2001-04-24i ~ J ~
i ~
AGENDA ~ r~ ~ I
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
APRIL 24, 2001
6:30 P.M.
6:30 1. OPEN MEETING
2. APPROVE AGENDA, WITH ANY AMENDMENTS
2. EXECUTIVE DIRECTOR CHARON'S REPORT
4. APPROVE MINUTES: MARCH 27, 2001
APRIL 10, 2001
5. DUE TO CONFLICT, APPROVE AMENDED MEETING DATE FOR
COUNTY ROAD 15 OPEN HOUSE TO MAY 3, 2001
6. ADOPT RESOLUTION ADOPTING THE MODIFICATION TO THE
DEVELOPMENT DISTIRCT NO. 1 AND ADOPTING MODIFICATION TO
THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT
FINANCING DISTRICT NO. 1-1 THEREIN
7. ADJOURN
CITY OF MOUND
HOUSING AND REDEVELOPMENT AUTHORITY
MARCH 27, 2001
The Mound Housing and Redevelopment Authority of Mound, Hennepin County,
Minnesota, met in regular session on Tuesday, March 27, 2001, at 6:30 p.m. in the
council chambers at 5341 Maywood Road, in said City.
Members Present: Chairperson Pat Meisel, Commissioners Bob Brown, Mark Hanus,
Peter Meyer, and Tenant Representative Pauline Payne.
Members Absent: Commissioner Kim Anderson.
Others Present: HRA Director, Pinky Charon; Acting City Clerk, Bonnie Ritter; Indian
Knoll Maintenance manager, Mel Robeck, Dorothy and Bill Netka.
1. CALL TO ORDER
Chairperson Meisel called the meeting to order at 6:34 p.m.
2. CONSENT AGENDA
MOTION by Hanus, seconded by Meyer to approve the consent agenda. All voted in
favor. Motion carried.
A. Monthly bills for February in the amount of $31,906.46.
B. Monthly bills for March in the amount of $18,683.34.
3. ACCOUNTING ITEMS
A. Budget Reports for November and December 2000, and January, 2001.
MOTION by Hanus, seconded by Meyer to approve the budget reports as
presented. All voted in favor. Motion carried.
The following items were presented to the Commission with no action needed:
B. Bank Statements from Marquette Bank (operating account)
C. Bank Statements from Wells Fargo Bank (levy account)
D. Statement for MBIA (levy account)
4. PHYSICAL NEEDS ASSESSMENT
HRA Director, Pinky Charon, presented the physical needs assessment to the
Commission. Discussion followed regarding grant money use, and the probability of the
continuance of these grants. Charon will work with the City Finance Director to decide
how to proceed with financial matters. These matters include the possibility off
borrowing funds needed, and using the levy account as collateral.
MOTION by Hanus, seconded by Brown to approve the Physical Needs Assessment as
presented, and proceed with the necessary, improvements. Charon is to work with the
Finance Director regarding the financing, intention being to borrow $100,000 from the
levy fund, pay back to be within 10 years. All voted in favor. Motion carried.
HRA Minutes -March 27, 2001
5. INFORMATION ITEMS
A. Recap of Tenant Meeting on March 14, 2001.
B. Federal Legislature Issues Summary
6. TENANT REPRESENTATIVE REPORT
Tenant Representative, Pauline Payne, informed the Commission that the addition of
the new security cameras in the building has made a very positive impact.
7. ADJOURNMENT
MOTION by Brown, seconded by Meyer to adjourn the meeting at 7:07 p.m. All voted in
favor. Motion carried.
Chair, Pat Meisel
Attest: Acting City Clerk
CITY OF MOUND
HOUSING AND REDEVELOPMENT AUTHORITY
APRIL 10, 2001
The Mound Housing au a Ressi~onloon Tuesduay~Apri~10, 2001, ae6:301p.m~ nnthe
Minnesota, met m reg
Council Chambers at 5341 Maywood Road, in said City.
Members Present: Acting Chairperson, Mark Hanus; Commissioners Bob Brown, Kim
Anderson and Peter Meyer.
Members Absent: Chairperson Meisel.
Others Present: Acting City Attorney, Daniel Greensweig; City Manager, Kandis
Hanson; Acting City Clerk, Bonnie Ritter; City Planner, Bruce Chamberlain; Fire Chief,
Greg Pederson; Bill and Dorothy Netka, Lorrie Ham.
1. Open Meeting
Acting Chairman Hanus called the meeting to order at 6:30 p.m.
2. Approve Agenda
MOTION by Brown, seconded by Meyer to approve the agenda as presented. All voted
in favor. Motion carried.
3. Approve Minutes
MOTION by Meyer, seconded by Brown to approve the minutes of the March 13, 2001,
meeting. All voted in favor. Motion carried.
4. Project Reports
A. Post Office
A copy of a letter was presented that Representative Jim Ramstad wrote to the
United States Postal Service.. on March 29, 2001. This letter urged the
proceedings of the post office relo Green aI andlal ow the City of (Mound to EA-
21 funds for the construction of the Y
continue the redevelopment of its downtown area.
B. Greenway Grant
Bruce Chamberlain explained that this g uest foE an earln May heading where a
Post Office issue. There has been a req Y
request will be made to extend the life cycle of these funds due to the post office
situation. He explained that the Metropolitan Council controls these funds and
the MDOT controls the contracts.
C. Xcel Energy Substation
Options from Xcel Energy to bury utility lines in the downtown district and
suggestions from staff were presented by Bruce Chamberlain. He explained that
distribution lines (lines running from substation to individual users) will be placed
HRA Minutes -April 10, 2001
underground at no cost to the City. The issue is putting the transmission lines
(high power lines running between substations) underground.
Meyer brought out that some of the options given by Xcel have $1 million and $2
million charges to Mound energy users. He thinks that a surcharge of about
$6/month/Mound resident, for three to five years is way too much and he would
never support this option.
Chamberlain's recommendation is a follows: The downtown development district
(from Alder Road and post office sit on the north to Cypress Lane on the east, to
Our Lake of the Lake Church on the south, to Cottonwood Drive on the west) be
identified as an overhead utility-free zone. This implies that Xcel's option 2B
would be followed in the burying of transmission lines. Staff suggests that four
items be addressed in Council direction to Xcel Energy regarding this matter: 1)
Mound requests Xcel Energy to conduct detailed cost and engineering
exploration of burying transmission lines in the downtown district as identified; 2)
Mound offers to negotiate purchase of Xcel land west of the substation and
assist Xcel in acquiring land.east of the substation; 3) Mound offers to work with
Xcel to enhance the landscaping around the substation; and 4) Mound asks Xcel
to determine the ratepayer impacts of this work.
MOTION by Brown, seconded by Anderson to accept staff recommendations
and direction as noted above. Ayes: Brown, Hanus, Anderson. Nayes: Meyer.
Motion carried. Meyer wanted it noted for the record that his vote was based on
him not supporting Xcel's 2B option.
D. County Road 15 Realignment
Chamberlain stated he met with the County and would like the Council to set an
open house for April 26th, where the County and City staff would be present to
make presentations and answer questions from the public. City Manager Kandis
Hanson added that it is out of the ordinary for the City to be taking a lead in this
project, but the timeline is of great importance because it has to coincide with the
Gramercy project. Discussion followed as to options if the County Road 15
project went as planned and the Gramercy project was delayed.
MOTION by Meyer that the MetroPlains Development be stopped until the
County's traffic impact study is complete and to direct staff to work with the
County on these issues. Motion died for lack of a second.
It was noted that the MetroPlains project and the County Road 15 Project are
independent of each other. It is purely coincidental that they are coming together
at the same time. Hanson emphasized that the County stands firm on one thing,
being that the intersection in question can handle traffic for the next twenty years,
with present development projects already taken into consideration.
HRA Minutes -April 10, 2001
MOTION by Brown, seconded by Hanus to accept the County Road 15
Realignment progress report and schedule of tasks as presented, and set an
open house for April 26, 2001, from 7-9 p.m. All voted in favor. Motion carried.
MOTION by Brown, seconded by Anderson to continue the HRA meeting due to
concurrent Executive Session with the City Council. All voted in favor. Motion carried.
At 7:21 p.m., Acting Chairman Hanus continued the HRA meeting until the executive
session, which will run concurrent with the City Council Executive Session.
County Road 15 Realignment
At 8:04, City Manager Hanson addressed the HRA, still being in session,
regarding the open house date for the County Road 15 realignment. The
Chamber of Commerce has a recognition banquet on April 26, so there may be a
conflict with this date.
MOTION by Brown, seconded by Meyer to revisit the open house issue. All
voted in favor. Motion carried.
MOTION by Brown, seconded by Meyer to set April 25, 2001, as an alternate
date for the open house on the County Road 15 Realignment, contingent upon
this date working out for the County personnel involved. All voted in favor.
Motion carried.
5. Executive Session• Law Suit by Polston, et al.
From 8:07 p.m. to 8:18 p.m., the HRA was in Executive Session with the City Council.
Acting Chairman Hanus reconvened the HRA meeting at 8:19 p.m., stating that the
purpose of said session was to update and receive information from the attorney
representing the City.
6. Adjournment
MOTION by Meyer, seconded by Brown to adjourn the meeting at 8:20 p.m. all voted in
favor. Motion carried.
Acting Chairman, Mark Hanus
Attest: Kandis Hanson, Executive Director
r
FREERS
& ASSOCIATES INC
O To: Kandis I-Ianson
From: Jim Prosser
W Subject: TIF Plan Modification
Date: April 18, 2001
Attached is the Modification to Tax Increment Financing District No.l -1. The modification is
requested for the following reasons:
• Changes in rules relating to the administration of TIF districts have occurred since the
district was first established. These changes impact how the City must document budget
items relating to district expenses.
• A bill currently under consideration at the State Capitol would require certain changes in
how TIF proceeds are reported and used. Proposed changes would accommodate these
changes if enacted.
Generally, the substantive changes in Tax Increment Financing District No. 1-1 include:
1. To expand the budget for Tax Increment Financing District No. 1-1 to include
interest earnings, inter-fund loans and inter-fund transfers as tax increment funds;
2. To clarify budgets for previous bond refunding amounts;
3. To clarify duration;
4. To clarify the amount of interfund loans transfers of tax increments to be
authorized; and
5. Explicitly authorize the use of tax increments for Development District project
expenditures.
LEADERS I N PUBLIC F I N A N C E
3060 Centre Pointe Drive
Roseville, MN 55113-1105
651.697.8503 fax 651.697.8555
jim@ehlers-inc.com
PLANNING COMMISSION
CITY OF MOUND, MINNESOTA
RESOLUTION
RESOLUTION OF THE CITY OF MOUND PLANNING COMMISSION FINDING
THAT THE MODIFICATION TO THE DEVELOPMENT PROGRAM FOR
DEVELOPMENT DISTRICT NO. 1 AND THE MODIFICATION TO THE TAX
INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING
DISTRICT NO. 1-1 CONFORM TO THE GENERAL PLANS FOR THE
DEVELOPMENT AND REDEVELOPMENT OF THE CITY.
WHEREAS, the City Council for the City of Mound, Minnesota, (the "City") has proposed to adopt a
Modification to the Development Program (the "Development Program Modification") for Development
District No. 1 and adopt a Modification to the Tax Increment Financing Plan (the "Tax Increment Plan
Modification" or together with the Development Program Modification, the "Modifications") for Tax
Increment Financing DistrictNo. 1-1 and has submitted the Modifications to the City Planning Commission
(the "Commission") pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, and
WHEREAS, the Commission has reviewed the Modifications to determine their conformity with the
general plans for the development and redevelopment of the City as described in the comprehensive plan for
the City.
NOW, THEREFORE, BE IT RESOLVED by the Commission that the Modifications conform with the
general plans for the development and redevelopment of the City as a whole.
Dated: Apri123, 2001
Chair
ATTEST:
Secretary
HOUSING AND REDEVELOPMENT AUTHORITY
OF THE CITY OF MOUND
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO.
RESOLUTION ADOPTING THE MODIFICATION TO THE DEVELOPMENT
PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND ADOPTING
MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO. 1-1 THEREIN.
WHEREAS, it has been proposed by the Board of Commissioners (the "Board") of the Housing and
Redevelopment Authority of Mound (the "HRA") and the City of Mound (the "City") that the HRA adopt
the Modification to the Development Program (the "Development Program Modification") for Development
District No. 1 and adopt a Modification to the Tax Increment Financing Plan (the "Tax Increment Plan
Modification" or together with the Development Program Modification, the "Modifications") for Tax
Increment Financing District No. 1-1 therein (the "District"), all pursuant to and in conformity with
applicable law, including Minnesota Statutes, Sections 469.001 through 469.047, and Sections 469.174 to
469.179, inclusive, as amended (the "Act"), all as reflected in the Modifications and presented for the Board's
consideration; and
The Board of Commissioners (the "Board") of the Housing and Redevelopment Authority (the "HRA") of
the City has heretofore established Development District No. 1 and adopted the Development Program
therefor and established Tax Increment Financing District No. 1-1 therein (the "District") and adopted the
Tax Increment Financing Plan therefor. It has been proposed by the HRA that the City adopt a Modification
to the Development Program (the "Development Program Modification") and adopt a Modification to the
Tax Increment Financing Plan (the "Tax Increment Plan Modification" or together with the Development
Program Modification, the "Modifications"), all pursuantto and in conformity with applicable law, including
Minnesota Statutes,469.001 through 469.047, and Sections 469.174 to 469.179, inclusive as amended (the
"Act"), all as reflected in the Modifications, and presented for the Council's consideration.
WHEREAS, the HRA has investigated the facts relating to the Modifications and has caused the
Modifications to be prepared; and
WHEREAS, the HRA has performed all actions required by law to be performed prior to the
adoption of the Modifications. The HRA has also requested the City Planning Commission to provide for
review of and written comment on Modifications and that the Council schedule a public hearing on the
Modifications upon published notice as required by law.
NOW, THEREFORE, BE IT RESOLVED by the Board as follows:
1. The HRA hereby reaffirms that the District as modified herein is in the public interest and
is a "redevelopment district" under Minnesota Statutes, Section 469.174, subd. 10 (a)(1). and finds that the
Modifications conform in all, respects to the requirements of the Act and will help fulfill a need to develop
an area of the Sate of Minnesota which is already built up and that the adoption of the propose Modifications
will help provide employment opportunities in the State and in the preservation and enhancement of the tax
base of the City and the State because it will discourage commerce and industry from moving their operations
to another state or municipality and thereby serves a public propose.
2. The HT2A further finds that the Modifications will afford maximum opportunity, consistent
with the sound needs for the City as a whole, for the development or redevelopment of the project area by
private enterprise in that the intent is to provide only that public assistance necessary to make the private
developments financially feasible.
3. Conditioned upon the approval thereof by the City Council following its public hearing
thereon, the Modifications, as presented to the HRA on this date, are hereby approved, established and
adopted and shall be placed on file in the office of the City Clerk.
4. Upon approval of the Modifications by the City Council, the staff, the HI:tA's advisors and
legal counsel are authorized and directed to proceed with the implementation of the Modifications and for
this purpose to negotiate, draft, prepare and present to this Board for its consideration all further plans,
resolutions, documents and contracts necessary for this purpose. Approval of the Modifications does not
constitute approval of any project or a Development Agreement with any developer.
5. Upon approval of the Modifications by the City Council, the City Clerk is authorized and
directed to forward a copy of the Modifications to the Hennepin County Auditor.
6. The City Clerk is authorized and directed to forward a copy of the Modifications to the
Hennepin County Auditor.
Approved by the Board of Commissioners of the Mound this 24`h day of April, 2001.
Chair
ATTEST:
Secretary
CITY OF MOUND
HENNEPIN COUNTY
STATE OF MINNESOTA
Council member introduced the following resolution and moved its adoption:
RESOLUTION NO.
RESOLUTION ADOPTING THE MODIFICATION TO THE DEVELOPMENT
PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND ADOPTING THE
MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO.1-1 THEREIN.
BE IT RESOLVED by the City Council (the "Council") of the City of Mound, Minnesota (the "City"),
as follows:
Section 1. Recitals.
1.01. The Board of Commissioners (the "Board") of the Housing and Redevelopment Authority (the
"HRA") of the City has heretofore established Development District No. 1 ,and adopted the Development
Program therefor and established Tax Increment Financing District No. 1-1 therein (the "District") and adopted
the Tax Increment Financing Plan therefor. It has been proposed by the HRA that the City adopt a Modification
to the Development Program (the "Development Program Modification") and adopt a Modification to the Tax
Increment Financing Plan (the "Tax Increment Plan Modification" or together with the Development Program
Modification, the "Modifications"), all pursuant to and inconformity with applicable law, including Minnesota
Statutes,469.001 through 469.047, and Sections 469.174 to 469.179, inclusive as amended (the "Act"), all as
reflected in the Modifications, and presented for the Council's consideration.
1.02. The Council has investigated the facts related to the Modifications and has caused the
Modifications to be prepared.
1.03. The City has performed all actions required by law to be performed prior to the adoption and
approval of the proposed Modifications, including, but not limited to, notification of Hennepin County and
Independent School District No. 277 having taxing jurisdiction over the property in the District, and the holding
of a public hearing upon published notice as required by law.
1.04. The City is not modifying the boundaries of Development District No. 1.
1.05. The City is not modifying the boundaries nor term of the District.
Section 2. Findi~s for the Tax Increment Plan Modification
2.01. The Council hereby reaffirms the original findings for the District, namely that the when the
District was established, it was established as a "redevelopment district" under Minnesota Statutes, Section
469.174, subd. 10 (a)(1). In addition, the City makes the following findings:
(a) The Tax Increment Plan Modification conforms to the general plan for development or
redevelopment of the City as a whole. The reason for supporting this finding is that the Tax
Increment Plan Modification will generally complement and serve to implement policies
adopted in the City's comprehensive plan.
(b) The Tax Increment Plan Modification will afford maximum opportunity, consistent with the
sound needs of the City as a whole, for the development or redevelopment of Development
District No. 1 by private enterprise. The reason for supporting this finding is that the
development activities are necessary so that development and redevelopment by private
enterprise can occur within Development District No. 1.
(c) The development and redevelopment efforts, in the opinion of the City, would not reasonably
be expected to occur solely through private investment within the reasonably foreseeable future
and therefor the use if tax increment financing is deemed necessary.
Section 3. Public Purpose
3.01. The adoption of the Modifications conform in all respects to the requirements of the Act and
will help fulfill a need to develop an area of the State which is already built up, to provide employment
opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a
public purpose.
Section 4. Approval and Ad~tion of the Modifications; Filing.
4.01. The Modifications are hereby approved, and shall be placed on file in the office of the City
Clerk. Approval of the Modifications does not constitute approval of any project or a development agreement
with any developer.
4.02. The staff of the City are authorized to file the Modifications with the Hennepin County Auditor.
4.03. The staff ofthe City, the City's advisors and legal counsel are authorized and directed to proceed
with the implementation of the Modifications and for this purpose to negotiate, draft, prepare and present to this
Council for its consideration all further modifications, resolutions, documents and contracts necessary for this
purpose.
The motion for the adoption of the foregoing resolution was duly seconded by Council member
and upon a vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
Dated: April 24, 2001
Mayor
ATTEST:
City Clerk
(Seal)
Ehlers and Associates
Tax Increment Financing District Overview
City of Mound Tax Increment Financing District No.1-1
The following summary contains an overview of the basic elements of the Modification to Tax Increment
Financing Plan for TIF District No. 1-l . More detailed information on each of these topics can be found in
the TIF Plan.
Proposed Action: Adoption of the Modification to Tax Increment Financing
District Plan
• Add transfers and interfund loan authorization to budget.
• Authorization of the TIF Plan budget and bring the plan
into compliance with the State Auditor's current
requirements.
• Clarify expiration date.
• Increase budgeted expenditures.
• Clarify and explicitly authorize pooling of increments.
Type of TIF Districts: District Nos. 1- l : Redevelopment
Properties: See map in Plan of the boundaries of the Project area and Tax
Increment Financing District.
Maximum duration: 25 years from receipt of first tax increment. First increment
received in 1985. The District will expire 12/31/2010
Estimated tax increment: Annual Increment: $ 173,218 (P2000)
Total for Life of District: $4,609,774 (through P2010)
Tlf' District Overview
Proposed uses for Districts The District No. 1-1 Plan contains the following total budget:
Land/building acquisition ........... $2,634,761
Soil/Site Improvements .. .............. 500,000
Public Utilities ......... .............. 500,000
Streets and Sidewalks ... .............. 500,000
Parking .............. .............. 500,000
Relocation ............ .............. 160,000
Bond Interest .......... ............ 2,546,213
Bond discount ......... ...............20,000
Loan Interest .......... .............. 300,000
Development district improvements ........... 0
*Administrative Costs (up to 10%) .....:. 460.000
TOTAL PROJECT COSTS ........ $8,120,974
**ADDITIONAL FINANCING AUTHORIZATIONS
Interfund Loans ................... $7,500,000
Transfers ......................... 7,500,000
Bond Principal ..................... 2,125,000
Refunding Bonds ................... 2,125,000
* Administration limited to 10%
**Required by the State Auditor for reporting forms
Form of financing: Indebtedness up to $2,125,000 through bonds and other internal
financing. Authorizes total increment to be obligated to either
bonds or developer pay-as-you-go notes.
Administrative fee: Up to 10% of annual increment, if costs are justified.
Pnge 2
u
a
MODIFICATION TO THE DEVELOPMENT PROGRAM
FOR
DEVELOPMENT DISTRICT NO. 1
AND THE
MODIFICATIONS TO THE TAX INCREMENT FINANCING PLAN
FOR
TAX INCREMENT FINANCING DISTRICT NO. 1-1
(redevelopment district)
City of Mound
Hennepin County
State of Minnesota
Adopted on: May 21, 1984
Modification No. 1 on: August 12, 1985
Public Hearing on Modification No 2: Apri124, 2001
Modifications Adopted:
Prepared by:
EHLERS & ASSOCIATES, INC.
3060 Centre Pointe Drive
Roseville, Minnesota 55113-1105
Phone: (651) 697-8500
Fax: (651) 697-8555
E-mail: info@ehlers-inc.com
Web Site: www.ehlers-inc.com
TABLE OF CONTENTS
(for reference purposes only)
SECTION I
MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT
DISTRICT NO. 1 ............................................................ I-1
Foreword ............................................................... I-1
Findings ................................................................ I-1
Definitions .............................................................. I-1
Statutory Authority ........................................................ I-2
Statement of and Finding Public Purpose ...................................... I-3
Statement of Objectives .................................................... I-4
Statement of Public Facilities and Costs to be Financed ........................... I-5
Funding of Developments and Redevelopments ................................. I-5 -
Environmental Controls .................................................... I-5
Proposed Reuse of Property ................................................. I-5
Open Space to be Created .................................................. I-5
Administration and Maintenance of Development District No. 1 .................... I-5
Rehabilitation ............................................................ I-5
Relocation ............................................................... I-6
Parcels to Be Acquired or May Be Acquired in Whole or in Part Within Development
DistrictNo.l ........................................................... I-6
Modification of the Development Program and/or Development District No. 1 ......... I-6
Boundaries of Development District No. 1 ..................................... I-6
EXHIBIT I-A -BOUNDARY MAP OF DEVELOPMENT DISTRICT NO. 1 AND TAX
INCREMENT FINANCING DISTRICT NO. 1-1 ........................ I-A
SECTION II
MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 1-1 ............................. II-1
Introduction ............................................................ II-1
Findings ............................................................... II-1
Development Program Overview ............................................ II-2
Legal Description of Property in Tax Increment Financing District No. 1-1 .......... II-2
Property to be Acquired ................................................... II-2
Uses of Funds ........................................................... II-2
Sources of Revenue/Bonded Indebtedness ..................................... II-4
Duration of the District ................................................... II-5
SECTION I
City of Mound, Minnesota
Modification to the
Development Program for
Development District No. 1
April 24, 2001
Foreword
The following text represents a modification to the Development Program for Development District No.l
and a modification to the Tax Increment Financing Plans for Tax Increment Financing District No. 1-1. The
modifications to the Tax Increment Financing Plans represent a conti~iuation of the goals and objectives set
forth in the Development Plan for Development District No. 1 and the Tax Increment Financing Plan for Tax
Increment Financing District No. 1-1.
The following modifications are intended to update the original Development Program for Development
District No. 1 according to the content below. These modifications are intended to supplement the existing
Development Program. Generally, the substantive changes include modifying the budget of the Tax
Increment Financing Plan for Tax Increment Financing District No. 1-1 of Development District No. 1 as
specified below. For further information, a review of the Development Program for Development District
No. 1, adopted in 1983, and most recently modified on December 4, 1999 is recommended. It is available
from the City Clerk at the City of Mound. Other relevant information is contained in the Tax Increment
Financing Plans for the Tax Increment Financing Districts located within Development District No. 1.
Findings
The original and modified Development Program for Developtent District No.l set forth the applicable
findings for the establishment and modification of Development District No. 1. The current modification
does not require that the City Council adopt new findings, however, the City Council confirms all previous
findings establishing and modifying Development District No. 1.
(as modified April 24, 2001)
Definitions
The terms defined below shall, for purposes of this Development Program, have the meanings herein
specified, unless the context otherwise specifically requires.
"City" means the City of Mound.
"City Council" means the City Council of the City of Mound.
"County" means the County of Hennepin, Minnesota.
"County Board" means the County Board of Commissioners ofHennepin County, Minnesota.
City of Mound Modification to the Development Program for Development Project and Development District No. I I-1
"Development District" means the property within Development District No. 1, as described
in the Development Program.
`~,
"Development Program" means this Development Program for Development District No. 1,
as initially proposed, and as it shall be modified.
"EDA Act" means Minnesota Statutes, Section 469.090 through 469.1081.
"Municipal Development District Act" means Minnesota Statutes, 469.124 to 469.134,
inclusive, as amended.
"Public Costs" means the costs set forth in Sections 2.7 and 2.8 of the Tax Increment Financing
Plan, and any other costs eligible to be financed by Tax Increments under the TIF Act or the
Municipal Development District Act.
"Public Improvements" means the public improvements described in the Development
Program and Tax Increment Financing Plan.
"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 Development Program for Development District No. l and in the Tax
Increment Financing Plan, and any obligations issued to refund such bonds.
"Tax Increment Financing Act" or "TIF Act" means Minnesota Statutes, Sections 479.174
through 479.179, inclusive, as amended.
"Tax Increment Financing District" means any tax increment financing district presently
established or to be established in the future in Development District No. 1.
"Tax Increment Financing District No. 1-1" means the tax increment district, as adopted on
July 24, 1984.
"Tax Increment Financing Plan" or "Plan" means the Plan adopted by the City Council for
any Tax Increment Financing District.
Subsection 1-1. Statutory Authority
The City established Development District No. l pursuant to the Municipal Development District Act.
It is authorized that the City will administer the Development District No. 1 and and Tax Increment
Financing Districts established within Development District No. 1.
Within the Development District, the City has created two tax increment district and may create one
or more tax increment financing districts established pursuant to the Tax Increment Act to finance
the public improvements and other activities proposed for the Development District. The public
improvements may be initially financed from other City sources, including the use of improvement
bonds issued pursuant to Minnesota Statutes, Chapter 429, or loans from other City funds, which
sources the City may reimburse from tax increment proceeds derived from tax increment districts
established or to be created with the Development District.
City of Mound Modification to the Development Program for Development Project and Development District No. 1 I-2
Additional tax increment districts may be created at such time as will enable the City to capture the
increase in taxable value of private improvements to be constructed with the Development District.
Subsection 1-2. Statement of and Findingof Public Purpose
In recent months, the City of Mound has been reviewing the future development of the community.
This review has defined several important roles for the City of Mound.
^ Facilitating development activities that are compatible with overall community development
objectives of the City.
^ Removing the physical and economic barriers to development.
^ Providing the infrastructure needed to support development.
^ Providing sites for future development.
The City intends to use the powers allowed under the Municipal Development District Act to fill these
roles, to promote development and redevelopment throughout the City, and to pool resources in order
to reduce financial barriers to providing decent housing, development and redevelopment
opportunities.
The City has found that there is a need for development and redevelopment within the Development
District based upon the following conditions:
1. The Development District contains numerous parcels containing buildings or
improvements which, by reason of dilapidation, obsolescence, overcrowding,
faulty arrangement or design, lack of ventilation, light and sanitary facilities,
excessive land coverage, deleterious land use or obsolete' layout, and a
combination of these and other factors is detrimental to the safety, health,
morals or welfare of the community.
2. The Development District suffers from a lack of necessary streets, utilities and
site improvements essential to preparing and making sites available for
meaningful development.
3. The Development District requires active promotion, attraction,
encouragement and development of economically sound commerce through
government action for the purpose of preventing mergence and continuation
of blight and the occurrence of conditions requiring redevelopment
4. The Development District contains vacant, unused, underused and
inappropriately used land.
Therefore, the City created a program for improving the Development District to provide impetus for
private development and redevelopment, to provide decent housing to residents, to maintain and
increase employment, to provide infrastructure to serve citizens and employees of the City, to utilize
existing land for potential redevelopment and to provide other facilities as are outlined in the
Development Program.
City of Mound Modification to the Development Program for Development Project and Development District No. I I-3
The City has also determined that proposed developments to be assisted by the City would not occur
solely through private investment in the foreseeable future. The City finds that the welfare of the City,
as well as the State of Minnesota, requires active promotion, attraction, encouragement and
development of economically sound industry and commerce to carry out its stated public purpose
objectives.
The City has also determined that the tax increment financing plans to be included herein will be
consistent with the Development Program, 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 Development District by private enterprise.
Subsection 1-3. Statement of Objectives
The City Council determines that it is necessary, desirable and in the public interest to establish,
designate, development and administer Development District No. 1. The City determines that the
establishment of Development District No. 1 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. To promote land use and development that is consistent with the adopted
Comprehensive Plan;
2. to encourage new commercial development to strengthen the tax base, provide
additional employment opportunities and expand the services available to Mound
residents;
to promote development which will help revers declining valuation trends of
commercial property;
4. to acquire and remove buildings that are obsolete, inefficient or under utilized;
5. to provide appropriate qualitites of land in suitable locations for the expansions of existing
businesses;
6. to provide adequate infrastructure to serve both new and existing development;
7. to provide the necessary framework for the expansion of redevelopment efforts by private
enterprise; and
8. to remove existing deficiencies in the pedestrian and vehicular elements of the transportation
system.
Subsection 1-4. Statement of Public Facilities and Costs to Be Financed
The preceding objectives will be promoted by providing improvements and opportunities within the
Development District which may include various types of site improvements, land acquisition,
redevelopment, demolition, relocation, parking, street, sewer, water and other public improvements.
City of Mound Modification to the Development Program for Development Project and Development District No. I I-4
Subsection 1-5. 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 Development District are
expected to be accomplished through, and are 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 Development District will be financially feasible and compatible with
longer range development plans. Any acquisition of property for the public improvements will be to
provide the impetus for private development within the Development District.
Subsection 1-6. Environmental Controls
It is presently anticipated that the proposed development under the Development Program in the
Development District will not present major environmental problems. Prior to development and
substantial financing of the public costs associated with the project, the City or the developer will have
secured the necessary review of the Project by the Minnesota Pollution Control Agency, the Minnesota
Environmental Quality Board, the Minnesota Department of Natural Resources, and any other state,
federal, or local agencies and received the necessary permits or approvals from the affected agencies
at the federal, state, or local levels of government, if such review and approval are identified as
necessary by the City.
Subsection 1-7. Proposed Reuse of Property
The public improvements needed to bring about the new development may include site improvements
such as soil correction, utility work, and general improvements.
Subsection 1-8. Open Space to Be Created
Any open space within the Development District will be created in accordance with the zoning and
ordinances of Mound.
Subsection 1-9. Administration and Maintenance of Development District No. 1
Maintenance and operation of Development District No. l will 6e the responsibility of the City Clerk.
Each year, the administrator of Development District No. 1 will submit to the City Council the
maintenance and operation budget for the following year.
The administrator of Development District No. 1 will administer the Development District pursuant
to the provision of Section 469.131 of the Development District Act; provided, however, that such
powers may only be exercised at the direction of the City Council. No action taken by the
administrator of the Development District pursuant to the above-mentioned powers shall be effective
without authorization by the City Council.
Subsection 1-10. Rehabilitation
Owners of properties within the Development District wilt be encouraged to rehabilitate their
properties to conform with the applicable state and local codes and ordinances, as well as any design
City of Mound Modification to the Development Program for Development Project and Development District No. I I-5
standards. Owners of properties who purchase property within the Development District from the
City may be required to rehabilitate their properties as a condition of sale of land. The City will
provide such rehabilitation assistance as may be available from federal, state or local sources.
Subsection 1-11. Relocation
The City accepts as binding their obligation under federal, state, and local law for relocation and will
administer relocation services for families, individuals, and businesses to be displaced by public action
if such services are requested or necessary. Prior to the approval of the City of any development or
redevelopment plan, it shall be satisfied that there is a feasible method for the temporary relocation
of families to be displaced from the Development District and that there are available or will be
provided, in the Development District or in other areas not less desirable in regard to public utilities
and public commercial facilities and at rents or prices within the financial means of the families
displaced from the project areas, decent, safe and sanitary dwellings equal in number of such
displaced families. If relocation is necessary, provisions will be made in accordance with Minnesota
Statutes, Sections 117.50 through 117.56, inclusive.
Subsection 1-12. Parcels to Be Acquired or MaX Be Acquired in Whole or in Part Within
Development District No. 1
The City may acquire any parcels located in the Development District.
Subsection 1-13. Modification of the Development Program and/or Development District No. 1
The Development Program for Development District No. 1 may be modified in accordance with the
Municipal Development District Act.
Subsection 1-14. Boundaries of Development District No. 1
The boundaries of Development District No. 1 are not being changed and continue to include the corporate
limits of the City of Mound.
City of Mound Modification to the Development Program for Development Project and Development District No. 1 I-6
EXHIBIT I-A
BOUNDARY MAP OF MUNICIPAL DEVELOPMENT DISTRICT NO. 1
AND
TAX INCREMENT FINANCING DISTRICT NO. I-I
I-A
O
O
V
N
8
m
N
0
~_~
SECTION II
City of Mound, Minnesota
Modification to the
Tax Increment Financing Plan for
Tax Increment Financing District No. 1-1
Apri124, 2001
Introduction
The following text represents a modification to the Tax Increment Financing Plan for Tax Increment
Financing Districts No. 1-1. The modification to the Tax Increment Financing Plan represents a continuation
ofthe goals and objectives set forth in the Redevelopment Plan for Redevelopment Project and Development
District No. 1 and the Tax Increment Financing Plan for Tax Increment Financing Districts No. 1-1.
The purchase of land and upgrade of public utilities was financed through tax increments to facilitate the
redevelopment of structural deficient properties and correct land use problems in the downtown area. The
redevelopment began in 1984 and was completed in 1985. The first tax increment was received in 1985.
The original plan for Tax Increment District No. 1-1 is being modified to clarify the budget and to comply
with the current requirements of the Office of the State Auditor. The duration of the tax increment district
is being clarified in the modification, therefore, there are no additional fiscal implications to the taxing
jurisdictions. The budget is being modified to explicitly authorize repayment of refunding of bonds, loans
from other city funds, and transfer amounts for the project area expenses, which may be interpreted as a
budget increase, which requires a public hearing.
Generally, the substantive changes in Tax Increment Financing District No. 1-1 include:
1. To expand the budget for Tax Increment Financing DistrictNo. 1-1 to include interest earnings,
inter-fund loans and inter-fund transfers as tax increment funds;
2. To clarify budgets for previous bond refunding amounts;
3. To clarify duration;
4. To clarify the amount of interfund loans transfers of tax increments to be authorized; and
5. Explicitly authorize the use of tax increments for Development District project expenditures.
The following modifications are intended to serve as additions to the original tax increment financing plan
for Tax Increment Financing District No. 1-1 according to the content below and are not contemplated to
replace any sections unless specified. A copy of the full tax increment financing plan for Tax Increment
Financing District No. 1-1 is on file with the City Administrator of the City of Mound.
Findings
The original and modified Development Plan Development District No. 1 set forth the applicable findings
for the establishment and modification of Tax Increment Financing District No. 1-1. The current
modification does not require that the City Council adopt new findings, however, the City Council confirms
all previous findings establishing and modifying Tax Increment Financing District No. 1-1.
City of Mound Modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 1-i II-I
Y
(As modified on April 24, 2001)
Development Program Overview
1. Property to be Acquired -Selected property located within District No. 1-1 may
be acquired by the City or HRA and is further described in this Plan.
2. Relocation -Complete relocation services 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 City or HRA may sell to a developer selected
properties that they may acquire within District No. 1-1 or may lease land or
facilities to a developer.
4. The City or HRA may perform or provide for some or all necessary acquisition,
construction, relocation, demolition, and required utilities and public streets work
within District No. 1-1.
Legal Description of Pronertv in Tax Increment Financing District No. 1-1
The District boundaries are not changing. A map of Tax Increment Financing District No. l-1, located
within Development District No. 1, can be found on page I-A (in Section n of this document.
Property To Be Acquired
-~~ The City or HRA may acquire any parcel within District No. 1-1 or Development District No. 1
including interior and adjacent street rights of way.
1. Any properties identified for acquisition will be acquired by the City or HRA only in order to
accomplish one or more of the following: storm sewer improvements; provide land for needed
public streets, utilities and facilities; carry out land acquisition, site improvements, clearance
and/or development to accomplish the uses and objectives set forth in this plan.
2. The following are conditions under which properties not designated to be acquired may be
acquired:
The City or HRA may acquire property by gift, dedication, condemnation or direct purchase
from willing sellers in order to achieve the objectives of this tax increment financing plan. Such
acquisitions will be undertaken only when there is assurance of funding to finance the acquisition
and related costs.
Uses of Funds
This section authorizes the use of increments from Tax Increment District No. l-1 to be used for costs
authorized and incurred in Development District No. l or any costs authorized and incurred in other
Tax Increment District located within Development District No. 1. These revenues shall not be used
to circumvent any levy limits.
City of Mound Modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 II-2
i
r
The following is an estimate of public costs including all modifications to the Tax Increment
Financing Plan for Tax Increment Financing District No. 1-1. A modified estimated cost
~-.-- breakdown of costs associated with financing Tax Increment Financing District No. 1-1 is
as follows:
Uses May 21, August 12, Proposed Totals
of 1984 1985 Apri124, including
Funds Original Modification 2001 the April 24,
Budget Modification 2001
Modification
Land Acquisition $873,900 $375,000 $1,385,861 $2,634,761
Site Improvements $0 $225,000 $275,000 $500,000
Public Utilities $0 $0 $500,000 $500,000
Parking $500,000 $500,000
Streets and sidewalks $500,000 $500,000
Relocation $160,000 $0 $0 $160,000
Bond interest payments $2,147,250 $398,963 $0 $2,546,213
Loan interest payments $0 $0 $300,000 $300,000
Bond Discount $0 $0 $20,000 $20,000
Development district
public improvements $0 $2,531,071 ($2,531,071) $0
Administration costs 87 000 ~0 37$ 3,000 46$ 0,000
Total Cost $3,268,150 $3,530,034 $1,322,790 $8,120,974
Bond principal payments $1,375,000 $750,000 $0 $2,125,000
Refunded bond principal $2,125,000 $2,125,000
Interfund loan $7,500,000 $7,500,000
Transfers $7,500,000 $7,500,000
It is the intention of the City to use increments in excess of what is needed for debt service herein and
to pay towards any other project expenses within Development District No. 1, including shortfalls of
other Tax Increment Districts.
Estimated costs associated with District No. 1-1 are subject to change among categories without a
modification to this Plan. The cost of all activities to be considered for tax increment financing will
not exceed, without formal modification, the budget above pursuant to the applicable statutory
requirements. It is the intention of the City to use increments in excess of what is needed for debt
City of Mound Modification to the Tax Increment Financing Plan for Tax Increment Financing District No. I-1 II-3
service herein and to pay towards any other project expenses within Development District No. 1.
Subsection 2-l. Sources of RevenueBonded Indebtedness
Site improvement costs, acquisition, relocation, and site preparation costs and other costs outlined
in the Uses of Funds has been and will continue to be financed primarily through the annual
collection of tax increments. The City or HRA reserves the right to use other sources of revenue
legally applicable to the Modification to the Development Program and the Plan, including, but not
limited to, special assessments, general property taxes, state aid for road maintenance and
construction, proceeds from the sale of land, other contributions from the developer and invest-
ment income, to pay for the estimated public costs.
The City reserves the right to incur bonded indebtedness or other indebtedness as a result of the
Plan. In 1985 the City issued bonds totaling $2,125,000, a portion which was refunded in 1993 to
take advantage of declining interest rates. Additional indebtedness may be required to finance
other authorized activities. The total principal amount of bonded indebtedness or other
indebtedness related to the use of tax increment financing will not exceed $2,125,000 without a
modification to the Plan pursuant to applicable statutory requirements. The City reserves the
right to refund any bonds to the extent allowed by law without additional modifications to this
Plan.
This provision does not obligate the City to incur debt. The City will issue bonds or incur other
debt only upon the determination that such action is in the best interest of the City. The City may
also finance the activities to be undertaken pursuant to the Plan through loans from funds of the
City or HRA or to reimburse the developer on a "pay-as-you-go" basis for eligible activities paid
for by the developer. The estimated sources of funds for District No. 1-1 are contained in the table
below.
Sources May 21, August 12, Proposed Totals
of 1984 1985 April 24, including
Funds Original Modification 2001 the April 24,
Budget Modification 2001
Modification
Tax Increments $4,254,818 $3,284,406 $0 $7,539,224
Interest on invested funds $0 $245,628 ($200,628) $45,000
Land Payments 53$ 6,750 ~0 ~_0 $536.750
Total Cost $4,791,568 $3,530,034 ($200,628) $8,120,974
Bond proceeds
Refunding bond proceeds
Loans
Transfers
$1,375,000 $750,000
$0
$2,125,000
$7,500,000
$7,500,000
$2,125,000
$2,125,000
$7,500,000
$7,500,000
City of Mound Modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 II-4
Duration of the District
Pursuant to M.S., Section 469.176, Subd. 1(b), the duration of District No. 1-1 will be 25 years from
the date of receipt of the first increment by the City. The date of receipt by the City of Mound of
the first tax increment was in 1985. Thus, it is estimated that District No. 1-1, including any
modifications of the Plan for subsequent phases or other changes, would terminate December 31,
2010, or when the Plan is satisfied. The City reserves the right to decertify District No. 1-1 prior to
the legally required date.
City of Mound Modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 II-5
u
a
March 23, 2001
BY FAX AND BY REGULAR MAIL
Jean Beirbaum
Taxpayers Services Department
A-600 Hennepin County Government Center
300 South 6th Street
Minneapolis, MN 55487
E H LE RS
& ASSOCIATES I N C
Mary Landberg, School Board Clerk
Westonka School District No.277
2450 Wilshire Boulevard, Suite A
Mound, MN 55364
Re: The City of Mound and the Mound's ("City") proposed modification of Tax Increment
Financing District No. 1-1, within Development District No. 1 and the adoption of the Tax
Increment Financing Plan.
The City of Mound will be considering the adoption of the modification to the Tax Increment Financing Plan
(the "Plan") for Tax Increment Financing District No. 1-1, a redevelopment tax increment financing district
(the "District"), located within Development District No. 1, at a public hearing to be held at City Hall, City
of Mound, on April 24, 2001 at approximately 7:30 A redevelopment district has a maximum life of25 years
of tax increment (or a shorter period as determined by the City Council).
Enclosed please find one copy of the proposed modified Plan for the District. Tlie proposed Modifications
are to facilitate budget modifications. The location of the District can be seen on the leap as found in the
enclosed Plan.
The Minnesota Tax Increment Financing Act at Minnesota Statues, Section 469.175, Subdivision 2 and 4,
requires that prior to the holding of a public hearing on the adoption or modification of a tax increment
financing plan, the HRA must provide an opportunity to the members of the affected county and school
boards to review the fiscal and economic implications of the proposed modified or new tax increment
financing plan 30 days from the transmittal of the enclosed fiscal implications or until the County or School
Boards have presented written comment on the proposal, whichever is less.
This modification does not create any new Tax Increment Financing Districts and does not increase
the geographic size of any Tax Increment Financing District, therefore there are no additional fiscal
implications that affect taxing jurisdictions.
We invite you to attend the public hearing to be held by the City Council on April 24, 2001, beginning at
approximately 7:30 P.M., or to direct any comments or questions that you may have to the City of Mound at
952-472-0610, or tome at 651-697-8504.
Vii.
j Equal Opportunity Employer
LEAD E R S I N P U B L I C F I N A N C E
Charter Member of the National Association
of Independent Public Finance Advisors
1105 651.697.8500 taxi
3060 Centre Pointe Drive, Roseville, MN 55113- 651.697.8555 www.ehlers•inc.com
March 23, 2001
Page 2
Thank you for your consideration in reviewing the enclosed proposal.
Sincerely,
EHLERS AND ASSOCIATES, INC.
~.'
Shelly Eld edge
Financial Advisor
Acting for and on behalf of tl~e City of Mound, Minnesota
Enc.
cc: Bonnie Ritter, City of Mound
Kandis Hanson, City of Mound
Gino Businaro, City of Mound
John Dean, Kennedy and Graven, Chartered
a
r
Hennepin County Taxpayer Services Department
.~ -
A-600 Hennepin County Government Center
Minneapolis, Minnesota 55487-0060
April 16, 2001
Shelly Eldridge
Financial Advisor
Ehlers & Associates, Inc.
3060 Centre Pointe Drive
Roseville, MN 55113-1105
Re: Mound Modification to TIF District No. 1-1
Dear Ms. Eldridge:
Enclosed is a report from Richard P. Johnson, Hennepin County Deputy Administrator, to the
Hennepin County Board of Commissioners, concerning the proposed Mound Modification to TIF
District No. 1-1.
Please arrange to have the report entered into the record of the public hearing of the Mound City
Council on Tuesday, April 24, 2001, to reflect the input of Hennepin County, as provided by Minnesota
Statutes, Section 469.175, Subd. 2.
If you have any questions about this information, please call me at 612-348-5076.
Sincerely,
Jean iVl. Bierbaum, Senior Administrative Assistant
Financial Analysis and Support Division
Cc Kandis Hanson, City of Mound, 5341 Maywood Road, Mound MN 55364-1687
RevuMMoundTlF1-1 Mod4242001 JTransmittalLetter
An Equol Opportunity Employer Recycled Paper
`,
'~~M
DATE: April 16, 2001
TO: Board of Commissioners
FROM• Richard P. Johnson, Deputy Administrator
SUBJECT• Modification to Tax Increment Financing Distric No. 1-1 for the City of Mound
Hearing Scheduled: Tuesday, April 24, 2001, at 7:30 p.m., Mound City Hall.
History: Mound Redevelopment TIF District No. 1-1 was created on 7/24/84. The Town Square TIF District has
generated $2,878,979.65 of tax increment through tax payable year 2000, and will be decertified on 12/31/2010.
Proposed Modification: The TIF District cannot be geographically enlarged. The Modification clarifies the
decertification date and authorizes payment of bonds, loans from other city funds and transfer of revenue for the
Development District project area. The Modification proposal states: "This section authorizes the use of increments
from Tax Increment District No. 1-1 to be used for costs authorized and incurred in Development District No. 1 or
any costs authorized and incurred in other Tax Increment District located within Development District No. 1." The
City of Mound created redevelopment TIF District No. 1-2 on 12/14/99. The Modification to TIF District No. 1-1
authorizes transfer of tax increment to TIF District No. 1-2 for its project expenses.
spreadsheets included in the Plan identify the Uses and Sources of Funds as follows:
5/21/84 8/12/85 4/24/01
_
Uses of Funds Budaet Modification Modification Total
Land Acquisition $873,900 $375,000 $1,385,861 $2,634,761
Site Improvements 0 225,000 275,000 500,000
Public Utilities 0 0 500,000 500,000
Parking 500,000 500,000
Streets/Sidewalks 500,000 500,000
Relocation 160,000 0 0 160,000
Bond Interest Payments 2,147,250 398,963 0 2,546,213
Loan Interest Payments 0 0 300,000 300,000
Bond Discount 0 0 20,000 20,000
Dist.Public Impvt
Dev 0 2,531,071 (2,531,071) 0
.
Administration 87 000 0 373 000 460.000
Total Uses of Funds $3,268,150 $3,530,034 $1,322,790 $8,120,974
5/21/84 8/12/85 4/24/01
ourc s of F nds Bud et Modificati n Modification Total
Tax Increment $4,254,818 $3,284,406 $0 *$7,539,224
Interest on Invested Funds 0 245,628 (200,628) 45;000
hand P~ments 536 750
Total Sources of Funds $4,791,568 0
$3,530,034 0
($200,628) 536.750
$8,120,974
* Note: Tax Increment Revenue generated through 12/31/2000 is $2,878,979.65.