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Turin & Moody <br /> • <br /> To test feasibility, Juran & Moody researched the local market and <br /> interviewed all the major landowners and developers in the area. Their <br /> message was quite clear: "Find a solution to the drainage and access <br /> problems, and the property will quickly and intensively develop." Our <br /> projections of the tax increment revenues from the resulting development <br /> showed sufficient funds to cover nearly the full costs of the $7,000,000 <br /> improvements. The City authorized us be begin work at once. <br /> If tax increment financing were to fully cover the $7,000,000, the <br /> primarily vacant property needed to qualify as a 25 -year "redevelopment" <br /> district. By taking a broader view and incorporating older, nearby <br /> commercial property into the financing district we constructed a 58 -parcel <br /> financing district, which fully met the statutory tests of a "redevelopment <br /> district." The complete tax increment district proceedings were fully <br /> completed within 60 days of initial authorization. <br /> Case Study: City of Cannon Falls <br /> Tax- Frempr General Obligation. Bonding for a City-Owned <br /> Manufacturing Facility <br /> In the recent past, Cannon Falls was about to lose its major employer. <br /> Midwest Importers, Inc., an importer and manufacturer of novelty <br /> products had outgrown its existing space. With over 300 jobs to be <br /> added in the next three years, warehousing and production space was <br /> needed, and fast. <br /> Because of the inventory- intensive nature of their business and loan <br /> agreements, Midwest did not wish to own its facilities. They wanted to <br /> lease them. While suitable facilities were not available in Cannon Falls, a <br /> nearby City's Port Authority stood ready to build and lease to them. <br /> Midwest was seriously considering the move. <br /> Cannon Falls contacted Juran & Moody seeking a solution. Working in <br /> concert with the attorneys at Briggs and Morgan, we responded with a <br /> bold, precedent - setting proposal. By coupling the newly- created powers <br /> of an Economic Development Authority with tax increment financing, <br /> Cannon Falls could legally issue its tax - exempt general obligation tax <br /> increment bonds and purchase a City-owned manufacturing facility. In <br /> effect, the City could match the powers of the nearby Port Authority. <br /> After evaluating the risks, the City decided to proceed with the <br /> transaction. <br /> Payments on the $3,200,000 tax increment bond are funded by lease <br /> payments and one -half of the project's $120,000 annual tax increment. <br /> Remaining tax increments were used to construct additional improvements <br /> to the City's industrial park. <br /> City of Centerville, Minnesota - 14 - <br />