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HomeMy WebLinkAbout[05a] Public Hearing TIF, Fortitude Housing 11 Council Agenda Item 5a MEETING DATE: June 20, 2016 AGENDA ITEM: Economic Development—Business Subsidy a. Tax Increment Financing, Fortitude Senior Housing SUBMITTED BY: Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: The EDA has reviewed the application for Tax Increment Financing for Fortitude Housing, accepting their application and recommending the Council authorize utilization. The Planning Commission reviewed the TIF District for compliance with the Comprehensive Plan and approved Resolution PC 2016-001 confirming compliance. PREVIOUS COUNCIL ACTION: In a joint meeting with the EDA on May 16, 2016 the Council accepted the recommendation of the EDA and authorized Fortitude Housing to continue with the process for securing TIF for the construction of a senior complex with services. The Council authorized Fortitude Housing to work with the City Financial Advisor, Jason Aarsvold of Ehlers, bringing the matter back to the Council for public hearing. On June 1, 2016 the City Council authorized execution of a Term Sheet identifying the amount and term of TIF that was supported based on the analysis. BACKGROUND INFORMATION: There have been some questions raised about completing the TIF process before the building plans are approved. This not an uncommon process, the same process was used for Bayou Blues (24 North College). The TIF process does not allow any construction until after the public hearing is held and the governing body approves. The approval of TIF does not guarantee development rights or approve a project. It approves a specific project that qualifies for the assistance. Fortitude Housing has been working on their plans and will be submitted on June 20. The developer has conducted two neighborhood meetings to discuss his project, and like most projects not everyone agreed with the project but a majority did. A public hearing will be scheduled on July 13, 2016 which will include PUD Amendment. The project has already been preliminary platted, so only a final plat with development agreement is required. The project is anticipated to start as soon after approval as possible. Jason Aasvold will be at the meeting and present an overview of the project and process BUDGET/FISCAL IMPACT: To be determined ATTACHMENTS: Request for Council Action Hearing Notice TIF District Overview TIF Analysis Development Program for the Establishment of TIF District 4 Development Plan Resolution 2016-024 Resolution Adopting Development Program and establishing TIF District Resolution 2016-025 Resolution Authorizing Interfund Loan TIF 4-1 Resolution 2016-026 Resolution Approving the Agreement Executed Term Sheet Planning Commission Resolution PC 2016-001 Planning Commission Findings REQUESTED COUNCIL ACTION: Authorize the Mayor and Administrator to execute Resolutions 2016-024 Adopting the Development Program for the establishment of TIF District 4; 2016-025 Authorizing Loan TIF 4-1; and 2016-026 Approving the Development Agreement between the City of St. Joseph and Fortitude Senior Housing. NOTICE OF PUBLIC HEARING CITY OF ST.JOSEPH STEARNS COUNTY STATE OF MINNESOTA NOTICE IS HEREBY GIVEN that the City Council of the City of St. Joseph, Stearns County, State of Minnesota, will hold a public hearing on June 20, 2016, at approximately 6:00 P.M. at the City Council Chambers in City Hall, 25 College Ave N, St. Joseph, Minnesota, relating to the City of St. Joseph's (the "City")proposed establishment of Development District No. 4 and the proposed adoption of a Development Program therefor, the proposed establishment of Tax Increment Financing District No. 4- 1 (Fortitude Senior Housing) (a housing district) within Development District No. 4, and the proposed adoption of a Tax Increment Financing Plan (the "TIF Plan") therefor, pursuant to Minnesota Statutes, 469.124 to 469.133 and Sections 469.174 to 469.1794, all inclusive, as amended. Copies of the Development Program and the TIF Plan are on file and available for public inspection at the office of the City Administrator at City Hall. The property to be included in Tax Increment Financing District No.4-1 (Fortitude Senior Housing) is located within Development District No. 4 and the City of St. Joseph. A map of Development District No. 4 and Tax Increment Financing District No.4-1 (Fortitude Senior Housing) therein is set forth below. Subject to certain limitations, tax increment from Tax Increment Financing District No. 4-1 (Fortitude Senior Housing) may be spent on eligible uses within the boundaries of Development District No. 4. [INSERT MAP of Development District No. 4, and Tax Increment Financing District No. 4-1 (Fortitude Senior Housing)] All interested persons may appear at the hearing and present their views orally or prior to the meeting in writing. BY ORDER OF THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA /s/ Judy Weyrens, City Administrator _lftllLl"lllrf/ - 1/j�A�'SMINE�LN + L ! t j f l=w� '' t u�711M> Ittl 44V >� �F LUI -�-�� -n -w J I ].tom; w ? l� Q—a1z f Cf l z zJ > Tax Increment Financing District No. 4-1 HELM=ST-Ea �v (Fortitude Senior Housing) C 01BIRCH ST E A 2 M�"r 1!Il 4 I It11 � I J P -� a... 3014TH=ST[1 ASH ST Ery �� -� s��f�'l�1 ! E f i � Iz I � a ]Itl III Ik_l sjwltJ f� �y� a� - � n_ r" AIBLEnS.T_E�V w w _ �jlv w - St. La i~Z-��w �cwn .., — �—-y J N—q�m == - t.1 y- ==LQ it -rig � _�-_-� —'� Q Lw, w f7, oQ LE-ST ~i � � �fHlfy�rc�l3i + i '. �JUALE ST E -.,✓�� ! �.Y 1 l r A f�E h. -LLI L f I I L 14f�It1``� 1I I Development LODistrict No. 4 �HILLST=W R_ � 295:T:H-ST 1—LIl i I III I I1 7' -n f-�7^uEOF lam RS Tax Increment Financing District No. 4-1 (Fortitude Senior Housing) Development District No. 4 City of St. Joseph Stearns County, Minnesota Tax Increment Financing District Overview City of St. Joseph Tax Increment Financing District No. 4 (Fortitude Senior Housing) The following summary contains an overview of the basic elements of the Tax Increment Financing Plan for Tax Increment Financing District No. 4 (Fortitude Senior Housing). More detailed information on each of these topics can be found in the complete Tax Increment Financing Plan. Proposed action: Establishment of Tax Increment Financing District No. 4 (Fortitude Senior Housing) (the "District") and the adoption of a Tax Increment Financing Plan (the "TIF Plan"). Establishment of Development District No. 4 and the adoption of a Development Program. Passing an Interfund Loan in conjunction with the District. Type of TIF District: A housing district Parcel Number: 84.53533.0106 Proposed The District is being created to facilitate the construction of 47 units of senior Development: housing within the City. Please see Appendix A of the TIF Plan for a more detailed project description. Maximum duration: The duration of the District will be 25 years from the date of receipt of the first increment (26 years of increment). The City expects the date of first tax increment to be 2018. It is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after December 31,2043, or when the TIF Plan is satisfied. This maximum duration provides flexibility for the city in meeting its housing goals. Based on current projections, however, it is estimated the district will terminate in 2032 as the proposed TIF obligation will be satisfied by that time. Estimated annual tax Up to $132,816 increment: EHLERS LEADERS IN PUBLIC FINANCE Authorized uses: The TIF Plan contains a budget that authorizes the maximum amount that may be expended: Land/Building Acquisition..................................................$150,000 Site Improvements/Preparation............................................$200,000 Utilities...............................................................................$150,000 Affordable Housing Construction........................................$900,000 Other Qualifying Improvements............................................$45,231 Administrative Costs (Lip to 10%)........................................$238,686 PROJECT COSTS TOTAL..............................................$1,683,917 Interest................................................................................ 941 627 PROJECT COSTS TOTAL...........................................$2,625,544 See Subsection 2-10, on page 2-6 of the TIF Plan for the full budget authorization. Form of financing: The project is proposed to be financed by a pay-as-you-go note and/or interfund loan. Administrative fee: Up to 10% of annual increment, if costs are justified. Interfund Loan If the City wants to pay for administrative expenditures from a tax increment Requirement: fund, it is recommended that a resolution authorizing a loan from another fund be passed PRIOR to the issuance of the check. 4 Year Activity Rule After four years from the date of certification of the District one of the (§469.176 Subd. 6) following activities must have been commenced on each parcel in the District: • Demolition • Rehabilitation • Renovation • Other site preparation (not including utility services such as sewer and water) If the activity has not been started by approximately May 2020, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required pursuant to M.S., Section 469.175, Subd. 3, are included in Exhibit A of the City resolution. Page 2 EHLERS LEADERS IN PUBLIC FINANCE v SMI // u- \, v I(tIS:L•N:E UL Z�-a-ra1,wn Zy I� \ W = IrI1 i _ Tax Increment Financing IT\District No. 4-1 � �ELM: —i� J (Fortitude Scnior Housing) 1 v)-I I-A I P O�1BIRCH ST E WN� rI 1 I`�rr�1 "�I I ❑ n I 1 v_ �� o,� L_ 304TH: ST C� SN 57 E`D IIF _ F�I i - I — 11 Jill U EAU, ll � IC ) ` �I 111 III I I II�IJ r lw, � 1'Z `yt �I� J1_l III F Ly? ��� Z —II I.Z .0 u. =Lw ABLEST E �� L<, St I =Dr11, _C 3>a- > ��9lYDI(!I c �m.'�yam= �' /awl Lr-V .0 _ll, f f _w Sly r rL'Wi�w_m/�, ' r^��—L- J :S7 E_sQ�,j.-a-E� L'E �........... urll� m�� [1 _.U= a Development aL� y District No. 4 C� C'� Ob T T J L'L' ii — HIST-W �j� H S III III IIS CII=F�—j �cn rn;s,— U �I _� Tax Increment Financing District No. 4-1 (Fortitude Senior Housing) Development District No. 4 City of St. Joseph Stearns County, Minnesota Page 3 EHLERS LEADERS IN PUBLIC FINANCE Memo To: Judy Weyrens, City of St. Joseph City Administrator From: Jason Aarsvold, Ehlers Date: June 13, 2016 Subject: Fortitude Senior Living TIF Analysis The City of St. Joseph received a proposal from Fortitude Senior Living of St. Joseph LLC to construct a 47 unit senior rental development with 80% market rate units and 20% of the units affordable to those below 50% of area median income. The development is expected to commence construction in 2016 and be completed in 2017. As a result of the proposed affordability component, the development meets the qualification for a housing Tax Increment Financing (TIF) district. The developers requested 25 years of TIF assistance (approximately $1 .4 million present value) in the form of a "pay-as-you-go" note plus interest at a 4.49% rate. This memo is intended to review the need for TIF assistance based on our analysis of the developer's project budget and projections, generally known as a pro forma. This memo also includes a recommendation for an amount of assistance based on this review. Ehlers conducted a thorough review of the developer's budget and operating pro forma to ensure all development costs, anticipated revenues, and expenditures were represented appropriately. The table below depicts the proposed sources and uses for the project. SOURCES Developer Financing - Bank Portion 2,853,971 50.00% Developer Financing - SBA Portion 1,997,779 35.00% Developer Equity 856,191 15.00% TOTAL SOURCES 5,707,941 100.00% USES Acquisition Costs 180,000 3.15% 3,830 Construction Costs 4,060,500 71.14% 86,394 Permits and Fees 267,900 4.69% 5,700 Professional Services 646,000 11.32% 13,745 Financing Costs 147,768 2.59% 3,144 Developer Fee 405,773 7.11% 8,633 TOTAL USES 5,707,941 100.00% 121,446 www,ehlers-inacom E H L E ■R S Minnesota phone 651-697-8500 3060 Centre Pointe Drive LEADERS IN PUBLIC FINANCE Offices also In Wisconsin and Illinois fax 651-697-8555 Roseville,Mtn 55113-1122 tall free 800-552-1171 Judy Weyrens Fortitude Senior Living TIF Analysis June 13, 2016 Page 2 Generally, this project meets the expectations of a mixed-income, senior multifamily housing development with regard to the financing structure, projected revenues, and on- going operational costs. Following are our findings from the analysis completed for the development: • Our analysis confirms the maximum total financing the developer can secure for this project is $4,851,750, assuming both the first mortgage and the SBA loan. The developer is proposing to bring $856,191 million in equity, which is 15% of total project costs. These combined sources fully fund the anticipated project costs. The requested assistance is intended to help increase the project's annual income and provide a return on investment sufficient for the developer to invest its resources in the project. • The total development costs for this project are $5,707,941, or $121,446 per unit. Based on our experience with similar projects, we would expect total development costs to range between $130,000 and $190,000 per unit. This is slightly below what we would anticipate for a project of this nature, but the land cost is slightly lower than is typical and there are fewer amenity spaces. In addition, anticipated construction costs are lower than similar projects. Ehlers reviewed the developer's detailed construction costs estimates and actual costs for a similar project completed elsewhere. Based on this review and discussions with the developer, we feel comfortable that the developer can complete the project as has been proposed with these construction costs. • The development fee of$405,773 is 7.1 percent of total development costs. For a project of this nature, we would expect to see a developer fee of no more than 5%. The proposed fee on a percentage basis higher than typical. This is taken into consideration as part of the total recommended amount of assistance outlined below. • Proposed rates range between $892 per month for an affordable efficiency unit, to $6,000 per month for care suites. Standard independent living units, on average, are $1,650 per month for a one bedroom unit and $1,800 per month for a two bedroom unit. One bedroom assisted living units, on average, are $3,500 per month. We reviewed the total income assumptions, including income assumptions relating to additional services and believe they are represented within industry standards. • The operating costs are projected at just over $22,000/unit. Operating costs for senior facilities with services can vary and are much higher than traditional apartments. The proposed operating costs for the Fortitude project are within industry standards. Judy Weyrens Fortitude Senior Living TIF Analysis June 13, 2016 Page 3 • Proposed replacement reserves are $500 per unit. The minimum industry standard for replacement reserves is $300/unit. Generally, we would prefer to see reserves higher than the minimum industry standard set aside for future viability. The developer's proposed reserve amount accomplishes this. • The projected cash on cash return on investment (annual cash flow _ equity) in year 3 is 8.45 percent with TIF assistance and 1.73 percent without TIF assistance. This return is below the 10% we would typically allow for a project requesting public assistance. Format of Assistance and Recommendations Based on our review of the developer's pro forma and under current market conditions, the proposed development may not reasonably be expected to occur solely through private investment within the reasonably near future. Due to the costs associated with constructing a mixed-income multifamily senior housing project and the reduction in rent potential for the affordable units, this project is feasible only through assistance, in part, from City contributions. Our recommendation, however, is that the City provide 14 years of tax increment payments, rather than the requested 25 years. This is based on our analysis that shows a TOTAL average projected return on investment (including a slightly high developer fee) by year 14 is 9.75%. By this point, the project should no longer require annual TIF payments for financial feasibility. This recommended amount of assistance equates to a present value totaling $530,000 assuming 4.49% interest. The developer indicated that he is accepting of this proposal and is willing to move forward based on 14 years of TIF assistance. He requests a pay-as-you-go note which provides no risk to the City because the developer is responsible for financing the project and payments on the note will only be made to the extent tax increment is available. No other City sources will be used as payment on the note. Please let me know if you have questions or comments. As of June 13, 2016 Draft for Public Hearing Development Program for the establishment of Development District No. 4 City of St. Joseph Stearns County State of Minnesota Public Hearing: June 20, 2016 Adopted: EHLERS3060 Centre Pointe Drive, Roseville, Minnesota ASSOC1ATES5 113-11 5 (651)697-8500 fax: (651)697-8555 www.ehlers-inc.com Table of Contents (for reference purposes only) Municipal Action Taken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i Section 1 - Development Program for Development District No. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1 Subsection 1-1. Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1 Subsection 1-2. Statutory Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-2 Subsection 1-3. Statement of and Finding of Public Purpose . . . . . . . . . . . . . . . . . . . . 1-2 Subsection 1-4. Statement of Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3 Subsection 1-5. Statement of Public Facilities and Costs to Be Financed . . . . . . . . . . 1-4 Subsection 1-6. Funding of Developments and Redevelopments . . . . . . . . . . . . . . . . 1-4 Subsection 1-7. Environmental Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-4 Subsection 1-8. Proposed Reuse of Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-4 Subsection 1-9. Open Space to Be Created . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-5 Subsection 1-10. Administration and Maintenance of Development District No. 4 . . . . . 1-5 Subsection 1-11. Rehabilitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-5 Subsection 1-12. Relocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-5 Subsection 1-13. Property Acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-5 Subsection 1-14. Modification of the Development Program and/or Development District No. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-5 Subsection 1-15. Description of Boundaries of Development District No. 4 . . . . . . . . . . 1-6 Appendix A Boundary Map of Development District No. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 Municipal Action Taken (This Municipal Action is only for convenience of reference.) Based upon the statutory authority described in the Development Program attached hereto,the public purpose findings by the City Council and for the purpose of fulfilling the City's development objectives as set forth in the Development Program,the City Council has created,established and designated Development District No. 4 pursuant to and in accordance with the requirements of the Municipal Development District Act and the TIF Act as defined in the definitions of this document. Tax Increment Financing District No.4-1 (Fortitude Senior Housing), a housing tax increment financing district,was established at the same time that the Development District No.4 was established. The following municipal action was taken in connection therewith: Development District No.4: June 20.2016: The Development Program for Development District No.4 was adopted by the City in and for the City of St. Joseph. Tax Increment Financing District No.4-1 (Fortitude Senior Housing): June 20, 2016: The Tax Increment Financing Plan for Tax Increment Financing District No.4-1 (Fortitude Senior Housing)was adopted by the City in and for the City of St. Joseph. i Section 1 - Development Program for Development District No. 4 Subsection 1-1. 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 St. Joseph. "City Council" means the City Council of the City of St. Joseph. "Comprehensive Plan" means the documents which contain the objectives, policies, standards and programs to guide public and private land use,development,redevelopment and preservation for all lands and water within the City. "County" means the County of Stearns County,Minnesota. "Enabling Act"means Minnesota Statues,469.124 to 469.133,as amended and supplemented from time to time. "Development District" means the real property within the City constituting the Development District No.4, as described in the Development Program. "Development Program"means this Development Program for Development District No. 4, as initially proposed,and as it shall be modified. "Land Use Regulations"means all federal,state and local laws,rules,regulations,ordinances,and plans relating to or governing the use of development of land in the City, including but not limited to environmental,zoning and building code laws and regulations. "Municipal Development District Act" means Minnesota Statutes, 469.124 to 469.133, inclusive, as amended. "Public Costs"means the costs set forth in the Tax Increment Financing Plan,and any other costs eligible to be financed by Tax Increments under the TIF Act 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. 4 and in the Tax Increment Financing Plans, and any obligations issued to refund such bonds. "TIF Act" means Minnesota Statutes, Sections 479.174 through 479.1794,inclusive, as amended. City of St.Joseph Development Program for Development District No.4 1-1 "Tax Increment Financing District" means any tax increment financing district presently established or to be established in the future in Development District No.4. "Tax Increment Financing Plan" or"Plan" means the Plans adopted by the City for any Tax Increment Financing District. Subsection 1-2. Statutory Authority The City established Development District No.4 pursuant to the Municipal Development District Act. It is authorized that the City will administer the Development District No. 4 and any tax increment financing districts. Within the Development District No.4,the City plans to create one or more tax increment financing districts established pursuant to the Tax Increment Act to finance the public improvements proposed for the Development District. The public improvements maybe initially financed from other City sources,including, but not limited to the use of improvement bonds issued pursuant to Minnesota Statutes,Chapter 429,which sources the City may reimburse from tax increment proceeds derived from tax increment districts to be created with the Development District No. 4. The tax increment district or districts will be created at such time as will enable the City to capture the increase in taxable value of private improvements to be constructed within the Development District No.4. Subsection 1-3. Statement of and Finding of Public Purpose In recent months,the City has been reviewing the future development of the community. This review has defined several important roles for the City of St. Joseph. • 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 Enabling 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 and 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: I. 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. City of St.Joseph Development Program for Development District No.4 1-2 2. The Development District suffers from a lack ofnecessary 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 has determined to exercise its authority to develop 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. 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 any tax increment financing plans to be proposed 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 1-4. Statement of Objectives The City determines that it is necessary,desirable and in the public interest to establish,designate,develop and administer the Development District. The City determines that the establishment of Development District No. 4 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: I. Promoting and securing the prompt development of property in the Development District in a manner consistent with the City's planning and with a minimal adverse impact on the environment,which property is less productive because of the lack of proper utilization and lack of investment, and thereby promoting and securing the development of other land in the City; 2. Promoting and securing additional employment opportunities within the Development District and the City for residents of the City and the surrounding area, thereby improving living standards and preventing unemployment and the loss of skilled and unskilled labor and other human resources in the City; 3. Securing the increase in value of property subject to taxation by the City,St.Cloud Independent School District 742 and Stearns County, and any other taxing jurisdictions in order to better enable such entities to pay for public improvements and governmental services and programs required to be provided by them; City of St.Joseph Development Program for Development District No.4 1-3 4. Securing the construction and providing of moneys for the payment of the cost of public improvements in the Development District,which are necessary for the orderly and beneficial development of the Development District; and 5. Providing and securing the development of increased opportunities for families to reside in quality owner-occupied housing,for senior citizens to choose from housing options which offer a wide array of services without regard to income,and for residents looking for a wide range of multi-family units. Subsection 1-5. 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,parking, street, sewer,water and other public improvements. A description of the items of expenditure and the estimated costs can be found in the Tax Increment Financing Plans for the Tax Increment Financing Districts created within this Development District. Subsection 1-6. Funding of Developments and Redevelopments To implement the established objectives,the City plans to utilize a number of public and private financing tools. Funding of the necessary activities and improvements in the Development District is expected to be accomplished through,and is not limited to,tax increment financing,special assessments,state aid for road construction,proceeds from the sale of property, and federal and state grants. Any public facilities within the Development District will be financially feasible and compatible with longer range development plans. Any acquisition of property for the public improvements will be done to provide the impetus for private development within the Development District. Subsection 1-7. Environmental Controls All municipal actions, public improvements and private development shall be carried out in a manner consistent with existing environmental controls and all applicable Land Use regulations. Subsection 1-8. Proposed Reuse of Property The Development Program contemplates that the City may acquire property and reconvey the same to another entity. Prior to formal consideration of the acquisition of any property,the City will require the execution of a binding development agreement with respect thereto and evidence that Tax Increments or other funds will be available to repay the Public Costs associated with the proposed acquisition. It is the intent of the City to negotiate the acquisition of property whenever possible. Appropriate restrictions regarding the reuse and redevelopment ofproperty shall be incorporated into any development agreement to which the City is aparty. Subsection 1-9. Open Space to Be Created Any open space within the Development District will be created in accordance with the zoning and ordinances of the City. City of St.Joseph Development Program for Development District No.4 1-4 Subsection 1-10. Administration and Maintenance of Development District No. 4 Maintenance and operation of the Development District will be the responsibility of the . Each year, the administrator of the Development District will submit to the City Council the maintenance and operation budget for the following year. The administrator of the Development District will administer the Development District pursuant to the provision of the Enabling Act;provided,however,that such powers may only be exercised at the direction of the City. No action taken by the administrator of the Development District pursuant to the above- mentioned powers shall be effective without authorization by the City. Subsection 1-11. Rehabilitation Owners of properties within the Development District may be encouraged to rehabilitate their properties to conform with the applicable state and local codes and ordinances,as well as any design standards. Persons who purchase property within the Development District from the City may be required to rehabilitate their properties as a condition of sale of land. The City may provide such rehabilitation assistance as may be available from federal, state or local sources. Subsection 1-12. Relocation Any person or business that is displaced as a result of the Development Program will be relocated in accordance with Minnesota Statutes, Section 117.50 to 117.56. The City accepts its responsibility for providing for relocation assistance pursuant to the Enabling Act. Subsection 1-13. Property Acquisition The City intends to acquire such property, or appropriate interest therein,within the Development District as the Authority may deem to be necessary or desirable to assist in the implementation of the Development Program. Subsection 1-14. Modification of the Development Program and/or Development District No. 4 The City reserves the right to alter and amend the Development Program and the Tax Increment Financing Plans, subject to the provisions of state law regulating such action. The City specifically reserves the right to enlarge or reduce the size of the Development District and the Tax Increment Financing District, the Development Program,the Public Costs and the amount of Tax Increment Bonds to be issued to finance such cost by following the procedures specified in Minnesota Statutes, Section 469.175, subdivision 4. City of St.Joseph Development Program for Development District No.4 1-5 Subsection 1-15. Description of Boundaries of Development District No. 4 The boundaries of the Development District are outlined in the map included in Appendix A. City of St.Joseph Development Program for Development District No.4 1-6 Appendix A Boundary Map of Development District No. 4 City of St.Joseph Development Program for Development District No.4 A-1 _lftllLl"lllrf/ - 1/j�A�'SMINE�LN � ����/ }}}Jam• + L ! t j f 711M> Ittl 44V z LLI �F LUI -�—�� -n -w J I Lf].tom; W ?� Q—a1zJ z f l l z �� > Tax Increment Financing District No. 4-1 HELM=ST-Ea �v (Fortitude Senior Housing) C 01BIRCH ST E A 2 M�'-r 1!Il 4 I It11 � I J P -� a... 3014TH=ST[1 ASH ST Ery �� -� s��f�'l�1 ! E f i � Iz I � a lmflll ]Itl III Ik_l sjwltJ f� �y� 1 _i I I - � n7 r" AIBLEnS.T_E�V —_ � w _ w _ _� a � w - _ St. y <_ - -�-` �'v-Q La-�Na _Lkl �C00. >�— V~�'-� W ��y �_LN�m� -'= �_ �t.1��•y-�x=CQ� pir r ria: (44j..lfy�rc�l3i + i '. �JDAL E ST E -.,✓�� ! �.Y 1 l r A f�E h. -LLI I71 f I �nA1I I Development L District No. 4 �HILLST=W 29.5:T:H-ST — LI I i III III �— �L OF—� 0 0 RS01 Tax Increment Financing District No. 4-1 (Fortitude Senior Housing) Development District No. 4 City of St. Joseph Stearns County, Minnesota As of June 13, 2016 Draft for Public Hearing Tax Increment Financing Plan for the establishment of Tax Increment Financing District No. 4-1 (Fortitude Senior Housing) (a housing district) within Development District No. 4 City of St. Joseph Stearns County State of Minnesota Public Hearing: June 20, 2016 Adopted: Prepared by: EHLERS& EHLERS 3060651-697-8500 ffax:565R 697-85, Minnesota� hl0 s-inc�om Table of Contents (for reference purposes only) Section 2 - Tax Increment Financing Plan for Tax Increment Financing District No. 4-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-1. Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-2. Statutory Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-3. Statement of Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-4. Redevelopment Plan Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired . 2-2 Subsection 2-6. Classification of the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-2 Subsection 2-7. Duration and First Year of Tax Increment of the District . . . . . . . . . . . 2-3 Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements . . . . . . . . . . . . . . . . 2-4 Subsection 2-9. Sources of Revenue/Bonds to be Issued . . . . . . . . . . . . . . . . . . . . . . 2-5 Subsection 2-10. Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5 Subsection 2-11. Business Subsidies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-6 Subsection 2-12. County Road Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-7 Subsection 2-13. Estimated Impact on Other Taxing Jurisdictions . . . . . . . . . . . . . . . . . 2-7 Subsection 2-14. Supporting Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-9 Subsection 2-15. Definition of Tax Increment Revenues . . . . . . . . . . . . . . . . . . . . . . . . 2-9 Subsection 2-16. Modifications to the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-10 Subsection 2-17. Administrative Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-10 Subsection 2-18. Limitation of Increment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-11 Subsection 2-19. Use of Tax Increment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-12 Subsection 2-20. Excess Increments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-12 Subsection 2-21. Requirements for Agreements with the Developer . . . . . . . . . . . . . . 2-13 Subsection 2-22. Assessment Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-13 Subsection 2-23. Administration of the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-13 Subsection 2-24. Annual Disclosure Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-13 Subsection 2-25. Reasonable Expectations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-14 Subsection 2-26. Other Limitations on the Use of Tax Increment . . . . . . . . . . . . . . . . . 2-14 Subsection 2-27. Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-14 Appendix A Project Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 Appendix B Map of Redevelopment Project No. 4 and the District . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1 Appendix C Description of Property to be Included in the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-1 Appendix D Estimated Cash Flow for the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D-1 Appendix E Housing Qualifications for the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-1 Appendix F Findings for the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-1 Section 2 - Tax Increment Financing Plan for Tax Increment Financing District No. 4-1 (Fortitude Senior Housing) Subsection 2-1. Foreword The City of St.Joseph(the"City"),staff and consultants have prepared the following information to expedite the establishment of Tax Increment Financing District No.4-1 (Fortitude Senior Housing) (the "District"), a housing tax increment financing district,located in Development District No.4. Subsection 2-2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end,the City have certain statutory powers pursuant to Minnesota Statutes ("MV), Sections 469.124 to 469.133, inclusive, as amended, and M.S., Sections 469.174 to 469.1794, inclusive,as amended(the "Tax Increment Financing Act"or"TIF Act"),to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Development Program for Development District No.4. Subsection 2-3. Statement of Objectives The District currently consists of one parcel of land and adjacent and internal rights-of-way.The District is being created to facilitate the construction of 47 units of senior housing in the City. Please see Appendix A for further District information. The City will enter into an agreement with Fortitude Senior Living of St. Joseph Limited Liability Company,as the developer of the project.This TIF Plan is expected to achieve many of the objectives outlined in the Development Program for Development District No.4. The activities contemplated in the Development Program and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Development District No.4 and the District. Subsection 2-4. Development Program Overview 1. Property to be Acquired- Selected property located within the District may be acquired by the City and is further described in this TIF Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements,the City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The City may perform or provide for some or all necessary acquisition, construction, relocation,demolition, and required utilities and public street work within the District. City of St.Joseph Tax Increment Financing Plan for Tax Increment Financing District No.4-1 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information on the location of the District. The City may acquire any parcel within the District including interior and adjacent street rights of way.Any properties identified for acquisition will be acquired by the City 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.The City may acquire property by gift,dedication,condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 2-6. Classification of the District The City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1794, as amended,inclusive, find that the District,to be established, is a housing district pursuant to M.S., Section 469.174, Subd. I1 and M.S., Section 469.1761 as defined below: M.S., Section 469.174, Subd.11: "Housing district"means a type of tax increment financing district which consists of a project, or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income, as defined in chapter 462A, Title H of the National Housing Act of 1934, the National HousingAct of 1959, the United States Housing Act of 1937, as amended, Title V of the Housing Act of 1949, as amended, any other similar present or future federal, state, or municipal legislation, or the regulations promulgated under any of those acts, and that satisfies the requirements of M.S., Section 469.1761. Housing project means a project, or portion of a project, that meets all the qualifications of a housing district under this subdivision, whether or not actually established as a housing district. M.S., Section 469.1761: Subd. 1. Requirement imposed. (a) In order for a tax increment financing district to qualify as a housing district: (1) the income limitations provided in this section must be satisfied,- and (2) no more than 20 percent of the square footage of buildings that receive assistance from tax increments may consist of commercial, retail, or other nonresidential uses. (b) The requirements imposed by this section apply to property receiving assistance financed with tax increments, including interest reduction, land transfers at less than the authority's cost of acquisition, utility service or connections, roads, parking facilities, or other subsidies. The provisions of this section do not apply to districts located within a targeted area as defined in Section 4620 02 Subd 9, clause (e). (c)For purposes of the requirements of paragraph (a), the authority may elect to treat an addition to an existing structure as a separate building if City of St.Joseph Tax Increment Financing Plan for Tax Increment Financing District No.4-1 2-2 (1) construction of the addition begins more than three years after construction of the existing structure was completed, and (2) for an addition that does not meet the requirements of paragraph(a), clause(2),if it is treated as a separate building, the addition was not contemplated by the tax increment financing plan which includes the existing structure. Subd. 2. Owner occupied housing. For owner occupied residential property, 95 percent of the housing units must be initially purchased and occupied by individuals whose family income is less than or equal to the income requirements for qualified mortgage bond projects under section 143(f) of the Internal Revenue Code. Subd. 3. Rental property. For residential rental property, the property must satisfy the income requirements for a qualified residential rental project as defined in section 142(d) of the Internal Revenue Code. The requirements of this subdivision apply for the duration of the tax increment financing district. Subd. 4. Noncompliance; enforcement. Failure to comply with the requirements of this section is subject to M.S., Section 469.1771. In meeting the statutory criteria the City rely on the following facts and fmdings: • The District consists of one parcel. • The development will consist of 47 units of senior rental housing • 20% of the units will be occupied by person with incomes less than 50% of median income Pursuant to M.S., Section 469.176, Subd. 7,the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7. Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1,the duration and first year of tax increment of the District must be indicated within the TIF Plan. Pursuant to M.S.,Section 469.176,Subd. 1 b., the duration of the District will be 25 years after receipt of the first increment by the City(a total of 26 years of tax increment). The City elects to receive the first tax increment in 2018,which is no later than four years following the year of approval of the District. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes,would terminate after 2043,or when the TIF Plan is satisfied.The City reserves the right to decertify the District prior to the legally required date. Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements PursuanttoM.S.,Section 469.174,Subd. 7andM.S.,Section 469.177,Subd. l,the Original Net Tax Capacity (ONTC)as certified for the District will be based on the market values placed on the property by the assessor in 2015 for taxes payable 2016. Pursuant to M.S., Section 469.177, Subds. 1 and 2,the County Auditor shall certify in each year(beginning City of St.Joseph Tax Increment Financing Plan for Tax Increment Financing District No.4-1 2-3 in the payment year 2018)the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; 3. Change due to adjustments,negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity(NTC)value of the District declines below the ONTC,no value will be captured and no tax increment will be payable to the City. The original local tax rate for the District will be the local tax rate for taxes payable 2016, assuming the request for certification is made before June 30, 2016. The ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity(CTC)of the District,within Development District No.4,upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The City requests 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures,beginning in the tax year payable 2018. The Project Tax Capacity(PTC)listed is an estimate of values when the projects within the District are completed. Project Estimated Tax Capacity upon Completion (PTC) $102,707 Original Estimated Net Tax Capacity(ONTC) $1,875 Estimated Captured Tax Capacity(CTC) $100,832 Original Local Tax Rate 1.3172 Pay 2016 Estimated Annual Tax Increment(CTC x Local Tax Rate) $132,816 Percent Retained by the City 100% Tax capacity includes a 3%inflation factor for the duration of the District. The tax capacity included in this chart is the estimated tax capacity of the District in year 25. The tax capacity of the District in year one is estimated to be$25,263. Pursuant to M.S., Section 469.177, Subd. 4, the City shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S, Section 469.175, Subd. 4,with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen(18)months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and found no parcels for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. City of St.Joseph Tax Increment Financing Plan for Tax Increment Financing District No.4-1 2-4 Subsection 2-9. Sources of Revenue/Bonds to be Issued The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by a pay-as-you-go note and/or an interfund loan. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. 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 total estimated tax increment revenues for the District are shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $2,386,858 Interest $238.686 TOTAL $2,625,544 The City may issue bonds(as defined in the TIF Act)secured in whole or in part with tax increments from the District in a maximum principal amount of$1,683,917.Such bonds may be in the form of pay-as-you-go notes,revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. Subsection 2-10. Uses of Funds Currently under consideration for the District is a proposal to facilitate the construction of 47 units of senior housing in the City.The City have determined that it will be necessary to provide assistance to the project(s) for certain District costs, as described. The City has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District,this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the table on the following page. City of St.Joseph Tax Increment Financing Plan for Tax Increment Financing District No.4-1 2-5 USES OF TAX INCREMENT FUNDS TOTAL Land/Building Acquisition $150,000 Site Improvements/Preparation $200,000 Utilities $150,000 Affordable Housing Construction $900,000 Other Qualifying Improvements $45,231 Administrative Costs (up to 10%) $238.686 PROJECT COST TOTAL $1,683,917 Interest $941,627 PROJECT AND INTEREST COSTS TOTAL $2,625,544 The total project cost,including financing costs(interest)listed in the table above does not exceed the total projected tax increments for the District as shown in Subsection 2-9. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. 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. The City may expend funds for qualified housing activities outside of the District boundaries. Subsection 2-11. Business Subsidies Pursuant to M.S., Section 116J.993, Subd. 3,the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of less than$150,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size,location,or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Redevelopment property polluted by contaminants as defined in M.S., Section 116J.552,Subd. 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts,provided that the assistance is equal to or less than 50% of the total cost; (6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) Assistance for housing; (8) Assistance for pollution control or abatement,including assistance for a tax increment financing hazardous substance subdistrict as defined under M.S., Section 469.174, Subd. 23; (9) Assistance for energy conservation; (10) Tax reductions resulting from conformity with federal tax law; (11) Workers' compensation and unemployment compensation; City of St.Joseph Tax Increment Financing Plan for Tax Increment Financing District No.4-1 2-6 (12) Benefits derived from regulation; (13) Indirect benefits derived from assistance to educational institutions; (14) Funds from bonds allocated under chapter 474A,bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; (15) Assistance for a collaboration between a Minnesota higher education institution and a business; (16) Assistance for a tax increment financing soils condition district as defined under M.S., Section 469.174, Subd. 19; (17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) General changes in tax increment financing law and other general tax law changes of a principally technical nature; (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; (21) Business loans and loan guarantees of$150,000 or less; (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration; and (23) Property tax abatements granted under M.S., Section 469.1813 to property that is subject to valuation under Minnesota Rules,chapter 8100. The City will comply with M.S., Sections 116J.993 to 116J.995 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. Subsection 2-12. County Road Costs Pursuant to M.S., Section 469.175, Subd. 1 a,the county board may require the City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will,in the judgment of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads,it must notify the City within forty-five days of receipt of this TIF Plan. In the opinion of the City and consultants,the proposed development outlined in this TIF Plan will have little or no impact upon county roads,therefore the TIF Plan was not forwarded to the county 45 days prior to the public hearing. The City are aware that the county could claim that tax increment should be used for county roads,even after the public hearing. Subsection 2-13. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore,the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: City of St.Joseph Tax Increment Financing Plan for Tax Increment Financing District No.4-1 2-7 IMPACT ON TAX BASE 2015/Pay 2016 Estimated Captured Total Net Tax Capacity(CTC) Percent of CTC Tax Capacity Upon Completion to Enti , Total Stearns County 138,323,254 100,832 0.0729% City of St. Joseph 3,342,661 100,832 3.0165% St. Cloud ISD No. 742 75,834,229 100,832 0.1330% IMPACT ON TAX RATES Pay 2016 Percent Potential Extension Rates of Total CTC Taxes Stearns County 0.516730 39.23% 100,832 52,103 City of St. Joseph 0.550100 41.76% 100,832 55,468 St. Cloud ISD No. 742 0.236880 17.98% 100,832 23,885 Other 0.013490 1.02% 100.832 1,360 Total 1.317200 100.00% 132,816 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the actual Pay 2016 rate.The total net capacity for the entities listed above are based on actual Pay 2016 figures. Pursuant to M.S. Section 469.175 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is$2,386,858; (2) Probable impact of the District on city_provided services and ability to issue debt. An impact of the District on police protection is not expected. The City police department does track all calls for service by incident complaint record.It is expected that the calls for service will be minimal and more medical in nature, such as lift assist or first responder. With any addition of new residents or businesses, police calls for service may be increased. New developments can add an increase in traffic, and additional overall demands to the call load. The City does not expect that the proposed development, in and of itself,will necessitate new capital investment. The probable impact of the District on fire protection is not expected to be significant. Typically new buildings generate few calls,if any, and are of superior construction. The impact of the District on public infrastructure is expected to be minimal.The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. Based on the development plans,there are no additional costs associated with street maintenance, sweeping,plowing,lighting and sidewalks.The development in the District is expected to contribute an estimated $270,720 in sanitary sewer (SAC) and water (WAC) connection fees. City of St.Joseph Tax Increment Financing Plan for Tax Increment Financing District No.4-1 2-8 The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same,is$429,157; (4) Estimated amount of tax increment attributable to coun , levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies,assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same,is$936,364; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. Subsection 2-14. Supporting Documentation Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the findings are required in the resolution approving the District. Following is a list of reports and studies on file at the City that support the City's findings: • A list of applicable studies will be listed here prior to the public hearing. Subsection 2-15. Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174, Subd. 25,tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: I. Taxes paid by the captured net tax capacity,but excluding any excess taxes,as computed under M.S., Section 469.177; 2. The proceeds from the sale or lease of property,tangible or intangible,to the extent the property was purchased by the authority with tax increments; 3. Principal and interest received on loans or other advances made by the authority with tax increments; 4. Interest or other investment earnings on or from tax increments; 5. Repayments or return of tax increments made to the Authority under agreements for districts for which the request for certification was made after August 1, 1993; and 6. The market value homestead credit paid to the Authority under M.S., Section 273.1384. City of St.Joseph Tax Increment Financing Plan for Tax Increment Financing District No.4-1 2-9 Subsection 2-16. Modifications to the District In accordance with M.S., Section 469.175, Subd. 4, any: 1. Reduction or enlargement of the geographic area of the District,if the reduction does not meet the requirements of M.S., Section 469.175, Subd. 4(e); 2. Increase in amount of bonded indebtedness to be incurred; 3. A determination to capitalize interest on debt if that determination was not a part of the original TIF Plan; 4. Increase in the portion of the captured net tax capacity to be retained by the City; 5. Increase in the estimate of the cost of the District,including administrative expenses,that will be paid or financed with tax increment from the District; or 6. Designation of additional property to be acquired by the City, shall be approved upon the notice and after the discussion,public hearing and findings required for approval of the original TIF Plan. Pursuant to M.S. Section 469.175 Subd. 4 )),the geographic area of the District may be reduced,but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a housing district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. 11 must be documented. The requirements of this paragraph do not apply if(1)the only modification is elimination of parcel(s)from the District and(2)(A)the current net tax capacity of the parcel(s)eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or(B)the City agrees that, notwithstanding M.S.,Section 469.177,Subd. 1,the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s)eliminated from the District. The City must notify the County Auditor of any modification to the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. Subsection 2-17.Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the City,other than: 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services,including architectural and engineering services, directly connected with the physical development of the real property in the District; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the District; 4. Amounts used to pay principal or interest on,fund a reserve for,or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses(1)to(3). For districts for which the request for certification were made before August 1, 1979,or after June 30, 1982, and before August 1,2001,administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative City of St.Joseph Tax Increment Financing Plan for Tax Increment Financing District No.4-1 2-10 expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments,as defined by M.S., Section 469.174,Subd. 25, clause (1), from the District,whichever is less. For districts for which certification was requested after July 31,2001,no tax increment may be used to pay any administrative expenses for District costs which exceed ten percent of total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments,as defined inM.S.,Section 469.174,Subd. 25, clause(1), from the District,whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits ofM.S.,Section 469.176,Subd. 3. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11,the County Treasurer shall deduct an amount (currently .36 percent)of any increment distributed to the City and the County Treasurer shall pay the amount deducted to the State Commissioner of Management and Budget for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities'use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. Subsection 2-18. Limitation of Increment The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax incrementfinancingdistrictpursuant to M.S.,Section 469.177,no demolition,rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax incrementfinancing district by the authority or by the owner of the parcel in accordance with the tax incrementfinancing plan, no additional tax increment may be taken from that parcel, and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax incrementfinancingplan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certi the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax incrementfinancing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, City of St.Joseph Tax Increment Financing Plan for Tax Increment Financing District No.4-1 2-11 and(3)substantial reconstruction or rebuilding of an existing street. The City or a property owner must improve parcels within the District by approximately June 2020 and report such actions to the County Auditor. Subsection 2-19. Use of Tax Increment The City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project; 2. To finance,or otherwise pay the cost of redevelopment of the Development District No.4 pursuant to M.S., Sections 469.124 to 469.133; 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance,or otherwise pay for other purposes as provided in M.S, Section 469.176, Subd. 4; 5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the City or for the benefit of Development District No.4 by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S, Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. Revenues derived from tax increment from a housing district must be used solely to finance the cost of housing projects as defined in M.S., Sections 469.174, Subd. 11 and 469.1761. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the City may be included in the cost of a housing project. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Stearns County to the City for the Tax Increment Fund of said District. The City will pay to the developer(s)annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation,site preparation,and administration. Remaining increment funds will be used for City administration(up to 10 percent)and for the costs of public improvement activities outside the District. Subsection 2-20. Excess Increments Excess increments,as defined in M.S., Section 469.176, Subd. 2,shall be used only to do one or more of the following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The City must spend or return the excess increments under paragraph (c) within nine months after the end City of St.Joseph Tax Increment Financing Plan for Tax Increment Financing District No.4-1 2-12 of the year. In addition,the City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in Development District No.4 or the District. Subsection 2-21. Requirements for Agreements with the Developer The City will review any proposal for private development to determine its conformance with the Development Program and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings,landscaping plan,grading and storm drainage plan,signage system plan,and any other drawings or narrative deemed necessary by the City to demonstrate the conformance of the development with City plans and ordinances. The City may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 10 percent, by acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the City as a result of acquisition with the proceeds ofbonds issued pursuant to M.S.,Section 469.178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of 10 percent of the acreage, the City concluded an agreement for the development of the property acquired and which provides recourse for the City should the development not be completed. Subsection 2-22.Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the City may enter into a written assessment agreement in recordable form with the developer ofproperty within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed,review the market value previously assigned to the land upon which the improvements are to be constructed and,so long as the minimum market value contained in the assessment agreement appears,in the judgment of the assessor,to be a reasonable estimate,the County Assessor shall also certify the minimum market value agreement. Subsection 2-23.Administration of the District Administration of the District will be handled by the City Administrator. Subsection 2-24.Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subds. 5, 6, and 6b the City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board and County Auditor on or before August 1 of each year. M.S,Section 469.175,Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M.S., Section 469.175 Subd. 5 and Subd. 6, the Office of the State Auditor will direct the County Auditor to withhold the distribution of tax increment from the District. City of St.Joseph Tax Increment Financing Plan for Tax Increment Financing District No.4-1 2-13 Subsection 2-25. Reasonable Expectations As required by the TIF Act,in establishing the District,the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon City staff awareness of the feasibility of developing the project site(s)within the District. Subsection 2-26. Other Limitations on the Use of Tax Increment I. General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used to finance, or otherwise pay the cost of redevelopment of the Development District No.4 pursuant to M.S., Sections 469.124 to 469.133.Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction,renovation,operation,or maintenance of a building to be used primarily and regularly for conducting the business of a municipality,county,school district,or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. 2. Housing District Exceptions to Restriction on Pooling, Five Year Limit. Pursuant to M.S., Section 469.1763, (1)At least 80% of the tax increment derived from the District must be expended on Public Costs incurred within said district, and up to 20% of said tax increments may be spent on public costs incurred outside of the District but within Development District No. 4; provided that in the case of a housing district, a housing project, as defined in M.S., Section 469.174, Subd. 11, is deemed to be an activity in the District,even if the expenditure occurred after five years. Subsection 2-27. Summary The City of St. Joseph is establishing the District to provide an impetus for residential development and provide safe and decent life cycle housing in the City. The TIF Plan for the District was prepared by Ehlers &Associates,Inc.,3060 Centre Pointe Drive,Roseville,Minnesota 55113-1105,telephone(651)697-8500. City of St.Joseph Tax Increment Financing Plan for Tax Increment Financing District No.4-1 2-14 Appendix A Fortitude Senior Living Proposes to construct a 47-unit senior housing facility with full kitchens and private baths ranging is size between 400-1,100 square feet. Services such as medication set- up and administration, general care, and meals will be provided on an a la carte basis. Appendix A-1 Appendix B Map of Development District No. 4 and the District Appendix B-1 _lftllLl"lllrf/ - 1/j�A�'SMINE�LN + L ! t j f l=w� '' t u�711M> Ittl 44V >� �F LUI -�-�� -n -w J I ].tom; w ? l� Q—a1z f Cf l z zJ > Tax Increment Financing District No. 4-1 HELM=ST-Ea �v (Fortitude Senior Housing) C 01BIRCH ST E A 2 M�"r 1!Il 4 I It11 � I J P -� a... 3014TH=ST[1 ASH ST Ery �� -� s��f�'l�1 ! E f i � Iz I � a ]Itl III Ik_l sjwltJ f� �y� a� - � n_ r" AIBLEnS.T_E�V w w _ �jlv w - St. La i~Z-��w �cwn .., — �—-y J N—q�m == - t.1 y- ==LQ it -rig � _�-_-� —'� Q Lw, w f7, oQ LE-ST ~i � � �fHlfy�rc�l3i + i '. �JUALE ST E -.,✓�� ! �.Y 1 l r A f�E h. -LLI L f I I L 14f�It1``� 1I I Development LODistrict No. 4 �HILLST=W R_ � 295:T:H-ST 1—LIl i I III I I1 7' -n f-�7^uEOF lam RS Tax Increment Financing District No. 4-1 (Fortitude Senior Housing) Development District No. 4 City of St. Joseph Stearns County, Minnesota Appendix C Description of Property to be Included in the District The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcel listed below. Parcel Numbers Address Owner 84.53533.0106 UNASSIGNED FORTITUDE Appendix C-1 Appendix D Estimated Cash Flow for the District Appendix D-1 R Iw/1 � R Q a a) Ln Ln m o oo a M co 00 C U o �F Q Q c 06 Q o o o o o o o o o o o o 0 m o 0000 Ln Ln oo oL o > O L O O O N I S N O N O N O C F O O N N O O -- --- VI R w C m 07 V Q C O U in 0 r R c cm R m U O x o F w a` w - •- rn C C wQ n w X 0 E O w cL R R w > F Q a d~U W o — w _ S C) 0 m C Ul w Lo O O w O 0 0 d' m O O z 0 0 O O O O O C�O O O O w 0 0 N W O- 00 ' w O O 00 m 00 p w C> T E (D00- 000 C 00-00 } 01•" LO LOU COO OO[)OO x'- wd Lu Go Gom� o<a<aa����� W FOR = w jn m S O w o ' C5 a a �-o o 0 o00 w—� wEL0wEL0 EL foo w 0 — 0— fn 0 0 (7 O E w O >OV Lo / w w S 9 O O E E E m-O S w U u w E E E o C E O R i J s wc) C)�a z = a m z W " 4) o C =m w w o ' a O Ol a � ' O 7'� ua c w n s. 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O j X V V 000000--N NMM V V(D(D V V CO CON NCO 0 0 0 0 0 -r-V V �W co 0 0 Lo LD V V V V qt C F Ln Ln N N M M V V Lo Lo 0 0 r r co co M 0 0 0 N N M M V V 0(Dr r 0 0 0 0 N N M M Lo LD r-co CO O O N N V V o 0 g LPl Z ,O C M M M M M M M M M M M M M M M M V V V V V V V V V V V V V V LD Lo Lo LD Lo LD Lo LD o LD o LD 0 0 0 0 o 0 o 0 W CO co N •d C9 U N r W:`, -a O p N C �+ �+ X r 0 N W LD M LD N 0 O 0 LD O M r M LD LD 0 O O 0 O 0 O LD 0 R O W r M Lp M W 0 W M 0 r Lo 0 0 N M M N M M LD r co O O N V o 0 M co M 0 (D V N N M LD o N r M O o W O O 7 o E O V 0 W O N V 0 0 V 0 0 N Lo WV r O V r Ln W N ` M CO CO CO r r r r r W W W W 0 0 0 O O O N N N M Q 2 U 0 o o o o o o o o o o o o o o o o o o o o o o o o o o X O O O O O O O O O O O O O O O O O O O O O O O O O O O V y N N N N N N N N N N N N N N N N N N N N N N N N N N O d R W O 0 Lor V V 0 0 CO M N M 0 M o O 0 (0 o O N 7 W Lo (0 N M 00 o 0 N V N 0 CO N V V O M V N r M V M R 'p M (D M 0 (D V N O O O co Lo CO N (D r co 0 W W M W O M V o co D N V o CO O N V 0 0 V o 0 N V r O X u N V Lo LD Lo Lo Lo Lo 0 0 0 0 0 r r r r W W W o 0 0 0 O U U a R � An Z QO N IL N G O E O LL o o o o o o o o o o o o o o o o o o o o o o o o o o y O MLn N O o N 0 0 V V co r co V (0 co O F o V Ln r a w (0 N V O (0 r N M O N O M M 0 N r 0 Ln 0 O N Lo O 0 N W Lo M O 0 0 0 O V r O Ln O Lo N_ 0 W r r Lo O N M Lo (D W O N V Lo r 0 N V (D W M o o M o 0 N W R R N u) Ln Lo Lo Lo Lo 0 0 0 0 0 (D r r r r W W W o 0 0 0 0 O16 R (L U F 10 - m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o V o o o o o o o o o o o o o o o o o o o o o o o o o o w 0 0~O o 0 0 0 0 0 0 0 0 0 0 0 0 0 o O O O O O o 0 0 0 0 0 o 0 N Ln a` Appendix E Housing Qualifications for the District INCOME RESTRICTIONS-ADJUSTED FOR FAMILY SIZE (HOUSING DISTRICT)-STEARNS COUNTY STEARNS COUNTY MEDIAN INCOME: $71,400 No. of Persons 50%of Median Income 60%of Median Income 1-person $25,000 $30,000 2-person $28,600 $34,320 3-person $32,150 $38,580 4-person $35,700 $42,840 Source: Department of Housing and Urban Development and Minnesota Housing Finance Agency The two options for income limits on a standard housing district are 20% of the units at 50% of median income or 40%of the units at 60%of median income. There are no rent restrictions for a housing district. ***PLEASE NOTE: THESE NUMBERS ARE ADJUSTED ANNUALLY. ALL INCOME FIGURES REPORTED ON THIS PAGE ARE FOR 2016. Appendix E-1 Appendix F Findings for the District The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No.4-1 (Fortitude Senior Housing), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that Tax Increment Financing District No.4-1 (Fortitude Senior Housing) is a housing district as defined in M.S., Section 469.174, Subd. 11. TIF District No.4-1 (Fortitude Senior Housing)consists of one parcel. The development will consist of 47 units of senior rental housing.All or a portion of which will receive tax increment assistance and will meet income restrictions described in M.S. 469.1761. At least 20 percent of the units/homes receiving assistance will have incomes at or below 50 percent of statewide median income. Appendix E of the TIF Plan contains background for the above finding. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the development proposed in this plan is an affordable, senior rental housing project that meets the City's objectives for development and redevelopment. The cost of land acquisition, site improvements and construction costs makes this housing development infeasible without City assistance. The land and construction costs for affordable rental projects are the same as market rate rental projects. The rental income on the affordable units,however,is reduced. This means there is less cash flow available to service the operating and debt expenses for the project. Collectively,these factors lead to lower than market rate investment returns to the developer and make this housing development feasible only through assistance,in part,from tax increment financing. The developer was asked for and provided a letter and a pro forma as justification that the developer would not have gone forward without tax increment assistance. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan: The City reasonably determines that no other development of similar scope is anticipated on this site without substantially similar assistance being provided to the development. 3. Finding that the TIF Plan for Tax Increment Financing District No.4-1 (Fortitude Senior Housing) conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the TIF Plan for Tax Increment Financing District No.4-1 (Fortitude Senior Housing) will afford maximum opportunity, consistent with the sound needs of the City as a whole,for the development or redevelopment of Development District No. 4 by private enterprise. Appendix F-1 Through the implementation of the TIF Plan,the City will provide an impetus for residential development,which is desirable or necessary for increased population and an increased need for life-cycle housing within the City. Appendix F-2 CITY OF ST.JOSEPH STEARNS COUNTY STATE OF MINNESOTA Council member introduced the following resolution and moved its adoption: RESOLUTION NO. 2016-024 RESOLUTION ADOPTING A DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.4 AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NOA-1 (FORTITUDE SENIOR HOUSING) THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. BE IT RESOLVED by the City Council(the "Council") of the City of St. Joseph, Minnesota(the "City"), as follows: Section 1. Recitals. 1.01. It has been proposed by the City Council of the City of St. Joseph(the "City") that the City establish Development District No. 4 and adopt a Development Program therefor(the "Development Program") and that the City establish Tax Increment Financing District No.4-1 (Fortitude Senior Housing) (the "District") therein and adopt a Tax Increment Financing Plan(the "TIF Plan") therefor(the Development Program and the TIF Plan are referred to collectively herein as the "Program and Plan"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.124 to 469.133 and Sections 469.174 to 469.1794, all inclusive, as amended, (the "Act") all as reflected in the Program and Plan, and presented for the Council's consideration. 1.02. The City has investigated the facts relating to the Program and Plan and has caused the Program and Plan to be prepared. 1.03. The City has performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Program and Plan, including, but not limited to, notification of Stearns County and Independent School District No. 742 having taxing jurisdiction over the property to be included in the District, a review of and written comment on the Program and Plan by the City Planning Commission, and the holding of a public hearing upon published notice as required by law. 1.04. Certain written reports (the "Reports")relating to the Program and Plan and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and/or made a part of the City files and proceedings on the Program and Plan. The Reports include data, information and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. Section 2. Findings for the Adoption and Approval of the Development Program. 2.01. The Council approves the Development Program, and specifically finds that: (a) the land within the Project area would not be available for redevelopment without the financial aid to be sought under this Development Program; (b) the Development Program will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project by private enterprise; and(c) that the Development Program conforms to the general plan for the development of the City as a whole. Section 3. Findings for the Establishment of Tax Increment Financing District No.4-1 (Fortitude Senior Housing). 3.01. The Council hereby finds that Tax Increment Financing District No.4-1 (Fortitude Senior Housing)is in the public interest and is a"housing district" under Minnesota Statutes, Section 469.174, Subd. 11 of the Act. 3.02. The Council further finds that the proposed development would not occur solely through private investment within the reasonably foreseeable future, that the Program and Plan conform to the general plan for the development or redevelopment of the City as a whole; and that the Program and Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development or redevelopment of the District by private enterprise. 3.03. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. Section 4. Public Purpose. 4.01. The adoption of the Program and Plan conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the City which is already built up, to provide housing opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. For the reasons described in Exhibit A, the City believes these benefits directly derive from the tax increment assistance provided under the TIF Plan. A private developer will receive only the assistance needed to make this development financially feasible. As such, any private benefits received by a developer are incidental and do not outweigh the primary public benefits. Section 5. Approval and Adoption of the Program and Plan. 5.01. The Program and Plan, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the City Administrator. 5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Program and Plan and to negotiate, draft,prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 5.03 The Auditor of Stearns County is requested to certify the original net tax capacity of the District, as described in the Program and Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the City of City of St. Joseph is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. 5.04. The City Administrator is further authorized and directed to file a copy of the Program and Plan with the Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. 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: June 20, 2016 ATTEST: Rick Schultz, Mayor Judy Weyrens, City Administrator (Seal) EXHIBIT A RESOLUTION NO. 2016-025 The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No.4-1 (Fortitude Senior Housing), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that Tax Increment Financing District No.4-1 (Fortitude Senior Housing) is a housing district as defined in M.S., Section 469.174, Subd. IL TIF District No. 4-1 (Fortitude Senior Housing) consists of one parcel. The development will consist of 47 units of senior rental housing. All or a portion of which will receive tax increment assistance and will meet income restrictions described in M.S. 469.1761. At least 20 percent of the units/homes receiving assistance will have incomes at or below 50 percent of statewide median income. Appendix E of the TIF Plan contains background for the above finding. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the development proposed in this plan is an affordable, senior rental housing project that meets the City's objectives for development and redevelopment. The cost of land acquisition, site improvements and construction costs makes this housing development infeasible without City assistance. The land and construction costs for affordable rental projects are the same as market rate rental projects. The rental income on the affordable units, however, is reduced. This means there is less cash flow available to service the operating and debt expenses for the project. Collectively, these factors lead to lower than market rate investment returns to the developer and make this housing development feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter and a pro forma as justification that the developer would not have gone forward without tax increment assistance. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan: The City reasonably determines that no other development of similar scope is anticipated on this site without substantially similar assistance being provided to the development. 3. Finding that the TIF Plan for Tax Increment Financing District No.4-1 (Fortitude Senior Housing) conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the TIF Plan for Tax Increment Financing District No.4-1 (Fortitude Senior Housing) will afford maximum opportunity, consistent with the sound needs of the City as a whole,for the development or redevelopment of Development District No. 4 by private enterprise. Through the implementation of the TIF Plan, the City will provide an impetus for residential development, which is desirable or necessary for increased population and an increased need for life-cycle housing within the City. CITY OF ST.JOSEPH STEARNS COUNTY STATE OF MINNESOTA Council member introduced the following resolution and moved its adoption: RESOLUTION NO. 2016-025 RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NOA-1 (FORTITUDE SENIOR HOUSING) . BE IT RESOLVED by the City Council(the "Council") of the City of St. Joseph, Minnesota(the "City"), as follows: Section 1. Background. 1.01. The City has heretofore approved the establishment of Tax Increment Financing District No.4-1 (Fortitude Senior Housing) (the "TIF District")within Development District No. 4 (the "Project"), and has adopted a Tax Increment Financing Plan(the "TIF Plan") for the purpose of financing certain improvements within the Project. 1.02. The City has determined to pay for certain costs identified in the TIF Plan consisting of land/building acquisition, site improvements/preparation,public utilities, affordable housing construction, streets and sidewalks, other qualifying improvements, interest and administrative costs (collectively, the "Qualified Costs"), which costs may be financed on a temporary basis from City funds available for such purposes. 1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan money from the City's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs. 1.04. The City intends to reimburse itself for the Qualified Costs from tax increments derived from the TIF District in accordance with the terms of this resolution(which terms are referred to collectively as the "Interfund Loan"). Section 2. Terms of Interfund Loan. 2.01. The City hereby authorizes the advance of up to $20,000 from the EDA fund or so much thereof as may be paid as Qualified Costs. The City shall reimburse itself for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. 2.02. Principal and interest("Payments") on the Interfund Loan shall be paid semi-annually on each August 1 and February 1 (each a"Payment Date"), commencing on the first Payment Date on which the Authority has Available Tax Increment(defined below), or on any other dates determined by the City Administrator, through the date of last receipt of tax increment from the TIF District. 2.03. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by the City Administrator, generated in the preceding six(6) months with respect to the property within the TIF District and remitted to the City by Stearns County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1794, all inclusive, as amended. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 2.04. The principal sum and all accrued interest payable under this Interfund Loan are pre- payable in whole or in part at any time by the City without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 2.05. This Interfund Loan is evidence of an internal borrowing by the City in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The City shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. The City may amend the terms of this Interfund Loan at any time by resolution of the City Council, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon the date of its approval. 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: June 20, 2016 ATTEST: Rick Schultz, Mayor Judy Weyrens, City Administrator (Seal) EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA HELD: June 20, 2016 Pursuant to due call and notice thereof, a meeting of the City Council of the City of St. Joseph, Stearns County, Minnesota, was duly called and held at the City Hall in said City on Monday, the 20th day of June, 2016, at 6:00 o'clock p.m. The following members were present: and the following were absent: Member introduced the following resolution and moved its adoption: RESOLUTION 2016-026 APPROVING DEVELOPMENT AGREEMENT A. WHEREAS, Fortitude Senior Living of St. Joseph LLC Limited Liability Company (the "Developer") has requested that the City of St. Joseph, Minnesota (the "City") assist with the financing of certain costs in connection with the construction of an approximately 47 unit senior housing facility in the City (the "Project"). B. WHEREAS, the Developer and the City have determined to enter into a Development Agreement providing for the City's assistance in connection with the Project (the "Agreement"). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Joseph, Minnesota, as follows: 1. The City Council hereby approves the Agreement in substantially the form submitted, and the City is hereby authorized to execute the Agreement. 2. The approval hereby given to the Agreement includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the City officials authorized by a resolution of the City to execute the Agreement. The execution of the Agreement shall be conclusive evidence of the approval of the Agreement in accordance with the terms hereof. The motion for adoption of the foregoing resolution was duly seconded by member and, after full discussion thereof, and upon a vote being taken thereof, the following voted in favor thereof: 7754688v1 and the following voted against same: Adopted this day of June, 2016. Mayor Attest: City Administrator 2 7754688vl STATE OF MINNESOTA COUNTY OF STEARNS CITY OF ST. JOSEPH I, the undersigned, being the duly qualified and acting Administrator of the City of St. Joseph, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the City Council of the City held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to a Resolution Approving a Development Agreement. WITNESS my hand as such Administrator of the City Council of the City of St. Joseph, Minnesota this day of June, 2016. City Administrator 3 7754688v1 Term Sheet This Term Sheet is executed as of this 3� day of M�'`{ • 2016 by and between Developer and the City of St. loseph (the "City") and is intended ta set forth the terms upon which the parties hereto may be willing to enter into a Development Agreement. Except for Section 9 below (which shall be binding upon the Developer�, This Term Sheet shall not be deemed conclusive or legally binding upon either party and neither party shall have any obligations regarding the property defined below unless and until a definitive Development Agreement is approved by the City and executed by both parties. 1. Developer:Fortitude Senior Living of St.Joseph LLC 2. Prouerty: Graceview Estates Outlot A,St.Joseph, Minnesota (PID 84.53533.0106) 3. Kev Business Terms—Owner: a. Execution of Development Agreement b. Preparation and Submittal of Construction Plans c. Payment of C'ity Assessment($115,000) 4. Citv Conditions: a. Establishment of new Housing TIF District b. City approval of Construction Plans c. Execution of Development Agreement d. City determination that Developer has sufficient financial means to construct Minimum Improvements 5. Minimum Improvements: Improvements to the property will include the construction of a 47 unit senior housing facility with available services. At least 10 units will be reserved for those with incomes betow 50%of the area median income. 6. Construction Schedule: Commence construction by September 1, 2016, and complete by September 1, 2017. For the purpose hereof, "Commence" shall mean beginning of physical improvement to the Property, including grading, excavation, or other physical site preparation work; and "Completed" shall mean that the Minimum Improvements are sufficiently complete for the issuance of a Certi�cate of Occupancy. 7. Public Assistance: Subject to all terms and conditions of the Development Agreement, the City will reimburse Developer for up to $526,824 (present value) of Qualified Costs related to the Minimum Improvements (out of an estimated total of $5,700,000). "Qualified Costs"shall mean all costs incurred in connection with the construction of the Minimum Improvements. Payments will be issued on a pay-as-you-go basis over the term of the district with interest at a rate of 4.4996 per annum. Repayment of the note is anticipated by 2031(14 years of increment). 8. Buildina Value:The building to be constructed upon the Property is anticipated to have an assessed value of approximately$86,000 per unit,or a tota)of$3,870,000. 9. Fees:The City acknowledges that the Developer submitted a $15,000 deposit to pay for the reasonable out-of-pocket legal, financial consultant, TIF District estabiishment, and administrative fees associated with this transaction. The developer will be required to deposit additional funds if the initial deposit is fully drawn. Upon execution of this proposed Term Sheet, the developer will make this deposit to the City. Any funds deposited by developer and not expended by the City for its legal,financial advisor, or other consultant fees on or before the date of execution of the development contract will be returned to the developer without interest. The developer shall pay all other normal and customary City fees and expenses for the approval and construction of the Minimum Improvements. 10. Miscellaneous: a. No transfer of Property or Development Agreement without City consent. b. Developer covenants to pay property taxes and maintain customary insurance. IN WITNESS WHEREOF,the parties have executed this Agreement as of the date first set forth above. FORTITUDE SENIOR LIVING OF ST.IOSEPH By: � /� Its: C�o CITY OF ST.JOSfPH Its: ty dmi strator ���.� ;r�..�•I .. Gl7Y OF ST. (OSEPH PLANIVING COMMISSION CITY OF ST.JOSEPH,MINNESOTA RESOLUTION NO. 2016-001 RESOLUTION OF THE CITY OF ST. JOSEPH PLANNING COMMIS5ION FINDING THAT A DEVELOPMENT PRUGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 4-1 (FORTITUDE 5ErTIOR H4USING) CONFORM TO THE GENERAL PLANS FOR THE DEVELOPNiENT AND REDEVELOPMENT OF TI�E CTTY. WHEREAS, the City of St. Joseph (the "City") has proposed to adopt a Development Pmgram for Devclopment District No. 4 (the "Development Program") and a Tax Increment Financing Plan for Tax Increment Financing District No. 4-1 (Fortitude Senior Housing) (a housing district) and has submitted the Development Program and TTF Plan to the City Planning Commission (the "Commission")pursuant to Minnesota,Statutes, Section 469.175,Subd. 3,and WHEREAS, the Commission has reviewed the Development Program and TIF Plan to determine their conformity with the general plans for the development and redevelopment ofthe City as described in the comprehensive plan for the City. NOW, THEREFORE, BE IT RESOLVED by the Commission that the Development Program and TIF Plan conform to the general plans for the development and redevelopment of the City as a whole. Adopted this 13'�day of June,2016. Chair ATTEST: Secretary City of St. Joseph IN RE: FINDINGS OF FACT Fortitude Housing—TIF District Compliance with St. Joseph Comprehensive Plan FINDINGS OF FACT The St. Joseph Economic Development Authority and St.Joseph City Council have been requested to authorize the utilization of TIF for the development entitled Fortitude Senior Housing. Both the EDA and City Council have approved the preliminary application of Fortitude Housing and the matter has been referred to the Planning Commission to determine if the proposed development is consistent with the St.Joseph Comprehensive Plan and St. Joseph Code of Ordinances. In reviewing the matter before them, the Planning Commission hereby finds: 1. The City of St.Joseph encourages diversity in residential development. It is the intent to provide housing for all ages and incomes. 2. Residents of St.Joseph have previously identified the lack of senior housing options in St. Joseph and residents find themselves moving out of St.Joseph if they need assistance or wish to be part of a senior complex. 3. The City has been approached by Tom Opatz,requesting to provide Senior Housing with services brought to the residents as they need. 4. Additionally, the housing proposed by Opatz will allow residents to age in place and in the event their assets are consumed with rent expenses, the facility proposed(Fortitude Senior Housing)will have the ability to utilize senior waivers allowing them to stay in St.Joseph and age in place. 5. Opatz has agreed to keep at least 20%of the facility for low to moderate income residents and due to the cost of building and providing services, financial assistance is being requested by the use of Tax Increment Financing. 6. One of the requirements in the TIF process is to identify a District Plan that encompasses the property to be developed and the District Plan must be approved by the Planning Commission and meet the St. Joseph Land Use Plan and St. Joseph Comprehensive Plan. 7. Tom Opatz has purchased Outlot A, Graceview Estates for the purpose of developing a senior facility with approximately 47 units. 8. Graceview Estates a development that received PUD approval in 2002. The PUD is a mixed residential development consisting of single family homes, townhomes,patio homes, apartment facilities, duplexes, and quadplexes. 9. Outlot A, Gracview Estates was originally master planned with a density of 46 housing units on approximately 8 acres. In 2007 the PUD was amended,increasing the density from 46 units to 54 units. 10. The proposed District Plan is consistent with the following goals outlined in the St. Joseph Comprehensive Plan a. Chapter 4,Land Use—Goal: Favorable Choice of Housing Options and Employment Opportunities. Objective: Provide for a diverse array of housing types and housing locations so as to prevent the polarization of the community into one age or income group. b. Chapter 5,Housing—Goal: Sustainable, Well-Balanced Supply of Life Cycle Housing. Objective: Promote a balance of housing types, sizes and values. NOW THEREFORE,BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF ST,JOSEPH,STEARNS COUNTI',STATE OF MINNESOTA,hereby adopts the foregoing Findings of Fact. Passed by Resolution of the St. Joseph Planning Commission on June 13, 2016. CITY OF ST. JOSEPH B l/'-� <����� Y Ri k Schultz, Chair J y eyre , A ire r/Administrator � � � � � �� �. .