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HRA 11/14/1991 - 6380
HOUSING AND REDEVELOPMENT AUTHORITY THURSDAY, NOVEMBER 14, 1991 7:30 P.M. WILLIAM BURNS EXECUTIVE DIRECIOOR OF HRA 0 CITY OF FRIDLEY A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, NOVEMBER 14, 1991, 7:30 P.M. Location: City Council Chambers Fridley Municipal Center 6431 University Avenue N.E. CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: October 24, 1991 ACTION ITEMS: /J RESOLUTION MODIFYING THE REDEVELOPMENT PLAN ;► FOR REDEVELOPMENT PROJECT NO. 1 AND ESTABLISHING PROPOSED TAX INCREMENT FINANCE DISTRICT #12 . . . . . . 1 - 1N CLAIMS AND EXPENSES . . . . . . . . . . . . d 2 - 2B a PROPOSED 1992 MEETING DATES . . . . . . 'a. . . . . 3 INFORMATION ITEMS: UPDATE ON RICE PLAZA. . . . . . . . . . . . . . . 4 LETTER FROM JIM KORDIAK REGARDING EVICTION OF RICE PLAZA TENANT . . . . . . . . . . . . . 5 - 5E *CHECK IN AMOUNT OF $17,500 HAS BEEN RECEIVED FROM THE OWNERS OF THE FRIDLEY PLAZA OFFICE BUILDING OTHER BUSINESS ADJOURNMENT r e CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 24, 1991 __--_..... ____.._�__-- _..__.._..�__��_�_. CALL TO ORDER: Chairperson Commers called the October 24, 1991, Housing & Redevelopment Authority minutes to order at 7:30 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, John Meyer, Jim McFarland Members Absent: Duane Prairie Others Present: William Burns, Executive Director of HRA Rick Pribyl, Finance Director Jim Hoeft, HRA Attorney Jim Casserly, Consultant Bob and Mike Schroer, Bob's Produce Ranch Dave Newman, 1814 Northdale Boulevard N.W. APPROVAL OF SEPTEMBER 12, 1991 HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve the September 12, 1991, Housing & Redevelopment Authority minutes. Ms. Schnabel stated the following correction should be made on page 3, first paragraph: "improvements to the building" should be changed to "construction of the building ". UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MINUTES APPROVED AS AMENDED. 1. CONSIDER CONCEPT APPROVAL OF TIF ASSISTANCE FOR REDEVELOPMENT OF BOB SCHROER PROPERTY: Mr. Newman stated that because of the time frame they have been under in order to get Lyndale Garden Center in before their spring season, they have been fast - tracking this project. While they have been processing their applications with the City, they have been seeking financing at the same time they have been doing the design work and working with the engineers. On Tuesday, they were told by their engineers that they have an unexpected expense of approximately $300,000 for storm water retention and, more specifically, soil correction work. This has caused them considerable concern. r.' • HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCT. 24, 1991 - PAGE 2 Mr. Newman stated that since the last HRA meeting, they pursued a financing proposal with a rather large regional bank. They used the 504 financing program. However, in spite of the support of the local loan officer, the loan committee rejected the proposal. The reason is that Lyndale Garden Center building is considered a non - owner- occupied commercial property; and the committee has taken the position that no matter how the numbers are or how good the cash flow is, they will not finance a non - owner- occupied commercial building. They are now working with another bank whose response has been more favorable. Mr. Newman stated that because of this new anticipated cost of $300,000, they need to step back and re- evaluate the project and re- evaluate their alternatives. At this point, they need some clear direction before they can proceed any further. Mr. Bob Schroer stated they certainly appreciated all the time Mr. Burns and Mr. Casserly has given to them. They don't want the project to die, and they do want to see some type of new redevelopment on this corner. They.are hoping that when they step back and take a look at the whole program that Lyndale Garden Center.will still be encouraged to stay in the project. He stated he and his son have gone over the project quite thoroughly to look at another way to handle it, and they do have some parking problems. They are working on ways to solve the parking problem. The problem is that the project has become too expensive, and their type of business cannot support the building costs and preparation costs the project is going to require. Mr. Schroer stated they hope to be able to come back to the HRA within the next 3 -4 months. 2. CLAIMS AND EXPENSES: a._ Check Register (2162 -2172) Mr. Pribyl stated he had a check (2173) to add to the check register for Maxfield Research, Inc., in the amount of $8,780.60 for 75% completion of the Fridley Analysis Housing Study. MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the check register (2162- 2173). UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. LETTER FROM JIM KORDIAK REGARDING RICE PLAZA: Mr. Commers stated this letter is in response to the HRA's request for an update as to the advertising activities for the vacant space at Rice Plaza. It is Mr. Kordiak's suggestion that he continue with the window advertising at this time. HOUSING & REDEVELOPNENT AUTHORITY MEETING OCT. 24, 1991 - PAGE 3 4. UPDATE ON RICE PLAZA: Mr. Commers stated this is an update on the Rice Plaza rents and is for informational purposes only. 5. UPDATE ON FRIDLEY PLAZA OFFICE BUILDING'S SECOND MORTGAGE: Mr. Commers stated that Mr. Hoeft has determined that no personal guarantees were provided to secure the second mortgage on the Fridley Plaza•Office building. The HRA will record the mortgage satisfaction document as soon as the check in the amount of $17,500 is received. Mr. Hoeft stated he believed the check might have already been received. 6. FINAL COPY OF DAIRY QUEEN LEASE:. Mr. Commers stated the HRA members had a final copy of the Dairy Queen lease as revised according to the HRA's direction at the September 12, 1991, meeting. 7. MEMO ON DISPUTE OF PETER PATCHIN BILL: Mr. Commers stated this is for informational purposes only. 8. OTHER BUSINESS: a. Commissioners' Hearing Mr. Hoeft stated the HRA initially agreed to provide Mr. Don Fitch with up to a 30 -day extension, or a continuance of the Commissioners' Hearing for the condemnation of the Dairy Queen property. That has caused some problems, because one of the Commissioners, 011ie Erickson, is out of town until the end of November, and another Commissioner, Al Kordiak, will be out of town beginning the end of November through the middle of December. He wanted the HRA members to know that there is a scheduling problem, and that the Hearing may not happen until January. It is unfortunate that the Hearing could not be held within the 30 -day time period. b. Fridley Plaza Office Building Mr. Hoeft stated the new owners have settled with the previous owners who were in default. However, in that process, the new owners brought to staff's attention the fact that the status of the lease with regard to the parking ramp is very confusing. There was an underlying lease and there have been several amendments to that lease and several referenced amendments in some of the ones that have been recorded that f. HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCT. 24. 1991 - PAGE 4 have not been recorded. He is asking for authorization from the HRA to take the steps to clean up that lease so they do not run into any more problems in the future. He believed it will take about 1 -2 hours of his time to get the copies and do one amendment that supercedes and incorporates everything that -has been done to this point. Mr. Commers stated cleared up. When Mr. bring the lease wit h review. ADJOURNMENT it seemed appropriate to get this all Hoeft is finished, he would like him to the changes back to the HRA for their MOTION by Ms. Schnabel, seconded by Mr. McFarland, to adjourn the meeting. Upon a voice vote, all voting aye, Chairperson Commers declared the motion carried and the October 24, 1991, Housing and Redevelopment Authority meeting adjourned at 8:05 p.m. Respectfully su itted, tynfi Saba Reco ding Secretary 1 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR -REDEVELOPMENT PROJECT NO. 1 TO REFLECT INCREASED GEOGRAPHIC AREA AND INCREASED PROJECT COSTS WITHIN REDEVELOPMENT PROJECT NO. 1 AND MODIFYING THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICTS NO. 1 THROUGH NO. 11 TO REFLECT INCREASED PROJECT COSTS WITHIN REDEVELOPMENT PROJECT NO. 1 AND ESTABLISHING PROPOSED TAX INCREMENT FINANCING DISTRICT NO. 12 AND APPROVING AND ADOPTING THE PROPOSED TAX INCREMENT FINANCING PLAN RELATING THERETO. BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority "), as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority modify the Modified Redevelopment Plan for Redevelopment Project No. 1 to reflect increased project costs and increased geographic area, pursuant to and in accordance with Minnesota Statutes, Sections 469.001 to 469.047, inclusive, as amended and supplemented from time to time. 1.02. It has been further proposed that the Authority modify the Modified Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 through No. 11 to reflect increased project costs within Redevelopment Project No. 1, pursuant to Minnesota Statutes, Section 469.174 through 469.179, inclusive, as amended and supplemented from time to time. 1.03. It has been further proposed that the Authority approve the proposed Tax Increment Financing Plan for proposed Tax Increment Financing District No. 12 pursuant to and in accordance with Minnesota Statutes, Section 469.174 to 469.179, inclusive, as amended and supplemented from time to time. 1 -A 1.04. The Authority has investigated the facts and has caused to be prepared with respect thereto, a Modified Redevelopment Plan for Redevelopment Project No. 1 to reflect increased project costs and increased geographic area; Modified Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 through No. 11 to reflect increased project costs within Redevelopment Project No. 1; and a proposed Tax Increment Financing Plan for proposed Tax Increment Financing District No. 12, defining more precisely the property to be included, the public costs to be incurred and other matters relating thereto. 1.05. The Authority has performed all actions required by law to be performed prior to the approval and adoption of the Modified Redevelopment Plan for Redevelopment Project No.-1, of the Modified Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 through No. 11, and of the proposed Tax Increment Financing Plan for proposed Tax Increment Financing District No. 12. 1.06. The Authority hereby determines that it is necessary and in the best interests of the City.and the Authority at this time to approve and adopt the Modified Redevelopment Plan for Redevelopment Project No. 1 to reflect increased project costs and increased geographic area; to approve and adopt the Modified Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 through No. 11 to reflect increased project costs within Redevelopment Project No. 1; and to approve and adopt the proposed Tax Increment Financing Plan for proposed Tax Increment Financing District No. 12. Section 2. Findings. 2.01. The Authority hereby finds that the assistance to be provided through the adoption and the implementation of the Modified Redevelopment Plan, Modified Tax Increment Financing Plans and proposed Tax Increment Financing Plan are necessary to assure the development and redevelopment of Redevelopment Project No. 1. 2.02. The Authority hereby finds that the Modified Redevelopment Plan, Modified Tax Increment Financing Plans and proposed Tax Increment Financing Plan conform to the general plan for the development and redevelopment of the City as a whole in that they are consistent with the City's comprehensive plan. PA i -B 2.03. The Authority finds that the Modified Redevelopment Plan, Modified Tax Increment Financing Plans and proposed Tax Increment Financing Plan afford maximum opportunity consistent with the sound needs of the City as a whole for the development and redevelopment of Redevelopment Project No. 1 by private enterprise and it is contemplated that the development and redevelopment thereof will be carried out pursuant to redevelopment contracts with private developers. Section 3. Modification of the Modified Redevelopment Plan for Redevelopment Proiect No. T. 3.01. The modification of the Modified Redevelopment Plan for Redevelopment Project No. 1 to reflect increased project costs and increased geographic area is hereby approved and adopted by the Commissioners of the Authority and is forwarded to the Fridley City Council for public hearing, review and approval. Section 4. Modification of the Modified Tax Increment Financing Plans for Tax Increment _Financing Districts No. 1 through No. 11 4.01. The modifications of the Modified Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 through No. 11 to reflect increased project costs within Redevelopment Project No. 1 are hereby approved and adopted by the Commissioners of the Authority and are forwarded to the Fridley City Council for public hearing, review and approval. Section S. Approval of the Tax Increment Financing Plan and Establishment of Proposed Tax Increment Financing District No. 12. 5.01. The establishment of proposed Tax Increment Financing District No. 12 within Redevelopment Project No. 1 and the proposed Tax Increment Financing Plan relating thereto are hereby approved and adopted by the Commissioners of the Authority and are forwarded to the Fridley City Council for public hearing, review and approval. Section 6. Filing of Plans. 6.01. Upon approval and adoption of the Modified Redevelopment Plan, the Modified Tax Increment Financing Plans and the proposed Tax Increment Financing Plan (collectively the "Plans "), the Authority shall cause said Plans to be filed with the Commissioner of Revenue. 3 1 -C Adopted by the Board of Commissioners of the Authority this 14th day of November, 1991. ATTEST: Executive Director Chairman CERTIFICATION I, William W. Burns, Executive Director of the Housing and Redevelopment Authority in and for the City of Fridley, County of Anoka, Minnesota, hereby certify that the foregoing is a true and correct copy of Resolution No. passed by the Authority on the 14th day of November, 1991. William W. Burns, Executive Director 4 1 -D SECTION XIII TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 12 (MCGLYNN BAKERIES) Subsection 13.1. Statement of Objectives. See Section I, Subsection 1.5. Statement of Objectives. Subsection 13.2. Modified Redevelopment Plan. See Section I, Subsections 1.2. through 1.15. Subsection 13.3. Parcels to be Included. The boundaries of Tax Increment Financing District No. 12 are described on the attached Exhibit XIII -A and illustrated on Exhibit XIII -B. Subsection 13.4. Parcels in Acquisition. The Authority may publicly acquire and reconvey any or all of the parcels in Tax Increment Financing District No. 12 identified on the attached Exhibit XIII -A. The following are conditions under which properties not designated to be acquired may be acquired at a future date: (1) The City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of the Tax Increment Financing Plan; and (2) Such acquisition will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 13.5. Development Activity for which Contracts have been Signed. As of the date of adoption of the Tax Increment Financing Plan, the City intends to enter into a Development Agreement with the following developer: McGlynn Bakeries, Inc., a Minnesota corporation, for the rehabilitation of an existing facility to provide 142,000 square feet of commercial space with a total market value estimated at $4,362,600. Construction is anticipated to be completed in 1992. Subsection 13.6. Specific Development Expected to Occur. At this time it is anticipated that a facility providing 142,000 square feet of industrial /commercial space will be rehabilitated. 13 - 1 1 -E Subsection 13.7. Prior Planned Improvements. The Authority shall, after due and diligent search, accompany its request for certification to the County Auditor or its notice of district enlargement with a listing of all properties within Tax Increment Financing District No. 12 for which building permits have been issued during the eighteen (18) months immediately preceding approval of the Tax Increment Financing Plan by the Authority. The county Auditor shall increase the original tax capacity of Tax Increment Financing District No. 12 by the tax capacity of each improvement for which the building permit was issued. If said listing does not accompany the aforementioned request or notice, the absence of such listing shall indicate to the County Auditor that no building permits were issued in the eighteen (18) months prior to the Authority's approval of the Tax Increment Financing Plan. Subsection 13.8. Fiscal Disparities. The Authority hereby elects the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, Subdivision 3, clause (a) if and when commercial /industrial development occurs with Tax Increment Financing District No. 12. Subsection 13.9. Estimated Public Improvement.Costs. The estimated costs associated with Redevelopment Project No. 1 are listed in Section I, Subsections 1.9 and 1.10. Subsection 13.10. Estimated Amount of Bonded Indebtedness. It is anticipated that $1,125,000 of bonded indebtedness could be incurred with respect to this portion of Redevelopment Project No. 1. Pursuant to Minnesota Statutes, Section 469.178, Subdivision 1, General Obligation Tax Increment Bonds may be used as required to amortize the costs identified in Section I, Subsections 1.9 and 1.10. The City reserves the right to pay for all or part of the activities listed in Section I, Subsections 1.9. and 1.10. relating to Redevelopment Project No. 1 as tax increments are generated and become available. Subsection 13.11. Sources of Revenue. The costs outlined in Section I, Subsection 1.9. will be financed through the annual collection of tax increments. Subsection 13.12. Estimated Original and Captured Tax Capacities. The tax capacity of all taxable property in Tax Increment Financing District No. 12, as most recently certified by the Commissioner of Revenue of the State of Minnesota on January 2, 1992, is estimated to be $110,574. 13 - 2 1 -F The estimated captured tax capacity of Tax Increment Financing District No. 12 upon completion of the proposed improvements on January 2, 1993 is estimated to be $88,506. Subsection 13.13. Tax Capacity Rate. The current total tax capacity rates are 101.726 for the portion of Tax Increment Financing District located within Independent School District No. 14 and 101.866 for the portion located within Independent School District No. 16. Subsection 13.14. Tax Increment. Tax increment has been calculated at approximately $90,113 upon-completion of the improvements assuming a static tax capacity rate and a valuation increase of one and one -half percent (1.5%) compounded annually. Subsection 13.15. Type of Tax Increment Financing District. Tax Increment Financing District No. 12 is, pursuant to Minnesota Statutes, Section 469.174, Subdivision 12, a Redevelopment District. Subsection 13.16. Duration of Tax Increment Financing District. The duration of Tax Increment Financing District No. 12 is expected to be twenty -five (25) years from receipt of the first tax.increment. The date of receipt of the first tax increment is estimated to be July, 1994. Thus, it is estimated that Tax Increment Financing District No. 12, including any modifications for subsequent phases or other changes, would terminate in the year 2019. Subsection 13.17. Estimated Impact on Other Taxing Jurisdictions. The estimated impact on other taxing jurisdictions assumes construction would have occurred without the creation of Tax Increment Financing District No. 12. If the construction is a result of tax increment financing, the impact is $0 to other entities. Notwithstanding the fact that the fiscal impact on the other taxing jurisdictions is $0 due to the fact that the financing would not have occurred without the assistance of the City, the attached Exhibit XIII -E reflects the estimated impact of Tax Increment Financing District No. 12 if the "but for" test was not met. Subsection 13.18. Modification of Tax Increment Financing District and/or Tax Increment Financing Plan. As of July 1, 1991, no modifications to Tax Increment Financing District No. 12 or the Tax Increment Financing Plan therefore has been made, said date being the date of initial approval and adoption thereof by the City Council. 13 - 3 1 -G EXHIBIT XIII -A PARCELS TO BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 12 MCGLYNN BAKERIES AS ORIGINALLY ADOPTED DECEMBER 9, 1991 P.I.N. 10- 30 -24 -14 -0049 10- 30 -24 -14 -0051 11- 30 -24 -23 -0020 11- 30 -24 -23 -0021 XIII -A -1 1 -H EXHIBIT XIII -B BOUNDARY MAP OF TAX INCREMENT FINANCING DISTRICT NO. 12 (to be inserted) XIII -B -1 EXHIBIT XIII -C CASH FLOW ANALYSIS OF TAX INCREMENT FINANCING DISTRICT NO. 12 CITY OF FRIDLEY, MINNESOTA 06_Nov_91 PORTION OF TIF DISTRICT LOCATED WITHIN I.S.D. #16 (A) (B) (C) (D) (E) (F) (G) (H) (I) (J) O.M.V. O.T.C. E.M.V. ORIGINAL ESTIMATED CAPTURED ESTIMATED LESS: AVAILABLE TAXABLE PRESENT VALUE / OF PERIOD TAX TAX TAX TAX ADMIN TAX SEMIANNUAL CUMULATIVE YEARS ENDING CAPACITY CAPACITY CAPACITY INCREMENT EXPENSES INCREMENT BALANCE BALANCE 0.0 6 / 1992 74,160 74,160 0 0 o 00 O.M.V. O.T.C. E.M.V. 0 0.5 12 / 1992 74,160 74,160 0 0 0 0 0 0 1.0 6/ 1993 74,160 132,114 0 0 0 0 0 0 1.5 12 / 1993 74,160 132,114 0 0 0 0 0 0 2.0 6 / 1994 74,160 134,096 57,954 29,518 1,476 28,042 23,291 23,291 2.5 12 / 1994 74,160 134,096 57,954 29,518 1,476 28,042 22,235 45,526 3.0 6 / 1995 74,160 136,107 59,936 30,527 1,526 29,001 21,953 67,479 3.5 12 / 1995 74,160 136,107 59,936 30,527 1,526 29,001 20,957 88,436 4.0 6 / 1996 74,160 138,149 61,947 31,552 1,578 29,974 20,678 109,114 4.5 12 / 1996 74,160 138,149 61,947 31,552 1,578 29,974 19,741 128,855 5.0 6 / 1997 74,160 140,221 63,989 32,592 1,630 30,962 19,467 148,322 5.5 12 / 1997 74,160 140,221 63,989 32,592 1,630 30,962 18,584 166,905 6.0 6 / 1998 74,160 142,325 66,061 33,647 1,682 31,965 18,316 185,221 6.5 12 / 1998 74,160 142,325 66,061 33,647 1,682 31,965 17,485 202,706 7.0 6 / 1999 74,160 144,460 68,165 34,718 1,736 32,982 17,224 219,930 7.5 12 / 1999 74,160 144,460 68,165 34,718 1,736 32,982 16,443 236,372 8.0 6 / 2000 74,160 146,626 70,300 35,806 1,790 34,015 16,189 252,561 8.5 12 / 2000 74,160 146,626 70,300 35,806 1,790 34,015 15,455 268,016 9.0 6 / 2001 74,160 148,826 72,466 36,909 1,845 35,064 15,209 283,224 9.5 12 / 2001 74,160 148,826 72,466 36,909 1,845 35,064 14,519 297,743 10.0 6 / 2002 74,160 151,058 74,666 38,030 1,901 36,128 14,281 312,024 10.5 12 / 2002 74,160 151,058 74,666 38,030 1,901 36,128 13,634 325,658 11.0 6 / 2003 74,160 153,324 76,898 39,167 1,958 37,208 13,404 339,062 11.5 12 / 2003 74,160 153,324 76,898 39,167 1,958 37,208 12,797 351,859 12.0 6 / 2004 74,160 155,624 79,164 40,321 2,016 38,305 12,576 364,435 12.5 12 / 2004 74,160 155,624 79,164 40,321 2,016 38,305 12,006 376,441 13.0 6 / 2005 74,160 157,958 81,464 41,492 2,075 39,417 11,795 388,236 13.5 12 / 2005 74,160 157,958 81,464 41,492 2,075 39,417 11,260 399,496 14.0 6 / 2006 74,160 160,328 83,798 42,681 2,134 40,547 11,057 410,553 14.5 12 / 2006 74,160 160,328 83,798 42,681 2,134 40,547 10,556 421,109 15.0 6 / 2007 74,160 162,733 86,168 43,888 2,194 41,693 10,362 431,471 15.5 12 / 2007 74,160 1629733 86,168 43,888 2,194 41,693 9,892 441,363 16.0 6 / 2008 74,160 165,174 88,573 45,113 2,256 42,857 9,707 451,070 16.5 12 / 2008 74,160 165,174 88,573 45,113 2,256 42,857 9,267 460,337 1,596,000 74,160 2,906,833 132,114 XIII -C -1 CASSERLY MOLZAHN & ASSOCIATES MCGLYN5 1,111,918 55,596 1,056,322 460,337 460,337 caaaaaaaaaaaaaaaaaaaaaaaaaaaoaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa O.M.V. O.T.C. E.M.V. E.T.C. TAX CAPACITY RATE 101.866% 11- 30 -24 -23 -0020 173,500 8,241 173,500 7.981 ADMIN EXPENSES 5.00% 11- 30 -24 -23 -0021 1,422,500 65,919 2,733,333 124,133 INFLATION 1.50% ------------------------- ----------------- - - - - -- TAXABLE P.V. RATE 9.502 1,596,000 74,160 2,906,833 132,114 XIII -C -1 CASSERLY MOLZAHN & ASSOCIATES MCGLYN5 XIII -C -2 CASSERLY MOLZAHN & ASSOCIATES MCGLYN5 EXHIBIT XIII -C CASH FLOW ANALYSIS OF 1. a� 1 TAX INCREMENT FINANCING DISTRICT NO. 12 CITY OF FRIDLEY, MINNESOTA 06- Nov -91 PORTION OF TIF DISTRICT LOCATED WITHIN I.S.D. #14 (A) (B) (C) (D) (E) (F) (G) - ------------------------- (H) (I) (J) ORIGINAL ESTIMATED CAPTURED ESTIMATED LESS: AVAILABLE TAXABLE PRESENT VALUE / OF PERIOD TAX TAX TAX TAX ADMIN TAX SEMIANNUAL CUMULATIVE YEARS ENDING CAPACITY CAPACITY CAPACITY INCREMENT EXPENSES INCREMENT BALANCE BALANCE 0.0 6/ 1992 36,414 36,414 0 0 0 0 -- 0 -0 0.5 12 / 1992 36,414 36,414 0 0 0 0 0 0 1.0 6/ 1993 36,414 66,965 0 0 0 0 0 0 1.5 12 / 1993 36,414 66,965 0 0 0 0 0 0 2.0 6 / 1994 36,414 67,970 30,552 15,540 777 14,763 12,262 12,262 2.5 12 / 1994 36,414 67,970 30,552 15,540 777 14,763 11,706 23,967 3.0 6 / 1995 36,414 68,989 31,556 16,050 803 15,248 11,542 35,509 3.5 12 / 1995 36,414 68,989 31,556 16,050 803 15,248 11,019 46,528 4.0 6 / 1996 36,414 70,024 32,576 16,569 828 15,741 10,859 57,387 4.5 12 / 1996 36,414 70,024 32,576 16,569 828 15,741 10,367 67,754 5.0 6 / 1997 36,414 71,074 33,611. 17,095 855 16,241 10,211 77,964 5.5 12 / 1997 36,414 71,074 33,611 17,095 855 16,241 9,748 87,712 6.0 6 / 1998 36,414 72,141 34,661 17,630 881 16,748 9,597 97,309 6.5 12 / 1998 36,414 72,141 34,661 17,630 Sal 16,748 9,161 106,470 7.0 6 / 1999 36,414 73,223 35,727 18,172 909 17,263 9,015 115,485 7.5 12 / 1999 36,414 73,223 35,727 18,172 909 17,263 8,606 124,092 8.0 6 / 2000 36,414 74,321 36,809 18,722 936 17,786 8,465 132,556 8.5 12 / 2000 36,414 74,321 36,809 18,722 936 17,786 8,081 140,637 9.0 6 / 2001 36,414 75,436 37,908 19,281 964 18,317 7,945 148,582 9.5 12 / 2001 36,414 75,436 37,908 19,281 964 18,317 7,584 156,167 10.0 6 / 2002 36,414 76,567 39,022 19,848 992 18,856 7,453 163,620 10.5 12 / 2002 36,414 76,567 39,022 19,848 992 18,856 7,115 170,735 11.0 6 / 2003 36,414 77,716 40,154 20,423 1,021 19,402 6,990 177,725 11.5 12 / 2003 36,414 77,716 40,154 20,423 1,021 19,402 6,673 184,398 12.0 6 / 2004 36,414 78,882 41,302 21,008 1,050 19,957 6,552 190,951 12.5 12 / 2004 36,414 78,882 41,302 21,008 1,050 19,957 6,255 197,206 13.0 6 / 2005 36,414 80,065 42,468 21,601 1,080 20,521 6,140 203,346 13.5 12 / 2005 36,414 80,065. 42,468 21,601 1,080 20,521 5,862 209,208 14.0 6 / 2006 36,414 81,266 43,651 22,202 1,110 21,092 5,752 214,960 14.5 12 / 2006 36,414 81,266 43,651 22,202 1,110 21,092 5,491 220,451 15.0 6 / 2007 36,414 82,485 44,852 22,813 1,141 21,673 5,386 225,837 15.5 12 / 2007 36,414 82,485 44,852 22,813 1,141 21,673 5,142 230,979 16.0 6 / 2008 36,414 83,722 46,071 23,433 1,172 22,262 5,042 236,022 16.5 --------------------------------------------------------------------------------------------------------------- 12 / 2008 36,414 83,722 46,071 23,433 1,172 22,262 4,814 240,835 aaaaaaaaaaaaaaaaasaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaoaaaaaaau 580,775 29,039 551,737 240,835 240,835 O.M.V. O.T.C. E.M.V. E.T.C. TAX CAPACITY RATE 101.726% 10 -30 -24-14 -0049 89,100 4,232 89,100 4,099 ADMIN EXPENSES 5.00% 10- 30 -24 -14 -0051 677,500 32,181 1,366,667 62,867 INFLATION 1.50% ----------------------------------------- - - - - -- TAXABLE P.V. RATE 9.50% 766,600 36,414 1,455,767 66,965 XIII -C -2 CASSERLY MOLZAHN & ASSOCIATES MCGLYN5 1 -K EXHIBIT XIII -D "BUT FOR" ANALYSIS The four parcels in the proposed Tax Increment Financing District are located in an area which has been targeted by the City for redevelopment. The existing building has been vacant a number of years and does not meet city codes. This project will enable the State to preserve or retain 314 jobs and create 116 new jobs for McGlynn. The City of Fridley can anticipate 280 new jobs in the rehabilitated facility. In addition, there should be an annual increase of 5 to 10 positions. In addition to providing job opportunities and increased retail traffic, the rehabilitation of this building will provide an additional $2,000,000 in market value to the City's tax base. Due to the high costs of rehabilitation, the project would not proceed in the foreseeable future without public assistance. XIII -D -1 P i 1 -L EXHIBIT XIII -E ESTIMATED IMPACT OF TAX INCREMENT FINANCING DISTRICT NO. 12 ON OTHER TAXING JURISDICTIONS IMPACT ON TAX BASE ------------ - - - - -- IMPACT ON TAX CAPACITY RATE --------------------- - - - - -- TAX CAPACITIES DISTRICT TAX CAPACITY -------------------------- - - - - -- AS % OF ENTITY TAX BASE ---------------------------------------------------------------------------------------- ORIGINAL ESTIMATED CAPTURED TOTAL City of Fridley 28,387,291 74,160 132,114 57,954 0.204% County of Anoka 142,014,229 74,160 132,114 57,954- 0.041% ISD #16 22,635,288 74,160 132,114 57,954 0.256% IMPACT ON TAX CAPACITY RATE --------------------- - - - - -- * Assumes the construction would have occurred without the creation of a Tax Increment Financing District. If the construction is a result of Tax Increment Financing, the impact is $0. XIII -E -1 CURRENT POTENTIAL TAX CAPACITY TAX CAPACITY % OF TAX RATE ENTITY --------------------------------------------------------------------------------------- RATE TOTAL INCREMENT INCREASE City of Fridley 0.15854 16% 9,188 0.032% County of Anoka 0.31400 31% 18,198 0.013% ISD #16 0.48254 47% 27,965 0.124% Other 0.06358 - - - -- 6% 3,685 - - 1.01866 - -- 100% - - - - -- 59,035 * Assumes the construction would have occurred without the creation of a Tax Increment Financing District. If the construction is a result of Tax Increment Financing, the impact is $0. XIII -E -1 EXHIBIT XIII -E ESTIMATED IMPACT OF TAX INCREMENT FINANCING DISTRICT NO. 12 ON OTHER TAXING JURISDICTIONS IMPACT ON TAX BASE ------------ - - - - -- 1 -M e IMPACT ON TAX CAPACITY RATE --------------------- - - - - -- TAX CAPACITIES DISTRICT TAX CAPACITY -------------------------- - - - - -- AS % OF ENTITY TAX BASE --------------------------------------------------------------------------------------- ORIGINAL ESTIMATED I CAPTURED TOTAL City of Fridley 28,387,291 36,414 66,965 30,551 0.108% County of Anoka 142,014,229 36,414 66,965 30,551. 0.022% ISD #14 12,038,999 36,414 66,965 30,551 0.254% IMPACT ON TAX CAPACITY RATE --------------------- - - - - -- * Assumes the construction would have occurred without the creation of a Tax Increment Financing District. If the construction is a result of Tax Increment Financing, the impact is $0. XIII -E -2 CURRENT POTENTIAL TAX CAPACITY TAX CAPACITY % OF TAX RATE ENTITY RATE TOTAL INCREMENT INCREASE City of Fridley ----------------------- 0.15854 - - - - -- 16$ 0 4 844 - - - - - ------------- - 0.017% County of Anoka 0.31400 31% 9,593 0.007% ISD #14 0.49727 49% 15,192 0.127% Other 0.04745 5% 1,450 1.01726 100% 31,078 * Assumes the construction would have occurred without the creation of a Tax Increment Financing District. If the construction is a result of Tax Increment Financing, the impact is $0. XIII -E -2 1 -N Professional Fees 15,000 Administrative Fees 72,000 Total $ 587,000 Maximum Estimated Total Bonded Indebtedness* $ 737,000 *This amount includes capitalized interest in an amount sufficient to pay interest on the bonds from the date of issue until the date of collection of sufficient tax increment revenues to meet scheduled interest payments when due. AS MODIFIED DECEMBER 9, 1991 TAX INCREMENT FINANCING DISTRICT NO. 12 (MCGLYNN BAKERIES) Acquisition $ 800,000 Ponding and Drainage 25,000 Professional Fees 15,000 Administrative Fees 90,000 Total $ 930,000 Maximum Estimated Total Bonded Indebtedness* $1,125,000 *This amount includes capitalized interest in an amount sufficient to pay interest on the bonds from the date of issue until the date of collection of sufficient tax increment revenues to meet scheduled interest payments when due. Subsection 1.10. Public Improvements and Facilities Within Redevelopment Project No. 1. Publicly financed improvements within Redevelopment Project No. 1 include but are not limited to: a. The acquisition and sale and /or lease of the parcels identified in Subsection 1.7. hereof; b. Soil corrections, including excavation and -backfill; C. Installation and /or upgrading of utilities and other public improvements; 1 - 17 JOB NMI MESSAGES PAGE 1 2 INVESTMENTS, AT COST CASH ACCOUNTS PAYABLE CAM ACCOUNTS PAYABLE CASH ACCO(WS PAYABLE CASH ACCOlWS PAYABLE CASH AMOUNTS PAYABLE CASH AMOiTS PAYABLE CASH ACWNdTS PAYABLE CASH ACCOITS PAYABLE CASH ACCOIINTS PAYABLE CASH ACMWS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH DATE :1/07/91 CITY OF FRIDLEY – HRA PSI P008 CHECK REGISTER CHECK RUN BATCH # :0010 002 HRA VENDOR DISC. DESCRIPTION INV # PO /INV # SEQ # -PCNT AMOUNT AMT NUMBER 2172 CHECK —PAID ffff F00026 FRIDLEY STATE BANK INVESTMENT 00466 -01 IBWO70.0000 50,000.00 DR701 -10400 50,000.00 CR701 -10100 TOTAL VENOM # 50,000.00 2173 CHECK–PREPAID **ff M00027 MAXFIELD RESEARCH GROUP, INC. ANALYSIS STUDY 00467 -01 IB.QENO.0000 8,780.60 BRUO -20200 8,780.60 CR460 -10100 inii TOTAL VENDOR # 8,780.60 2174 tHECK– PREPAID N00026 NATURAL GREEN, INC. NI OUT SPRINKLER SYSTEM 00468 -01 IB5QDZO.0000 840.00 DR455 -20200 840.00 CR455 -10100 TOTAL VENOM 3 840.00 2175 CHECK – PREPAID B00065 BARNA, GUZY*& STEFFEN, LTD. SEPT LEGAL SERVICES 00469-01 IB5M.0000 862.75 DR450 -20200 862.75 CR450-10100 SEPT LEGAL SERVICES 00469 -02 IB5QEA0.0000 1,207.00 DR460 -20200 1,207.00 CR460 -10100 TOTAL VENBOR # 2,069.75 2176 CHECK– PREPAID OD0044 CASSERLY LAW OFFICE OCT. LEGAL SERVICES 00470-01 IB5QDRO.O= 607.50 DR455-20200 607.50 CR455 -10100 OCT LEGAL SERVICES 00470 -02 IB59EGO.0000 5,171.00 DR460 -20200 5,17400 CR460- 10100 OCT LEGAL SERVICES 00470 -03 IB5QG40.0000 2,414.50 DR462 -20200 2,414.50 CR462 -10100 TOTAL VENDOR # 8,193.00 2177 CHECK– PREPAID F00023 FRIDLEY, CITY OF OCTOBER EXPENSE 00471 –M IB50DLO.0000 63.60 DR450 -20200 63.60 CR450 -10100 OCTOBER EXPENSE 00471 -02 IB5QE70.0000 26.14 DR460 -20200 26.14 CR460 -10100 OCT PERSONAL SERVICES 00471 -01 IB5QEK0.0000 13,360.33 DR460- 20200 13,360.33 CR460 -10100 OCTOBER EXPENSE 00471 -03 ID59M.0000 31.92 DR460 -20200 31.92 CR460 -10100 TOTAL VOW # 13, 481.99 2178 CHECK– PREPAID GM69 GREENMASTERS, INC LAKE POINT PROJ 218 --EST 00472 -01 IB59DUO.0000 5,118.01 DR455 -20200 5,118.01 CR455 -10100 JOB NMI MESSAGES PAGE 1 2 INVESTMENTS, AT COST CASH ACCOUNTS PAYABLE CAM ACCOUNTS PAYABLE CASH ACCO(WS PAYABLE CASH ACCOlWS PAYABLE CASH AMOUNTS PAYABLE CASH AMOiTS PAYABLE CASH ACWNdTS PAYABLE CASH ACCOITS PAYABLE CASH ACCOIINTS PAYABLE CASH ACMWS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH DATE 11/07/91 CITY OF FRIDLEY - HRA PROGRAM P008 CHECK REGISTER CHECK RIM BATCH # :0010 002 HRA VENDOR DISC. DESCRIPTION INV # PO /INY # SEA # PCNT Af°K W ACCT MPM "" TOTAL VENDOR ff" # 51118.01 TOTAL MASER OF CHECKS WRITTEN :000000 ff" TOTAL DOLLARS FOR CHECKS {,BITTEN : S n 2 -A PAGE 2 JOB MM HEM40ES 88 :483.35 im LAST CHECK NU?M : 002171 TO: FRIDLEY H.R.A. FROM: CITY OF FRIDLEY RE: BILLING FOR OPERATING EXPENSES FOR OCTOBER, 1991 AND OCTOBER 1991 ADMINISTRATIVE EXPENSES OCTOBER ADMINISTRATIVE PERSONAL SERVICES OCTOBER ADMINISTRATIVE OVERHEAD TOTAL ADMINISTRATIVE BILLING OPERATING EXPENSES: PHOTOS POSTAGE MOWING - RICE CREEK PLAZA TOTAL OPERATING EXPENSES FOR AUGUST TOTAL EXPENDITURES 13,108.08 252.25 13,360.33 26.14 31.92 63.60 $121.66 $13,481.99 2 -B 3 Proposed 1992 Housing & Redevelopment Authority', Meeting Dates Thursday: I January 9 JANUARY JULY OCTOBER S M T W T F S S M T W T F S. February 13 ! 1 3 4 5 © 7 8 910 11. T 1 A 3 4 8 10 11 March 12 12 13 14 15 16 17 18 19 21 22 23 24 25 15 14 2 15 16 17 18 19 F21 21 22 23 24 25 April 9 26 2 28 29 30 31 26 277 28 29 30 31 May 14 i FEBRUARY AUGUST 21 22 23 24 25 S M T W T F S S M T W T F S June 11 i 1 1 July 9 2 3 4 5 kk 7 8 A14 2 3 4 5 7 8 NOVEMBER 9 11 12 15 9 11 1214 15 M 16 18 19 20 21 22 16 1 18 19 20 21 22 August 13 23 2 25 26 27 28 29 � 23 25 26 27 28 29 1,,�., 3 4 6 7 8 3 30 31 September 10 910 11A13 14 15 17 18 19 20 21 - 115 MARCH SEPTEMBER October 8 S M T W T F S S M T W T F S 29 1 2 3 A 14 4 5 6 7 8 9 11 12 November 12 8 10 11 13 December 10 15161718192021 22 23 24 25 26 27 28 13 15 16 17 18 19 20 LUI 22 23 24 25 26 S 29 30 31 2712A 29 30 APRIL OCTOBER S M T W T F S S M T W T F S 5 6 1 A& 3 4 7 810 11 2 3 4 6 7� 9 10 11 13 T 12 14 15 16 17 18 14 15 16 17 19 2 21 22 23 24 25 18 19 20 21 22 23 24 26 28 29 30 25 76 27 28 29 30 31 MAY NOVEMBER 0 -Housing & Redevelopment S M T W T F S S M T W T F S 1 2 1,,�., 3 4 6 7 8 3 6 8 9 910 11A13 14 15 17 18 19 20 21 El - Regular City Council 10 17 115 2 13� 15 16 19 20 21 22 23 22 2© 24 25 26 27 28 24 26 27 28 29 30 29 31 JUNE DECEMBER S M T W T F S S M T W T F S 7 1 2 3 5 6 9 1OAl2 13 1 2 4 5- 60 8 9A11 12 14 15 16 17 18 19 20 131 15 16 17 18 19 21 22 23 24 25 26 27 20 21 22 23 24 25 26 28 g 30 27 29 30 31 r rn 0 z i 0 F z w cc rn T a w U Q ."9 O to _;F..rioc0ait�o0ori P N ri Ln MM °oo :. C) (D d` o ° chi c a� ^;•i; ::Q CO O N N P C6 t� N O IR t O CV- C r to C) T r o t ONO Goo N � t T r LO co OO. >+�• i co CO tNA O N N ' CO co P.M- N CA C0: 'fit r ' C Cf CA 00 N N 0 LO LO t+Q f� M n v v O N .O Q N co C LO 00 0 C r O d N LO P, M r N co Cf r. C) O r- "t O O Of 00 'l?J' Ln N O CD O O tt M C9 N CO C 0) CM OA. O CO. Ln r O CO N CO N CO n N N 00 0) T OR N LO ci O 'd' N LO 0) co) CO r CO O M r d' LO CO r CV r O N N r af N r V- v- - - Cfl r- N O v-- N LO ' CO N P M LO O CO V 00 L CO C. 0 C.�4} M LO O �r N f` 00 00 w M N M N M CO �- CO O N Cb MM CO CO 40' N CO O N CO Ln N rl: CO ui C ui CO r n CO O N CO T r CO LO T co 0 N M 0 Co co r- m LO CO O CO O O LO CO J> O LO O LO CM O 0) M CO M LO CD O . CO O 00 f` N N N 00 00 t. 00 co r w r t0 01 T- O � � O O C; O O 0) LO LMA M r M M W Lu- z _ CO Q OJ w H z C7 w QQ = Y U Y z H Z U C) U Z D. Y Z Z Q Z O } > a wQwOoC �. W m Q `d d J c;cs oc��'a�a t- cr >z:cc Z cn z a z U 2 O} '. g U 0aC ."9 0 0�000The 3948 Central 5 n n n ral Ave. N.E., Minneapolis, MN 55421 n n n � Company 788'9651 781 -9375 it Real Estate 11/5/91 n Property Management Mr. Bill Burns H.R.A. Director Fridley City Hall 6431 University Ave. N.E. Fridley, Minn. 55432 Dear Mr. Burns, n Appraisals n Income Tax Service Terri Mau of Cinnamon Skin Tan has failed to pay her September and October rents and now owes for November. She has indicated that she has no firm idea when her business will turn around and has asked that we be patient. She has not been able to offer a new soild plan for paying off the past or current rents due which now total $8,145.07 and $2,262.42 for T's Hair Plus for a total of $10,407.49. 1 feel it appropriate that you be made aware of this matter and consider what action may be necessary. I feel that it may be necessary to: (a) evict Cinnamon Skin, (b) seize 'furnishings, fixtures and equipment" as outlined in the UCC -1 Agreement we had previously signed and (c) consider legal action to secure any remaining balance due. I have enclosed a month by month breakdown of what she has owed and what she has paid since our previously negotiated agreement plus the 9% interest which she had agreed to pay. Also attached is a copy of our previouisly signed agreement, the UCC -1 form and a copy of my last letter to Mau. Please contact me after reviewing this information and I will be happy to discuss it further with you. o- Sincerely, Jim Kordiak CC: Barb Dacy The 5 -A 1000 n n n � Kordiak 3948 Central Ave. N.E., Minneapolis, MN 55421 n nn Company 788'9651 781 -9375 it Real Estate it Property Management n Appraisals it Income Tax Service Terri Mau 1991 Rent Record Cinnamon Skin Tan Month Rent CAM Taxes Past Due Total Amount Paid Balance Interest New Balance March 1 875.00 37.21 1095.60 4533.61 6541.42 1000.00 5541.42 49:67 5591.29 April 875.00 60.31 151.49 5591.29 6678.09 1500.00 5178.09 46.60 5224.70 May 875.00 2.12 151.49 5224.70 6253.31 1200.00 5053.31 45.48 5098.79 June 875.00 3.96 151.49 5098.79 6129.24 1200.00 4929.24 44.36 4973.60 July 875.00 33.88 151.49 4973.60 6033.97 1200.00 4833.97 43.51 4877.47 August 875.00 3.66 151.49 4877.47 5907.62 1200.00 4707.62 42.37 4749.99 September 875.00 60.31 151.49 4749.99 5836.79 0.00 5836.79 52.53 5889.32 October, 925.00 27.90 151.49 5889.32 6993.71 0.00 6993.71 62.94 7056.66 November 925.00 11.92 151.49 7056.66 8145.07 8145.07 73.31 8218.37 The n n n 0, Kordiak JUN n n n Company n Real Estate it Property Management n Appraisals it Income Tax Service May 8, 1991 Terrie Mau Cinnamon Skin Tan 248 Mississippi St. N.E. Fridley, Minnesota 55432 Dear Terrie, Following our last discussion and with assistance from the Fridley City Attorney I have made revisions to the proposed agreement between Cinnamon Skin Tan and the Fridley HRA. After reviewing this information if you have any questions please call, if there are none please sign the original letter and F.inaaancing St_. atement return them to me for signature by Mr Burns. You have agreed to: (A) pay your monthly base rent $875.00 plus monthly CAM charge plus an additional $150.00 per month beginning March 1 st, 1991 and continue until VIA June 1 st, 1992. CAM,�Cnarges will be due only during the period of occupancy at tenants present business location. (6) In addition tenant agrees to pay $151.49 monthly, 1/ 12 of the total taxes due during the term of occupancy at tenants present business location for a total monthly payment of $1,176.49 plus CAM. (C) On June 1 st, 1992 a balloon payment for the remaining balance would be due. (D) At the time of the balloon, interest would be paid at a rate of 9? amortized over the term of the loan. 3948 Central Ave. N.E. Minneapolis, MN 55421 788 -9651 788 -0911 (E) To protect the owners interest, it is agreed that the owner will be given a security interest in and to all furnishings, fixtures and equipment on the premises owned by the secured party. The security interest shall also include any after - acquired furnishings, fixtures and equipment. A UCC -1 Financing Statement evidencing said interest shal l be signed by you and provided to owner along with this agreement. Sincerely, Jim Kordiak Building Manager J.'f'�Pp? W2- S Ms. Terri Mau - Cinnamon Skin Tan Mr. Bill Burns -HRA Director 5 -C . d It 0 REORDER FROM: MILLER -DAVIS LEGAL FORMS (612) 332.5144 MN WATS:14l00.782.4221 3W2464OH STATE OF MINNESOTA UNIFORM COMMERCIAL CODE STANDARD F_ ORM UCC.1 Print or Type in Black Ink FINANCING STATEMENT This STATEMENT is presented for filing pursuant to the Uniform Commercial Code For Debtor(s) (Last Name First) and Address(es) Secured Party(ies) and Addresses) Filing Mau, Terrie Housing & Redevelopment Authority Officer d /b /a Cinnamon Skin Tans for the City of Fridley 248 Mississippi St. N.E. 6431 University Ave. N.E. Fridley, IIN X5432 Fridley, MN 55432 1. This financing statement covers the following types (or items) of property: All furnishings, fixtures and equipment on the premises commonly known as Cinnamon Skin Tans. This financing statement shall also include any after - acquired furnishings, fixtures and equipment. 2. ❑ Products /Proceeds of Collateral are also covered by this Statement Additional Sheets presented. Debtor is a transmitting utility as defined in M.S. 3362-105. X For Filing with the Secretary of State of Minnesota. For Filing with the County Recorder X For Filing in Uniform Commercial Code Records. " (Rev. 2/85) (1) Filing Officer Copy — Alphabetical 5 -D f lRead Instructions on Bads ❑ If crops are covered describe the rea, estate and give the name of the recorc owner. Signature( ) of Debtor(s): (Required in most cases —see instruction # 5) Z?ZBY: JJJY 124 If the Debtor's signature is not Signature of Secured Party County. present indicate the reason for its absence In the Debtor's ,� signature block and sign the BY•�7ru « ' 141,2 r-, -L Secured Party's signature block. 0. The 5 -E n n n Kordiak 3948 Central Ave. N.E., Minneapolis, MN 55421 n nn Company 788'9651 781 -9375 n Real Estate n Property Management n Appraisals n Income Tax Service November 5, 1991 Terri Mau Cinnamon Skin Tan 248 Mississippi St. N.E. Fridley, Minnesota 55432 Dear Terri, Enclosed with the monthly bill is a breakdown of what you presently owe with interest of 9% on the unpaid balance. The total due for Cinnamon Skin Tan is $8,145.07 and $2,262.42 for T's Hair totaling $10,407.49. 1 will provide this information to the Fridley HRA Board at their November 12th meeting and seek their direction. If you have any question or offer any solutions please call me. Sincerely, Jim Kordiek Subsection 13.7. Prior Planned Improvements. The Authority shall, after due and diligent search, accompany its request for certification to the County Auditor or its notice of district enlargement with a listing of all properties within Tax Increment Financing District No. 12 for which building permits have been issued during the eighteen (18) months immediately preceding approval of the Tax Increment Financing Plan by the Authority. The county Auditor shall increase the original tax capacity of Tax Increment Financing District No. 12 by the tax capacity of each improvement for which the building permit was issued. If said listing does not accompany the aforementioned request or notice, the absence of such listing shall indicate to the County Auditor that no building permits were issued in the eighteen (18) months prior to the Authority's approval of the Tax Increment Financing Plan. Subsection 13.8. Fiscal Disparities. The Authority hereby elects the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, Subdivision 3, clause (a) if and when commercial /industrial development occurs with Tax Increment Financing District No. 12. Subsection 13.9. Estimated Public Improvement Costs. The estimated costs associated with Redevelopment Project No. 1 are listed in Section I, Subsections 1.9 and 1.10. Subsection 13.10. Estimated Amount of Bonded Indebtedness. It is anticipated that $1,125,000 of bonded indebtedness could be incurred with respect to this portion of Redevelopment Project No. 1. Pursuant to Minnesota Statutes, Section 469.178, Subdivision 1, General Obligation Tax Increment Bonds may be used as required to amortize the costs identified in Section I, Subsections 1.9 and 1.10. The City reserves the right to pay for all or part of the activities listed in Section I, Subsections 1.9. and 1.10. relating to Redevelopment Project No. 1 as tax increments are generated and become available. Subsection 13.11. Sources of Revenue. The costs outlined in Section I, Subsection 1.9. will be financed through the annual collection of tax increments and an Economic Recovery Fund Grant from the State of Minnesota. Subsection 13.12. Estimated Original and Captured Tax Capacities. The tax capacity of all taxable property in Tax Increment Financing District No. 12, as most recently certified by the Commissioner of Revenue of the State of Minnesota on January 2, 1992, is estimated to be $110,574. 13 - 2 EXHIBIT XIII -D "BUT FOR" ANALYSIS The four parcels in the proposed Tax Increment Financing District are located in an area which has been targeted by the City for redevelopment. The existing building has been vacant a number of months and is in need of substantial repair. This project will enable the State to preserve or retain 314 jobs and create 116 new jobs for McGlynn. The City of Fridley can anticipate 280 new jobs in the rehabilitated facility. In addition, there should be an annual increase of 5 to 10 positions. In addition to providing job opportunities and increased retail traffic, the rehabilitation of this building will provide an additional $2,000,000 in market value to the City's tax base. Due to the high costs of rehabilitation, the project would not proceed in the foreseeable future without public assistance. XIII -D -1 Professional Fees 15,000 Administrative Fees 72,000 Total $ 587,000 Maximum Estimated Total Bonded Indebtedness* $ 737,000 *This amount includes capitalized interest in an amount sufficient to pay interest on the bonds from the date of issue until the date of collection of sufficient tax increment revenues to meet scheduled interest payments when due. AS MODIFIED DECEMBER 9, 1991 TAX INCREMENT FINANCING DISTRICT NO. 12 (MCGLYNN BAKERIES) Acquisition Ponding and Drainage Professional Fees Administrative Fees Total Maximum Estimated Total Bonded Indebtedness* $1,050,000 25,000 15,000 90,000 $1,180,000 $1,125,000 *This amount includes capitalized interest in an amount sufficient to pay interest on the bonds from the date of issue until the date of collection of sufficient tax increment revenues to meet scheduled interest payments when due. Subsection 1.10. Public Improvements and Facilities Within Redevelopment Project No 1 Publicly financed improvements within Redevelopment Project No. 1 include but are not limited to: a. The acquisition and sale and /or lease of the parcels identified in Subsection 1.7. hereof; b. Soil corrections, including excavation and backfill; C. Installation and /or upgrading of utilities and other public improvements; 1 - 17 EXHIBIT I -A -4 DESCRIPTION OF ADDITIONAL PROPERTY WITHIN REDEVELOPMENT PROJECT NO. 1 AS MODIFIED FEBRUARY 26, 1990 Tax Increment Financing District No. 10 P.I.N. 11- 30 -24 -31 -0002 Tract A of Registered Land Survey #78 AS MODIFIED DECEMBER 9, 1991 Tax Increment Financing District No. 12 P.I.N. 10- 30 -24 -14 -0049 10- 30 -24 -14 -0050 (included in project area only) 10- 30 -24 -14 -0051 11- 30 -24 -23 -0020 11- 30 -24 -23 -0021 I -A -4