i n a l F i s c a l C a p t u r e d Lo c a l A nn u a l S e m i - A n n u a l S t a t e A d m i n . S e m i - A n n u a l S e m i - A n n u a l P E R I O D % o f T a x Ta x D i s p a r i t i e s T a x Ta x G r o s s T a x G r o s s T a x A u d i t o r at Ne t T a x P r e s e n t E N D I N G T a x P a y m e n t OT C C a p a c i t y C a p a c i t y I n c r e m e n t a l C a p a c i t y Ra t e I n c r e m e n t I n c r e m e n t 0 . 3 6 % 10 % I n c r e m e n t V a l u e Y r s . Y e a r D a t e - - - - 02/01/17 - - - - 08/01/17 - - - - 02/01/18 - - - - 08/01/18 - - - - 02/01/19 - - - - 08/01/19 - - - - 02/01/20 10 0 % 1 8 7 , 2 1 9 (10 , 3 7 9 ) (2,1 5 1 ) 17 4 , 6 8 9 11 8 . 5 9 3 % 2 0 7 , 1 6 9 10 3 , 5 8 4 (37 3 ) (10 , 3 2 1 ) 92 , 8 9 0 79 , 2 8 1 0.5 2 0 2 0 0 8 / 0 1 / 2 0 10 0 % 1 8 7 , 2 1 9 (10 , 3 7 9 ) (2,1 5 1 ) 17 4 , 6 8 9 11 8 . 5 9 3 % 2 0 7 , 1 6 9 10 3 , 5 8 4 (37 3 ) (10 , 3 2 1 ) 92 , 8 9 0 15 7 , 0 0 7 1 2 0 2 0 0 2 / 0 1 / 2 1 10 0 % 3 8 2 , 9 9 4 (10 , 3 7 9 ) (4,6 0 4 ) 36 8 , 0 1 1 11 8 . 5 9 3 % 4 3 6 , 4 3 5 21 8 , 2 1 8 (78 6 ) (21 , 7 4 3 ) 19 5 , 6 8 9 31 7 , 5 4 0 1.5 2 0 2 1 0 8 / 0 1 / 2 1 10 0 % 3 8 2 , 9 9 4 (10 , 3 7 9 ) (4,6 0 4 ) 36 8 , 0 1 1 11 8 . 5 9 3 % 4 3 6 , 4 3 5 21 8 , 2 1 8 (78 6 ) (21 , 7 4 3 ) 19 5 , 6 8 9 47 4 , 9 2 6 2 2 0 2 1 0 2 / 0 1 / 2 2 10 0 % 7 6 5 , 9 8 8 (10 , 3 7 9 ) (9,8 1 1 ) 74 5 , 7 9 8 11 8 . 5 9 3 % 8 8 4 , 4 6 4 44 2 , 2 3 2 (1, 5 9 2 ) (44 , 0 6 4 ) 39 6 , 5 7 6 78 7 , 6 2 3 2.5 2 0 2 2 0 8 / 0 1 / 2 2 10 0 % 7 6 5 , 9 8 8 (10 , 3 7 9 ) (9,8 1 1 ) 74 5 , 7 9 8 11 8 . 5 9 3 % 8 8 4 , 4 6 4 44 2 , 2 3 2 (1, 5 9 2 ) (44 , 0 6 4 ) 39 6 , 5 7 6 1,0 9 4 , 1 9 0 3 2 0 2 2 0 2 / 0 1 / 2 3 10 0 % 7 8 1 , 3 0 8 (10 , 3 7 9 ) (10 , 0 1 5 ) 76 0 , 9 1 4 11 8 . 5 9 3 % 9 0 2 , 3 9 0 45 1 , 1 9 5 (1, 6 2 4 ) (44 , 9 5 7 ) 40 4 , 6 1 4 1,4 0 0 , 8 3 6 3.5 2 0 2 3 0 8 / 0 1 / 2 3 10 0 % 7 8 1 , 3 0 8 (10 , 3 7 9 ) (10 , 0 1 5 ) 76 0 , 9 1 4 11 8 . 5 9 3 % 9 0 2 , 3 9 0 45 1 , 1 9 5 (1, 6 2 4 ) (44 , 9 5 7 ) 40 4 , 6 1 4 1,7 0 1 , 4 7 0 4 2 0 2 3 0 2 / 0 1 / 2 4 10 0 % 7 9 6 , 9 3 4 (10 , 3 7 9 ) (10 , 2 2 4 ) 77 6 , 3 3 1 11 8 . 5 9 3 % 9 2 0 , 6 7 5 46 0 , 3 3 7 (1, 6 5 7 ) (45 , 8 6 8 ) 41 2 , 8 1 2 2,0 0 2 , 1 8 1 4.5 2 0 2 4 0 8 / 0 1 / 2 4 10 0 % 7 9 6 , 9 3 4 (10 , 3 7 9 ) (10 , 2 2 4 ) 77 6 , 3 3 1 11 8 . 5 9 3 % 9 2 0 , 6 7 5 46 0 , 3 3 7 (1, 6 5 7 ) (45 , 8 6 8 ) 41 2 , 8 1 2 2,2 9 6 , 9 9 6 5 2 0 2 4 0 2 / 0 1 / 2 5 10 0 % 8 1 2 , 8 7 3 (10 , 3 7 9 ) (10 , 4 3 6 ) 79 2 , 0 5 8 11 8 . 5 9 3 % 9 3 9 , 3 2 5 46 9 , 6 6 2 (1, 6 9 1 ) (46 , 7 9 7 ) 42 1 , 1 7 5 2,5 9 1 , 8 8 6 5.5 2 0 2 5 0 8 / 0 1 / 2 5 10 0 % 8 1 2 , 8 7 3 (10 , 3 7 9 ) (10 , 4 3 6 ) 79 2 , 0 5 8 11 8 . 5 9 3 % 9 3 9 , 3 2 5 46 9 , 6 6 2 (1, 6 9 1 ) (46 , 7 9 7 ) 42 1 , 1 7 5 2,8 8 0 , 9 9 3 6 2 0 2 5 0 2 / 0 1 / 2 6 10 0 % 8 2 9 , 1 3 0 (10 , 3 7 9 ) (10 , 6 5 3 ) 80 8 , 0 9 8 11 8 . 5 9 3 % 9 5 8 , 3 4 8 47 9 , 1 7 4 (1, 7 2 5 ) (47 , 7 4 5 ) 42 9 , 7 0 4 3,1 7 0 , 1 7 1 6.5 2 0 2 6 0 8 / 0 1 / 2 6 10 0 % 8 2 9 , 1 3 0 (10 , 3 7 9 ) (10 , 6 5 3 ) 80 8 , 0 9 8 11 8 . 5 9 3 % 9 5 8 , 3 4 8 47 9 , 1 7 4 (1, 7 2 5 ) (47 , 7 4 5 ) 42 9 , 7 0 4 3,4 5 3 , 6 8 0 7 2 0 2 6 0 2 / 0 1 / 2 7 10 0 % 8 4 5 , 7 1 3 (10 , 3 7 9 ) (10 , 8 7 4 ) 82 4 , 4 6 0 11 8 . 5 9 3 % 9 7 7 , 7 5 2 48 8 , 8 7 6 (1, 7 6 0 ) (48 , 7 1 2 ) 43 8 , 4 0 4 3,7 3 7 , 2 5 7 7.5 2 0 2 7 0 8 / 0 1 / 2 7 10 0 % 8 4 5 , 7 1 3 (10 , 3 7 9 ) (10 , 8 7 4 ) 82 4 , 4 6 0 11 8 . 5 9 3 % 9 7 7 , 7 5 2 48 8 , 8 7 6 (1, 7 6 0 ) (48 , 7 1 2 ) 43 8 , 4 0 4 4,0 1 5 , 2 7 3 8 2 0 2 7 0 2 / 0 1 / 2 8 10 0 % 8 6 2 , 6 2 7 (10 , 3 7 9 ) (11 , 1 0 0 ) 84 1 , 1 4 9 11 8 . 5 9 3 % 9 9 7 , 5 4 3 49 8 , 7 7 2 (1, 7 9 6 ) (49 , 6 9 8 ) 44 7 , 2 7 8 4,2 9 3 , 3 5 6 8.5 2 0 2 8 0 8 / 0 1 / 2 8 10 0 % 8 6 2 , 6 2 7 (10 , 3 7 9 ) (11 , 1 0 0 ) 84 1 , 1 4 9 11 8 . 5 9 3 % 9 9 7 , 5 4 3 49 8 , 7 7 2 (1, 7 9 6 ) (49 , 6 9 8 ) 44 7 , 2 7 8 4,5 6 5 , 9 8 6 9 2 0 2 8 0 2 / 0 1 / 2 9 10 0 % 8 7 9 , 8 8 0 (10 , 3 7 9 ) (11 , 3 3 0 ) 85 8 , 1 7 1 11 8 . 5 9 3 % 1 , 0 1 7 , 7 3 1 50 8 , 8 6 5 (1, 8 3 2 ) (50 , 7 0 3 ) 45 6 , 3 3 0 4,8 3 8 , 6 8 0 9.5 2 0 2 9 0 8 / 0 1 / 2 9 10 0 % 8 7 9 , 8 8 0 (10 , 3 7 9 ) (11 , 3 3 0 ) 85 8 , 1 7 1 11 8 . 5 9 3 % 1 , 0 1 7 , 7 3 1 50 8 , 8 6 5 (1, 8 3 2 ) (50 , 7 0 3 ) 45 6 , 3 3 0 5,1 0 6 , 0 2 6 10 2 0 2 9 0 2 / 0 1 / 3 0 10 0 % 8 9 7 , 4 7 7 (10 , 3 7 9 ) (11 , 5 6 4 ) 87 5 , 5 3 4 11 8 . 5 9 3 % 1 , 0 3 8 , 3 2 2 51 9 , 1 6 1 (1, 8 6 9 ) (51 , 7 2 9 ) 46 5 , 5 6 3 5,3 7 3 , 4 3 4 10.5 2 0 3 0 0 8 / 0 1 / 3 0 10 0 % 8 9 7 , 4 7 7 (10 , 3 7 9 ) (11 , 5 6 4 ) 87 5 , 5 3 4 11 8 . 5 9 3 % 1 , 0 3 8 , 3 2 2 51 9 , 1 6 1 (1, 8 6 9 ) (51 , 7 2 9 ) 46 5 , 5 6 3 5,6 3 5 , 5 9 8 11 2 0 3 0 0 2 / 0 1 / 3 1 10 0 % 9 1 5 , 4 2 7 (10 , 3 7 9 ) (11 , 8 0 4 ) 89 3 , 2 4 4 11 8 . 5 9 3 % 1 , 0 5 9 , 3 2 5 52 9 , 6 6 3 (1, 9 0 7 ) (52 , 7 7 6 ) 47 4 , 9 8 0 5,8 9 7 , 8 2 0 11.5 2 0 3 1 0 8 / 0 1 / 3 1 10 0 % 9 1 5 , 4 2 7 (1 0 , 3 7 9 ) (1 1 , 8 0 4 ) 89 3 , 2 4 4 11 8 . 5 9 3 % 1 , 0 5 9 , 3 2 5 52 9 , 6 6 3 (1 , 9 0 7 ) (5 2 , 7 7 6 ) 47 4 , 9 8 0 6,1 5 4 , 9 0 2 12 2 0 3 1 0 2 / 0 1 / 3 2 10 0 % 9 3 3 , 7 3 5 (1 0 , 3 7 9 ) (1 2 , 0 4 8 ) 91 1 , 3 0 9 11 8 . 5 9 3 % 1 , 0 8 0 , 7 4 8 54 0 , 3 7 4 (1 , 9 4 5 ) (5 3 , 8 4 3 ) 48 4 , 5 8 6 6,4 1 2 , 0 3 9 12.5 2 0 3 2 0 8 / 0 1 / 3 2 10 0 % 9 3 3 , 7 3 5 (1 0 , 3 7 9 ) (1 2 , 0 4 8 ) 91 1 , 3 0 9 11 8 . 5 9 3 % 1 , 0 8 0 , 7 4 8 54 0 , 3 7 4 (1 , 9 4 5 ) (5 3 , 8 4 3 ) 48 4 , 5 8 6 6,6 6 4 , 1 3 5 13 2 0 3 2 0 2 / 0 1 / 3 3 10 0 % 9 5 2 , 4 1 0 (1 0 , 3 7 9 ) (1 2 , 2 9 7 ) 92 9 , 7 3 4 11 8 . 5 9 3 % 1 , 1 0 2 , 6 0 0 55 1 , 3 0 0 (1 , 9 8 5 ) (5 4 , 9 3 2 ) 49 4 , 3 8 4 6,9 1 6 , 2 8 4 13.5 2 0 3 3 0 8 / 0 1 / 3 3 10 0 % 9 5 2 , 4 1 0 (1 0 , 3 7 9 ) (1 2 , 2 9 7 ) 92 9 , 7 3 4 11 8 . 5 9 3 % 1 , 1 0 2 , 6 0 0 55 1 , 3 0 0 (1 , 9 8 5 ) (5 4 , 9 3 2 ) 49 4 , 3 8 4 7,1 6 3 , 4 9 0 14 2 0 3 3 0 2 / 0 1 / 3 4 10 0 % 9 7 1 , 4 5 8 (1 0 , 3 7 9 ) (1 2 , 5 5 1 ) 94 8 , 5 2 9 11 8 . 5 9 3 % 1 , 1 2 4 , 8 8 8 56 2 , 4 4 4 (2 , 0 2 5 ) (5 6 , 0 4 2 ) 50 4 , 3 7 8 7,4 1 0 , 7 4 7 14.5 2 0 3 4 0 8 / 0 1 / 3 4 10 0 % 9 7 1 , 4 5 8 (1 0 , 3 7 9 ) (1 2 , 5 5 1 ) 94 8 , 5 2 9 11 8 . 5 9 3 % 1 , 1 2 4 , 8 8 8 56 2 , 4 4 4 (2 , 0 2 5 ) (5 6 , 0 4 2 ) 50 4 , 3 7 8 7, 6 5 3 , 1 5 7 15 2 0 3 4 0 2 / 0 1 / 3 5 10 0 % 9 9 0 , 8 8 7 (1 0 , 3 7 9 ) (1 2 , 8 1 0 ) 96 7 , 6 9 9 11 8 . 5 9 3 % 1 , 1 4 7 , 6 2 3 57 3 , 8 1 1 (2 , 0 6 6 ) (5 7 , 1 7 5 ) 51 4 , 5 7 1 7, 8 9 5 , 6 1 6 15.5 2 0 3 5 0 8 / 0 1 / 3 5 10 0 % 9 9 0 , 8 8 7 (1 0 , 3 7 9 ) (1 2 , 8 1 0 ) 96 7 , 6 9 9 11 8 . 5 9 3 % 1 , 1 4 7 , 6 2 3 57 3 , 8 1 1 (2 , 0 6 6 ) (5 7 , 1 7 5 ) 51 4 , 5 7 1 8,1 3 3 , 3 2 1 16 2 0 3 5 0 2 / 0 1 / 3 6 10 0 % 1 , 0 1 0 , 7 0 5 (1 0 , 3 7 9 ) (1 3 , 0 7 4 ) 98 7 , 2 5 2 11 8 . 5 9 3 % 1 , 1 7 0 , 8 1 2 58 5 , 4 0 6 (2 , 1 0 7 ) (5 8 , 3 3 0 ) 52 4 , 9 6 9 8,3 7 1 , 0 7 4 16.5 2 0 3 6 0 8 / 0 1 / 3 6 10 0 % 1 , 0 1 0 , 7 0 5 (1 0 , 3 7 9 ) (1 3 , 0 7 4 ) 98 7 , 2 5 2 11 8 . 5 9 3 % 1 , 1 7 0 , 8 1 2 58 5 , 4 0 6 (2 , 1 0 7 ) (5 8 , 3 3 0 ) 52 4 , 9 6 9 8,6 0 4 , 1 6 6 17 2 0 3 6 0 2 / 0 1 / 3 7 10 0 % 1 , 0 3 0 , 9 1 9 (1 0 , 3 7 9 ) (1 3 , 3 4 4 ) 1, 0 0 7 , 1 9 7 11 8 . 5 9 3 % 1 , 1 9 4 , 4 6 5 59 7 , 2 3 2 (2 , 1 5 0 ) (5 9 , 5 0 8 ) 53 5 , 5 7 4 8,8 3 7 , 3 0 3 17.5 2 0 3 7 0 8 / 0 1 / 3 7 10 0 % 1 , 0 3 0 , 9 1 9 (1 0 , 3 7 9 ) (1 3 , 3 4 4 ) 1, 0 0 7 , 1 9 7 11 8 . 5 9 3 % 1 , 1 9 4 , 4 6 5 59 7 , 2 3 2 (2 , 1 5 0 ) (5 9 , 5 0 8 ) 53 5 , 5 7 4 9,0 6 5 , 8 7 0 18 2 0 3 7 0 2 / 0 1 / 3 8 10 0 % 1 , 0 5 1 , 5 3 8 (1 0 , 3 7 9 ) (1 3 , 6 1 9 ) 1, 0 2 7 , 5 4 0 11 8 . 5 9 3 % 1 , 2 1 8 , 5 9 1 60 9 , 2 9 5 (2 , 1 9 3 ) (6 0 , 7 1 0 ) 54 6 , 3 9 2 9,2 9 4 , 4 8 0 18.5 2 0 3 8 0 8 / 0 1 / 3 8 10 0 % 1 , 0 5 1 , 5 3 8 (1 0 , 3 7 9 ) (1 3 , 6 1 9 ) 1, 0 2 7 , 5 4 0 11 8 . 5 9 3 % 1 , 2 1 8 , 5 9 1 60 9 , 2 9 5 (2 , 1 9 3 ) (6 0 , 7 1 0 ) 54 6 , 3 9 2 9,5 1 8 , 6 0 9 19 2 0 3 8 0 2 / 0 1 / 3 9 10 0 % 1 , 0 7 2 , 5 6 8 (1 0 , 3 7 9 ) (1 3 , 8 9 9 ) 1, 0 4 8 , 2 9 1 11 8 . 5 9 3 % 1 , 2 4 3 , 1 9 9 62 1 , 6 0 0 (2 , 2 3 8 ) (6 1 , 9 3 6 ) 55 7 , 4 2 6 9,7 4 2 , 7 7 9 19.5 2 0 3 9 0 8 / 0 1 / 3 9 10 0 % 1 , 0 7 2 , 5 6 8 (1 0 , 3 7 9 ) (1 3 , 8 9 9 ) 1, 0 4 8 , 2 9 1 11 8 . 5 9 3 % 1 , 2 4 3 , 1 9 9 62 1 , 6 0 0 (2 , 2 3 8 ) (6 1 , 9 3 6 ) 55 7 , 4 2 6 9,9 6 2 , 5 5 5 20 2 0 3 9 0 2 / 0 1 / 4 0 10 0 % 1 , 0 9 4 , 0 2 0 (1 0 , 3 7 9 ) (1 4 , 1 8 5 ) 1, 0 6 9 , 4 5 6 11 8 . 5 9 3 % 1 , 2 6 8 , 3 0 0 63 4 , 1 5 0 (2 , 2 8 3 ) (6 3 , 1 8 7 ) 56 8 , 6 8 0 10 , 1 8 2 , 3 7 1 20.5 2 0 4 0 0 8 / 0 1 / 4 0 10 0 % 1 , 0 9 4 , 0 2 0 (1 0 , 3 7 9 ) (1 4 , 1 8 5 ) 1, 0 6 9 , 4 5 6 11 8 . 5 9 3 % 1 , 2 6 8 , 3 0 0 63 4 , 1 5 0 (2 , 2 8 3 ) (6 3 , 1 8 7 ) 56 8 , 6 8 0 10 , 3 9 7 , 8 7 7 21 2 0 4 0 0 2 / 0 1 / 4 1 10 0 % 1 , 1 1 5 , 9 0 0 (1 0 , 3 7 9 ) (1 4 , 4 7 7 ) 1, 0 9 1 , 0 4 5 11 8 . 5 9 3 % 1 , 2 9 3 , 9 0 2 64 6 , 9 5 1 (2 , 3 2 9 ) (6 4 , 4 6 2 ) 58 0 , 1 6 0 10 , 6 1 3 , 4 2 3 21.5 2 0 4 1 0 8 / 0 1 / 4 1 10 0 % 1 , 1 1 5 , 9 0 0 (1 0 , 3 7 9 ) (1 4 , 4 7 7 ) 1, 0 9 1 , 0 4 5 11 8 . 5 9 3 % 1 , 2 9 3 , 9 0 2 64 6 , 9 5 1 (2 , 3 2 9 ) (6 4 , 4 6 2 ) 58 0 , 1 6 0 10 , 8 2 4 , 7 4 2 22 2 0 4 1 0 2 / 0 1 / 4 2 10 0 % 1 , 1 3 8 , 2 1 8 (1 0 , 3 7 9 ) (1 4 , 7 7 4 ) 1, 1 1 3 , 0 6 5 11 8 . 5 9 3 % 1 , 3 2 0 , 0 1 7 66 0 , 0 0 9 (2 , 3 7 6 ) (6 5 , 7 6 3 ) 59 1 , 8 6 9 11 , 0 3 6 , 0 9 9 22.5 2 0 4 2 0 8 / 0 1 / 4 2 10 0 % 1 , 1 3 8 , 2 1 8 (1 0 , 3 7 9 ) (1 4 , 7 7 4 ) 1, 1 1 3 , 0 6 5 11 8 . 5 9 3 % 1 , 3 2 0 , 0 1 7 66 0 , 0 0 9 (2 , 3 7 6 ) (6 5 , 7 6 3 ) 59 1 , 8 6 9 11 , 2 4 3 , 3 1 2 23 2 0 4 2 0 2 / 0 1 / 4 3 10 0 % 1 , 1 6 0 , 9 8 3 (1 0 , 3 7 9 ) (1 5 , 0 7 8 ) 1, 1 3 5 , 5 2 6 11 8 . 5 9 3 % 1 , 3 4 6 , 6 5 4 67 3 , 3 2 7 (2 , 4 2 4 ) (6 7 , 0 9 0 ) 60 3 , 8 1 3 11 , 4 5 0 , 5 6 1 23.5 2 0 4 3 0 8 / 0 1 / 4 3 10 0 % 1 , 1 6 0 , 9 8 3 (1 0 , 3 7 9 ) (1 5 , 0 7 8 ) 1, 1 3 5 , 5 2 6 11 8 . 5 9 3 % 1 , 3 4 6 , 6 5 4 67 3 , 3 2 7 (2 , 4 2 4 ) (6 7 , 0 9 0 ) 60 3 , 8 1 3 11 , 6 5 3 , 7 4 7 24 2 0 4 3 0 2 / 0 1 / 4 4 10 0 % 1 , 1 8 4 , 2 0 2 (1 0 , 3 7 9 ) (1 5 , 3 8 8 ) 1, 1 5 8 , 4 3 6 11 8 . 5 9 3 % 1 , 3 7 3 , 8 2 4 68 6 , 9 1 2 (2 , 4 7 3 ) (6 8 , 4 4 4 ) 61 5 , 9 9 5 11 , 8 5 6 , 9 6 8 24.5 2 0 4 4 0 8 / 0 1 / 4 4 10 0 % 1 , 1 8 4 , 2 0 2 (1 0 , 3 7 9 ) (1 5 , 3 8 8 ) 1, 1 5 8 , 4 3 6 11 8 . 5 9 3 % 1 , 3 7 3 , 8 2 4 68 6 , 9 1 2 (2 , 4 7 3 ) (6 8 , 4 4 4 ) 61 5 , 9 9 5 12 , 0 5 6 , 2 0 3 25 2 0 4 4 0 2 / 0 1 / 4 5 10 0 % 1 , 2 0 7 , 8 8 6 (1 0 , 3 7 9 ) (1 5 , 7 0 3 ) 1, 1 8 1 , 8 0 4 11 8 . 5 9 3 % 1 , 4 0 1 , 5 3 7 70 0 , 7 6 8 (2 , 5 2 3 ) (6 9 , 8 2 5 ) 62 8 , 4 2 1 12 , 2 5 5 , 4 7 3 25.5 2 0 4 5 0 8 / 0 1 / 4 5 10 0 % 1 , 2 0 7 , 8 8 6 (1 0 , 3 7 9 ) (1 5 , 7 0 3 ) 1, 1 8 1 , 8 0 4 11 8 . 5 9 3 % 1 , 4 0 1 , 5 3 7 70 0 , 7 6 8 (2 , 5 2 3 ) (6 9 , 8 2 5 ) 62 8 , 4 2 1 12 , 4 5 0 , 8 3 5 26 2 0 4 5 0 2 / 0 1 / 4 6 T o t a l 27 , 6 2 6 , 6 4 0 (9 9 , 4 5 6 ) (2 , 7 5 2 , 7 1 8 ) 24 , 7 7 4 , 4 6 6 Pr e s e n t V a l u e F r o m 0 8 / 0 1 / 2 0 1 6 P r e s e n t V a l u e R a t e 4 . 0 0 % 13 , 8 8 4 , 2 4 5 (4 9 , 9 8 3 ) (1 , 3 8 3 , 4 2 6 ) 12 , 4 5 0 , 8 3 5 Pr e p a r e d b y E h l e r s & A s s o c i a t e s , I n c . - E s t i m a t e s O n l y N:\ M i n n s o t a \ E D I N A \ H o u s i n g E c o n o m i c R e d e v e l o p m e n t \ T I F \ T I F D i s t ric t s \ G r a n d v i e w - 2 0 1 6 \ G r a n d v i e w T I F R u n _ R e d e v e l o p m e n t D i s t r i c t P r elim WD 3 (1.7.2016) Appendix E Minnesota Business Assistance Form (Minnesota Department of Employment and Economic Development) A Minnesota Business Assistance Form (MBAF) should be used to report and/or update each calendar year's activity by April 1 of the following year. Please see the Minnesota Department of Employment and Economic Development (DEED) website at http://www.deed.state.mn.us/Community/subsidies/MBAFForm.htm for information and forms. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District E-1 Appendix F Redevelopment Qualifications for the District LHB, Inc. prepared a report dated February 5, 2016 that fully describes the inspection procedures and results for determining the qualifications of the Grandview 2 TIF District as a Redevelopment District. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District F-1 Report of Inspection Procedures and Results for Determining Qualifications of a Tax Increment Financing District as a Redevelopment District Grandview 2 Redevelopment TIF District Edina, Minnesota February 5, 2016 Prepared For the City of Edina Prepared by: LHB, Inc. 701 Washington Avenue North, Suite 200 Minneapolis, Minnesota 55401 LHB Project No. 130153.01 Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 1 of 12 Final Report TABLE OF CONTENTS PART 1 – EXECUTIVE SUMMARY ................................................................................ 2 Purpose of Evaluation ................................................................................ 2 Scope of Work ........................................................................................... 3 Conclusion ................................................................................................. 3 PART 2 – MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS ....... 3 A. Coverage Test ...................................................................................... 4 B. Condition of Buildings Test ................................................................... 4 C. Distribution of Substandard Buildings ................................................... 5 PART 3 – PROCEDURES FOLLOWED ......................................................................... 6 PART 4 – FINDINGS ...................................................................................................... 6 A. Coverage Test ...................................................................................... 6 B. Condition of Building Test ..................................................................... 7 1. Building Inspection .................................................................... 7 2. Replacement Cost ..................................................................... 8 3. Code Deficiencies ..................................................................... 8 4. System Condition Deficiencies .................................................. 9 C. Distribution of Substandard Structures ................................................. 9 PART 5 - TEAM CREDENTIALS .................................................................................. 11 APPENDIX A Property Condition Assessment Summary Sheet APPENDIX B Building Code, Condition Deficiency and Context Analysis Reports APPENDIX C Building Replacement Cost Reports Code Deficiency Cost Reports Photographs Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 2 of 12 Final Report PART 1 – EXECUTIVE SUMMARY PURPOSE OF EVALUATION LHB was hired by the City of Edina to inspect and evaluate the properties within a Tax Increment Financing Redevelopment District (“TIF District”) proposed to be established by the City. The proposed TIF District is bounded by Arcadia Avenue, Eden Avenue, Link Road, Vernon Avenue and Gus Young Lane (Diagram 1). The purpose of LHB’s work is to determine whether the proposed TIF District meets the statutory requirements for coverage, and whether five (5) buildings on fifteen (15) parcels, located within the proposed TIF District, meet the qualifications required for a Redevelopment District. Diagram 1 – Proposed TIF District Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 3 of 12 Final Report SCOPE OF WORK The proposed TIF District consists of fifteen (15) parcels with five (5) buildings. One (1) building was inspected on March 12, 2013, and was declared substandard by Edina HRA Resolution (2013.04) on March 19, 2013 prior to demolition of the building. Two (2) buildings were inspected on December 23, 2015. The two (2) remaining buildings were not inspected as we assumed they would not be found substandard based on our exterior evaluation. Building code and Condition Deficiency Reports for the buildings that were inspected are located in Appendix B. CONCLUSION After inspecting and evaluating the properties within the proposed TIF District and applying current statutory criteria for a Redevelopment District under Minnesota Statutes, Section 469.174, Subdivision 10, it is our professional opinion that the proposed TIF District qualifies as a Redevelopment District because: • The proposed TIF District has a coverage calculation of 89.1 percent which is above the 70 percent requirement. • 60 percent of the buildings are structurally substandard which is above the 50 percent requirement. • The substandard buildings are reasonably distributed. The remainder of this report describes our process and findings in detail. PART 2 – MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS The properties were inspected in accordance with the following requirements under Minnesota Statutes, Section 469.174, Subdivision 10(c), which states: INTERIOR INSPECTION “The municipality may not make such determination [that the building is structurally substandard] without an interior inspection of the property...” EXTERIOR INSPECTION AND OTHER MEANS “An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard.” DOCUMENTATION “Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained under section 469.175, subdivision 3(1).” QUALIFICATION REQUIREMENTS Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1) requires three tests for occupied parcels: Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 4 of 12 Final Report A. COVERAGE TEST …“parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or paved or gravel parking lots…” The coverage required by the parcel to be considered occupied is defined under Minnesota Statutes, Section 469.174, Subdivision 10(e), which states: “For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or other similar structures.” B. CONDITION OF BUILDINGS TEST Minnesota Statutes, Section 469.174, Subdivision 10(a) states, “…and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance;” 1. Structurally substandard is defined under Minnesota Statutes, Section 469.174, Subdivision 10(b), which states: “For purposes of this subdivision, ‘structurally substandard’ shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance.” a. We do not count energy code deficiencies toward the thresholds required by Minnesota Statutes, Section 469.174, Subdivision 10(b) defined as “structurally substandard”, due to concerns expressed by the State of Minnesota Court of Appeals in the Walser Auto Sales, Inc. vs. City of Richfield case filed November 13, 2001. 2. Buildings are not eligible to be considered structurally substandard unless they meet certain additional criteria, as set forth in Subdivision 10(c) which states: “A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence.” “Items of evidence that support such a conclusion [that the building is not disqualified] include recent fire or police inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence.” LHB counts energy code deficiencies toward the 15 percent code threshold required by Minnesota Statutes, Section 469.174, Subdivision 10(c)) for the following reasons: • The Minnesota energy code is one of ten building code areas highlighted by the Minnesota Department of Labor and Industry website where minimum construction standards are required by law. Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 5 of 12 Final Report • Chapter 13 of the 2015 Minnesota Building Code states, “Buildings shall be designed and constructed in accordance with the International Energy Conservation Code.” Furthermore, Minnesota Rules, Chapter 1305.0021 Subpart 9 states, “References to the International Energy Conservation Code in this code mean the Minnesota Energy Code…” • The Senior Building Code Representative for the Construction Codes and Licensing Division of the Minnesota Department of Labor and Industry confirmed that the Minnesota Energy Code is being enforced throughout the State of Minnesota. • In a January 2002 report to the Minnesota Legislature, the Management Analysis Division of the Minnesota Department of Administration confirmed that the construction cost of new buildings complying with the Minnesota Energy Code is higher than buildings built prior to the enactment of the code. • Proper TIF analysis requires a comparison between the replacement value of a new building built under current code standards with the repairs that would be necessary to bring the existing building up to current code standards. In order for an equal comparison to be made, all applicable code chapters should be applied to both scenarios. Since current construction estimating software automatically applies the construction cost of complying with the Minnesota Energy Code, energy code deficiencies should also be identified in the existing structures. C. DISTRIBUTION OF SUBSTANDARD BUILDINGS Minnesota Statutes, Section 469.174, Subdivision 10, defines a Redevelopment District and requires one or more of the following conditions, “reasonably distributed throughout the district.” (1) “Parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; (2) the property consists of vacant, unused, underused, inappropriately used, or infrequently used rail yards, rail storage facilities, or excessive or vacated railroad rights-of-way; (3) tank facilities, or property whose immediately previous use was for tank facilities…” Our interpretation of the distribution requirement is that the substandard buildings must be reasonably distributed throughout the district as compared to the location of all buildings in the district. For example, if all of the buildings in a district are located on one half of the area of the district, with the other half occupied by parking lots (meeting the required 70 percent coverage for the district), we would evaluate the distribution of the substandard buildings compared with only the half of the district where the buildings are located. If all of the buildings in a district are located evenly throughout the entire area of the district, the substandard buildings must be reasonably distributed throughout the entire area of the district. We believe this is consistent with the opinion expressed by the State of Minnesota Court of Appeals in the Walser Auto Sales, Inc. vs. City of Richfield case filed November 13, 2001. Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 6 of 12 Final Report PART 3 – PROCEDURES FOLLOWED LHB inspected one (1) of the five (5) buildings during the day of March 12, 2013 (Map No. 1). Two (2) of the five (5) buildings were inspected on December 23, 2015 (Map No. 10 and 11). Two (2) buildings were not inspected (Map No. 14 and 15). PART 4 – FINDINGS A. COVERAGE TEST 1. The total square foot area of the parcel in the proposed TIF District was obtained from City records, GIS mapping and site verification. 2. The total square foot area of buildings and site improvements on the parcels in the proposed TIF District was obtained from City records, GIS mapping and site verification. 3. The percentage of coverage for each parcel in the proposed TIF District was computed to determine if the 15 percent minimum requirement was met. The total square footage of parcels meeting the 15 percent requirement was divided into the total square footage of the entire district to determine if the 70 percent requirement was met. FINDING: The proposed TIF District met the coverage test under Minnesota Statutes, Section 469.174, Subdivision 10(e), which resulted in parcels consisting of 89.1 percent of the area of the proposed TIF District being occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures (Diagram 2). This exceeds the 70 percent area coverage requirement for the proposed TIF District under Minnesota Statutes, Section 469.174, Subdivision (a) (1). Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 7 of 12 Final Report Diagram 2 – Coverage Diagram Shaded area depicts a parcel more than 15 percent occupied by buildings, streets, utilities, Paved or gravel parking lots or other similar structures B. CONDITION OF BUILDING TEST 1. BUILDING INSPECTION The first step in the evaluation process is the building inspection. After an initial walk-thru, the inspector makes a judgment whether or not a building “appears” to have enough defects or deficiencies of sufficient total significance to justify substantial renovation or clearance. If it does, the inspector documents with notes and photographs code and non- code deficiencies in the building. Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 8 of 12 Final Report 2. REPLACEMENT COST The second step in evaluating a building to determine if it is substandard to a degree requiring substantial renovation or clearance is to determine its replacement cost. This is the cost of constructing a new structure of the same square footage and type on site. Replacement costs were researched using R.S. Means Cost Works square foot models for 2016 and 2013. A replacement cost was calculated by first establishing building use (office, retail, residential, etc.), building construction type (wood, concrete, masonry, etc.), and building size to obtain the appropriate median replacement cost, which factors in the costs of construction in Edina, Minnesota. Replacement cost includes labor, materials, and the contractor’s overhead and profit. Replacement costs do not include architectural fees, legal fees or other “soft” costs not directly related to construction activities. Replacement cost for each building is tabulated in Appendix A. 3. CODE DEFICIENCIES The next step in evaluating a building is to determine what code deficiencies exist with respect to such building. Code deficiencies are those conditions for a building which are not in compliance with current building codes applicable to new buildings in the State of Minnesota. Minnesota Statutes, Section 469.174, Subdivision 10(c), specifically provides that a building cannot be considered structurally substandard if its code deficiencies are not at least 15 percent of the replacement cost of the building. As a result, it was necessary to determine the extent of code deficiencies for each building in the proposed TIF District. The evaluation was made by reviewing all available information with respect to such buildings contained in City Building Inspection records and making interior and exterior inspections of the buildings. LHB utilizes the current Minnesota State Building Code as the official code for our evaluations. The Minnesota State Building Code is actually a series of provisional codes written specifically for Minnesota only requirements, adoption of several international codes, and amendments to the adopted international codes. After identifying the code deficiencies in each building, we used R.S. Means Cost Works 2016 and 2013; Unit and Assembly Costs to determine the cost of correcting the identified deficiencies. We were then able to compare the correction costs with the replacement cost of each building to determine if the costs for correcting code deficiencies meet the required 15 percent threshold. FINDING: Three (3) out of five (5) buildings (60 percent) in the proposed TIF District contained code deficiencies exceeding the 15 percent threshold required by Minnesota Statutes, Section 469.174, Subdivision 10(c). Building Code, Condition Deficiency and Context Analysis reports for the buildings in the proposed TIF District can be found in Appendix B of this report. Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 9 of 12 Final Report 4. SYSTEM CONDITION DEFICIENCIES If a building meets the minimum code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), then in order for such building to be “structurally substandard” under Minnesota Statutes, Section 469.174, Subdivision 10(b), the building’s defects or deficiencies should be of sufficient total significance to justify “substantial renovation or clearance.” Based on this definition, LHB re-evaluated each of the buildings that met the code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), to determine if the total deficiencies warranted “substantial renovation or clearance” based on the criteria we outlined above. System condition deficiencies are a measurement of defects or substantial deterioration in site elements, structure, exterior envelope, mechanical and electrical components, fire protection and emergency systems, interior partitions, ceilings, floors and doors. The evaluation of system condition deficiencies was made by reviewing all available information contained in City records, and making interior and exterior inspections of the buildings. LHB only identified system condition deficiencies that were visible upon our inspection of the building or contained in City records. We did not consider the amount of “service life” used up for a particular component unless it was an obvious part of that component’s deficiencies. After identifying the system condition deficiencies in each building, we used our professional judgment to determine if the list of defects or deficiencies is of sufficient total significance to justify “substantial renovation or clearance.” FINDING: In our professional opinion, three (3) out of five (5) buildings (60 percent) in the proposed TIF District are structurally substandard to a degree requiring substantial renovation or clearance, because of defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. This exceeds the 50 percent requirement of Subdivision 10a(1). C. DISTRIBUTION OF SUBSTANDARD STRUCTURES Much of this report has focused on the condition of individual buildings as they relate to requirements identified by Minnesota Statutes, Section 469.174, Subdivision 10. It is also important to look at the distribution of substandard buildings throughout the geographic area of the proposed TIF District (Diagram 3). FINDING: The parcels with substandard buildings are reasonably distributed compared to all parcels that contain buildings. Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 10 of 12 Final Report Diagram 3 – Substandard Buildings Shaded green area depicts parcels with buildings. Hatched area depicts parcels with substandard buildings. Shaded orange area depicts substandard buildings. Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 11 of 12 Final Report PART 5 - TEAM CREDENTIALS Michael A. Fischer, AIA, LEED AP - Project Principal/TIF Analyst Michael has 29 years of experience as project principal, project manager, project designer and project architect on planning, urban design, educational, commercial and governmental projects. He has become an expert on Tax Increment Finance District analysis assisting over 100 cities with strategic planning for TIF Districts. He is a Senior Vice President at LHB and currently leads the Minneapolis office. Michael completed a two-year Bush Fellowship, studying at MIT and Harvard in 1999, earning Masters degrees in City Planning and Real Estate Development from MIT. He has served on more than 50 committees, boards and community task forces, including a term as a City Council President and as Chair of a Metropolitan Planning Organization. Most recently, he served as Chair of the Edina, Minnesota planning commission. Michael has also managed and designed several award-winning architectural projects, and was one of four architects in the Country to receive the AIA Young Architects Citation in 1997. Philip Waugh – Project Manager/TIF Analyst Philip is a project manager with 13 years of experience in historic preservation, building investigations, material research, and construction methods. He previously worked as a historic preservationist and also served as the preservation specialist at the St. Paul Heritage Preservation Commission. Currently, Phil sits on the Board of Directors for the Preservation Alliance of Minnesota. His current responsibilities include project management of historic preservation projects, performing building condition surveys and analysis, TIF analysis, writing preservation specifications, historic design reviews, writing Historic Preservation Tax Credit applications, preservation planning, and grant writing. Phil Fisher – Inspector For 35 years, Phil Fisher worked in the field of Building Operations in Minnesota including White Bear Lake Area Schools. At the University of Minnesota he earned his Bachelor of Science in Industrial Technology. He is a Certified Playground Safety Inspector, Certified Plant Engineer, and is trained in Minnesota Enterprise Real Properties (MERP) Facility Condition Assessment (FCA). His FCA training was recently applied to the Minnesota Department of Natural Resources Facilities Condition Assessment project involving over 2,000 buildings. M:\13Proj\130153\400 Design\406 Reports\130153.01\Final Report\130153.01 20160205 Edina Grandview Redevelopment TIF Report.docx Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 12 of 12 Final Report APPENDICES APPENDIX A Property Condition Assessment Summary Sheet APPENDIX B Building Code and Condition Deficiencies Reports APPENDIX C Building Replacement Cost Reports Code Deficiency Cost Reports Photographs APPENDIX A Property Condition Assessment Summary Sheet Ed i n a G r a n d v i e w 2 R e d e v e l o p m e n t T I F A n a l y s i s Edina, Minnesota Pr o p e r t y C o n d i t i o n A s s e s s m e n t S u m m a r y S h e e t TI F Ma p N o . PI D # P r o p e r t y A d d r e s s Im p r o v e d o r Va c a n t Su r v e y M e t h o d Us e d Si t e A r e a (S . F . ) Co v e r a g e A r e a o f Im p r o v e m e n t s (S . F . ) Co v e r a g e Pe r c e n t o f Im p r o v e m e n t s Co v e r a g e Qu a n t i t y (S . F . ) No . o f Bu i l d i n g s Building Replacement Cost15% of Replacement CostBuilding Code DeficienciesNo. of Buildings Exceeding 15% CriteriaNo. of buildings determined substandard 1 28 1 1 7 2 1 3 1 0 0 1 6 5 1 4 6 E d e n A v e I m p r o v e d I n t e r i o r / E x t e r i o r 1 2 6 , 99 6 1 0 9 , 8 4 9 8 6 . 5 % 1 2 6 , 9 9 6 1 $ 3 , 4 3 9 , 6 0 0 $ 5 1 5 , 9 4 0 $ 1 , 0 9 8 , 1 1 8 1 1 2 28 1 1 7 2 1 3 1 0 0 1 5 5 1 4 6 E d e n A v e I m p r o v e d E x t e r i o r 9 , 0 0 0 7 , 2 9 1 8 1 . 0 % 9 , 0 0 0 0 3 28 1 1 7 2 1 3 1 0 0 1 4 5 1 4 6 E d e n A v e I m p r o v e d E x t e r i o r 9 , 0 0 0 3 , 1 9 5 3 5 . 5 % 9 , 0 0 0 0 4 28 1 1 7 2 1 3 1 0 0 1 8 U n a s s i g n e d R a i l r o a d I m p r o v e d E x t e r i o r 4 3 , 9 3 9 3 8 , 7 9 3 8 8 . 3 % 4 3 , 9 3 9 0 5 28 1 1 7 2 1 3 4 0 0 1 4 U n a s s i g n e d R a i l r o a d I m p r o v e d E x t e r i o r 8 , 6 7 0 4 , 7 5 0 5 4 . 8 % 8 , 6 7 0 0 6 28 1 1 7 2 1 3 4 0 0 0 2 5 1 4 5 E d e n A v e V a c a n t E x t e r i o r 5 0 , 8 9 6 0 0 . 0 % 0 0 7 28 1 1 7 2 1 3 1 0 0 5 1 U n a s s i g n e d I m p r o v e d E x t e r i o r 2 8 , 3 0 4 2 2 , 7 6 5 8 0 . 4 % 2 8 , 3 0 4 0 8 28 1 1 7 2 1 3 1 0 0 2 1 5 1 1 6 B r o o k s i d e A v e I m p r o v e d E x t e r i o r 2 5 , 2 0 0 2 5 , 2 0 0 1 0 0 . 0 % 2 5 , 2 0 0 0 9 28 1 1 7 2 1 3 1 0 0 2 2 5 1 2 0 B r o o k s i d e A v e I m p r o v e d E x t e r i o r 8 , 4 0 0 8 , 4 0 0 1 0 0 . 0 % 8 , 4 0 0 0 10 28 1 1 7 2 1 3 4 0 0 0 5 5 1 5 0 B r o o k s i d e A v e I m p r o v e d I n t e r i o r / E x t e r io r 4 2 , 5 0 3 4 2 , 5 0 3 1 0 0 . 0 % 4 2 , 5 0 3 1 $ 9 2 8 , 5 2 7 $ 1 3 9 , 2 7 9 $ 2 8 3 , 0 2 7 1 1 11 28 1 1 7 2 1 3 4 0 0 0 4 5 2 2 0 E d e n A v e I m p r o v e d I n t e r i o r / E x t e r i o r 33 , 4 0 3 3 3 , 4 0 3 1 0 0 . 0 % 3 3 , 4 0 3 1 $ 1 , 3 1 2 , 7 1 8 $ 1 9 6 , 9 0 8 $ 4 5 4 , 0 5 4 1 1 12 28 1 1 7 2 1 3 4 0 0 2 5 5 2 0 1 V e r n o n A v e I m p r o v e d E x t e r i o r 2 3 , 7 3 1 2 3 , 7 3 1 1 0 0 . 0 % 2 3 , 7 3 1 0 13 28 1 1 7 2 1 3 4 0 0 1 7 U n a s s i g n e d I m p r o v e d E x t e r i o r 7 , 7 3 4 7 , 2 5 6 9 3 . 8 % 7 , 7 3 4 0 14 28 1 1 7 2 1 3 4 0 0 2 4 5 2 0 3 V e r n o n A v e I m p r o v e d E x t e r i o r 2 0 , 1 3 3 2 0 , 1 3 3 1 0 0 . 0 % 2 0 , 1 3 3 1 N o t e 1 N o t e 1 15 28 1 1 7 2 1 3 4 0 0 1 6 5 2 0 5 V e r n o n A v e I m p r o v e d E x t e r i o r 2 9 , 4 9 2 2 9 , 4 9 2 1 0 0 . 0 % 2 9 , 4 9 2 1 N o t e 1 N o t e 1 TO T A L S 46 7 , 4 0 1 41 6 , 5 0 5 5 3 3 89 . 1 % 60.0% M: \ 1 3 P r o j \ 1 3 0 1 5 3 \ 4 0 0 D e s i g n \ 4 0 6 R e p o r t s \ 13 0 1 5 3 . 0 1 \ F i n a l R e p o r t \ [ 1 3 0 1 5 3 . 0 1 2 0 1 6 0 2 0 2 E d i n a G r a n d v ie w R e d e v e l o p m e n t T I F S u m m a r y S p re a d s h e e t . x l s x ] P r o p e r t y I n f o 60.0% To t a l C o v e r a g e P e r c e n t : Pe r c e n t o f b u i l d i n g s e x c e e d i n g 1 5 p e r c e n t c o d e d e f i c i e n c y t h r e s h o l d : Percent of buildings de termined substandard: No t e 1 : T h i s b u i l d i n g w a s n o t i n s p e c t e d . A s s u m e d n o t t o b e s u b s t a n d a r d . Ed i n a G r a n d v i e w 2 R e d e v e l o p m e n t T I F A n a l y s i s LH B P r o j e c t N o . 1 3 0 1 5 3 . 0 1 Pa g e 1 o f 1 Property Condition Assessment Summary Sheet APPENDIX B Building Code, Condition Deficiency and Context Analysis Reports Edina Grandview 2 Redevelopment TIF District Building Report LHB Project No. 130153.01 Page 1 of 2 Map 1 Edina Grandview 2 Redevelopment TIF District Building Code, Condition Deficiency and Context Analysis Report March 13, 2013 Map No. & Building Name: Map No. 1 Former Public Works Facility Address & PID: 5146 Eden Avenue, PID 28-117-21-31-0016 Inspection Date(s) & Time(s): March 12, 2013, 3:30pm Inspection Type: Interior/Exterior Summary of Deficiencies: It is our professional opinion that this building is Substandard because: - Building Code deficiencies total more than 15% of replacement cost. - Substantial renovation is required to correct Conditions found. Estimated Replacement Cost: $ 3,439,600 Estimated Cost to Correct Building Code Deficiencies: $ 1,098,118 Percentage of Replacement Cost: 31.9% Description of Condition Deficiencies Minnesota Statutes, Section 469.174, Subdivision 10, states that a building is Structurally Substandard if it contains “defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance.” Defects in Structural Elements 1. The roof does not meet current minimum slope requirements per code. 2. Interior floor slab and walls are damaged due to fire department training. Combination of Deficiencies 1. Essential Utilities and Facilities a. Restroom facilities do not meet current accessibility codes. b. Copper has been removed from the building, plumbing system is not functioning. c. Drinking fountain near entrance lobby does not meet code. d. Grease traps in the repair garage do not meet current codes. 2. Light and Ventilation a. The ventilation system is not adequate in the shop area. b. The cooling and heating system is not adequate in the office area. c. Light fixtures are old, not energy efficient and mostly not working. 3. Fire Protection/Adequate Egress a. The mezzanine stairs do not meet current codes. b. Railings on all stairs do not meet current codes. c. An elevator is required for access to the upper floor. d. Guard rails at mezzanine spaces do not meet current codes. 4. Layout and Condition of Interior Partitions/Materials a. All wall surfaces require new paint. b. All interior (wall, ceiling, floor) surfaces require updating. c. Windows are broken in several offices. Edina Grandview 2 Redevelopment TIF District Building Report LHB Project No. 130153.01 Page 2 of 2 Map 1 5. Exterior Construction a. Several exterior windows are broken, allowing air and water to infiltrate the building. b. The public entrance to the building does not have an airlock vestibule. c. All man doors are weathered and lightly damaged. d. Overhead doors have minor staining, dents and dings. e. The exterior wall has rust spots in various locations. f. Concrete block on both sides of public entrance are damaged. g. Areas of damage and decay are visible on roof eaves. Overview of Condition Deficiencies The former public works building is a large structure used for storage and maintenance of vehicles and equipment along with office functions for public works, streets, utilities, park and recreation and other miscellaneous groups. It was built in 1963 and vacated in 2010 after the City constructed a new public works facility. Overall, the building is in poor condition as a result of age and non-use. A significant amount of work would be required for this building to be made functional for a public or non-public use. In total, the defects and deficiencies in this building are of sufficient total significance to justify substantial renovation or clearance. Description of Code Deficiencies 1. The roof does not meet current minimum slope requirements per code. 2. Restroom facilities do not meet current accessibility codes. 3. Drinking fountain near entrance lobby does not meet code. 4. Grease traps in the repair garage do not meet current codes. 5. The ventilation system is not adequate in the shop area. 6. The cooling and heating system is not adequate in the office area. 7. The mezzanine stairs do not meet current codes. 8. Railings on all stairs do not meet current codes. 9. An elevator is required for access to the upper floor. 10. Guard rails at mezzanine spaces do not meet current codes. 11. Windows are broken allowing air and water to infiltrate the building envelope. Energy Code In addition to the building code deficiencies listed above, the existing building does not comply with the current energy code. These deficiencies are not included in the estimated costs to correct code deficiencies and are not considered in determining whether or not the building is substandard: - Building’s light fixtures are not energy efficient per code – T-12 fixtures. - Building’s walls and roof seem to lack adequate insulation to meet code. - Building’s windows are not energy efficient per code. M:\13Proj\130153\400 Design\406 Reports\TIF\Public Works Building\Public Works Substandard Building Report 3-13-13.doc Edina Grandview 2 Redevelopment TIF District Building Report LHB Project No. 130153.01 Page 1 of 2 Map No. 10 Edina Grandview 2 Redevelopment TIF District Building Code, Condition Deficiency and Context Analysis Report February 4, 2016 Map No. & Building Name: Parcel 10 Bus Barn Address & PID: 5150 Brookside Avenue Edina, MN, PID: 2811721340005 Inspection Date(s) & Time(s): December 23, 2015, 10:00 am Inspection Type: Interior and Exterior Summary of Deficiencies: It is our professional opinion that this building is Substandard because: - Substantial renovation is required to correct Conditions found. - Building Code deficiencies total more than 15% of replacement cost, NOT including energy code deficiencies. Estimated Replacement Cost: $928,527 Estimated Cost to Correct Building Code Deficiencies: $283,027 Percentage of Replacement Cost for Building Code Deficiencies: 30.48% Defects in Structural Elements 1. Exterior concrete block is deteriorating. 2. Exterior block walls are cracked. Combination of Deficiencies 1. Essential Utilities and Facilities a. Restrooms are not code compliant. b. There is no accessible route to the second floor. c. Thresholds are non compliant as they are greater than 1/2 inch. d. Door hardware is not code compliant for accessibility. e. Staff break room sink is not code compliant for accessibility. f. Stair railings are missing and not code compliant. g. Stair treads and risers are not code compliant. h. There is no code compliant accessible drinking fountain. 2. Light and Ventilation a. Emergency lighting was not observed. 3. Fire Protection/Adequate Egress a. There is no fire suppression system available. b. Emergency egress is compromised by open pits. 4. Layout and Condition of Interior Partitions/Materials a. Interior walls need repair and painting. Edina Grandview 2 Redevelopment TIF District Building Report LHB Project No. 130153.01 Page 2 of 2 Map No. 10 5. Exterior Construction a. Fascia is rotting and in need of replacement to prevent water intrusion. b. Gutters are damaged and in need of repair. c. Exterior block walls are rotting and allowing for water intrusion. d. Clerestory windows need to be replaced to prevent water intrusion. e. Exterior block walls are cracked which are indicative of differential settlement. f. Exterior walls need to be painted. Description of Code Deficiencies 1. Repair/replace exterior CMU to prevent water intrusion per building code. 2. Install accessible restroom per accessibility code. 3. Create accessible route to second floor per accessibility code. 4. Correct thresholds to comply with accessibility code. 5. Install accessible door hardware per code. 6. Modify staff break room sink to meet accessibility code. 7. Replace interior stairs with code compliant treads and risers. 8. Install compliant hand rail on west side of interior stairs per code. 9. Install code compliant accessible drinking fountain. 10. Install fire suppression system per code. 11. Protect open service pits to allow for emergency egress per code. 12. Replace fascia to prevent water intrusion per code. 13. Replace clerestory windows to prevent water intrusion per code. 14. Paint/seal exterior block walls to prevent water intrusion per code. Overview of Deficiencies According to staff this building was built sometime in the 1940's. It experienced a fire about 4 year ago and upgrades to both mechanical, electrical, windows and roof were completed in about 2012. There is no accessible route to the second floor and staff must go outside to access either floor as there is no approved route inside. The service bays have open pits for work under vehicles. There is no protection from the open pits other than a four inch curb. The exterior block work is rotting and allowing for water intrusion. There are no accessible restrooms in the building. Fire suppression is also absent. M:\13Proj\130153\400 Design\406 Reports\130153.01\Building Reports\130153.01 20160204 Parcel 10 Edina Bus Barn Building Report.doc Edina Grandview 2 Redevelopment TIF District Building Report LHB Project No. 130153.01 Page 1 of 2 Map No. 11 Edina Grandview 2 Redevelopment TIF District Building Code, Condition Deficiency and Context Analysis Report February 4, 2016 Map No. & Building Name: Map No. 11 Bus Storage Address & PID: 5220 Eden Avenue, Edina, MN PID: 2811721340004 Inspection Date(s) & Time(s): December 23, 2015, 10:45 am Inspection Type: Interior and Exterior Summary of Deficiencies: It is our professional opinion that this building is Substandard because: - Substantial renovation is required to correct Conditions found. - Building Code deficiencies total more than 15% of replacement cost, NOT including energy code deficiencies. Estimated Replacement Cost: $1,312,718 Estimated Cost to Correct Building Code Deficiencies: $454,054 Percentage of Replacement Cost for Building Code Deficiencies: 34.58% Defects in Structural Elements 1. Concrete blocks are cracked which are indicative of differential settlement. 2. The interior roof support columns are rusting. Combination of Deficiencies 1. Essential Utilities and Facilities a. The restroom is not accessible per code. b. Threshold heights are greater than allowed by code. c. The concrete block stairs to the electrical room are in disrepair and not code compliant. d. The drinking fountain is not accessible per code. e. Door hardware is not code compliant for accessibility. f. Water heater needs to be replaced because of age. 2. Light and Ventilation a. The exhaust system in the restroom is non-compliant. b. The HVAC system appears to be greater than 30 years old and is non-compliant. c. Electrical service is older. d. Interior HVAC system was disconnected and non-functional. 3. Fire Protection/Adequate Egress a. There is no fire alarm notification system present. b. The VCT tile is damaged and is a trip hazard impeding emergency egress per code. c. In the event of a fire and power outage there are not enough secondary means of egress per code. d. There are no emergency lights in the building. Edina Grandview 2 Redevelopment TIF District Building Report LHB Project No. 130153.01 Page 2 of 2 Map No. 11 4. Layout and Condition of Interior Partitions/Materials a. Interior walls need to be painted. b. Interior VCT flooring is in need of replacement. c. Interior flooring in garage should be sealed. d. During inspection several garage doors failed to operate. 5. Exterior Construction a. Exterior block work is in need of painting/sealing to prevent water intrusion. b. Exterior roof flashing is in need of repair to prevent water intrusion. c. Asphalt roof needs replacement to prevent water intrusion per code. d. Electrical service door was warped and did not function properly. Description of Code Deficiencies 1. Install accessible restroom per code. 2. Modify thresholds to comply with accessibility code. 3. Paint interior structural columns to prevent rusting per code. 4. Repair concrete block stairs to electrical room and add railing per code. 5. Install accessible drinking fountain per code. 6. Install code compliant accessible door hardware. 7. Provide code required exhaust system in restroom. 8. Install code compliant HVAC system. 9. Install fire/emergency notification system per code. 10. Install fire suppression system per code. 11. Install emergency egress lighting per code. 12. Install secondary emergency exiting per code. 13. Replace damaged VCT for unimpeded egress per code. 14. Paint/seal exterior block to prevent water intrusion per code. 15. Replace roof and flashing to prevent water intrusion per code. Overview of Deficiencies Staff reports that this building was constructed in the 1940's and has seen little repairs or improvements for many years. The roof and the HVAC system appear to be greater than 25 years old. Water intrusion is evident in several areas and the surface of the roof is bubbled and cracked. The restroom is non-compliant for accessibility and there are no emergency lights or notification system in the building. Steel structural support columns are rusting at their bases. M:\13Proj\130153\400 Design\406 Reports\130153.01\Building Reports\130153.01 20160204 Parcel 11 Edina Bus Storage Building Report.doc APPENDIX C Building Replacement Cost Reports Code Deficiency Cost Reports Photographs Edina Grandview 2 Redevelopment TIF District Replacement Cost Report Map 1: Parcel 28-117-21-31-0016 - Public Works Facility Square Foot Cost Estimate Report Estimate Name:Edina Public Works Building Type: Garage, Repair with Poured Concrete / Steel  Joists Location:MINNEAPOLIS, MN Story Count:1 Story Height (L.F.):20 Floor Area (S.F.):40888 Labor Type:STD Basement Included:No  Data Release:Year 2013 Quarter 1 Cost Per Square Foot:$81.82  Building Cost:$3,439,600.78  % of Total Cost Per S.F. Cost 12.55% 9.78 399,885 A1010 Standard Foundations 1.05 42,932 A1030 Slab on Grade 8.73 356,952 A2010 Basement Excavation 0 0 A2020 Basement Walls 0 0 25.12% 23.79 972,725.52 B1020 Roof Construction 6.08 248,599 B2010 Exterior Walls 8.65 353,681 B2020 Exterior Windows 0.79 32,302 B2030 Exterior Doors 1.65 67,465 B3010 Roof Coverings 6.62 270,679 B3020 Roof Openings 0 0 7.55% 7.16 292,758 C1010 Partitions 1.87 76,461 C1020 Interior Doors 0.43 17,582 Costs are derived from a building model with basic components. Scope differences and market conditions can cause costs to vary significantly. A Substructure Strip footing, concrete, reinforced, load 11.1 KLF, soil bearing capacity 6  Slab on grade, 6" thick, light industrial, reinforced Excavate and fill, 30,000 SF, 4' deep, sand, gravel, or common earth, on  Foundation wall, CIP, 4' wall height, direct chute, .148 CY/LF, 7.2 PLF, 12"  B Shell Roof, steel joists, 1.5" 22 ga metal deck, on bearing walls, 40' bay, 25.5"  Concrete wall, reinforced, 8' high, 8" thick, plain finish, 3000 PSI Windows, aluminum, sliding, standard glass, 5' x 3' Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'‐0" x 7'‐ Door, steel 24 gauge, overhead, sectional, manual operation, 12'‐0" x 12'‐ Roofing, asphalt flood coat, gravel, base sheet, 3 plies 15# asphalt felt,  Insulation, rigid, roof deck, composite with 2" EPS, 1" perlite Roof edges, aluminum, duranodic, .050" thick, 6" face Gravel stop, aluminum, extruded, 4", mill finish, .050" thick Skylight, plastic domes, insulated curbs, 10 SF to 20 SF, single glazing C Interiors Lightweight block 4" thick Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 1 of 3 Replacement Cost Report Map 1 % of Total Cost Per S.F. Cost C1030 Fittings 0.04 1,636 C3010 Wall Finishes 2.95 120,620 C3020 Floor Finishes 1.44 58,879 C3030 Ceiling Finishes 0.43 17,582 36.97% 30.42 1,325,589 D2010 Plumbing Fixtures 3.49 142,699 D2020 Domestic Water Distribution 0.59 24,124 D2040 Rain Water Drainage 2.08 85,047 D3050 Terminal & Package Units 10.03 410,107 D3090 Other HVAC Systems/Equip 0.23 9,404 D4010 Sprinklers 5.05 206,484 D4020 Standpipes 0 0 D5010 Electrical Service/Distribution 0.13 5,315 D5020 Lighting and Branch Wiring 8.72 356,543 D5030 Communications and Security 2.0 81,776 D5090 Other Electrical Systems 0.1 4,089 Door, single leaf, kd steel frame, hollow metal, commercial quality, flush,  Toilet partitions, cubicles, ceiling hung, stainless steel 2 coats paint on masonry with block filler Painting, masonry or concrete, latex, brushwork, primer & 2 coats Painting, masonry or concrete, latex, brushwork, addition for block filler Concrete topping, hardeners, metallic additive, minimum Vinyl, composition tile, minimum Acoustic ceilings, 5/8" fiberglass board, 24" x 48" tile, tee grid, suspended  D Services Water closet, vitreous china, bowl only with flush valve, wall hung Urinal, vitreous china, wall hung Lavatory w/trim, wall hung, PE on CI, 19" x 17" Service sink w/trim, PE on CI,wall hung w/rim guard, 24" x 20" Shower, stall, baked enamel, molded stone receptor, 30" square Water cooler, electric, wall hung, wheelchair type, 7.5 GPH Gas fired water heater, residential, 100< F rise, 30 gal tank, 32 GPH Roof drain, steel galv sch 40 threaded, 4" diam piping, 10' high Roof drain, steel galv sch 40 threaded, 4" diam piping, for each additional  Rooftop, single zone, air conditioner, factories, 10,000 SF, 33.33 ton Garage, single exhaust, 3" outlet, cars & light trucks, 1 bay Garage, single exhaust, 3" outlet, additional bays up to seven bays Wet pipe sprinkler systems, steel, ordinary hazard, 1 floor, 10,000 SF Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe, 1 floor Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe,  Service installation, includes breakers, metering, 20' conduit & wire, 3  Feeder installation 600 V, including RGS conduit and XHHW wire, 200 A Switchgear installation, incl switchboard, panels & circuit breaker,  Receptacles incl plate, box, conduit, wire, 4 per 1000 SF, .5 watts per SF Miscellaneous power, 1 watt Central air conditioning power, 3 watts Fluorescent fixtures recess mounted in ceiling, 1.6 watt per SF, 40 FC, 10  Communication and alarm systems, fire detection, addressable, 25  Fire alarm command center, addressable with voice, excl. wire & conduit Internet wiring, 4 data/voice outlets per 1000 S.F. Generator sets, w/battery, charger, muffler and transfer switch,  Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 2 of 3 Replacement Cost Report Map 1 % of Total Cost Per S.F. Cost 17.81%0 0 E1030 Vehicular Equipment 0 0 E1090 Other Equipment 0 0 0%0 0 0%0 0 100% $71.15 2,990,957 10.00% $7.12 299,096 5.00% $3.56 149,548 0.00% $0.00 0 $81.82 3,439,601 Contractor Fees (General Conditions,Overhead,Profit) Architectural Fees User Fees Total Building Cost E Equipment & Furnishings Architectural equipment, auto equipment hoists, single post, 4 ton  F Special Construction G Building Sitework SubTotal Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 3 of 3 Replacement Cost Report Map 1 Edina Grandview 2 Redevelopment TIF District Code Deficiency Cost Report Map 1: Parcel 28-117-21-31-0016 - Public Works Facility Code Related Cost Items Unit Cost Units Unit Quantity Total Accessibility Items Replace toilets to provide handicap accessibility for each sex Remove existng toilet rooms 2,250.00$ Lump 3 6,750.00$ 3 water closets 3,750.00$ each 4 15,000.00$ 3 lavs 2,500.00$ each 4 10,000.00$ 2 Urinals 2,500.00$ each 2 5,000.00$ 3 sets of grab bars 600.00$ each 4 2,400.00$ 3 sets toilet room accessories 750.00$ each 4 3,000.00$ 60.00$ SF 500 30,000.00$ Reinstall toilet Room Ventilation System 1,000.00$ each 4 4,000.00$ Add Elevator to upper level spaces Elevator Pit and footings 8,000.00$ Lump 1 8,000.00$ 12" CMU Elevator Shaft walls 13.00$ SF 1,216 15,808.00$ Elevator Equipment (2 stop)44,575.00$ Lump 1 44,575.00$ Elevator Equipment Room (Assume 64 SF)30.00$ SF 64 1,920.00$ Power 100 amp 3 phase Safety Switch 520.00$ Lump 1 520.00$ Circuit Breaker 795.00$ Lump 1 795.00$ Motor Starter 450.00$ Lump 1 450.00$ Wire and Conduit Feeder (150 feet assumed)31.00$ LF 150 4,650.00$ Fire Alarm Connections 1,000.00$ lump 1 1,000.00$ Emergency Phone Connection 12.00$ LF 150 1,800.00$ Fire Seperation Items Office area must be fire separated from Garage area 1,300.00$ Each 2 2,600.00$ 850.00$ Each 5 4,250.00$ Exterior Envelope Remove and replace windows 12,000.00$ Allow 1 12,000.00$ Build (4) new acccessible toilet rooms W/ compliant number of accessories and fixtures Interior configuration does not provide for accessible route. Interior handicap access route not provided through out building. MN 1341.0405, Item E Interior room reconstruction (doors, partitions,finishes) Provide new fire rated doors at existing openings 6'- 0"x 7'-0" Provide new fire rated doors at existing openings 3'- 0"x 7'-0" Windows are 25 percent broken allowing water and air infiltration The existing roof slope does not meet the 1/4" per foot required in IBC 1507 Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 1 of 2 Code Deficiency Cost Report Map 1 Map 1: Parcel 28-117-21-31-0016 - Public Works Facility Code Related Cost Items Unit Cost Units Unit Quantity Total Remove existing roof above structure 0.50$ SF 40,000 20,000.00$ 4.00$ SF 40,000 160,000.00$ Exiting Remove existing handrails 400.00$ Each 6 2,400.00$ Install new handrail 25.00$ LF 240 6,000.00$ Remove existing guard rails 4.00$ LF 500 2,000.00$ Install new guard rails 25.00$ LF 500 12,500.00$ Provide new exit signage and emergency lighting 400.00$ Each 8 3,200.00$ Fire Protection Update fire alarm system in storage areas 1.75$ SF 10,000 17,500.00$ Plumbing 2,500.00$ EA 1 2,500.00$ Mechanical- Electrical 0.75$ Allow 40,000 30,000.00$ 10.00$ SF 40,000 400,000.00$ Electrical Demo existing electrical system and remnants of ligh 10,000.00$ Allow 1 10,000.00$ Provide new service entrance and switch gear 1.75$ SF 40,000 70,000.00$ Provide new branch circuits and lighting in portions o 7.50$ SF 25,000 187,500.00$ Total Code Improvements 1,098,118.00$ 3,439,600.00$ 31.9% Stairs do not provide for proper handrail extension at top and bottom of stair. IBC 1003.3.3.3.11.5. HVAC system is insufficient for properly ventilating the garage space and for properly cooling and heating the Install new roof with tapered insulation providing proper drainage Insufficient power for upgraded HVAC, lighting system largely gutted or dated Mezzanine Guard rails do not meet current code (space between bars) IBC Chapter 9 - Fire alarm system required in high-pile storage areas Drinking fountain in entrance area is blocking path of egress Demolish existing drinking fountain and install code complying unit Demolish existing HVAC system in office and garage areas Provide new HVAC (with electrical upgrades) for entire facility Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 2 of 2 Code Deficiency Cost Report Map 1 Edina Grandview 2 Redevelopment TIF District Photos: Map No. 1, 5146 Eden Avenue, Public Works Building Page 1 of 7 IMG_7659.JPG IMG_7660.JPG IMG_7661.JPG IMG_7662.JPG IMG_7663.JPG IMG_7664.JPG IMG_7665.JPG IMG_7666.JPG IMG_7667.JPG IMG_7668.JPG IMG_7669.JPG IMG_7670.JPG Page 2 of 7Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Photos Map No. 1 IMG_7671.JPG IMG_7672.JPG IMG_7673.JPG IMG_7674.JPG IMG_7675.JPG IMG_7676.JPG IMG_7677.JPG IMG_7678.JPG IMG_7679.JPG IMG_7680.JPG IMG_7681.JPG IMG_7682.JPG Page 3 of 7Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Photos Map No. 1 IMG_7683.JPG IMG_7684.JPG IMG_7685.JPG IMG_7686.JPG IMG_7687.JPG IMG_7688.JPG IMG_7689.JPG IMG_7690.JPG IMG_7691.JPG IMG_7692.JPG IMG_7693.JPG IMG_7694.JPG Page 4 of 7Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Photos Map No. 1 IMG_7695.JPG IMG_7696.JPG IMG_7697.JPG IMG_7698.JPG IMG_7699.JPG IMG_7700.JPG IMG_7701.JPG IMG_7702.JPG IMG_7703.JPG IMG_7704.JPG IMG_7705.JPG IMG_7706.JPG Page 5 of 7Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Photos Map No. 1 IMG_7707.JPG IMG_7708.JPG IMG_7709.JPG IMG_7710.JPG IMG_7711.JPG IMG_7712.JPG IMG_7713.JPG IMG_7714.JPG IMG_7715.JPG IMG_7716.JPG IMG_7717.JPG IMG_7718.JPG Page 6 of 7Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Photos Map No. 1 IMG_7719.JPG IMG_7720.JPG IMG_7721.JPG IMG_7722.JPG IMG_7723.JPG IMG_7724.JPG IMG_7725.JPG IMG_7726.JPG IMG_7727.JPG IMG_7728.JPG IMG_7729.JPG IMG_7730.JPG Page 7 of 7Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Photos Map No. 1 IMG_7731.JPG IMG_7732.JPG IMG_7733.JPG IMG_7734.JPG IMG_7735.JPG IMG_7736.JPG IMG_7737.JPG IMG_7738.JPG IMG_7739.JPG IMG_7740.JPG Edina Grandview 2 Redevelopment TIF District Replacement Cost Report Map No. 10: Parcel 2811721340005 - Bus Barn Square Foot Cost Estimate Report Date:12/30/2015 5150 Brookside Avenue, Edina, Minnesota 55424 Building Type: Garage, Repair with Concrete Block / Steel Trusses Location:MINNEAPOLIS, MN Story Count:2 Story Height (L.F.):20 Floor Area (S.F.):6448 Labor Type:OPN Basement Included:No Data Release:Year 2016 Cost Per Square Foot:$143.36 Building Cost:$928,527.41 % of Total Cost Per S.F. Cost 9.37% 12.21 78,749.90 A1010 Standard Foundations 3.34 21,556.60 3.34 21,556.60 A1030 Slab on Grade 4.19 27,038.33 4.19 27,038.33 A2010 Basement Excavation 0.17 1,122.89 0.17 1,122.89 A2020 Basement Walls 4.50 29,032.08 4.5 29,032.08 37.01% 48.23 319,410.23 B1020 Roof Construction 7.07 45,587.36 7.07 45,587.36 B2010 Exterior Walls 25.64 165,336.37 25.64 165,336.37 B2020 Exterior Windows 4.01 25,826.94 4.01 25,826.94 B2030 Exterior Doors 6.47 41,728.58 0.61 3,943.21 5.86 37,785.37 B3010 Roof Coverings 6.31 40,693.26 5.21 33,594.08 1.1 7,099.18 A Substructure Strip footing, concrete, reinforced, load 11.1 KLF, soil bearing capacity 6 KSF, 12" deep x 24" wide Slab on grade, 6" thick, light industrial, reinforced Excavate and fill, 10,000 SF, 4' deep, sand gravel, or common earth, on site storage Estimate Name: Costs are derived from a building model with basic components. Scope differences and market conditions can cause costs to vary significantly. Windows, aluminum, sliding, standard glass, 5' x 3' Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'-0" x 7'-0" opening Door, steel 24 gauge, overhead, sectional, manual operation, 12'-0" x 12'-0" opening Gable end roofing, asphalt, roof shingles, class A Foundation wall, CIP, 4' wall height, direct chute, .148 CY/LF, 7.2 PLF, 12" thick B Shell Wood roof, truss, 4/12 slope, 24" O.C., 44' to 60' span Concrete block (CMU) wall, regular weight, 75% solid, 8 x 8 x 16, 4500 PSI, reinforced, vertical #5@32", grouted Insulation, rigid, roof deck, composite with 2" EPS, 1" perlite Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 1 of 3 Replacement Cost Report Map No. 10 % of Total Cost Per S.F. Cost B3020 Roof Openings 0.04 237.72 0.04 237.72 15.61%20.34 131,135.21 C1010 Partitions 5.12 33,014.04 1.84 11,842.08 3.28 21,171.96 C1020 Interior Doors 0.41 2,646.42 0.41 2,646.42 C1030 Fittings 0.25 1,604.84 0.25 1,604.84 C3010 Wall Finishes 7.91 50,954.05 6.43 41,460.53 0.82 5,259.76 0.66 4,233.76 C3020 Floor Finishes 6.20 39,997.58 4.7 30,305.60 1.25 8,058.56 0.25 1,633.42 C3030 Ceiling Finishes 0.45 2,918.28 0.45 2,918.28 38.02%49.55 314,820.49 D1010 Elevators and Lifts 17.16 110,640.20 17.16 110,640.20 D2010 Plumbing Fixtures 2.66 17,151.68 1.01 6,512.48 0.22 1,418.56 0.57 3,675.36 0.56 3,610.88 0.3 1,934.40 D2020 Domestic Water Distribution 0.64 4,117.67 0.64 4,117.67 D3050 Terminal & Package Units 9.28 59,829.32 9.28 59,829.32 D3090 Other HVAC Systems/Equip 1.38 8,943.92 0.94 6,079.60 0.44 2,864.32 D4010 Sprinklers 4.37 28,182.02 4.37 28,182.02 D4020 Standpipes 0.95 6,130.35 0.87 5,621.91 0.08 508.44 D5010 Electrical Service/Distribution 0.73 4,720.30 0.47 3,054.80 Concrete block (CMU) partition, light weight, hollow, 8" thick, no finish Door, single leaf, kd steel frame, hollow metal, commercial quality, flush, 3'-0" x 7'-0" x 1-3/8" Toilet partitions, cubicles, ceiling hung, stainless steel 2 coats paint on masonry with block filler Skylight, plastic domes, insulated curbs, 10 SF to 20 SF, single glazing C Interiors Lightweight block 4" thick Vinyl, composition tile, minimum Acoustic ceilings, 5/8" fiberglass board, 24" x 48" tile, tee grid, suspended support D Services Hydraulic, commercial elevator, 5000 lb, 2 floors, 100 FPM Painting, masonry or concrete, latex, brushwork, primer & 2 coats Painting, masonry or concrete, latex, brushwork, addition for block filler Carpet tile, nylon, fusion bonded, 18" x 18" or 24" x 24", 24 oz Concrete topping, hardeners, metallic additive, minimum Water cooler, electric, wall hung, wheelchair type, 7.5 GPH Gas fired water heater, residential, 100< F rise, 30 gal tank, 32 GPH Rooftop, single zone, factories, 10,000 SF, 33.33 ton Garage, single exhaust, 3" outlet, cars & light trucks, 1 bay Water closet, vitreous china, bowl only with flush valve, wall hung Urinal, vitreous china, wall hung Lavatory w/trim, wall hung, PE on CI, 19" x 17" Service sink w/trim, PE on CI,wall hung w/rim guard, 24" x 20" Overhead service installation, includes breakers, metering, 20' conduit & wire, 3 phase, 4 wire, 120/208 V, 200 A Garage, single exhaust, 3" outlet, additional bays up to seven bays Wet pipe sprinkler systems, steel, ordinary hazard, 1 floor, 10,000 SF Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe, 1 floor Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe, additional floors Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 2 of 3 Replacement Cost Report Map No. 10 % of Total Cost Per S.F. Cost 0.21 1,359.54 0.05 305.96 D5020 Lighting and Branch Wiring 8.66 55,822.14 2.23 14,388.84 0.31 1,989.08 0.64 4,096.80 5.48 35,347.42 D5030 Communications and Security 3.63 23,391.89 2.14 13,786.44 1.25 8,029.89 0.24 1,575.56 D5090 Other Electrical Systems 0.09 611.3 0.09 611.3 0% 0 0 E1090 Other Equipment 0 0 0% 0 0 0% 0 0 100% $130.33 $844,115.83 10.00% $13.03 $84,411.58 0.00% $0.00 $0.00 0.00% $0.00 $0.00 $143.36 $928,527.41 Feeder installation 600 V, including RGS conduit and XHHW wire, 200 A Switchgear installation, incl switchboard, panels & circuit breaker, 120/208 V, 1 phase, 400 A Receptacles incl plate, box, conduit, wire, 4 per 1000 SF, .5 watts per SF Fire alarm command center, addressable with voice, excl. wire & conduit Internet wiring, 4 data/voice outlets per 1000 S.F. Generator sets, w/battery, charger, muffler and transfer switch, gas/gasoline operated, 3 phase, 4 wire, 277/480 V, 15 kW E Equipment & Furnishings Miscellaneous power, 1 watt Central air conditioning power, 3 watts Fluorescent fixtures recess mounted in ceiling, 1.6 watt per SF, 40 FC, 10 fixtures @32watt per 1000 SF Communication and alarm systems, fire detection, addressable, 25 detectors, includes outlets, boxes, conduit and wire Architectural Fees User Fees Total Building Cost F Special Construction G Building Sitework SubTotal Contractor Fees (General Conditions,Overhead,Profit) Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 3 of 3 Replacement Cost Report Map No. 10 Edina Grandview 2 Redevelopment TIF District Code Deficiency Cost Report Map No. 10 - 5150 Brookside Avenue - Parcel 2811721340005 Bus Barn Code Related Cost Items Unit Cost Units Unit Quantity Total Accessibility Items Restroom Install accessible restroom per code 17,151.00$ Ea 2 30,434.00$ Elevator Install accessible route to second floor 110,640.00$ Ea 1 110,640.00$ Thresholds Modify thresholds for accessibility code compliance 500.00$ Ea 5 2,500.00$ Door Hardware Install accessible door hardware per code 250.00$ Ea 5 1,250.00$ Staff break room Modify staff sink area for accessibility compliance 1,500.00$ Ea 1 1,500.00$ Drinking fountain Install code compliant accessible drinking fountain 1,934.00$ Ea 1 1,934.00$ Structural Elements Block walls Repair/replace rotting CMU's to prevent water intrusion per code 1.70$ SF 6,448 10,961.60$ Exiting Stairs Replace interior stairs with code compliant ones 350.00$ Ea 20 7,000.00$ Railing Install code compliant railings on interior and exterior stairs 500.00$ Ea 2 1,000.00$ Open service pits Protect open service pits for emergency egress compliance 2,500.00$ Ea 4 10,000.00$ Fire Protection Fire suppression Install code compliant fire suppression system 5.32$ SF 6,448 34,303.36$ Exterior Construction Fascia Replace damaged fascia to prevent water intrusion per code 2,500.00$ Lump 1 2,500.00$ Window Replace clerestory windows to prevent water intrusion per code 1,500.00$ Ea 12 18,000.00$ Exterior Walls Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 1 of 2 Code Deficiency Cost Report Map No. 10 Code Related Cost Items Unit Cost Units Unit Quantity Total Paint/seal exterior CMU surfaces to prevent water intrusion per code 7.91$ SF 6,448 51,003.68$ Roof Construction Mechanical- Electrical Total Code Improvements 283,026.64$ Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 2 of 2 Code Deficiency Cost Report Map No. 10 Edina Grandview 2 Redevelopment TIF District Photos: Map No. 10, 5150 Brookside Avenue, Bus Barn Page 1 of 7 P1060707.JPG P1060708.JPG P1060709.JPG P1060710.JPG P1060711.JPG P1060712.JPG P1060713.JPG P1060714.JPG P1060715.JPG P1060716.JPG P1060717.JPG P1060718.JPG Page 2 of 7Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Photos Map No. 10 P1060719.JPG P1060720.JPG P1060721.JPG P1060722.JPG P1060723.JPG P1060724.JPG P1060725.JPG P1060726.JPG P1060727.JPG P1060728.JPG P1060729.JPG P1060730.JPG Page 3 of 7Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Photos Map No. 10 P1060731.JPG P1060732.JPG P1060733.JPG P1060734.JPG P1060735.JPG P1060736.JPG P1060737.JPG P1060738.JPG P1060739.JPG P1060740.JPG P1060741.JPG P1060742.JPG Page 4 of 7Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Photos Map No. 10 P1060743.JPG P1060744.JPG P1060745.JPG P1060746.JPG P1060747.JPG P1060748.JPG P1060749.JPG P1060750.JPG P1060751.JPG P1060752.JPG P1060799.JPG P1060800.JPG Page 5 of 7Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Photos Map No. 10 P1060801.JPG P1060802.JPG P1060803.JPG P1060804.JPG P1060805.JPG P1060806.JPG P1060807.JPG P1060808.JPG P1060809.JPG P1060810.JPG P1060811.JPG P1060812.JPG Page 6 of 7Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Photos Map No. 10 P1060813.JPG P1060814.JPG P1060815.JPG P1060816.JPG P1060817.JPG P1060818.JPG P1060819.JPG P1060820.JPG P1060821.JPG P1060822.JPG P1060823.JPG P1060824.JPG Page 7 of 7Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Photos Map No. 10 P1060825.JPG P1060826.JPG P1060827.JPG P1060828.JPG P1060829.JPG P1060830.JPG P1060831.JPG P1060832.JPG Edina Grandview 2 Redevelopment TIF District Replacement Cost Report Map No. 11: Parcel 2811721340004 - Bus Storage Square Foot Cost Estimate Report Date:12/30/2015 5220 Eden Avenue, Edina, Minnesota, 55424 Building Type: Garage, Repair with Concrete Block / Steel Joists Location:MINNEAPOLIS, MN Story Count:1 Story Height (L.F.):14 Floor Area (S.F.):17940 Labor Type:OPN Basement Included:No Data Release:Year 2016 Cost Per Square Foot:$73.17 Building Cost:$1,312,718.11 % of Total Cost Per S.F. Cost 20.55% 13.67 245,233.77 A1010 Standard Foundations 2.1 37,724.06 2.1 37,724.06 A1030 Slab on Grade 8.39 150,455.25 8.39 150,455.25 A2010 Basement Excavation 0.35 6,248.32 0.35 6,248.32 A2020 Basement Walls 2.83 50,806.14 2.83 50,806.14 31.51% 20.96 376,039.57 B1020 Roof Construction 5.59 100,197.77 5.59 100,197.77 B2010 Exterior Walls 5.64 101,268.53 5.64 101,268.53 B2020 Exterior Windows 0.88 15,819.00 0.88 15,819.00 B2030 Exterior Doors 1.9 34,114.56 0.61 10,971.02 1.29 23,143.54 B3010 Roof Coverings 6.95 124,639.71 Windows, aluminum, sliding, standard glass, 5' x 3' Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'-0" x 7'-0" opening Door, steel 24 gauge, overhead, sectional, manual operation, 12'-0" x 12'-0" opening Slab on grade, 6" thick, light industrial, reinforced Excavate and fill, 10,000 SF, 4' deep, sand gravel, or common earth, on site storage Foundation wall, CIP, 4' wall height, direct chute, .148 CY/LF, 7.2 PLF, 12" thick B Shell Roof, steel joists, 1.5" 22 ga metal deck, on bearing walls, 40' bay, 25.5" deep, 40 PSF superimposed load, 61 PSF total load Concrete block (CMU) wall, regular weight, 75% solid, 8 x 8 x 16, 4500 PSI, reinforced, vertical #5@32", grouted Estimate Name: Costs are derived from a building model with basic components. Scope differences and market conditions can cause costs to vary significantly. A Substructure Strip footing, concrete, reinforced, load 11.1 KLF, soil bearing capacity 6 KSF, 12" deep x 24" wide Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 1 of 3 Replacement Cost Report Map No. 11 % of Total Cost Per S.F. Cost 3.34 59,976.29 2.2 39,503.52 0.98 17,565.73 0.42 7,594.17 15.73% 10.46 187,714.41 C1010 Partitions 5.12 91,853.58 1.84 32,947.72 3.28 58,905.86 C1020 Interior Doors 0.41 7,363.02 0.41 7,363.02 C1030 Fittings 0.09 1,604.84 0.09 1,604.84 C3010 Wall Finishes 2.89 51,808.00 1.42 25,394.58 0.82 14,634.02 0.66 11,779.40 C3020 Floor Finishes 1.5 26,965.58 1.25 22,420.98 0.25 4,544.60 C3030 Ceiling Finishes 0.45 8,119.39 0.45 8,119.39 32.21% 21.43 384,392.35 D2010 Plumbing Fixtures 2.65 47,549.91 1.01 18,088.91 0.22 3,928.78 0.57 10,138.08 0.56 9,965.53 0.3 5,428.61 D2020 Domestic Water Distribution 0.64 11,456.42 0.64 11,456.42 D2040 Rain Water Drainage 1.94 34,759.29 1.61 28,839.82 0.33 5,919.47 D3050 Terminal & Package Units 1.7 30,575.00 1.7 30,575.00 D3090 Other HVAC Systems/Equip 0.5 8,943.92 0.34 6,079.60 0.16 2,864.32 D4010 Sprinklers 4.37 78,409.64 4.37 78,409.64 D4020 Standpipes 0.95 17,056.22 Wet pipe sprinkler systems, steel, ordinary hazard, 1 floor, 10,000 SF Gas fired water heater, residential, 100< F rise, 30 gal tank, 32 GPH Roof drain, steel galv sch 40 threaded, 4" diam piping, 10' high Roof drain, steel galv sch 40 threaded, 4" diam piping, for each additional foot add Rooftop, single zone, air conditioner, factories, 500 SF, 1.67 ton Garage, single exhaust, 3" outlet, cars & light trucks, 1 bay Garage, single exhaust, 3" outlet, additional bays up to seven bays D Services Water closet, vitreous china, bowl only with flush valve, wall hung Urinal, vitreous china, wall hung Lavatory w/trim, wall hung, PE on CI, 19" x 17" Service sink w/trim, PE on CI,wall hung w/rim guard, 24" x 20" Water cooler, electric, wall hung, wheelchair type, 7.5 GPH 2 coats paint on masonry with block filler Painting, masonry or concrete, latex, brushwork, primer & 2 coats Painting, masonry or concrete, latex, brushwork, addition for block filler Concrete topping, hardeners, metallic additive, minimum Vinyl, composition tile, minimum Acoustic ceilings, 5/8" fiberglass board, 24" x 48" tile, tee grid, suspended support Gravel stop, aluminum, extruded, 4", mill finish, .050" thick C Interiors Lightweight block 4" thick Concrete block (CMU) partition, light weight, hollow, 8" thick, no finish Door, single leaf, kd steel frame, hollow metal, commercial quality, flush, 3'-0" x 7'-0" x 1-3/8" Toilet partitions, cubicles, ceiling hung, stainless steel Roofing, asphalt flood coat, gravel, base sheet, 3 plies 15# asphalt felt, mopped Insulation, rigid, roof deck, composite with 2" EPS, 1" perlite Roof edges, aluminum, duranodic, .050" thick, 6" face Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 2 of 3 Replacement Cost Report Map No. 11 % of Total Cost Per S.F. Cost 0.87 15,641.62 0.08 1,414.60 D5010 Electrical Service/Distribution 0.26 4,720.30 0.17 3,054.80 0.08 1,359.54 0.02 305.96 D5020 Lighting and Branch Wiring 4.69 84,138.60 2.23 40,033.47 0.31 5,534.13 2.15 38,571.00 D5030 Communications and Security 3.63 65,082.26 2.14 38,357.42 1.25 22,341.22 0.24 4,383.62 D5090 Other Electrical Systems 0.09 1,700.79 0.09 1,700.79 0% 0 0 E1090 Other Equipment 0 0 0% 0 0 0% 0 0 100% $66.52 $1,193,380.10 10.00% $6.65 $119,338.01 0.00% $0.00 $0.00 0.00% $0.00 $0.00 $73.17 $1,312,718.11 Generator sets, w/battery, charger, muffler and transfer switch, gas/gasoline operated, 3 phase, 4 wire, 277/480 V, 15 kW E Equipment & Furnishings Architectural Fees User Fees Total Building Cost F Special Construction G Building Sitework SubTotal Contractor Fees (General Conditions,Overhead,Profit) Receptacles incl plate, box, conduit, wire, 4 per 1000 SF, .5 watts per SF Miscellaneous power, 1 watt HID fixture, 8'-10' above work plane, 1 watt/SF, type C, 54 FC, 2 fixtures per 1000 SF Communication and alarm systems, fire detection, addressable, 25 detectors, includes outlets, boxes, conduit and wire Fire alarm command center, addressable with voice, excl. wire & conduit Internet wiring, 4 data/voice outlets per 1000 S.F. Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe, 1 floor Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe, additional floors Overhead service installation, includes breakers, metering, 20' conduit & wire, 3 phase, 4 wire, 120/208 V, 200 A Feeder installation 600 V, including RGS conduit and XHHW wire, 200 A Switchgear installation, incl switchboard, panels & circuit breaker, 120/208 V, 1 phase, 400 A Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 3 of 3 Replacement Cost Report Map No. 11 Edina Grandview 2 Redevelopment TIF District Code Deficiency Cost Report Map No. 11 - 5220 Eden Avenue - Parcel 2811721340004 Bus Storage Code Related Cost Items Unit Cost Units Unit Quantity Total Accessibility Items Restroom Install accessible restroom 47,459.00$ Ea 1 42,031.00$ Thesholds Modify thresholds for code compliance 500.00$ Ea 11 5,500.00$ Drinking fountain Install accessible drinking fountain 5,428.00$ Ea 1 5,428.00$ Door Hardware Install accessible door hardware 250.00$ Ea 5 1,250.00$ Structural Elements Interior structural columns Paint columns to prevent rusting per code 1,500.00$ Lump 1 1,500.00$ Exiting Lighting Install emergency lighting per code 3,500.00$ Lump 1 3,500.00$ Flooring Replace damaged VCT for unimpeded egress per code 1.25$ SF 600 750.00$ Doors Install secondary emergency exiting per code 800.00$ Ea 10 8,000.00$ Stairs Repair/replace CMU stairs to meet code compliance 1,500.00$ Lump 1 1,500.00$ Fire Protection Sprinkler Install code compliant sprinkler system 5.32$ SF 17,940 95,440.80$ Emergency notification Install fire notification alarming system 3.39$ SF 17,940 60,816.60$ Exterior Construction Masonry block work Paint/seal exterior block to prevent water intrusion per code 2.89$ SF 17,940 51,846.60$ Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 1 of 2 Code Deficiency Cost Report Map No. 11 Code Related Cost Items Unit Cost Units Unit Quantity Total Roof Construction Roof Remove existing roof 0.92$ SF 17,940 16,504.80$ Replace roof to prevent water intrusion per code 5.54$ SF 17,940 99,387.60$ Flashing Replace metal flashing to prevent water intrusion per code 1.40$ SF 17,940 25,116.00$ Mechanical- Electrical Mechanical Replace HVAC system to meet code compliance 1.70$ SF 17,940 30,498.00$ Install compliant exhaust system in restroom 500.00$ Ea 1 500.00$ Electrical New service for HVAC system 0.25$ SF 17,940 4,485.00$ Total Code Improvements 454,054.40$ Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Page 2 of 2 Code Deficiency Cost Report Map No. 11 Edina Grandview 2 Redevelopment TIF District Photos: Map No. 11, 5220 Eden Avenue, Bus Storage Page 1 of 4 P1060753.JPG P1060754.JPG P1060755.JPG P1060757.JPG P1060758.JPG P1060759.JPG P1060760.JPG P1060761.JPG P1060762.JPG P1060764.JPG P1060765.JPG P1060766.JPG Page 2 of 4Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Photos Map No. 11 P1060767.JPG P1060768.JPG P1060769.JPG P1060770.JPG P1060771.JPG P1060772.JPG P1060773.JPG P1060774.JPG P1060775.JPG P1060776.JPG P1060777.JPG P1060778.JPG Page 3 of 4Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Photos Map No. 11 P1060779.JPG P1060780.JPG P1060781.JPG P1060782.JPG P1060783.JPG P1060784.JPG P1060785.JPG P1060786.JPG P1060787.JPG P1060788.JPG P1060789.JPG P1060790.JPG Page 4 of 4Edina Grandview 2 Redevelopment TIF District LHB Project No. 130153.01 Photos Map No. 11 P1060791.JPG P1060792.JPG P1060793.JPG P1060794.JPG P1060795.JPG P1060796.JPG P1060797.JPG P1060798.JPG Appendix G Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (TIF Plan) for the Grandview 2 Redevelopment Tax Increment Financing District (District), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that the Grandview 2 Redevelopment Tax Increment Financing District is a redevelopment district as defined in M.S., Section 469.174, Subd. 10(a)(1). The District consists of 15 parcels, with plans to redevelop the area for commercial/industrial and residential purposes. At least 70 percent of the area of the parcels in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings in the District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. (See Appendix F of the TIF Plan.) 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the scale and type of redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment. The existing development contains vacant or substandard buildings with high costs related to demolition, remediation and reconstruction of infrastructure. Together with proposed civic uses, the desired density of the redevelopment also requires up front district-wide parking, transportation and utility infrastructure investment. Because of the public cost of financing the proposed improvements, which are essential to the comprehensive redevelopment, this project is feasible only through assistance, in part, from tax increment financing. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan: This finding is justified on the grounds that the potential development intensity and tax base created within the combined civic and private use redevelopment requires public improvements that are improbable without public assistance. In addition, land in the TIF District is fully developed but sites have become dilapidated because of age and obsolescence that adds to the redevelopment costs above what could be reasonably absorbed by the private marketplace. Historically, site and public improvement costs in this area have made redevelopment infeasible without tax increment assistance. The City reasonably determines that no other redevelopment of similar scope is anticipated on this site without substantially similar assistance being provided to the development. Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District G-1 b. If the proposed development occurs, the total increase in market value will be $68,646,234. c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $16,363,834. d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $52,282,400 (the amount in clause b less the amount in clause c) without tax increment assistance. 3. Finding that the TIF Plan for the District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the TIF Plan for the District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Southeast Edina Redevelopment Project Area by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax base of the State and add high quality development to the City. But-For Analysis Current Market Value 3,787,086 New Market Value - Estimate 72,433,320 Difference 68,646,234 Present Value of Tax Increment 16,363,834 Difference 52,282,400 Value Likely to Occur Without TIF is Less Than: 52,282,400 Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Grandview 2 Redevelopment Tax Increment Financing District G-2 Date: July 19, 2016 Agenda Item #: V. To:Chair & Commissioners of the Edina HRA Item Type: From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Southeast Edina Redevelopment Area Plan - Updated Information Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: This is being distributed to the HRA/City Council. No discussion or action is required. INTRODUCTION: The Plan for the Southeast Edina Redevelopment Project Area has been updated. First established in 1977, this Plan is modified from time-to-time when, for example, new Tax Increment Financing Districts are identified. The updated Plan now incorporates several modifications that have occurred since 2012. All modifications have been previously approved by the City and Housing and Redevelopment Authority. No action is needed at this time. ATTACHMENTS: Description SE Edina Redevelopment Area Plan Updated Modification to the Redevelopment Area Plan for the Southeast Edina Redevelopment Project Area Edina Housing and Redevelopment Authority City of Edina Hennepin County State of Minnesota Adopted: September 29, 1977 Modification No. 1 Adopted: May 6, 1985 Modification No. 2 Adopted: August 19, 1985 Modification No. 3 Adopted: June 15, 1987 Modification No. 4 Adopted: March 7, 1988 Modification No. 5 Adopted: February 21, 2012 Modification No. 6 Adopted: April 17, 2012 Modification No. 7 Adopted: February 18, 2014 Modification No. 8 Adopted: March 2, 2016 Modification No. 9 Adopted: April 5, 2016 FINAL FOR FILING 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 - Municipal Action Taken ............................................................................... 1‐1  Section 2 - Introduction ................................................................................................... 2‐3  Section 3 - Redevelopment Plan  for Southeast Edina Redevelopment Project Area ..................................................... 3‐1  Subsection 3-1. Definitions ................................................................................................... 3‐1  Subsection 3-2. Statutory Authority...................................................................................... 3‐2  Subsection 3-3. Statement of and Finding of Public Purpose ............................................ 3‐3  Subsection 3-4. Statement of Objectives ............................................................................. 3‐4  Subsection 3-5. Statement of Public Facilities and Costs to be Financed ......................... 3‐5  Subsection 3-6. Funding of Developments and Redevelopments ..................................... 3‐5  Subsection 3-7. Environmental Controls ............................................................................. 3‐5  Subsection 3-8. Proposed Reuse of Property ..................................................................... 3‐5  Subsection 3-9. Open Space to Be Created ....................................................................... 3‐6  Subsection 3-10. Administration and Maintenance of the Southeast Edina Redevelopment Area ....................................................................... 3‐6  Subsection 3-11. Rehabilitation .............................................................................................. 3‐6  Subsection 3-12. Relocation ................................................................................................... 3‐6  Subsection 3-13. Property Acquisition ................................................................................... 3‐6  Subsection 3-14. Modification of the Redevelopment Area Plan and/or Southeast Edina Redevelopment Project Area ............................ 3‐7  Subsection 3-15. Description of Boundaries of Southeast Edina Redevelopment Project Area .................................................................... 3‐7  Appendix A ........................................................................................................................ A‐1  Appendix B ........................................................................................................................ B‐1  Edina Housing & Redevelopment Authority Southeast Edina Redevelopment Project Area Plan 1-1 Section 1 - Municipal Action Taken Based upon the statutory authority described in the Redevelopment Plan attached hereto, the public purpose findings by the City Council and for the purpose of fulfilling the City’s development objectives as set forth in the Redevelopment Plan, the City Council has created, established and designated the Southeast Edina Redevelopment Plan pursuant to and in accordance with the requirements of Minnesota Statutes, Section 469.001 to 469.047. The original and amended Southeast Edina Redevelopment Plan documents and amendments have designated the Southeast Edina Redevelopment Plan as a redevelopment project and also a tax increment financing plan for tax increment districts created prior to 1988. The Centennial Lakes Tax Increment Financing District was created in 1988 pursuant to Tax Increment Financing Plan 88-1, which was subsequently renamed the Centennial Lakes Tax Increment District and referred to by Hennepin County as District #1203 and #1249. For purposes of clarification, this modification will refer to the Southeast Edina Redevelopment Plan as the Southeast Edina Redevelopment Project Area Plan pursuant to Minnesota Statutes 469.002. The following municipal action has been taken with regard to the Southeast Edina Redevelopment Project Area Plan: September 29, 1977: The Housing and Redevelopment Authority of Edina (the “HRA”) approved the Southeast Edina Redevelopment Plan. October 5, 1981: The Southeast Edina Redevelopment Plan was amended to identify project costs and bonded indebtedness incurred to finance those costs. May 6, 1985: The HRA and the City approved an amendment to the Southeast Edina Redevelopment Plan which includes the establishment of an interest reduction program and enlarges the project area to include the “1985 Project Area.” August 19, 1985: The HRA and the City approve d the First Amendment to the 1985 Amendment to the Southeast Edina Redevelopment Plan to enlarge the 1985 Project Area and to authorize the issuance of additional bonds to acquire land within the enlarged 1985 Project Area. 1987: The HRA and City approved the 1987 Amendments to the Southeast Edina Redevelopment Plan to enlarge the project area to include the 1987 Project Area. 1988: The HRA and City approved the 1988 Amendments to the Southeast Edina Redevelopment Plan provides and Interest Reduction Program in the amount of $2,500,000 to assist in the financing and construction of housing units, and authorizes the HRA and City to incur bonded indebtedness. February 21, 2012: The HRA and City expand the Southeast Edina Project Area as can be seen in Appendix A. The Centennial Lakes Tax Increment Financing District is established. April 17, 2012: The Southdale 2 Tax Increment Financing District is established. February 18, 2014: The Pentagon Park Tax Increment Financing District is established. March 2, 2016: The Grandview 2 Tax Increment Financing District is established. Edina Housing & Redevelopment Authority Southeast Edina Redevelopment Project Area Plan 1-2 April 5, 2016: The Southdale 2 Tax Increment Financing District is modified and the 66 West Tax Increment Financing District is established. Edina Housing & Redevelopment Authority Southeast Edina Redevelopment Project Area Plan 1-3 Section 2 - Introduction The HRA and City Council previously established a redevelopment plan and a redevelopment project designated as the Southeast Edina Redevelopment Plan pursuant to Minnesota Statutes, Sections 468.001 through 469.047, inclusive, as amended, in an effort to encourage development and redevelopment of certain areas within the City. Prior plans have referred to both the redevelopment project and the redevelopment plan as the “Southeast Edina Redevelopment Plan”. For purposes of clarification, modifications to the Southeast Redevelopment Plan will refer to the redevelopment project as the “Southeast Redevelopment Project Area” or “Redevelopment Area” and the redevelopment plan will be referred to as the “Southeast Redevelopment Area Plan” or “Redevelopment Plan”. The purpose of Modification No. 5 to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area is to accomplish the following: 1. Expand the boundaries of the Southeast Edina Redevelopment Area to include the property shown in Appendix A. 2. Reflect the City’s significant growth and planning efforts that have occurred since the original Redevelopment Plan was adopted on September 29, 1977. Furthermore, the City has identified several areas in the City that are in need of redevelopment or intensified development to achieve the community development goals of the City. This Modification No. 5 addresses the City’s updated goals for a variety of land uses, including low to moderate income and elderly housing, mixed-use development, and commercial nodes within the City. In particular, the City’s updated goals include improvements to public roads, streets, transit, bicycle, and pedestrian connections to make the areas of the city containing multi-family housing, and mixed-use or commercial development accessible to all modes of transportation. Modification No. 5 to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area is comprised of Section 3 (subsections 3-1 through 3-15) which replaces in its entirety the original Redevelopment Plan. The prior documents, including modifications to the original Redevelopment Plan, are attached as Appendix B for reference only. Modification Nos. 6 through 9 are being incorporated to reflect the establishment of various tax increment financing districts within the Southeast Edina Redevelopment Project Area. Edina Housing & Redevelopment Authority Southeast Edina Redevelopment Project Area Plan 3-1 Section 3 - Redevelopment Plan for Southeast Edina Redevelopment Project Area Subsection 3-1. Definitions The terms defined below shall, for purposes of this Redevelopment Plan, have the meanings herein specified, unless the context otherwise specifically requires. "HRA" means the Edina Housing and Redevelopment Authority. "City" means the City of Edina. "City Council" means the City Council of the City of Edina. "Comprehensive Plan" means the documents which contain the objectives, policies, standards and programs to guide public and private land use, development, redevelopment and preservation for all lands and water within the City. "County" means Hennepin County, Minnesota. "Enabling Act" means Minnesota Statues, 469.001 to 469.047, as amended and supplemented from time to time. "Redevelopment Area" or “Redevelopment Project Area” means the real property within the City constituting the Southeast Edina Redevelopment Project Area, as described in the Redevelopment Plan, and which constitutes a redevelopment project pursuant to Minnesota Statutes 469.002. "Redevelopment Plan" means this Redevelopment Plan for Southeast Edina Redevelopment Project Area, as initially proposed, and as it shall be modified. "HRA Act" means Minnesota Statutes, Section 469.001 through 469.047. "Land Use Regulations" means all federal, state and local laws, rules, regulations, ordinances, and plans relating to or governing the use of development of land in the City, including but not limited to environmental, zoning and building code laws and regulations. "Public Costs" means the costs set forth in the Tax Increment Financing Plan, and any other costs eligible to be financed by Tax Increments under the TIF Act, HRA Act or the Municipal Development District Act. "Public Improvements" means the public improvements described in the Redevelopment Plan and Tax Increment Financing Plan. “Southeast Redevelopment Area Plan” means the Redevelopment Plan. “Southeast Redevelopment Plan” means the redevelopment project and the redevelopment plan initially adopted by the HRA and City Council on March 7, 1988 and subsequently modified. In this modification the term “Southeast Redevelopment Plan” has been replaced with “Southeast Redevelopment Project Area” when referencing the redevelopment project area, and the “Southeast Edina Housing & Redevelopment Authority Southeast Edina Redevelopment Project Area Plan 3-2 Redevelopment Area Plan” when referencing the redevelopment area plan. “Southeast Redevelopment Project Area” means the Redevelopment Area. "State" means the State of Minnesota. "Tax Increment Bonds" means any tax increment bonds or notes issued by the City to finance the Public Costs as stated in the Redevelopment Plan for the Southeast Edina Redevelopment Project Area and in the Tax Increment Financing Plans, and any obligations issued to refund such bonds. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1794, inclusive, as amended. "Tax Increment Financing District" means any tax increment financing district presently established or to be established in the future in Southeast Edina Redevelopment Project Area. "Tax Increment Financing Plan" or "Plan" means the Plans adopted by the HRA or City for any Tax Increment Financing District. Subsection 3-2. Statutory Authority The Enabling Act authorizes the HRA, upon certain public purpose findings by the HRA and City, to establish and designate development and redevelopment projects within the City and to establish, develop and administer redevelopment plans therefore to meet the needs and accomplish the public purposes specified in Statement of and Finding pf Public Purpose. In accordance with the purposes set forth in the Enabling Act, the HRA and City have established the Redevelopment Project comprising the area described on the attached Exhibit A and has adopted this Redevelopment Plan therefore. Within the Southeast Edina Redevelopment Area, the HRA and City have created tax increment financing districts established pursuant to the Tax Increment Act to finance the public and private improvements proposed for the Redevelopment Area. The public improvements may be initially financed from other City sources, including, but not limited to the use of improvement bonds issued pursuant to Minnesota Statutes, Chapter 429, which sources the City may reimburse from tax increment proceeds derived from tax increment districts created with the Southeast Edina Redevelopment Area. Any future tax increment district will be created at such time as will enable the HRA and City to capture the increase in taxable value of private improvements to be constructed within the Southeast Edina Redevelopment Project Area. Edina Housing & Redevelopment Authority Southeast Edina Redevelopment Project Area Plan 3-3 Subsection 3-3. Statement of and Finding of Public Purpose The HRA has determined that there is a need for the HRA to take certain actions designed to encourage, ensure and facilitate development and redevelopment by the private sector of underutilized and unused land located within the corporate limits of the City, in order to provide additional employment opportunities for residents of the City and the surrounding area, to improve the tax base of the City, the County and the school districts thereby enabling them to better utilize existing public facilities and provide needed public services, and to improve the general economy of the City, the County, and the State. Specifically, the HRA has determined that the property within the Redevelopment Project Area is either underutilized or unused due to a variety of factors, including inadequate public improvements to serve the property; which has resulted in a lack of private investment; that, as a result, the property is not providing adequate employment opportunities, and is not contributing to the tax base and general economy of the City, the school districts, the County and the State to its full potential; and, therefore, that it is necessary for the City to exercise its authority under the Enabling Act and the Tax Increment Financing Act to develop, implement and finance a program designed to encourage, ensure and facilitate the commercial development and redevelopment of the property located in the Redevelopment Project, to further and accomplish the public purposes specified in this paragraph. The development proposed for the Redevelopment Project Area would not occur solely through private investment in the foreseeable future. The welfare of the City, County and the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce by the HRA. The HRA and City have also determined that any tax increment financing plans to be proposed herein will be consistent with the Redevelopment Area Plan, and that the tax increment financing plans will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Redevelopment Project Area by private enterprise. Edina Housing & Redevelopment Authority Southeast Edina Redevelopment Project Area Plan 3-4 Subsection 3-4. Statement of Objectives The HRA and City determine that it is necessary, desirable and in the public interest to establish, designate, develop and administer the Redevelopment Project Area. The HRA and City determine that the establishment of the Southeast Edina Redevelopment Project Area will provide the City with the ability to achieve certain public purpose objectives not otherwise obtainable in the foreseeable future without City intervention in the normal development process. The City seeks to achieve the following program objectives: 1. Promoting and securing the prompt development of property in the Redevelopment Project Area in a manner consistent with the City's planning and with a minimal adverse impact on the environment, which property is less productive because of the lack of proper utilization and lack of investment, and thereby promoting and securing the development of other land in the City; 2. Promoting and securing additional employment opportunities within the Redevelopment Project Area and the City for residents of the City and the surrounding area, thereby improving living standards and preventing unemployment and the loss of skilled and unskilled labor and other human resources in the City; 3. Securing the increase in value of property subject to taxation by the City, Independent School Districts No. 280 and 271 and 273 and Hennepin County, and any other taxing jurisdictions in order to better enable such entities to pay for public improvements and governmental services and programs required to be provided by them; 4. Supporting multi-pronged transportation strategies and securing the construction and providing of moneys for the payment of the cost of public improvements in the Redevelopment Area, which are necessary for the orderly and beneficial development of the Redevelopment Area; 5. Extending the open space corridor north from Centennial Lakes to Southdale to create increased opportunities for pedestrian and bicycle pathways, increased transit circulation, and improved connections between residential, mixed-use, and commercial neighborhoods. 6. Supporting the redevelopment of existing sites into more densely developed mixed-use sites that include retail, housing, and employment uses to encourage more walkable neighborhoods. 7. Increasing the capacity of streets, roadways, bridges, and transit facilities serving the Redevelopment Project Area to support development growth that has occurred and will occur. Provide and secure the construction and moneys for the payment of the cost of public improvements associated with such transportation improvements, including pedestrian crossings. 8. Providing and securing the development of increased opportunities for families to reside in quality owner-occupied housing, for senior citizens to choose from housing options which offer a wide array of services without regard to income, and for residents looking for a wide range of multi-family units. Edina Housing & Redevelopment Authority Southeast Edina Redevelopment Project Area Plan 3-5 9. Encouraging the expansion and improvement of local business, economic activity and development, whenever possible. 10. Creating a desirable and unique character within the Redevelopment Project through quality land use alternatives and design quality in new buildings. Subsection 3-5. Statement of Public Facilities and Costs to be Financed The preceding objectives will be promoted by providing improvements and opportunities within the Redevelopment Project Area which may include various types of site improvements, land acquisition, redevelopment, demolition, parking, street, sewer, water and other public improvements. A description of the items of expenditure and the estimated costs can be found in the Tax Increment Financing Plans for the Tax Increment Financing Districts created within this Redevelopment Project Area. Subsection 3-6. Funding of Developments and Redevelopments To implement the established objectives, the City plans to utilize a number of public and private financing tools. Funding of the necessary activities and improvements in the Redevelopment Project Area is expected to be accomplished through, and is not limited to, tax increment financing, special assessments, state aid for road construction, proceeds from the sale of property, and federal and state grants. Any public facilities within the Redevelopment Area will be financially feasible and compatible with longer range development plans. Any acquisition of property for the public improvements will be done to provide the impetus for private development within the Redevelopment Area. Subsection 3-7. Environmental Controls All municipal actions, public improvements and private development shall be carried out in a manner consistent with existing environmental controls and all applicable Land Use Regulations. Subsection 3-8. Proposed Reuse of Property The Redevelopment Plan contemplates that the HRA or City may acquire property and reconvey the same to another entity or dedicate the property to permanent right-of-ways and easements needed for public improvements. Prior to formal consideration of the acquisition of any property, the HRA or City will require the execution of a binding development agreement with respect thereto and evidence that Tax Increments or other funds will be available to repay the Public Costs associated with the proposed acquisition. It is the intent of the HRA and City to negotiate the acquisition of property whenever possible. Appropriate restrictions regarding the reuse and redevelopment of property shall be incorporated into any development agreement to which the HRA is a party. Edina Housing & Redevelopment Authority Southeast Edina Redevelopment Project Area Plan 3-6 Subsection 3-9. Open Space to Be Created Any open space within the Redevelopment Area will be created in accordance with the zoning and ordinances of the City. Subsection 3-10. Administration and Maintenance of the Southeast Edina Redevelopment Area Maintenance and operation of the Redevelopment Plan will be the responsibility of the Executive Director of the HRA. Each year, the administrator of the Redevelopment Area will submit to the City Council the maintenance and operation budget for the following year. The administrator of the Redevelopment Plan will administer the Redevelopment Plan pursuant to the provision of the Enabling Act; provided, however, that such powers may only be exercised at the direction of the HRA. No action taken by the administrator of the Redevelopment Area pursuant to the above-mentioned powers shall be effective without authorization by the HRA. Subsection 3-11. Rehabilitation Owners of properties within the Redevelopment Area may be encouraged to rehabilitate their properties to conform with the applicable state and local codes and ordinances, as well as any design standards. Persons who purchase property within the Redevelopment Area from the City may be required to rehabilitate their properties as a condition of sale of land. The City may provide such rehabilitation assistance as may be available from federal, state or local sources. Subsection 3-12. Relocation Any person or business that is displaced as a result of the Redevelopment Program will be relocated in accordance with Minnesota Statutes, Section 117.50 to 117.56. The HRA accepts its responsibility for providing for relocation assistance pursuant to the Enabling Act. Subsection 3-13. Property Acquisition The HRA or City intends to acquire such property, or appropriate interest therein, within the Redevelopment Area as the HRA or City may deem to be necessary or desirable to assist in the implementation of the Redevelopment Program. Edina Housing & Redevelopment Authority Southeast Edina Redevelopment Project Area Plan 3-7 Subsection 3-14. Modification of the Redevelopment Area Plan and/or Southeast Edina Redevelopment Project Area The HRA and City reserve the right to alter and amend the Redevelopment Program and the Tax Increment Financing Plans, subject to the provisions of state law regulating such action. The HRA and City specifically reserves the right to enlarge or reduce the size of the Redevelopment Area and the Tax Increment Financing District, the Redevelopment Program, the Public Costs and the amount of Tax Increment Bonds to be issued to finance such cost by following the procedures specified in Minnesota Statutes, Section 469.175, subdivision 4. Subsection 3-15. Description of Boundaries of Southeast Edina Redevelopment Project Area The boundaries of the Redevelopment Area shall be expanded to include all properties shown on the map in Appendix A. Appendix A A-1 Appendix A Boundary Map of the Southeast Edina Redevelopment Project Area TR A C Y A V E VERN O N A V E WO O D D A L E A V E HA N S E N R D VA L L E Y V I E W R D 70TH ST W Mud Lake LakeEdina Mirr o r L a k e Lake Cornelia ArrowheadLake HighlandsLake IndianheadLake Mel o d y L a k e LakePamela HawkesLake Harvey Lake Ce n t e n n i a l L a k e Minnehah a C r e e k Nine Mile Creek Nine Mile Cr e e k Can a d i a n P a c i f i c R a i l r o a d Ca n a d i a n P a c i f i c R a i l r o a d CityHall St Peters Lutheran Church & School FireStation PublicWorks GraceChurchPublicLibrary ConcordSchool EdinaCovenant CorneliaSchool ColonialChurch HighlandSchool CalvaryLutheran EdinaHighSchool Our Lady ofGrace Church& School SouthviewJr High CrossviewLutheran CountrysideSchool St Albans Episcopal Valley ViewJr High Creek Valley School NormandaleLutheran ColonyParkBaptist St PatricksCatholic CreekValley Baptist NormandaleElementary St StephensEpiscopal EdinaCommunityCenter GoldenYearsMontessor CalvinChristianSchool GoodSamaritanMethodist EdinaMorningsideChurch ChristPresbyterianChurch ChapelHillsCongregtional Shepard of the HillsLutheran Edina Community Lutheran Church FireStation BL A K E R D SC H A E F E R R D VERNO N A V E CA H I L L R D 66TH ST W YO R K A V E S INTERLACHEN BLVD MALONEY AVE 44T H S T W 50T H ST W 54TH ST W 58TH ST W GL E A S O N R D 70TH ST W 76TH ST W DEWEY HILL RD VALLEY V I E W R D VALLEY VIEW RD MINNESOT A D R 78TH ST W I-494 I-494 HW Y 1 0 0 HW Y 1 6 9 HW Y 1 6 9 HW Y 1 0 0 HWY 62 HWY 62 / Engineering Dept. March, 2012 Southeast Edina Redevelopment Project Areaand Southdale 2 TIF District Southdale 2 TIF District Project Area æ ¹» ¹» æ æ æ æ æ¹»æ æ ¹º¹º ¹º ñ ñ ñ ¹»æ æ æ ¹º ¹º æ æ ¹º æ æ ¹º ¹º æ æ æ ñ æ ¹º ñ æ ñ TR A C Y A V E VERN O N A V E WO O D D A L E A V E HA N S E N R D VA L L E Y V I E W R D 70TH ST W 77TH ST W Mud Lake LakeEdina Mirr o r L a k e Lake Cornelia ArrowheadLake HighlandsLake IndianheadLake Mel o d y L a k e LakePamela HawkesLake Harvey Lake Ce n t e n n i a l L a k e Minnehah a C r e e k Nine Mile Creek Nine Mile C r e e k Can a d i a n P a c i f i c R a i l r o a d Ca n a d i a n P a c i f i c R a i l r o a d CityHall St Peters Lutheran Church & School FireStation PublicWorks GraceChurchPublicLibrary ConcordSchool EdinaCovenant CorneliaSchool ColonialChurch HighlandSchool CalvaryLutheran EdinaHighSchool Our Lady ofGrace Church& School SouthviewJr High CrossviewLutheran CountrysideSchool St Albans Episcopal Valley ViewJr High Creek Valley School NormandaleLutheran ColonyParkBaptist St PatricksCatholic CreekValley Baptist NormandaleElementary St StephensEpiscopal EdinaCommunityCenter GoldenYearsMontessor CalvinChristianSchool GoodSamaritanMethodist EdinaMorningsideChurch ChristPresbyterianChurch ChapelHillsCongregtional Shepard of the HillsLutheran Edina Community Lutheran Church FireStation BL A K E R D SC H A E F E R R D VERNO N A V E CA H I L L R D 66TH ST W YO R K A V E S INTERLACHEN BLVD MALONEY AVE 44TH ST W 50TH ST W 54TH ST W 58TH ST W GL E A S O N R D 70TH ST W 76TH ST W DEWEY HILL RD VALLEY VI E W R D VALLEY VIEW RD MINNESOTA DR78TH ST W I-494 I-494 HW Y 1 0 0 HW Y 1 6 9 HW Y 1 6 9 HW Y 1 0 0 HWY 62 HWY 62 / Engineering Dept. December, 2013 Southeast Edina Redevelopment Project Areaand Proposed Pentagon Park TIF District Project Area Proposed Pentagon Park TIF District æ ¹» ¹» æ æ æ æ æ¹»æ æ ¹º¹º ¹º ñ ñ ñ ¹»æ æ æ ¹º ¹º æ æ ¹º æ æ ¹º ¹º æ æ æ ñ æ ¹º ñ æ ñ TR A C Y A V E VERN O N A V E WO O D D A L E A V E HA N S E N R D VA L L E Y V I E W R D 70TH ST W FR A N C E A V E S Mud Lake LakeEdina Mirr o r L a k e Lake Cornelia ArrowheadLake HighlandsLake IndianheadLake Mel o d y L a k e LakePamela HawkesLake Harvey Lake Ce n t e n n i a l L a k e Minneha h a C r e e k Nine Mile Creek Nine Mile C r e e k Can a d i a n P a c i f i c R a i l r o a d Ca n a d i a n P a c i f i c R a i l r o a d CityHall St Peters Lutheran Church & School FireStation Public Works &Park Maintenance GraceChurchPublicLibrary ConcordSchool EdinaCovenant CorneliaSchool ColonialChurch HighlandSchool CalvaryLutheran EdinaHighSchool Our Lady ofGrace Church& School SouthviewJr High CrossviewLutheran CountrysideSchool St Albans Episcopal Valley ViewJr High Creek Valley School NormandaleLutheran ColonyParkBaptist St PatricksCatholic CreekValley Baptist NormandaleElementary St StephensEpiscopal EdinaCommunityCenter GoldenYearsMontessor CalvinChristianSchool GoodSamaritanMethodist EdinaMorningsideChurch ChristPresbyterianChurch ChapelHillsCongregtional Shepard of the HillsLutheran Edina Community Lutheran Church FireStation BL A K E R D SC H A E F E R R D VERNO N A V E CA H I L L R D 66TH ST W YO R K A V E S INTERLACHEN BLVD MALONEY AVE 44TH ST W 50TH ST W 54TH ST W 58TH ST W GL E A S O N R D 70TH ST W 76TH ST W DEWEY HILL RD VALLEY V I E W R D VALLEY VIEW RD MINNESOTA DR78TH ST W I-494 I-494 HW Y 1 0 0 HW Y 1 6 9 HW Y 1 6 9 HW Y 1 0 0 HWY 62 HWY 62 / Engineering Dept. January, 2016 Project Area Southeast Edina Redevelopment Project Areaand Grandview 2 TIF District Grandview 2 TIF District TR A C Y A V E VERN O N A V E WO O D D A L E A V E HA N S E N R D VA L L E Y V I E W R D 70TH ST W FR A N C E A V E S Mud Lake LakeEdina Mirr o r L a k e Lake Cornelia ArrowheadLake HighlandsLake IndianheadLake Mel o d y L a k e LakePamela HawkesLake Harvey Lake Ce n t e n n i a l L a k e Minneha h a C r e e k Nine Mile Creek Nine Mile C r e e k Can a d i a n P a c i f i c R a i l r o a d Ca n a d i a n P a c i f i c R a i l r o a d CityHall St Peters Lutheran Church & School FireStation Public Works &Park Maintenance GraceChurchPublicLibrary ConcordSchool EdinaCovenant CorneliaSchool ColonialChurch HighlandSchool CalvaryLutheran EdinaHighSchool Our Lady ofGrace Church& School SouthviewJr High CrossviewLutheran CountrysideSchool St Albans Episcopal Valley ViewJr High Creek Valley School NormandaleLutheran ColonyParkBaptist St PatricksCatholic CreekValley Baptist NormandaleElementary St StephensEpiscopal EdinaCommunityCenter GoldenYearsMontessor CalvinChristianSchool GoodSamaritanMethodist EdinaMorningsideChurch ChristPresbyterianChurch ChapelHillsCongregtional Shepard of the HillsLutheran Edina Community Lutheran Church FireStation BL A K E R D SC H A E F E R R D VERNO N A V E CA H I L L R D 66TH ST W YO R K A V E S INTERLACHEN BLVD MALONEY AVE 44TH ST W 50TH ST W 54TH ST W 58TH ST W GL E A S O N R D 70TH ST W 76TH ST W DEWEY HILL RD VALLEY V I E W R D VALLEY VIEW RD MINNESOTA DR78TH ST W I-494 I-494 HW Y 1 0 0 HW Y 1 6 9 HW Y 1 6 9 HW Y 1 0 0 HWY 62 HWY 62 / Engineering Dept. December, 2015 Project Area Southeast Edina Redevelopment Project Areaand 66 West TIF District 66 West TIF District Appendix B B-1 Appendix B Original Development Program and Modifications