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HomeMy Public PortalAbout2012 AMENDED Southside (Dunklin Street Properties, LLC) TIF PlanSUBSTITUTE BILL NO: _..::2_,_01....,2"""'-2=8"--------- SPONSORED BY COUNCILMAN: ------"'S-"'ch""'u""'lte"--- ORDINANCE NO:. __ _____;/_J+-'---'-q-=,f~'g ___ _ AN ORDINANCE OF THE CITY OF JEFFERSON CITY, MISSOURI AUTHORIZING THE CITY TO ENTER INTO A CONTRACT WITH DUNKLIN STREET PROPERTIES, LLC FOR THE REIMBURSEMENT OF APPROVED AND ELIGIBLE COST INCURRED AS DEVELOPER OF THE SOUTHSIDE TAX INCREMENT FINANCE AREA. WHEREAS, the City adopted Ordinance #14607 on November 16, 2009 whereby the City approved a Redevelopment Area, known as the Dunklin Street Redevelopment Area; approved the Southside Tax Increment Finance Plan; approved the Dunklin Street Redevelopment Project; and designated Dunklin Street Properties, LLC as the Developer for said project; and WHEREAS, the Developer did complete all requirements and improvements in accordance with the Redevelopment Plan; and WHEREAS, the City has certified all eligible cost incurred by the Developer in the implementation of the Redevelopment Plan; and WHEREAS, the City has agreed to reimburse the Developer for eligible cost incurred by the Developer on a pay as you go basis; and WHEREAS, the City has designated the establishment of segregated funds within the City budget for the receipt of revenues generated by the Southside Tax Increment Finance Area, and requires the appropriation of such funds by the City Council. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Jefferson City, Missouri as follows: Section 1: The Mayor and City Clerk is hereby authorized to enter into the herein attached Contract with Dunklin Street Properties, LLC for the reimbursement of the eligible cost incurred by Dunklin Street Properties, LLC in the implementation of the Redevelopment Plan, and are hereby authorized to execute such documents and instruments on behalf of the City. Section 2: The City Council hereby appropriates the amount of twelve thousand nine hundred twenty five dollars and twenty cents ($12,925.20) from the Special Allocation Fund; EAT's Account for the payment to Dunklin Street Properties, LLC, in accordance with the herein attached Contract. Said amount represents the total amount due of thirteen thousand one hundred fifty five dollars and twenty cents ($13, 155.20) for sales tax less SUBSTITUTE administrative costs of two hundred thirty dollars ($230.00) Section 3: The Ordinance shall be in full force and affect from and after its passage Mayor ATTESTED: APPROVED AS TO F DEVELOPMENT AGREEMENT AND TAX INCREMENT FINANCING CONTRACT BETWEEN THE THE CITY Of JEFFERSON CITY, MISSOURI and DUNKliN STREET PROPERTIES, llC A MISSOURI liMITED LIABILITY COMPANY Pagelof19 INDEX PAGE 1 _ D efi n iti on s--------------------------------------------------------------------------------------------4 2. Items Incorporated in This Contract------------------------------------------------------------7 3. Legal Description-----------------------------------------------------------------------------------7 4. Redevelopment Project Area -------------------------------------------------------------------7 5. Redevelopment Projects -------------------------------------------------------------------------7 6. Completion of Construction and Redevelopment----------------------------------------------7 7. Control of Project------------------------------------------------------------------------------------7 8. Certificate of Completion, Compliance, and Cost----------------------------------------------8 9. Payments in Lieu of Taxes--------------------------------------------------------------------------8 10. Economic Activity Taxes-----------------------------------------------------------------------------8 11. Documentation of Economic Activity Taxes-----------------------------------------------------8 (a) Documentation of Economic Activity Taxes-----------------------------------------------8 (b) Certification by City-------------------------------------------------------------------------------8 (c) Presentation to Taxing Districts---------------------------------------------------------------8 (d) Deposit of Funds---------------------------------------------------------------------------------8 12. Special Allocation Fund------------------------------------------------------------------------------8 13. Disbursements From Special Allocation Fund--------------------------------------------------9 14. Payment of Project Costs-"As Collected" Basis----------------------------------------------9 15. Interest on Unpaid Project Cost--------------------------------------------------------------------9 16. Other Approved Cost of Developer----------------------------------------------------------------1 0 17. Approval of Prior Payments of PILOT's to Developer, Accrued Interest, and Other Cost.----------------------------------------------------------------10 18. Approval of Prior Years Economic Activity Taxes---------------------------------------------10 19. Payment to Developer upon Execution of this Agreement----------------------------------10 20. Sale or Disposition of Project Property-----------------------------------------------------------10 (a) Continuation of Payments in Lieu of Taxes------------------------------------------------10 Page 2 of19 21 . F u II Assessment----------------------------------------------------------------------------------------11 (a) Individual Redevelopment Project Areas---------------------------------------------------11 (b) Completion of Redevelopment Plan---------------------------------------------------------11 22. Assignment of Developer's Obligations----------------------------------------------------------11 23. Breach-Com pI ia nee-----------------------------------------------------------------------------------11 24. Excusable Delays--------------------------------------------------------------------------------------11 2 5. Notice----------------------------------------------------------------------------------------------------11 26. Modification-Interpretation----------------------------------------------------------------------12 27. Effective Date---------------------------------------------------------------------------------------------12 28. Applicability-------------------------------------------------------------------------------------------12 29. Recording-----------------------------------------------------------------------------------------12 30. Headings-----------------------------------------------------------------------------------------------12 31 . Applicable Law---------------------------------------------------------------------------------12 S ig nature Page------------------------------------------------------------------------------------------13 Exhibits A. Copy of Ordinance 14607 and Redevelopment Plan. B. Certification of Reimbursable Project Cost. C. Certification of Baseline Economic Activity Taxes and Baseline Assessed Value. D. Evidence of Prior Payments of PILOT's, Accrued Interest Expense, and Other Cost. E. Certification of Economic Activity Taxes for calendar years 2010 and 2011. Page 3 of19 CONTRACT TI-llS CONTRACT, entered into this __ day of , 2012, by and between the City of Jefferson City, Missouri, a municipal corporation (the City), and Dunklin Street Properties, LLC, a Missouri limited liability company, the developer selected by the City (the "Developer") to implement its Plan of redevelopment more fully described herein; WITNESSETH: WHEREAS, the Tax Increment Financing Commission of Jefferson City, Missouri (the "Commission") on October 1 15, 2009, held a public hearing to consider a Redevelopment Plan and subsequently approved recommended to the · City Council for approval a Redevelopment Plan (the "Redevelopment Plan") providing for the construction of a • redevelopment project in Jefferson City, Missouri (the "Redevelopment Project") in an area described in the Redevelopment Plan and set forth in Exhibit "A", attached hereto and incorporated herein by reference (the "Redevelopment Area"); and WHEREAS, the Commission and the City selected Dunklin Street Properties, LLC as the developer to implement the Redevelopment Plan; and WHEREAS, the Redevelopment Plan calls for the development of the Redevelopment Area in what is known as the Dunklin Street Redevelopment Project (the Redevelopment Project Area"); and WHEREAS, the Redevelopment Plan contemplates that the Redevelopment Project Area has been designated by Ordinance# 14607 as a Redevelopment Project Area in conformance with Missouri's Real Property Tax Increment Allocation Redevelopment Act Sections 99.800 to 99.865 R.S.Mo. as amended (the "Act"); and WHEREAS, the City Council of Jefferson City, Missouri (the "City"), did on November 16, 2009 passed Ordinm1ce #14607, which Ordinmce approved the aforesaid Redevelopment Plan, declared the Redevelopment Area md the Proposed Redevelopment Project Area as blighted areas, selected Dunklin Street Properties, LLC as the developer to implement the Redevelopment Plan and develop the Redevelopment Project Area and directed the Developer to implement the Redevelopment Plan; m1d NOW, THEREFORE, for m1d in consideration of the premises, and the mutual covenmts herein contained, the City and Developer agree as follows: l. Definitions. (a) "Blighted area," an area which, by reason of the predominance of defective or inadequate street layout, insanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete plating, or the existence of conditions which endanger life or property by fire and other causes, or my combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, morals, or welfare in its present condition and use; (b) "City," Jefferson City, Missouri; (c) "City Council," the governing body of Jefferson City, Missouri; (d) "City Collector," the collector of Jefferson City, Missouri. (e) "City Treasurer," the treasurer of Jefferson City, Missouri; (f) "Commission," the Tax Increment Finm1cing Conunission of Jefferson City, Missom~; Page 4 ofl9 (g) "County Assessor," the assessor of Cole County, Missouri; (h) "County Collector," the collector of Cole Cotmty, Missouri; (i) "Debt Service," amount required for the payment of interest and principal on Obligations as they come due, for the payment of mandatory or optional redemption payments and for payments to reserve funds required by the terms of the Obligations to retire or secure the Obligations; (j) "Developer," Dunklin Street Properties, LLC (k) "Economic Activity Account," separate segregated account within the Special Allocation Fund into which Economic Activity Taxes are to be deposited; (!)"Economic Activitv Taxes," fifl:y percent (50-) of the total additional revenue from taxes which are imposed by the City or other taxing districts, which are generated by economic activities within the Redevelopment Project Area, while tax increment financing remains in effect, excluding licenses, fees or specie assessments, other than payments in lieu of taxes, until the designation is tetminated pursuant to subsection 2 of Section 99.850 of the Act; (m) "Obligations," bonds, loans, debentures, notes, special certificates, or other evidences of indebtedness issued by the City to carry out a redevelopment project or to fund outstanding obligations; (n) "Ordinance," an ordinm1ce enacted by the City of Jefferson City, Missouri ( o) "Payment in Lieu of Taxes," those estimated revenues Jiom real property in the area selected for a Redevelopment Project, which revenues are to be used to retire Obligations and pay other Reimbursable Project Costs, which Taxing Districts would have received had the City not adopted Tax Increment Allocation Financing, and which would result from levies made after the time of the adoption of Tax Increment Allocation Financing during the time the Current Equalized Value of real property in the Redevelopment Project Area exceeds the Total Initial Equalized Value of real property in such area until the designation is terminated pursuant to subsection 2 of Section 99.850 of the Act, which shall not be later thm1 23 years after the Redevelopment Project is approved by an ordinance of the City of Jefferson City, Missouri. Payments in lieu of taxes which are due and owing shall constitute a lien against the real estate of the Redevelopment Project fi·om which they are derived, the lien of which may be foreclosed in the smne manner as a special assessment lien as provided in Section 88.861 R.S.Mo.; (p) "Paymentin Lieu of Taxes Account," separate segregated account within the Special Allocation Fund into which payments in lieu of taxes are to be deposited. (g) "Redevelopment Plan," the comprehensive progrmn of the City for redevelopment intended by the payment of redevelopment costs to reduce or eliminate those conditions, the existence of which qualified the Redevelopment Project Area as an Economic Development Area, Conservation Area or Blighted Area, or combination thereof, and to thereby enhance the tax bases of the taxing districts which extend into the Redevelopment Area; (r) "Redevelopment Area," m1 area designated by the City, in respect to which the City has made a finding that tl1ere exist conditions which cause the area to be classified as a Blighted Area, an Economic Development Area, a Conservation Area or a combination thereof; Page 5 ofl9 (s) "Redevelopment Project, "any development project in furtherance of the objectives of the Redevelopment Plan; (t) "Redevelopment Project Area," the area selected for a specific redevelopment project; (u) "Redevelopment Project Costs" include the sum total of all reasonable or necessary costs incmTed or estimated to be incurred, any such costs incidental to a Redevelopment Plan and a Redevelopment Project. Such costs include, but are not limited to the following: (1) Costs of studies, surveys, plans and specifications; (2) Professional service costs, including, but not limited to, architectural, engineering, legal, marketing, financial planning or special services; (3) Property assembly costs, including but not limited to, acquisition ofland and other property, real or personal, or rights or interests therein, demolition of buildings, and the clearing and grading ofland; (4) Costs of rehabilitation reconstruction, or repair or remodeling of existing buildings and fixtures; (5) Cost of constmction of public works or improvements; ( 6) Financing costs, including, but not limited to all necessary and incidental expenses related to the issuance of Obligations, and which may include payment of interest on any Obligations issued heretmder accruing during the estimated period of construction of any Redevelopment Project for which such Obligations are issued and for not more than eighteen months thereafter, and including reasonable reserves related thereto; (7) All or a portion of a taxing district's capital cost resulting from the Redevelopment Project necessarily incurred or to be incurred in furtherance ofthe objectives of the Redevelopment Plan and Project, to the extent the City, by written agreement, accepts and approves such costs; (8) Relocation costs to the extent that a city determines that relocation costs shall be paid or are required to be paid by federal or state law; (9) Payments in lieu of taxes; (v) "Reimbursable Project Costs," tl1e portion of the Redevelopment Project Costs which are to be funded with PILOTS, Economic Activity Taxes or the proceeds of Obligations, m1d which are incurred by tl1e City, the TIF Commission or the Developer as a result of preparing, reviewing and adopting the Redevelopment Plan and the Redevelopment Projects, designation of the Redevelopment Area and the Redevelopment Project Areas; planning, financing, acquiring m1d constructing the Redevelopment Projects and any other work authorized by the Redevelopment Plan, the oversight of the construction of the Redevelopment Projects, the implementation of the Redevelopment Plan, m1d the management of the Special Allocation Fund; (w) "Special Allocation Fund," the fund into which, as required by the Act, all Payments in Lieu of Taxes and Economic Activity Taxes are deposited; - (x) "Taxing Districts," m1y political subdivision of this state having tl1e power to levy taxes; (y) "Taxing Districts' Capital Costs," those costs of Taxing Districts for capital improvements that are found by Page 6 of19 the City to be necessary and to directly result from the Redevelopment Project(s); and (z) "Total Initial Equalized Assessed Value," that amount ce1iified by tlle County Assessor which equals the most recently ascertained equalized land assessed value of each taxable lot, block, tract or parcel or real property within a Redevelopment Project Area immediately after tax increment financing for such areas has been approved by the City by an Ordinance; (a a) "Vacant Land," any parcel or combination of parcels of real property not used for industrial, commercial, or residential buildings. 2. Items Incorporated in This Contract. The provisions of Ordinance #14607 ("the Ordinance"), the provisions ofthe Redevelopment Plan, a copy of which together with any amendments is on file at the office of the City, such ordinances adopted by the City which designate Redevelopment Project Areas, and the provisions of the Act as amended as of and including the date of this Contract, are hereby incorporated herein by reference and made a part of this Contract and attached with Exhibit A. 3. Legal Description. The Redevelopment Area which is being developed by the Developer is legally described in Exhibit "A", the Redevelopment Plan, attached hereto and incorporated herein by reference. 4. Redevelopment Project Area. The Redevelopment Area known as the Dnnklin Street Redevelopment Area as defined in the Redevelopment Plan, attached as Exhibit A. 5. Redevelopment Projects. In accordance with the terms and conditions of the Redevelopment Plan and this Contract, Developer shall construct or cause to be constructed in the Redevelopment Project Areas the Redevelopment Projects set forth in Exhibit "A". 6. Completion of Construction and Redevelopment. The Developer has completed the Redevelopment Project in accordance with the Redevelopment Plan and has adhered to all development requirements under the Redevelopment Plan. 7. Control of Project. Developer shall have complete and exclusive control over the construction of the Redevelopment Projects which it owns or controls insofar as the City is concerned, subject, however, to all applicable laws, rules and regulations, including, but not limited to, all ordinances, rules and regulations of the City, such as zoning ordinances, building codes, and property maintenance codes. Developer shall have complete and exclusive control over the construction, management, and leasing of property which it owns within the Redevelopment Area. Control of Developer over leasing includes, without limitation, the fixing of rentals m1d the selection or rejection of tenants. 8. Certificate of Completion, Compliance, and Cost. The City has certified the completion of the Redevelopment Project in accordance with the Redevelopment Plan and the compliance with all terms of the Redevelopment Plm1. A certificate of Reimbursable Redevelopment Cost is attached as Exhibit B to this Agreement and is the capital amount the Developer is herein entitled to be reimbursed in accordance with this Agreement. 9. Payments in Lieu of Taxes. Pursuant to the provisions of Section 99.845(2) of the Act and the Redevelopment Plan, when designated, the property within the Redevelopment Project Area shall be subject to assessment for mmual payments in lieu of real property taxes to the County Collector in an amount which, . together with the real property taxes to be paid on the Total Initial Equalized Assessed Value of the property m the Redevelopment Project Area, will equal the total real property taxes which would be paid on the land and improvements constructed pursuant to the Redevelopment Plan had Tax Increment Financing not been adopted. Page 7 of19 Provided, that the failure of property in the Redevelopment Project Area to yield anticipated payments in lieu of taxes because the increase in the current equalized assessed value of such property was not as great as expected, shall not by itself be a default by Developer hereunder. 10. Economic Activity Taxes. In addition to the payments in lieu of taxes described above, and pursuant to Section 99.845(3) of the Act, fifty percent of the total additional revenue from taxes which are imposed by the City, the County or other taxing districts, and which are generated by economic activities within the Redevelopment Project Area over the amount of such taxes generated by economic activities within the Redevelopment Project Area in the calendar year prior to the designation of the Redevelopment Project Area by ordinance, while tax increment financing remains in effect, but excluding taxes imposed on sales or charges for sleeping rooms paid by transient guests of hotels and motels, licenses, fees or special assessments and personal property taxes, other than payments in lieu of taxes, shall be allocated to, and paid by the collecting officer to the treasurer or other designated financial officer ofthe City, who shall deposit such funds in a separate segregated account within the special allocation fund for the purpose of paying Redevelopment Project Costs and obligations incurred in the payment thereof. 11. Documentation of Economic Activity Taxes. Following the designation of the Redevelopment Project Area, for as long as the Redevelopment Project Area is subject to tax increment financing, Economic Activity Taxes shall be determined and deposited into the Economic Activity within the Special Allocation Fund in accordance with the following procedures: The City has certified the an1ount of economic activity taxes that have been collected by the City and County for the year prior to the adoption of the Redevelopment Plan, establishing what is commonly known as the "baseline". A copy of the Certification by the City is herein attached as Exhibit C to this Agreement. (a) Documentation of Economic Activitv Taxes. City shall determine the Economic Activity Taxes collected by reviewing the Missouri Department of Revenue armual sales tax reports to the City. The City shall not release any information or report which will reveal the an1mmts of economic activity taxes by any one individual business or any consolidated report ofless than five businesses. (b) Certification by City-. The City, following reasonable research and investigation, using independent consultants, accountants and counsel when appropriate, shall certify the nature and an1ount of Economic Activity Taxes payable by each Taxing District from which Economic Activity Taxes are due. (c) Presentation to Taxing Districts. The City shall deliver by mail or hand delivery its certification of Economic Activity Taxes payable by each Taxing District to the governing body of each such Taxing District. Each Taxing District shall within 30 days of receiving the certification or within 30 days after receiving any such Economic Activity Tax, whichever is later; appropriate the amount of Economic Activity Taxes actually received and pay the approp1iate sum to the City Treasurer. (d) Deposit of Funds. The City Treasurer shall deposit the payments of Economic Activity Taxes received fi·om the respective Taxing Districts in the Economic Activity Account in the Special Allocation Flmd, to be utilized and expended in accordance with the Act and the Redevelopment Plan. 12. Special Allocation Fund. The City Treasurer shall establish and maintain the Special Allocation Fund which shall contain two separate segregated accmmts. Payments in Lieu of Taxes shall be deposited into the PILOT Account within the Special Allocation Fund, and Economic Activity Taxes shall be deposited into the Economic Activity Account within the Special Allocation Fund. Payments in Lieu of Taxes and Ec_onomic Activity Taxes so deposited and any interest earned on such deposits will be used for and pledged for the payment of Reimbursable Project Costs, including the retirement of Obligations, and for the possible Page 8 of19 distribution to the Taxing Districts. 13. Disbursements From Special Allocation Fund. All disbursements from the Special Allocation Fund will be made out ofthe two separate segregated accounts maintained within the Special Allocation Fund for Payments in Lieu of Taxes and Economic Activity Taxes. Such disbursements shall be made in the following manner and order of preference: FIRST, Funds in the Special Allocation Fund shall first be disbursed to pay expenses incurred by the City of Jefferson City for the administration of the Southside TIP, including, but not limited to cost of reports, publication cost, mailing cost, consultants, legal advice, and reimbursement of staff time attributed to the administration and collection duties under the Redevelopment Plan, if any. SECOND, Funds in the Special Allocation Fund shall be disbursed to pay the Developer's Reimbursable Project Costs on an as collected basis, with reimbursement of accrued interest cost first, and then reimbursement of other approved operational cost incurred by Developer, then repayment of the approved capital cost. All remaining funds within the Special Allocation funds shall be disbursed annually to the Developer, less minimal an1ounts, as determined by the City to be retained for ongoing administration cost and bank balances, tmtil all Project Cost are paid. if any. The City shall provide the Developer with a statement of the unpaid portion with each payment. THIRD, After annual Reimbursable Project Costs of the Developer have been paid then on December 31 of each year until the Redevelopment Plan is tenninated. the funds remaining in the PILOT Accmmt and the Economic Activity Account, if any, shall be disbursed to the Taxing Districts in accordance with the Act which payment shall be subject to the City's authority to maintain reasonable reserves and funds for payment of debt service and Reimbursable Project Costs in future years. 14. Payment of Project Costs-" As Collected" Basis. The Reimbursable Project Costs has been established and certitied by the City as tive hundred sixty thousand tive hundred thirty seven dollars and seventeen cents ($560,537 .17) as certitied and attached as Exhibit B attached hereto and incorporated herein by reference are to be reimbursed on an "as collected" basis rather than paid with proceeds from the sale of Obligations secured by Payment in Lieu of Taxes and Economic Activity Taxes, the City shall appropriate disbursements from the Special Allocation Ftmd PILOT Account mmually on or before March l't of each year for all PILOT's collected lor the prior tax year and from the Economic Activity Account ammally on or before March I st of each year for the prior calendar year and make disbursements to the Developer for Reimbursable Project Costs which have been incurred by the Developer. If a portion of the Redevelopment Plan shall have been assigned as per Section 22 hereof, then reimbnrsements shall be made to the assignee. 15. Interest on Unpaid Project Cost: The Developer shall be entitled to be reimbursed the actual cost of interest on any unpaid Project Cost from the date such cost was incurred by the Developer until the full amount is paid. Developer shall provide the City mmually, on or before December 31st of each year a letter or statement il"om the bank which the Developer has secured the funds for the Project Cost certifying the interest rate and tem1s of the rate charged to the Developer plus any other fees or charges associated with the lom1 to the Developer for the Project Cost. Page 9 ofl9 16. Other Approved Cost of Developer: The Developer will be entitled to be reimbursed for o!l1er cost incuned by the Developer during the tenn of this agreement which is a result of administration and reimbursement tmder the terms ofll1is Agreement. Such cost include legal, consulting, reports, and other administmtive cost. Developer must submit such cost to the City for approval, with such approval by the City not tmreasonably withheld. 17. Approval of Prior Payments of PILOT's to Developer, Accrued Interest, and Other Cost;: Upon the approval of the Redevelopment Plan on November 16, 2009 The County Assessor proceeded to establish the TIF area and ll1e equalized assessed value of the Redevelopment Area as required by Law and Ordinance #14607. 1l1e County Collector subsequently segregated the PILOT's collected for tax years 2010 and 2011 and made direct payments to the Developer. While this action is not the proper and correct procedure under the TIF Act and Ordinance #14607, the ftmds were paid to the Developer as intended and dedicated under the tenns of this Agreement and the Redevelopment Plan. The City hereby takes action upon approval of this Agreement, through the Ordinance approving !llis Agreement to acknowledge said funds as payments into ilie Special Allocation Fund; PILOT's Account for years 2010 ad 2011 and further appropriate and approve such amounts as payment to the Developer for Project Cost in accordance with the terms of this Agreement. Evidence of such payments and amounts are herein attached as Exhibit D to this Agreement. The Developer further acknowledges the receipt of said fimds as payment toward Project Cost. The Developer further advises the City of the accrued interest on the outstanding Project Cost in accordance with Section 16 of this Agreement and provides a statement of interest accrued to date, with such statement attached as part of Exhibit D. The Developer further advises City of other cost which the Developer has incurred in accordance with Section 17 of this Agreement which was professional fees incuned in assisting the Developer and City in the preparation of this Agreement and establishing an administrative process for the Agreement and has attached evidence of such cost as part of Exllibit D. All payments received by the Developer under this Section shall be credited as a payment on unpaid Project Cost and all expenses shall be added to the unpaid Project Cost. 18. Approval of Prior years Economic Activity Taxes: The City has calculated the Economic Activity Taxes clue the Economic Activity Taxes Fund in accordance with Section II of the Agreement for calendar year 2010 and 20 II and has attached a statement of certified amount of due the Fund Exhibit E to this Agreement. 19. Pavment to Developer upon Execution of this Agreement: The City will pay to the Developer a payment toward Project Cost in accordance with Section 13 of this Agreement in the amount of$ i 'd, '\ ;;J). <;o from the Economic Activity Taxes Fund upon execution of this A!,'feement. All parties agree that no f1.1rther payments under the terms of this Agreement will be due and payable until March I, 2013 in accordance with Section 15 of this Agreement which will be for Economic Activity Taxes and PILOT's collected for calendar and tax year 2012. 20. Sale or Disposition of Project Property. (a) Continuation ofPavments in Lieu of Taxes and Economic Activitv Taxes. Developer may sell or lease property in the Redevelopment Area. In the event of the sale or other disposition of m1y or all of the real property of Developer in the Redevelopment Area by reason of the foreclosure of any mortgage or other lien, through insolvency or bm1kruptcy proceedings, by order of any court of competent jurisdiction, or by voluntary transfer or otherwise, payments in lieu of taxes and economic activity taxes with respect to the real property so sold or otherwise disposed of, shall continue and shall be a covenant running with the land as if said property had not been sold or otherwise disposed of and any purchaser or other trm1sfer thereof shall be bound by this Contract. 21. Full Assessment. Page 10 of19 (a) Individual Redevelopment Project Areas. After twenty-three (23) years from the adoption of an ordinance approving and designating a Redevelopment Project Area, all property in the Redevelopment Project Area shall be subject to assessments and payment of all ad valorem taxes, including, but not limited to, City, State, and County taxes, based on the full tme value of the real property and the standard assessment ratio then in use for similar property by the County Assessor, and the Redevelopment Project Area shall be owned and operated by Developer free from the conditions, restrictions, and provisions of the Act, of any rules or regulations adopted pursuant thereto, of the Ordinance, of the Redevelopment Plan, and of this Contract. (b) Completion of Redevelopment Plan. Upon the payment of all Redevelopment Project Costs, retirement of Obligations and the distribution of any excess moneys pursuant to Sections 99.845 and 99.850 of the Act, upon request of the Commission the City shall adopt an ordinance dissolving the Special Allocation Fund and tem1inating the designation of Redevelopment Area as a Redevelopment Area. Thereafter the rates of the taxing districts shall be extended and taxes levied, collected, and distributed in the marrner applicable in the absence of the adoption of tax increment financing, and the Redevelopment Area shall be owned and operated by Developer free from the conditions, restrictions, m1d provisions of the Act, of any mles or regulations adopted pursum1t thereto, of the Ordinm1ce, of the Redevelopment Plan, and ofthis Contract 22. Assignment of Developer's Obligations. This Contract shall be binding upon and shall inure to the benefit of Developer and its successors and assigns. The term "Developer" as used herein shall be deemed to include any such successors and assigns upon the delivery to the City of any assignment agreement, and provided the assignee assumes in writing the obligations of Developer under this Contract. Then upon such delivery, Developer shall be discharged of all further liability under this Contract tmd the Redevelopment Plan with respect to that portion of the Redevelopment Plan so assigned. 23. Breach-Compliance. If the City defaults hereunder, m1d if within 60 days atler notice of such default by the Developer to the City, the City shall not have cured such default or commenced such cure and be diligently pursuing the smne if such cure would reasonably take longer than said 60-day period, then the Developer may pursue all legal and equitable remedies available to it as a result of the City's default. 24. Excusable Delays. Notwithstanding any provisions of this Contmct or the Redevelopment Plan to the contrary, performance by the City or Developer shall not be deemed to be in default where delays or defaults are due to war, insurrection, strikes, lock-outs, riots, floods, earthquakes, fires, casualties, acts of God, labor disputes, governmental restrictions or priorities, embargoes, litigation, t unusually severe weather, inability to obtain or secure necessary information needed to perform under the terms of the Agreement, or m1y other causes beyond the reasonable control or without the material fault of City or Developer. With the approval of the Developer m1d City, the time of performance hereunder shall be extended for the period of m1y delay or delays caused or resulting from any of the foregoing causes, which approval shall not be arbitrarily or unreasonably withheld, but Developer or City shall not be prejudiced by failing inadvetiently to malce timely application therefore. 25. Notice. Any notice required by this Contract shall be deemed to be given if it is mailed by United States registered mail, postage prepaid, and addressed as hereinafter specified. Any notice to the City shall be addressed to: Notices to Developer shall be addressed to: Page II of19 With a copy to: Dunklin Street Properties, LLC 214 Prado Drive, Suit 101 Jefferson City, Missouri 65101 Notices to City to: City of Jefferson City 320 East McCarty Jefferson City, Missouri 65101 Each party shall have the right to specify that notice be addressed to any other address by giving to the other party ten (I 0) days' written notice thereof. 26. Modification-lntcrm·etation. The tem1s, conditions, and provisions of this Contract and of the Redevelopment Plan can be neither modified nor eliminated except in writing and by mutual agreement between the City and Developer. 27. Effective Date. This Contract shall become effective on the date of the actual execution hereof by the City and Developer, and shall remain in full force and effect until the completion of the buildings and improvements included in the Redevelopment Area as described herein and so long thereafter as any Bonds or project costs remain outstanding. 28. Applicability. This Contract shall apply only to the Redevelopment Projects referred to herein. 29. Recording. This Contract shall be recorded by the City in the office of the Department of Records of the City of Jefferson City, Missouri. 30. Headings. The headings or captions of this Contract are for convenience and reference only, and in no way define, limit, or describe the scope or intent ofthe contract or any provision berea[ 31. Applicable Law. This Contract shall be governed by and construed in accordance with the Jaws of the State of Missouri. THE BALANCE OF TI-llS PAGE IS LEFT BLANK INTENTIONALLY SIGNATURE PAGE Page 12 ofl9 IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. City of Jefferson City, Missouri BY~~--~~---------­ Eric .J. Struemph, Mayor ATTESTED BY~~~~~~~------­ Phyllis Powell, City Clerk STATE OF MISSOURI COUNTY OF COLE BE IT REMEMBERED, that on this day of, ,20 12, before me, the undersigned, a Notary Public in and for the County and State aforesaid, came the Eric .J. Struemph, Mayor of Jefferson City, Missouri and Phyllis Powell, the City Clerk of Jefferson City, Missouri, who is personally known to me to be the same person who executed the within instrument on behalf of Jefferson City, Missouri and such person duly acknowledged the execution ofthe same to be the act and deed of the City. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal; the day and year last above written. NOTARY PUBLIC My Commission Expires: [SEAL] Developer Dunldin Street Properties, LLC BY __ ~~~--~~~---­ Larry Kolb, Managing Member BE IT REMEMBERED, that on this day of , 2012, before me, the undersigned, a Notary Public in and for the County and State aforesaid, came Larry Kolb, who is personally known to me to be the same person who executed the within instrument on behalf of Dunklin Street Properties, LLC and such person duly acknowledged the execution of the same to be the act and deed of the LLC. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal; the day and year last Page 13 of19 above written. NOTARY PUBLIC My Commission Expires: [SEAL] Page 14ofl9 Exhibit A Copy of Ordinance# 14607 and Redevelopment Plan Page 15 of19 Exhibit {\ ·. . BILL NO. 2009-94 COSPONSORS: Councilmen Rich Koon & Jim Penfold ORDINANCE NO. _ ____:_/_Lf-:....:t::.le...:::.f}_'L1 ____ _ AN ORDiNANCE OF THE CITY OF JEFFERSON CiTY, MiSSOURi TO ESTABLISH A REDEVELOPMENT AREA, APPROVE THE SOUTHSiDE TAX INCREMENT FINANCING PLAN, APPROVE THE E. DUNKLIN STREET REDEVELOPMENT PROJECT AND ADOPT TAX INCREMENT FINANCING, AND DESIGNATE DUNKLIN STREET PROPERTIES, LLC AS THE DEVELOPER. WHEREAS, pursuant to the Real PropertyT;;~x Increment Affocation Redevelopment Act, Sections 99.800, et seq., of the Revised Statutes of Missouri, as amended, the City Council of Jefferson City, Missouri, by Ordinance No. 11701, adopted February 3, 1992, created the Tax Increment Financing Commission of Jefferson City, Missouri; and WHEREAS, on October 15, 2009, the TIF Commission, after providing all notices required by applicable law, held a public hearing to receive comments and to consider the establishment of the redevelopment area as described in tile TIF Plan (defined below) and as legaffy described on the attached Exhibit A the approval of the proposed Southside Tax Increment' Financing Plan submitted to the City of Jefferson City, Missouri on September 17, 2009, and the approval of the redevelopment project as described in the TIF Plan; and WHEREAS, the City has received an application from , Dunklin Street Properties, LLC, the developer, directly or indirectly, cooperating with all of the real property owners within the E. Dunklin Street Redevelopment Area, to implement tile TIF Plan; and WHEREAS, the TIF Commission has reviewed and considered tile Redevelopment Area, the TIF Plan and the Redevelopment Project. NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON CITY, MISSOURI, AS FOLLOWS: Section 1. That the City Council maims the following findings: A. The Redevelopment Area on the whole is a blighted area as defined In the Tl FAct based on: Bill2009·94 Page 1 (1) the map and description of tile Redevelopment Area set forth in the Introduction section of the TIF Plan; and (2) the Soutllside Plan completed by Arcturis In July 2009 B. Tl1e Redevelopment Area on the wllole has not been subject to growth and development t11rough investment by private enterprise and would not reasonably be anticipated to be developed without the adoption of tax increment financing due to the costs of constructing adequate public facilities and infrastructure In the Redevelopment Area. C. The City's comprehensive plan indicates that the Redevelopment Area should be developed for mixed-use, commercial and residential, as described in the TIF Plan, and therefore, tile TIF Plan conforms to the City's comprehensive plan. D. The estimated date to complete tile Redevelopment Project has been stated in the TIF Plan and sucll date is not more than 23 years from the adoption of the ordinance to approve tile Redevelopment Project. E. In the event obligations are issued to finance Redevelopment Project Costs, it is anticipated that such Obligations will be retired in 2033 as stated in the TIF Plan, which is not more than 23 years from tile adoption of the ordinance approving tile Redevelopment Project. F. No properly for any one Redevelopment Project will be acquired by eminent domain later than five years from the adoption of the ordinance approving the Redevelopment Project. G. No businesses or residences that will be required to relocate in order to implement t11e TIF Plan currenlly exist in tile Redevelopment Area. Consequently, a relocation plan meeting the requirements of Sectioh 523.205, RSMo, bas not been developed and is not required. H. The Cost-Benefit Analysis section of tile TIF Plan as required by the TIF Act: ( 1) (2) shows the fiscal impact of tl1e TIF Plan on each Taxing District (as defined in the TIF Plan); shows tile impact on the economy if the Redevelopment Project is built and if tile Redevelopment Project is not built pursuant to the TIF Plan; and Bill2009·94 Page 2 (3) includes sufficient information from the developer to evaluate wl1ether the Redevelopment Project as proposed is financially feasible. J. The TIF Plan does not include the initial development or redevelopment of any gambling establishment (as ctcifined in 111e TIF Act). 1<. The Redevelopment Project Area (as defined in the TIF Plan) selected for the Redevelopment Project Includes only those parcels of real property and Improvements directly and substantiallybenefitted by the proposed Redevelopment Project. Section 2. That the Redevelopment Area is established, as legally described in the TIF Plan. Section 3. That the TIF Plan is approved and tax increment financing is adopted for the Redevelopment Area. Section 4. That the Redevelopment Project is approved, the Redevelopment Project Area as defined in the TIF Plan is selected and adopted for the Redevelopment Project, and that after the total equalized assessed valuation of the taxable real property in the Redevelopment Project Area exceeds the certified total initial equ'a!ized assessed valuation of the taxable real property in the Redevelopment Project Area, the ad valorem taxes, and payments in lieu of taxes, if any, arising from the levies upon taxable real property in such Redevelopment Project Area by taxing districts and tax rates determined in the manner provided in subsection 2 of Section 99.855 of the TtF Act each year after the effective date of the ordinance until redevelopment costs have been paid shall be divided in accordance with Section 99.845 of the TIF Act; in addition to tile payments in lieu of taxes aforementioned, fifty percent of the total additional revenue from taxes, penalties and interest which are imposed by the City or ot11er taxing districts, and which are generated by economic activities within the Redevelopment Project Area over the amount of sucl1 taxes generated by economic activities withiri the Redevelopment Project Area in t11e calendar year prior to the approval of the Redevelopment Project by ordinance, while tax increment financing remains in effect, but excluding personal property taxes, taxes imposed on sales or charges for sleeping rooms paid by transient gue<jts of hotels and motels, taxes levied pursuant to section 70.500, RSMo, or taxes levied fdr tile purpose of public transportation pursuant to section 94.660, RSMo, licenses, fees or special assessments other til an payments in lieu of taxes and penalties and interest thereon, shall be allocated to, and paid by the local political subdivision collecting oftlcel to the treasurer or other designated financial officer of the City, who shall deposit such funds In a separate segregated account within t11e special allocation fund. Such payments in lieu of taxes and, subject to annual appropriation, economic activity taxes related to the Redevelopment Project shall be pledged to tile repayment of any obligations issued by the Tl F Commission or the City for the purpose of financing a portion of the Redevelopment Project Costs. Bill2009·94 Page 3 Section 5. That Dunklin Street Properties is selected as the developer to implement t11e E. Dunklin Street Redevelopment Project. Section 6. This Ordinance shall be in full force and effect from and after tile date of its passage and approval. City Clerk Approved: I I/ 7 jo rf Q v-/:' I ~ ~C-G?c--c>t..~ ;:/ Mayor APPROVED AS TO FORM: City Counselor 1 Bill2009·94 Page 4 PROPOSAL FOR SOUTHSIDE TAX INCREMENT FINANCING DISTRICT AND E. DUNKLIN STREET REDEVELOPMENT PROJECT BY OLD TOWN REVITALIZATION COMPANY 320 E McCarty Street Jefferson City, MO 65101 & DUNKLIN STREET PROPERTIES, LLC 214 Prodo Drive, Suite 101 Jefferson City, MO 65109 September 2009 TABLE OF CONTENTS ~UJV[JVIJ\Ft1r ............................................................... :l I PAFtT IA: ~OUTH~IDE TIF DI~TIDCT-BACKGFtOUND Analysis of Conditions Report .........•.•............•.... 5 Blighted Area Definition •....•...... S-2 Blight Recommendation Letter .. 5-3 Study Area I Map ...................... 5-4 Socio-EconjZoningjLand. Use .....• S-6 Historic Prop/Infrastructure .... 5-10 Neighborhood/SWOT Overview. 5-12 Blight Analysis Summary ........ 5-15 Specific Blighting Factor........ 5-16 Conclusion ................................ 5-25 I PAFtT IB: ~OUTH~IDE TIF DI~TIDCT-DE~IGNATION TIF DI~TIDCT ANALY~I~ ........................................ 7 TIF DI~TIDCT IVIAP /LEGAL ..................................... 9 TIF DI~TIDCT ZONING/UN~AFE COND .................. ll TIF DI~TIDCT PAFtCEL ~UlVl!VIAFtY ......................... 13 TIF DI~TIDCT TAX ~UMIVIAFtY ............................... 14 TIF DI~TIDCT CONCLU~ION .................................. 15 I PART II: EA~T DUNKLIN PROJECT-2009 TIF PROPO~AL E. DUNKLIN INTRODUCTION .................................... 17 E. DUNKLIN IVIAP/LEGAL DE~CIDPTION ................... 18 E. DUNKLIN HI~TOIDC Dl~TIDCT ............................. 20 E. DUNLKIN PROJECT DETAIL~ ............................... 21 E. DUNKLIN PROJECT CO~T~ .................................. 2:l E. DUNKLIN TAX INCREIVIENT~ ................................ 25 E. DUNKLIN PROPERTY TAX DETAIL~ ................... 27 E. DUNKLIN CO~T-BENEFIT ANALY~I~ .................... :l1 EXHIBIT 1-Complete listing of individual properties EXHIBIT 2 -Hawthorn Bank letter 2 PROPOSAL SUMMARY This is a two-part proposal: Part 1 describes the Southside and the five block area requested for designation as a Tax Increment Finance District; and Part 2 outlines a specific, one-block redevelopment project within that area for funding approval. (Part I) SOUTHSIDE TIF DISTRICT -presents background information about the Southside and identifies a specific commercial area for designation as a tax increment financing district under Section 99.800 et seq., RSMO, 1997 as a blighted area. To provide the justification for this designation, the "Analysis of Conditions Representing Blight" is included. This report was prepared by a professional, independent planning firm; it thoroughly reviews and documents the conditions on the Southside. The five-block commercial section, as identified in the Analysis Report, is presented as the TIF District to be designated under the TIF Act. On April 2, 2009, the Jefferson City TIF Commission supported the completion of this proposal for a Tax Increment Financing District on the Southside by the Old Town Revitalization Company. It is requested that this TIF District remain in place for 23 years, the maximum time period allowed by law. (Part II) E. DUNKLIN PROJECT-details the specific redevelopment project in the 100 block of E. Dunklin which is within the TIF DISTRICT described in Part I. It will be shown that it is thereby eligible to receive incremental tax revenue for necessary public improvements. Part II presents the Dunklin Historic Commercial Redevelopment Project as proposed by developers, Larry Kolb and Steve Rollins. In addition to private funds, historic tax credits and city fa9ade incentives are being used to renovate several buildings in the 100 block of E. Dunklin. The developers are requesting the use of tax increment financing for public improvements and parking for the redevelopment of the entire block. Without TIF funding, this project cannot go forward. In February 2009, the Jefferson City TIF Commission requested the developers to present a specific redevelopment plan. 3 PART 1-A: SOUTHSIDE TIF DISTRICT -BACKGROUND Analysis of Conditions Representing Blight Report 4 5 PART 1-B SOUTHSIDE TIF DISTRICT -DESIGNATION 6 PART I-B: SOUTHSIDE TIF DISTRICT -DESIGNATION I TIF District Analysis Arcturis evaluated the entire Southside study area to determine a logical "focal point" to begin redevelopment. Keys to the evaluation were street connectivity and major employment generators such as St. Marys Hospital, Capitol Complex, Lincoln University, Capital Regional Hospital. The focal point area includes the commercial area surrounding the intersection of Jefferson and Madison Streets with Dunklin and Ashley Streets. This area denotes the pulse center of the Southside from which all market demand may be served. 7 PART I-B: SOUTHSIDE TIF DISTRICT -DESIGNATION I TIF District Analysis In addition, Arcturis indentified nine important areas for redevelopment within the Study Area. These redevelopment areas (street intersections) were prioritized based on funding opportunities, availability and commercial viability. The highest two priority locations (intersections) were Dunklin & Madison Streets (A-1) and Dunklin & Jefferson Streets (A-2). Redevelopment Area A-1 is the existing commercial development located at Dunklin and Madison Streets. It is characterized by vacant buildings and declining market access. The prevalent existing conditions: • 1960/1970 style retail development • Inefficient building layouts • Design obsolescence • Lack of pedestrian access/parking • Random signage and wayfinding • Dated infrastructure • Inefficient land use • Declining land values Redevelopment Area A-2 is the aging commercial development located at Dunklin and Jefferson Streets is characterized as follows: • Vacancy • Design Obsolescence • Inadequate infrastructure • Inefficient land use • Limited access and visibility The properties close to the intersections of Dunklin/Jefferson and Dunklin/Madison have been identified as an important redevelopment area. Existing businesses establish important commercial identity and provide market upon which to build. Constraints in the area are related to the street configurations including the width, parking, vehicular speed and lack of convenient pedestrian traffic at the intersections. 8 PART I-B: SOUTHSIDE TIF DISTRICT DESIGNATION I TIF District Map '"0"'"' ... ~ ..................... ~-.-... .....,lAI!U'." ••"""'"''"'""-'~'....., ~..., ... ,.onctJHr•n•rw. ,~_,, .. .,-.. ,. ....... ,_.,...,.,,w_fl"d"''"''"' ''"~"''"''"~"'~ .. ~·· ... -. -........................ . w"''"fnol~""'" ......... '""''"''"""""'""'"'" ""'"'" :;::::::::::.::.~""""-... "~""'""""'" ,,~ ......... , n.,.,.,.....,...,,"'""'"'"' .... ·'" .. ''"'" City of :Jefferson South Side TIF Area 9 0 250 500 Fe PART I-B: SOUTHSIDE TIF DISTRICT -DESIGNATION I TIF District Legal Description All of the real property in the City of Jefferson, County of Cole, Missouri described as follows: Inlots 807,808,809,810 and 905,906,907,908 {100 block W Dunklin-both sides) Inlots 815, 816,817,818 and 913,914,915,916(100 block E Dunklin-both sides) Inlots 823,824,825,826 and 921,922,923,924 {200 blockE Dunklin-both sides) Inlots 917, 918, 919, 920,925, 926, 927, 928{100-200 blocks E Ashley-north side) · Inlots 908, 815 (600 blockJeffersonfrom Cedar Way) Inlots 912 & 810, 913, 91 7 {700 block Jefferson-both sides) ......... 10 .. .,. "' 0 "' .9 a::'l r·~~~~· .P~ttl'\ PART 1-B: SOUTHSIDE TIF DISTRICT -DESIGNATION I TIF District Zoning Based on the above analysis of the South Side Area, the Old Town Revitalization Company requests the following five blocks for TIF designation.: 100 Block W. Dunklin Street; 100-200 Blocks E. Dunklin Streets; 100 Block E Ashley; and 600 -700 Jefferson Street (mid-blocks) 600-700 Madison Street (mid-blocks) This area is zoned C-2; the definition of C-2 states "intended to accommodate general trades and commercial services not permitted in central and neighborhood commercial districts including buffering, landscaping and open space areas required to mitigate the impact of denser land uses, traffic activity and to provide adequate access and traffic improvement with minimum one acre parcel sizes and with no maximum parcel size stipulated." The "ripeness of the area" is based on the potential for redevelopment identified by professional analysis. All of the conditions that impact market access and connectivity are present in this proposed Southside TIF District. It is most critical as a "starting point" to designate and promote this district due to its important central location and major highway linkages also described on page 7 as a focal point for redevelopment. 11 PART I-B: SOUTHSIDE TIF DISTRICT-DESIGNATION I TIF District Unsafe Conditions Over the past five years this five block area has experienced further deterioration. This has resulted in increased calls for service in the area by city departments. The Police, Fire and Code Enforcement departments have been called to respond in various situations as follows: Police Department Calls-Frequent calls for service at various retail stores, theft, vandalism and vagrancy. Fire Department Calls-Two significant fires due to vacancy and non- compliance with current codes. Code Enforcement Calls -Thirteen commercial buildings are vacant and 4 are condemned for occupancy due to significant code violations making these structures unsafe and unfit for public/private use. 12 PART I-B: SOUTHSIDE TIF DISTRICT -DESIGNATION J TIF District Parcel Summary There is a total of 7 4 individual parcels; the current breakout according to the County Assessor: 39 Commercial parcels (C) 19 Residential parcels (R) 11 Mixed-use parcels (C/R) 5 Exempt parcels (E) According to a windshield survey and review of current public records, there are thirty-two ( 32) vacant and under-utilized properties in this area. Two of these properties have been cited by the City Code Enforcement as uninhabitable. 13 Vacant properties 19 Underutilized properties A complete listing of the individual properties is attached as Exhibit 1 13 PART I-B: SOUTHSIDE TIF DISTRICT -DESIGNATION I TIF District Tax Summary The current tax levy for each of the political subdivisions based on $100 of assessed valuation is $5.2245 or commercial surcharge (+58) is $5.8045 1) County of Cole General Fund = $0.3347 2) Cole County Road & Bridge = $0.27 3) City of Jefferson General Fund = $0.6353 4) Jefferson City School District = $3.6770 5) Library Fund = $0.1913 6) Handicapped = $0.0862 7) State of Missouri = $0.03 With the increase of property values there will be an increase in property tax to each political subdivision after the TIF has expired. In the intervening years the property tax will hold steady at its existing level and will not decline. Without the TIF, there is no incentive or mechanism for property owners and developers to make the necessary public improvements to ensure a successful redevelopment and the private property will not be revitalized. Total county assessed valuation Commercial valuation: Residential valuation: Total county appraised valuation Commercial valuation: Residential valuation: Total Property Tax -January 2009 Total 2008 City & County Sales Tax = = = = 14 $2,656,920.00 $9,020.700.00 $ 161 ,225.55 $ 112,388.00 PART I-B: SOUTHSIDE TIF DISTRICT-DESIGNATION J TIF District Conclusion This five block area has been identified as the location capable of immediate redevelopment success with the assistance of good planning and financial incentives for redevelopment. Key to redevelopment is tax increment financing as a tool for public improvements-sidewalks, curbs, gutters, lighting and parking. The proposed Southside Tax Increment Financing Area fits the statutory definition of blighted area. It has a predominance of inadequate and unsafe conditions (public improvements), deteriorated site improvements and the existence of conditions which endanger life and property by fire and other causes. These factors retard the provision of desirable housing accommodations and constitute an economic and social liability in its present condition and use. The conditions within this area are not conducive to redevelopment unless public assistance through tax increment financing and other incentives are utilized. Although some businesses in the Southside are thriving, there is a need to serve these businesses with multiple stores. It is necessary to re-establish retail stores and restaurants into the commercial district to compliment the existing business development. Although it is apparent that a larger TIF district could be requested on the Southside, the Old Town Revitalization Company has been mindful of the concerns of the taxing entities when very large areas are requested. This five- block district has been selected as the "pilot" project to demonstrate to the community the wisdom and long term community benefit of using incentives to revitalize Old Town. It is necessary to re-establish retail stores and restaurants into the commercial district to compliment the existing business development. There are core businesses that have long been established on the Southside and need new businesses to keep growing. It is projected that the property values and sales tax revenues will not increase and, in fact, may decrease over the next twenty-three years if a TIF redevelopment is not pursued. Conversely, if redevelopment occurs the area will improve, property value and retail sales tax collections will increase dramatically. 15 PART II DUNKLIN STREET· REDEVELOPMENT PROJECT 2009 TIF PROPOSAL 16. PART II: EAST DUNKLIN PROJECT-2009 TIF PROPOSAL I E. Dunklin Project Introduction Dunklin Street Properties, LLC is requesting approval of a proposal that provides for the comprehensive redevelopment of the properties on the 1 DO Block of East Dunklin Street as part of the South Side TIF Area described in Part I. The developers, Larry Kolb and Steve Rollins, are requesting $525,000 in TIF funding to make the necessary public improvements. Without TIF funding, this project cannot be completed. This block represents an example of ideal downtown-type redevelopment potential. Multi-story brick buildings with typical storefront space face Dunklin Street. Redevelopment and new construction can occur to create a dense population of buildings that provide and compliment retail and restaurant space needs with residential space in the upper stories. The proposed redevelopment plan for this block includes existing buildings that face the street with access to surface parking. The area is significantly blighted with vacant-(1 0) and underutilized-(7) residential, commercial mixed use space as well as deteriorated infrastructure and streetscape. There are thirteen (13) parcels in this block that include eleven buildings-eight properties of which seventeen units are vacant or underutilized. Without the Dunklin Redevelopment Project there would not be an increase in revenue to the political subdivisions over time. In the current situation a reduction is likely as the property values will continue to decline and the existing successful business may relocate and find that they cannot continue. 17 PART II: EAST DUNKLIN PROJECT-2009 TIF PROPOSAL I E. Dunklin Project Aerial Map 18 PART II: EAST DUNKLIN PROJECT-2009 TIF PROPOSAL I E. Dunklin Project Legal Description All real property 100 Block East Dunldin Street, Jefferson City, Cole County Missouri, including: Inlots 815, 816, 817, 818 and 913, 914, 915, 916 (1 00 blade E Dunlclin-both sides) 1~-~/: I I l ••c .... !~; HO ,1 .... I ":1 ..9l .. ' t 2 ol a a " t' -"' ('I<" ., N •. t r-S'tt I '""' I I ' I ' ' &"' :. :~ l l<; ' l<l' AHif I'' I ~"''. I I' • I I • I I "~" , ~1¥P ~ ~.,--7 I r-.. f '"' I • •t:<>. • ' 19 -HX T • "' ~ «-" N " " ~'l-' ' ! I' ~~~~ ~ i !:.' ..... ' f7 ,'"l ' t',,_r.o-t~ ' " g,.._qoo M rJj ~ cSJJ c.pqq,'\ ! . , .. ..., ....... PART II: EAST DUNKLIN PROJECT -2009 TIF PROPOSAL I E. Dunklin Project Historic District A significant portion of the I 00 Block of East Dunklin, seven (7) properties, is part of the "Munichburg Commercial Historic District. These properties are included on the National Register for Historic Places and qualify for state and federal tax credits to enhance a complete renovation prospect. These properties on the "Munichburg Commercial Historic District are: Address I 14-118 E. Dunklin 120-122 E. Dunklin I 24 E. Dunklin 126 E. Dunklin I 28 E. Dunklin I 30 E. Dunklin 620 Madison *610 Madison original use barbershop/retail hotel/residence shoe store/residence dry goods./residence furniture/office grocery/residence florist dairy store current use barbershop/vacant vacant vacant vacant furniture storage liquor/vacant florist dairy store The period of significance corresponds to the construction dates of the nine buildings which is 1892-1951. These buildings are intact representing the European architecture characteristics of German Americans on the Southside. According to the consultant who prepared the national register application: ""A growing interest in historic preservation bodes well for the future of the buildings in the Munichburg Commercial Historic District. Rehabilitation work has begun on 124 E. Dunklin where modern brick facing has been removed from the ground floor. Plans for full rehabilitation are underway for the rest of that building along with the largest building in the District at 120-122 E, Dunklin." The national register designation will enable the owners to take advantage of the federal and state historic tax credits when restoring three of these structures. The remaining buildings on the block are current doing an exterior fac;;ade renovation to enhance their appearance. *not part of the Dunklin Street redevelopment project 20 PART II: EAST DUNKLIN PROJECT-2009 TIF PROPOSAL / E. Dunklin Project Details The planned use for the Dunklin Project area is consistent with the Jefferson City Comprehensive Plan. The area will be redeveloped for commercial and residential use that compliments the existing businesses. It is contemplated that restaurants, hair salons, antique stores and other specialty shops will be attracted to the area. The second and third floors will be utilized for residential space in a mixed use environment. Many structures within this Redevelopment Project are in an extreme state of disrepair and have been neglected for many years. Currently the buildings are vacant, deteriorated and potentially hazardous to public health. Accumulated trash and debris contribute to unsanitary and unsafe conditions where vermin and vector may spread disease. Also the public parking is marginal; it is not well lit and does not provide adequate facilities for disabled patrons. It is necessary to upgrade the existing facilities and increase the parking spaces for future patrons and residents of the redevelopment area. Federal stimulus funds granted to the City will be used to renovate this space to include energy efficient lighting, resurfacing with water permeable concrete, improved disabled parking and better erosion control from the rear alley. Specifically vacant and underutilized space has been identified and will be redeveloped to active use as described below: Address 701-703 Jefferson 701-703 Jefferson 112 E. Dunklin 114 E. Dunklin 116 E. Dunklin 116R(1 )E. Dunklin 116R(2)E. Dunklin 116R(3)E.Dunklin 118 E Dunklin 120 E. Dunklin 122 E. Dunklin 124 E. Dunklin 126 E. Dunklin 128 E. Dunklin 130 E. Dunklin !.11@. retail*/resid entia I pkg lot parking lot retail office retail retail retail retail retail/residential retail/residential retail/residential retail/residential retail/office retail/residential 21 square footage 3800/4500 55 X 199 70 X 199 700 700 1400 1500 3700 1475 1000/2000 1000/2000 1800/1800 1700/1700 fac;:ade facade PART II: EAST DUNKLIN PROJ~CT -2009 TIF PROPOSAL I E. Dunklin Project Details The properties and owners included in this proposal are: 701-703 Jefferson Street 112 E. Dunklin Street 114-118 E. Dunklin Street 120-122 E. Dunklin Street 124 E. Dunklin Street 126E Dunklin Street 128 E Dunklin Street 130 E Dunklin Street 629 Jefferson Street 113 E Dunklin Street 117 E Dunklin Street 620 Madison Street Farmers Home LLC (ECCO) Housing Authority of Jefferson City(Pkg Lot) U Dunklin Street Properties (Kolb & Rollins) U Dunklin St Properties (Kolb & Rollins) V Dunklin St Properties (Kolb & Rollins) V Mason Place LLC V Walz, Milo H. Inc (Biattners) Dallmeyer Trust (Wei-com-Inn) U Steve & Nancy Rollins Steve & Nancy Rollins Central Dairy Company U Madison Street Mgt LLC (Busch's Florists) The proposed uses contemplated for the development area are consistent and appropriate with the City of Jefferson's Comprehensive Plan. The Comprehensive Plan emphasizes that redevelopment should preserve the historically and architecturally significant buildings. More recently the Southside Redevelopment Plan was completed that reinforced the Comprehensive Plan and indicated that the 100 Block of E Dunklin was the key to the revitalization of the Southside. 22 PART II: EAST DUNKLIN PROJECT-2009 TIF PROPOSAL f E. Dunklin Project Costs The redevelopment includes the complete historic renovation of three properties on the block-114-116 E Dunklin, 118-122 E Dunklin, 124 E Dunklin. State and federal historic tax credits will be utilized. The total restoration of these properties is estimated to cost the owners $1,100,000. The properties at 117 E Dunklin and the remainder of the southside of the block- 126 E Dunklin, 128 E Dunklin, 130 E Dunklin are planning to complete an exterior fa<;:ade upgrade estimated to cost the owners $200,000. Adequate off-street and available parking has been included in this project to accommodate retail and residential use. Within the block there are t11ree parking lots that yield 72 parking spaces and 12 on-street parking spaces. 32 more parking will be developed on private property to accommodate customer, residential and employee parking. Federal stimulus funds will be used to renovate the parking lot owned by the Housing Authority at 112 E Dunklin; the parking lot dimensions are 70' x 199'.Upgrades will include energy efficient lighting, landscaping, resurfacing with water permeable concrete, improved disabled parking and better erosion control from the rear alley. The cost is estimated to be $89,000. Tax Increment Financing dollars are needed to upgrade the parking lot at the rear of 701-703 Jefferson Street in the same manner as described for the Housing Authority lot at 112 E Dunklin. Also public improvements including sidewalks, curbs, gutters, streetscape lighting/furniture and alley improvements are necessary. The improvements are estimated to cost $525,000. (Project costs= $505,000 + Interest costs = $20,000) The breakout of the public improvement costs are outlined on the following page. 23 PART II: EAST DUNKLIN PROJECT-2009 TIF PROPOSAL I E. Dunklin Project Cost Breakdown The project area included in these estimates is the 100 Block E Dunklin and the ancillary space identified as the ECCO parking lot and Tanner Way improvements. Curbs, Gutters Sidewalks $125,000 North side: removal and replacement-320 linear feet South side: removal, raise, replacement-295 linear feet Lighting $140,000 Both sides: base, standard, luminare, wiring -13 units Landscaping $ 45,000 North side: tree wells & trees-7 units; green stlip- 2800 sq ft; decorative fence-65ft Southside: tree wells & trees-7 units Parking Lot-ECCO $ 65,000 Rehabilitate & Expand (55 x 199): Paving, landscaping, lighting; 24 existing spaces, 14 new spaces Rear paving & Stormwater $ 99,000 114-122 E Dunklin Rear: paving, structures, street cut, repairs Engineering/ Legal Fees Professional sen;ices for project TOTAL 24 $ 56,000 $530,000 PART II: DUNKLIN PROJECT -2009 TIF PROPOSAL J E. Dunklin Project Sales Tax Increment TAX BASIS TIF AREA = $ 112,388.00 Total 2008 City & County Sales Tax (collected Jan-Dec) The amount of funding available for the TIF Area will equal half of the increased sales tax revenue collected in the TIF area over the basis year 2008. The Act defines these revenues as Economic Activity Taxes or EATS. The EATS is projected below using the following assumptions for increases in the five block TIF Area. * * * * The economy has strengthened after a weak year in 2008 and two new retail stores have opened in TIF Area-auto sales and boutique. Therefore total sales are projected to increase 10% in 2009. The redevelopment will be completed in 201 0; retail/food activity will be established; projected increase is 25%, 100 block of E Dunklin becomes a destination and generates at least $1.4 mil in additional sales annually starting in 2011; projected increase is 49%. TIF Area continues to improve; annual sales increase 5% each year beginning in 2012. 10 Year Sales Tax Projections Year Increase% (calculation) Increment( inc/half) 2009 +10% ($112,388 X .10=$11238) = $ 5,615 2010 +25% ($166,062 X .25=$30907) = $ 15,453 2011 +49% ($1 96,969 X .49=$96515) = $48,257 2012 +5% ($293,484 X .05=$14674) = $ 55,594 2013 +5% ($308,358 X .05=$15417) = $ 63,303 2014 +5% ($323,775 X .05=$16189) = $71,397 2015 +5% ($339,964 X .05=$16998) = $ 79,896 2016 +5% ($356,962 X .05=$17848) = $ 88,820 2017 +5% ($463,630 X .05=$23182) = $ 97,744 2018 +5% ($486,812 X .05=$24341) = $109,914 25 PART II: EAST DUNKLIN PROJECT -2009 TIF PROPOSAL I E. Dunklin Project Property Tax Increment TAX BASIS TIF AREA = $ 161,225.55 Total Property Tax due December 2008 Cole County Properly Tax Levy, based on $100 of assessed valuation: 1 ) County of Cole General Fund-$.34; 2) Cole County Road & Bridge-$.27; 3) City of Jefferson -$.64; 4) Jefferson City School Distlict-$3.68; 5) Library-$.20; 6) Handicapped-$.09; 7) State of M0-$.03 for a total of $5.25. There is an additional $.28 surcharge on commercial for a total of $5. 53. The amount available for the TIF Area is the increase or increment from the basis year or January 2009. This is known as Payment in Lieu ofT axes or PILOTS. The PILOTS are projected below using the following assumptions: * * * * Economic conditions on the Southside are poised to absorb the retail and services offered in the redevelopment; Mayor employers, Central Dairy, Coca-Cola, Capital Region Hospital, are situated near the redevelopment area; employees will patronize new business; Dunklin Street Project will have significant impact in 2011 for tax year beginning January 2012; 11% TIF District impact predicted; then 7% & 3% overall property tax increases in successive years; Starting in 2014 property tax will increase at a typical rate (2%). 10 Year Propertv Tax Projections Year lncrease%(calculation) 2010 +3% ($161,225 X .03=$4837) = 2011 +11 o/o ($166,062 X .11 =$18266) = 2012 +7% ($189,347 X .07=$13242) = 2013 +3% ($225,512 X .03=$6765) = 2014 +2% ($268,623 X .02=$5372) = 2015 +2%($317,106x.02=$6342) = 2016 +2% ($371, 193 X .02=$7439) = 2017 +2% ($433,457 X .02=$8669) = 2018 +2% ($504,390 X .02=$10087) = 2019 +2% ($585,411 X .02=$11708) = 26 Increment $4,837 $23,104 $36,346 $43,111 $48,483 $54,825 $62,264 $70,933 $81,021 $92,729 PART II: EAST DUNKLIN PROJECT-2009 TIF PROPOSAL E. Dunklin Project Property Tax Increment-detail MAJOR REHABILITION PROPERTIES Projected income and expense for three Dunklin St. properties: PROPERTY #1 -116-118 E. Dunklin St. Barber shop $500 x 12 = $6,000 + NNN Retail$6.00 x 1,000 sf= $6,000 + NNN Retail $6.00 x 1,800 sf= $8,400 + NNN Retail $6.00 x 7,000 sf= $42,000 + NNN Total projected gross rent-$62,400 + NNN Less expenses and vacancies -10% - $ 6,240 Net Operating Income $56,160 Cap Rate of 9% = $624,000 value PROPERTY #2 -120-122 E. Dunklin St. Retail -$8.00 x 1 ,062 sf= $8,500 + NNN Retail -$8.00 x 900 sf= $7,200 + NNN Large apt 2"d floor-$600 x 12 = $7,200 Small apt. 2"d floor-$500 x 12 = $6,000 Large apt. 3'd floor-$600 x 12 = $7,200 Small apt. 3'd floor-$500 x 12 = $6,000 Total projected gross rent $42,100 Less expenses and vacancies 15% = $ 6,315 Net Operating Income $35,785 Cap Rate of 9% = $398,000 value PROPERTY #3 -124 E. Dunklin St. Retail -$8.00 x 1840 sf= Apt 2"d floor-1, 840 sf-$770 x 12 = Total projected income Less expenses and vacancies 15% = Net Operating Income Cap Rate of 9% = $218,000 $14,720 + NNN $ 8,400 $23,120 -$ 3,468 $19,652 27 PART II: EAST DUNKLIN PROJECT -2009 TIF PROPOSAL I E. Dunklin Project Property Tax Increment-detail MINOR REHABILITION PROPERTIES Projected re-assessment for five Dunklin St properties based on assumptions: PROPERTY #1 -701-703 Jefferson St (ECCO Restaurant, Hair Salon, Resale Shop-approx 3800 sq ft , Upper level residential space-6 units, Parking lot Current appraised value= $307,900 Projected value= $369,480 20% increase based on area redevelopment and new operation of ECCO & improved attractive parking. PROPERTY# 2-126 E. Dunklin St (currently vacant, previously Mo & Waldos/retail space-est. 2100 sq ft & upper level 2100 sq ft residential space- 2 units) Current appraised value = $110,000 Projected value = $132,000 20% increase based on area redevelopment and renovation /occupancy of retail space PROPERTY #3-128 E. Dunklin St storefront/704 Madison Street address (currently Blattner's Furniture retail/passive storage & office space second floor) Current appraised value=$ 340,000 Projected value= $408,000 20% increase based on area redevelopment and renovation of retail space PROPERTY #4 -130 E. Dunklin (currently lower level Wei-Com-Inn & upper residential units) Current appraised value= $88,000 Projected value= $105,600 20% increase based on area redevelopment & fattade removal of storefront PROPERTY #5-118 E Cedar Way (currently warehouse space) Current appraised value= $109,600 Projected value= $121,440 15% increase based on area redevelopment and significant fattade improvement on E. Dunklin Street side. 28 PART II: EAST DUNKLIN PROJECT-2009 TIF PROPOSAL / E. Dunklin Project Property Tax Increment-detail BENEFITTING PROPERTIES The remaining four properties in the redevelopment area on 100 Block of E. Dunklin are projected to increase less significantly. PROPERTY #1 -629 Jefferson St PROPERTY #2-113 E Dunklin St PROPERTY #3-117 E Dunklin St PROPERTY #4 -620 Madison St These properties are generally in good repair. They are currently fully occupied and utilized as retail or storage space. Therefore the market value is projected to increase 10% initially, then at the typical 2% growth rate. 29 PART II: DUNKLIN PROJECT-2009 TIF PROPOSAL / E. Dunklin Project TIF Payback Based on the sales tax and property tax projections, it is anticipated that the project will be paid off within 10 years or by 2019. DUNKLIN STREET Project Interest over 1 0 years( est) (assuming 5% interest rate) TOTAL = = = $530,000 $200,000 $730,000 The project will be privately funded through Hawthorn Bank in the amount of $1,000,000 I Term: 20 years I Status: Open I Contact: Jason Schwartz, Vice President. A commitment letter from Hawthorn Bank is included as Exhibit 2. The three properties in the major rehabilitation category: 116-118 E. Dunklin, 120-122 E. Dunl<lin, 124 E. Dunl<lin are owned by Dunklin Street Properties, LLC. These properties will be managed by Larry F. Kolb. One retail lease has been negotiated: a three year lease-Tenant Lisa Rackers d/b/a The Perfect Fit Boutique; two other retail leases are in negotiation. The five loft apartments will rent upon completion of the construction. 30 PART II: DUNKLIN PROJECT -2009 TIF PROPOSAL I E. Dunklin Project Cost-Benefit Analysis The State of Missouri, Cole County, Jefferson City, Jefferson City School District and other special districts will benefit from the redevelopment project. The developer anticipates that upon completion, the development will generate new annual sales tax revenue in 2009 in the amount of $11,238 (increment =$5,615) then increasing significantly each year to $219,828 (increment =$109,914) in 2018. After the TIF is paid off, the entire sales tax will go to the taxing districts. Currently the properties on the 1 DO Block of E. Dunklin are assessed at $1,442,380.00 with a 2008 tax payment of $43,302.45. It is anticipated by a real estate expert that the property values will increase by 2011; the estimates are as follows: 703 Jefferson 116-118 E Dunklin 120-122 E Dunklin 124 E Dunklin 126 E Dunklin 704 Madison 130 E Dunklin 113 E Dunklin 118 E Cedar Way 117 E Dunklin 629 Jefferson 620 Madison Current market value $307,900 $226,000 $ 77,400 $ 60,000 $110,000 $340,000 $88,000 $275,900 $109,600 $180,000 $201,300 $166,000 2011 market value $369,480 $624,000 $398,000 $218,000 $132,000 $408,000 $ 105,600 $303,490 $121,440 $198,000 $221,430 $182,600 No taxing district in Jefferson City, Cole County would be adversely affected by creating a TIF District. All districts would receive a windfall when the TIF is paid in full. In 2009, before redevelopment, the following districts received a total of $43,302.45 in property taxes. That amount was disbursed among the taxing entities as follows: School= $30,697.95; County= $4,852.29; City= $5,221.29; Library = $1 ,652.49; Handicapped = $668.84; State= 209.59. During the period that the TIF District is being paid off, the revenue would continue. Thus, the other taxing districts would receive the same tax revenues for subsequent years until the TIF is dissolved and thereafter they would receive not only the base but for the supplemental increased assessed valuation. When the TIF is paid off, the twelve properties on the 1 DO block of E Dunklin would provide an increase in tax revenue by 2019 in the amount of $54,127. 31 PART II: DUNKLIN PROJECT -2009 TIF PROPOSAL / E. Dunklin Project Cost-Benefit Analysis If property values increase from $1,442,380 to $3,324,040 as a result of this redevelopment, the taxing entities would receive a windfall after the TIF is paid off-nearly triple the current amount. Conversely, without this development there would not be an increase in revenue to the political subdivisions over time and in the current situation a reduction is likely as the property values would continue to decline. Other benefits of the redevelopment include increased employment with the development of new jobs. It is anticipated that 25 short term new jobs will be created by the public improvements included in the TIF proposal. Then after the redevelopment is complete at least 40 new jobs will be created by the new retail opportunities on the block. Another benefit is the return of tenants to the area living in quality upper level living space-six-to-eight units initially will be rehabbed. Another important benefit is the replacement and rehabilitation of the existing streets, gutters, sidewalks and parking lots. These improvements would probably be delayed indefinitely without private investors having this opportunity to re-direct tax dollars into this project. Without the TIF dollars, this project would not be possible. 32 •m•a•-10-200g 13:45 From: ::::: ::::: 573634632g 5736346329 Overview of the TIF Process 1. A pre-application meeting is held between the developer and the City 2. A Tax Increment Financing (TIF) Plan is submitted by developer applicant to the City. 3. The City will review Application filed and determine whether the Application is complete, conforms to the Comprehensive. Plan of the City and whether the proposed project is eligible under the TIF Statute. 4. An analysis of the TIF Plan will be performed by City Staff and representatives. 5. Within ninety (90) days of receipt of a completed Application, the Application will be considered by the TIF Commission. 6. The TIF Commission will set a time for and conduct a public hearing for consideration of the TIF Plan in accordance with requirements of TIF Statutes. 7. The TIF Commission, following the public hearing, may recommend approval or denial of the TIF Plan to the City Council, and, if approved, the TIF Commission will request proposals for designation of a developer for the Project identified in the TIF Plan. 8. A Redevelopment Agreement is drafted and negotiated between the City and the Developer. 9. The City Council considers TIF Plan, Redevelopment Agreement and recommendations of the TIF Commission. 10. The City Council considers an Ordinance making necessary findings and approving TIF Plan and Redevelopment Agreement. 11. Execution of the Redevelopment Agreement between the City and Applicant. Post'it• Fax Note 7671 Date qj10 foy\~11a~ea,... To L""..-r-~ t Ftom jU.~(,;,.. CoJD.epL Co. Phone II Phone# Fo•~ 8 '/ 3 ~ ;J..,(, ,3/ F~~~:~ 7 "'""'""'""' September 16, 2009 Dunldin Street Properties, LLC Lavn-ence Ko!b Steven Rollins P.O. Box 6850 I efferson City, MO 65102 RE: Dunldin Street Renovation Project Dear Larry & Steve, I am writing in r"gards to Dunklin Street Properties, LLC and the on going restoration project on the East 100 block ofDunldin Street, Jefferson City, Missouri. As established customers with the banlc, the principals have demonstrated the financial capacity and liqLJidity to warrant financing on this project. The Banlc intends to provide financing at your request as the project proceeds. Please call if you have any questions 573-761-6197. Sincerely, Vice President Hawthom Bank I 132 East High Street, P.O. Box 688 I Jefferson City, MO 65102 I T 573.761.6100 1 www.HawthornBank.com ' . ' CERTIFICATE OF REIMBURSABLE REDEVELOPMENT PROJECT COSTS FOR SOUTHSIDE TIF PLAN FOR E. DUNKLIN STREET REDEVELOPMENT PROJECT WITH DUNKLIN STREET PROPERTIES, LLC-DEVELOPER TO: City of Jefferson, Missouri 320 E. McCarty Street Jefferson City, MO 65101 RE: Completion of TIF Project located within Southside TIF -100 Block E. Dunldin Street ORDINANCE NO. 14607 In connection with the Southside Tax Financing Plan, Dunklin Street Properties LLC. the developer, certifies that: 1. Each item listed on Schedule 1 hereto is a reimbursable redevelopment project cost and was incurred in connection with the construction of the E. Dunklin Street Redevelopment Project. 2. These reimbursable redevelopment project costs have been paid by the Developer and are reimbursable under the Southside TIF Plan and ordinance. 3. Each item listed on Schedule 1 has not been previously paid or reimbursed from money derived from the City TIF Fund or any money derived from any project fund established pursuant to the Note Ordinance, and no part thereof has been included in any other certificate previously filed with the City of Jefferson. 4. There has not be'en filed with or served upon the Developer any notice of any lien, right of ' lien or attachment upon or claim affecting the right of any person, firm or corporation to receive payment of the amounts stated in the request, except to the extent any such lien is being contested in good faith. 5. All necessary permits and approvals required for the portion of the work for which this certificate relates have been issued and are in full force and effect. 6. All work for which payment or reimbursement is requested has been performed in a good workmanlike manner and in accordance with the TIF Plan. 7. The costs to be reimbursed under this Certificate constitute all qualified reimbursable expenses under the TIF Plan and ordinance. 8. The Developer is not in default or breach of any term or condition of the TIF Plan and ordinance. Dated thi~.?¢ day of ~1/fdl;f//? , 20JL. '' D"~C.tftt Name:~i tf."-!.~~Je:.L_Y ...L.!/'------'dft'--'-'t1:.__::.?-=-fi __ Approved for payment this_lLday of Dece,.,ber , 20)L; Name: _.:=C:ccr~-=t--___L_!JAG4t!L!rrluiJ )'"'-5_:_:/.Jt::..:zfoo:..:.r~-- 1\Joffua(\ /Jrc fci?lfJZ Title: SCHEDULE 1 REIMBURSEABLE REDEVELOPMENT COSTS FOR SOUTHSIDniF-E. DUNKLIN STREET PROJECT-2011 DUNKLIN STREET PROPERTIES, LLC-DEVELOPER EXPENSE CONSTRUCTION/RECONSTRUCTION -WAVCO CONSTRUCTION CO. Rear Parking Lot-120 E. Dunklin ECCO Parking Lot Extension Sanitary Sewer Sidewalks Decorative Fence, landscaping Engineering Subtotal LEGAL FEES -YATES. MAUCK, BOHRER, ELLIFF & FELS. P.C. Professional Services Rendered INTEREST-HAWTHORN BANK Interest 2010 & 2011 TOTAL *interest will accrue annually. ACTUAL $524,839.00 $524,839.00 $ 5,711.76 $ 29,986.41* $560,537.17 PROJECTED $530,000.00 $530,000.00 (incl w/interest below) $ 200,000.00 (10 yr projection) $570,000.00 .JI.JO.J""10...JC.J 5736346329 Overview of the TIF Process 1. A pre-application meeting is held between the developer and the City 2. A Tax Increment Financing (TIF) Plan is submitted by developer applicant to the City. 3. The City will review Application filed and determine whether the Application is complete, conforms to the Comprehensive. Plan of the City and whether the proposed project is eligible under the TIF Statute. 4. An analysis of the TIF Plan will be performed by City Staff and representatives. 5. Within ninety (90) days of receipt of a completed Application, the Application will be considered by the TIF Commission. 6. The TIF Commission will set a time for and conduct a public hearing for consideration of the TIF Plan in accordance with requirements of TIF Statutes. 7. The TIF Commission, following the public hearing, may recommend approval or denial of the TIF Plan to the City Council, and, if approved, the TIF Commission will request proposals for designation of a developer for the Project identified in the TIF Plan. 8. A Redevelopment Agreement is drafted and negotiated between the City and the Developer. 9. The City Council considers TIF Plan, Redevelopment Agreement and recommendations of the TIF Commission. 10. The City Council considers an Ordinance making necessary findings and approving TIF Plan and Redevelopment Agreement. 11. Execution of the Redevelopment Agreement between the City and Applicant. Post.;.it" Fax Note 7671 Date q j 1 () .kflp11a9ea I> To L,._,..Y'{ t From jlA_<t?.{,; A- CoJD.epl. Co. Phone II Phone# Fax•. 8'/ 3 -;J..,(., 31 Fmc# 7 Southside Redevelopment Plan:, t:ftfl~£0]1Efu?frui:tZ! SOUTHSIDE REDEVELOPMEHT PLAI'I-2009 --~-------------------------------------- JUNE 19, 2009 TO WHOM IT MAY CONCERN: Based upon the results of the study, it has been recommended that the area described in the study is a "blighted area" as such term is defined in Section 99 of the Missouri Revised Statues, and other amendments as applicable. This report (chapter 5) describes and documents those conditions that, without TIF or other economic redevelopment tools or incentives, the area will further erode the economic viability of the neighboring areas and continue its economic and social liability for the City of Jefferson City, its residents, and the taxing districts that depend upon it as a revenue source. In summary, the Southside Neighborhood Area suffers from a multitude of physical and economic deficiencies including, but not limited to: • defective or inadequate street layout, • unsanitary or unsafe conditions, • deterioration of site improvements, • improper subdivision or obsolete platting, • excessive vacant land and buildings, • conditions which endanger life or property by fire or other causes, • and economic obsolescence. These conditions which endanger life and or property as described in Section 99 of the State Statute meet the definition and of a blighted area. Arcturis Planning, Urban Design and Architecture by: Bill Burke, ASLA, APA, RLA Principal 05 ' ' Map 5.1: Boundaries of the Study Area 05 l''})'li~;ifm:ffi'Ei'JifiTi:i'J SOUTHSIDE REDEVELOPMEHT PLAH-2009 -----·--------------------·-·---····------·---- EXISTING ZONING Conservation Resl, Low Density Detached Res!, Low Density Detached Res!, Medium Density Detached Res!, Medium Density Detached Res!, Medium Density Attached Res!, High Density Res!, High Density Neighborhood Olflce Office Commercial Neighborhood Commercial General Commercial Central Commercial Light Industrial General Industrial PIAnnArf l/nlt DAI/f.!nnmfHJ..L ..• ·.c·, The Redevelopment Area has a wide variety of zoning designations, as discussed in more detail to follow. The majority of the area is comprised of either RA-2 (high density residential) or C-2 (general commercial). Other forms of residential and commercial zoning exist but generally follow specific land use entities, i.e. hospitals or residential housing types. 05 ii!i{ti2B5~~1.!il SOUTHSIDE REDEVELOPMEI,IT PLAN-2009 -----·-----·--------------------------------------- Source: Arcluris, City of Jefferson Agriculture Residential -Single Family Residential -Duplex Residential -Multi Family Residential -Mobile Homes Commercial & Mixed Use Ullllty/lnstllutlonai/Pub!lc/Seml Public Industrial/Manufacturing 05 ROAD INFRASTRUCTURE The "Functional Classification System" is a category designation system used to identify the design and operational standards of roadways according to their purpose and the movement of vehicles. A higher functional classification implies higher traffic capacity, higher speeds and typically longer traveling distances. The hierarchy of street types in descending order includes: • Primary Corridors (Freeways): provide the highest level of mobility and direct access to property is limited • Secondary Corridors (Arterials and Collectors): represent an intermediate functional category. They serve to provide both mobility and access • Tertiary Corridors (Local Roads): are the lowest of functional categories and have limited mobility while providing primary access to small commercial and residential areas. Overall, the condition of infrastructure within the study area is poor and consists of outdated systems in need of upgrade. Secondary corridor alignment such as Monroe and Madison Avenues narrow south of Ashley just as the topography becomes hilly. As the alignment narrows, the condition of structures and overall market conditions begin to decline. The decline in value is directly related to access, traffic flow, and topography combined with the age and condition of structures. Street Conditions. Overall street conditions within the study area are in need of upgrades and improvements. Curbs, gutters, sidewalks and lighting are all older and in need of repair. No consideration has been given to the relationship between the infrastructure and possible commercial use of sidewalks. For instance, parking along the curb on narrow residential streets is allowed, making maintenance and cleaning difficult if not impossible. 05 SWOT ANALYSIS STRENGTHS Location -Close proximity to State Capitol Building, governmental businesses and a viable downtown Southside Redevelopment District, composed of committed business owners interested in improving the area Bounded by State Route 54 and served by two interchanges Bounded by State Route 50/63 (Whitton Parkway) on the north Two regional hospitals Presence of major businesses (Central Dairy, Coca-Cola, etc.) Existence off Wears Creek as a recreational amenity Presence of historic architecture Existing trail Affordable land values On-street parking Mix of uses Streets laid out as a grid Aged, low density commercial sites as rime redevelo ment locations OPPORTUNITIES St. Mary's Hospital -May be a possible redevelopment site if the hospital relocates Opportunity for potential assembly of properties for redevelopment Wears Creek available for development of a recreational amenity or piping Street widths of most major streets provide opportunity for inclusion of wider landscaped sidewalks and medians Urban grid pattern Redevelopment and highest and best use of properties along Madison and Dunklin can spur investment in the area Political will and support of business community for redevelopment Federal, State and private funding sources rnay be available Establishing special districts pursuant to state statutes Planned convention center adjacent to stud area ~WEAKNESSES State Route 50/63 poses a physical and psychological barrier between study area including defective street grid Only three north/south thoroughfares within the study area, inadequate street layout Lack of residential density to support retail Aging and deteriorating condition of structures, boarded homes, deterioration of site improvements Lacl< of parks and other recreation activities and open space Topography Spotty land use patterns Dated zoning ordinance may limit development Poor sidewalk and curb conditions Electrical lines cause aesthetic devaluation Lack of traffic calming measures Lack of code enforcement Low ratio of owner to renter occupied housin fHREATS St. Mary's Hospital -Could possibly relocate Flooding due to Wears Creek Conversion of State Route 50/63 to limited access highway from 54 to Lafayette as proposed by Environmental Impact Study being prepared by HNTB for MoDOT. Potential for isolation and abandonment of study area as development and investment moves away frorn the downtown area Lack of interest does not facilitate the planning and negotiations necessary to solicit and receive funds to implement this plan Economic obsolescence 05 ;o;,\1STI!f;jfll2E!\"'C~i!6l SOUTHSIDE REDEVELOPMEHT PU\1·1-2009 -·--------------------·-----·------- BLIGHT ANALYSIS SUMMARY Conditions exist within the Southside Redevelopment Area that meet the blighted area definition as outlined in Section 99 of the State Statute. "Blighted Area" -an area which, by reason of the predominance of defective or inadequate street layout, unsanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete platting, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety morals, or welfare in its present condition and use; Utilizing this definition, the Redevelopment Area is negatively contributing to the public health, safety, morals and welfare and is a blighted area. Specifically, the area possesses unsanitary or unsafe conditions, deteriorated site improvements, existence of conditions which endanger life or property by fire or other causes. Relevant examples include: 1. Street Layout: interrupted street grid pattern and deterioration of streets, curbs and gutters. 2. Unsanitary conditions: lack of accessible sidewalks, trash dumping and overgrown vegetation, environmental concerns and lack of accessible entries to buildings. 3. Site Improvements: deteriorated and inadequate streets, curbs, gutters and sidewalks, poor conditions of structures, age of structures, deteriorated site improvements including storm drains and retaining walls. 4. Improper Subdivision & Obsolete Platting: narrow sized lots lacking sufficient depth, irregular and inconsistent adjacent parcels and the existence of mult'iple ownerships that are in-adequate for modern development. 5. Unsafe conditions: vacant and unsecured properties, potential fire hazards, and the potential for hazardous building materials. The result is an economically and functionally defective area that possesses area of physical deterioration. In its current state the area will not regenerate and the problems, issues and exceptions will remain or increase. The analysis in the report discusses the conditions and illustrates the examples of a blighted area from both physical and economic angles. The absence of new investment and or redevelopment initiatives clearly indicates a continual negative decline. 05 lli2&'ili'.?Jii'Eb'ltEfGl)]l SOUTHSIDE REDEVELOPMENT PLAN-2009 ------··--·--------------·-----··--·-·---·---·-···--··-··---·--- Unsanitary or Unsafe Conditions Trash dumping and overgrown vegetation is prevalent throughout both the residential and commercial areas. These areas create potential hazards for residents, workers and visitors of the area. Rodents and associated diseases can be fostered by such unsanitary conditions resulting in unsafe neighborhoods. Lack of accessible walkways and building entries exist within the study area. This is not in compliance with the ADA and creates a hazardous condition of the public. 05 r;;;il;:i:'l31.\l2~g·;i;U~; SOUTt-151 DE REDEVELDPMHIT PLNI -2009 -····------··---------·-·-··---------·-·-··-···-···-------------------------- 05 [ililil!'!i'!Ef.i','ClEi'ifi;:;Eii SOUTHSIDE REDEVELOPMEHT PLAI'I , 2009 ----·--,-·--"--··-,----.,-.. ,,--,----,-----------··--- 05 Economic Liability Q 5 While Jefferson City is a prosperous city with a vibrant economy, the Southside Neighborhood is clearly in a state of economic decline. The lack of investment in the area combined with the deterioration of infrastructure points to an opportunity for redevelopment. Given the close proximity of the Redevelopment Area to the Capital Complex and the employment center that it is, the underutilization of the area is significant. The Socio-Economic profile of the area contrasted against both Cole County and the City of Jefferson as a whole illustrates economic hardship. The number of 1 person households is nearly twice the Counties average, the median household income is nearly half of the Counties, the vacancy rate is more than double the counties, and the renter occupied housing is also twice the county rate. Other factors also illustrate the lack of prosperity in the neighborhood, structures on average are 30 years older, and in general 40% of the structures were buill prior to 1940. The combination of these factors results in an economic liability for the Redevelopment Area and the surrounding neighborhoods. The depressed economic character is expressed by the low housing value, low income and high amounts of public assistance with housing. Menace to Public Health, Safety, Morals or Welfare The combination of factors constituting a blighted condition in the Southside Redevelopment area has been discussed. In turn, the area is also a menace to the public health, safety, morals and welfare. The overall poor condition of infrastructure in the area creates a safety condition for residents, employees and visitors to the area. The health and safety concerns are further exacerbated by the numerous vacant lots, unkempt properties and deterioration of structures within the neighborhood. CONCLUSIONS OF BLIGHT ANALYSIS AND RECOMMENDATIONS • The Area is "blighted" per the factors established under Missouri State statute. • The City and its residents would benefit if the Redevelopment Area were to improve its public infrastructure. • The Area is an excellent location for the City to promote redevelopment. • The existing zoning could be utilized to initiate an Urban Renewal District. • The addition of new public and or private investment in the area will increase the local tax base in an area already serviced by city services and occupying a prominent location near the state capital. • Historic properties are more likely to be preserved or rehabilitated if a new URD is created. Based on the findings contained in this report, a recommendation that a resolution of necessity be adopted finding that areas of blight exist within the Southside Redevelopment Area, and that the existence of these areas substantially impairs or arrests the growth of the city or its neighborhoods, constitutes an economic or social liability and /or is detrimental or constitutes a menace to the public health, safety, welfare, and morals in its present condition and use, by reason of: • Defective or inadequate street layout identified within the study area, • Instances of known deterioration, inadequate provisions and/or age obsolescence of the following public improvements within the study area: streets, sidewalks and curbs and gutters, • Instances of age obsolescence of buildings within the study area, • Instances of unsanitary or unsafe condition, • Inadequate or interrupted street grid, • & obsolete or improper subdivision. 05 Exhibit B Certification of Reimbursable Project Cost Page 16 of 19 CERTIFICATE OF REIMBURSABLE REDEVELOPMENT PROJECT COSTS FOR SOUTHSIDE TIF PLAN FOR E. DUNKLIN STREET REDEVELOPMENT PROJECT WITH DUNKLIN STREET PROPERTIES; LLC-DEVELOPER TO: City of Jefferson, Missouri 320 E. McCarty Street Jefferson City, MD 65101 RE: Completion of TIF Project located within Southside TIF-100 Block E. Dunklin Street ORDINANCE NO. 14607 In connection with the Southside Tox Financing Plan, Dunklin Street Properties LLC, the developer, certifies that: 1. Each item listed on Schedule 1 hereto is a reimbursable redevelopment project cost and was incurred in connection with the construction of the E. Dunklin Street Redevelopment Project. 2. These reimbursable redevelopment project costs have been paid by the Developer and are reimbursable under the Southside TIF Plan and ordinance. 3. Each item listed on Schedule 1 has not been previously paid or reimbursed from money derived from the City TIF Fund or any money derived from any project fund established pursuant to the Note Ordinance, and no part thereof has been included in any other certificate previously filed with the City of Jefferson. 4. There has not been filed with or served upon the Developer any notice of any lien, right of lien or attachment upon or claim affecting the right of any person, firm or corporation to receive payment of the amounts stated in the request, except to the extent any such lien is being contested in good faith. 5. All necessary permits and approvals required for the portion of the work for which this certificate relates have been issued and are in full force and effect. 6. All work for which payment or reimbursement is requested has been performed in a good workmanlike manner and in accordance with the TIF Plan. 7. The costs to be reimbursed under this Certificate constitute all qualified reimbursable expenses under the TIF Plan and ordinance. 8. The Developer is not in default or breach of any term or condition of the TIF Plan and ordinance. Dated thiVJ'~ day of ~t/f/l/,4/;? , 20/L. By: Dunklin Str et Properties, LLC Name:~t~'-'-'~L::..Lje Yc......fc.:...· ..L.!d..::....:t1 t=-=~-- Approved for payment thls.l/_ctay of DecMI'L__, 20J.L CJ'IY OF Jar~oJ.~sspuRJ By: 1u/JL~ Name: Cl·.f._..t AJt'fl.rti.S.~b;-- Tltle: dJD~an )Jrc/rJ'J/aw; ' SCHEDULE 1 REIMBURSEABLE REDEVEtoPMEI\'T COSTS FORSOUTHSIDE-TIF-E. DUNKliN STREET l'ROJECT-2011 DUNKliN STREET P ROPERnES, llC-DEVElOPER EXPENSE CONSTRUCTION/RECONSTRUCTION -WAVCO CONSTRUCTION CO. Rear Parkfng Lat-120 E. Dun~din ECCO Parking Lot Extension Sanitary Sewer Side-walks Decorative Fence, landscaping Engineering Strbtt>tal LEGAL FEES Y.IUES. MAUCK, BOHRER. ElLIFF & FELS, P .C. Professional Services Rendered INTEREST HAVVTHORN BANK Interest 20.10 & 2011 TOTAL >~'Interest wHl accrue cnnuaHy. ACTUAl $524,839.00 $SZ4,.B39.0o $ 5,7H.76 $ 29 ,986_41..,. $5Ei{l,537.17 PROJECTED $530,000.00 $530,000.00 (ind w/interest below} $ :200,000.00 (10 yr projectlon) $570,000.00 Exhibit C Certification of Baseline Economic Activity Taxes & Baseline Assessed Value Page17ofl9 CERTIFICATION OF ECONOMIC ACTIVITY TAXES (SALES TAX) CITY OF JEFFERSON CITY, SOUTHSIDE TAX INCREMENT FINANCING REDEVELOPMENT AREA (TIF AREA) I, Sheila Pearre, Chief Accountant of the City of Jefferson City, do hereby certify that the total Economic Activity Taxes (Sales Tax) collected by the City of Jefferson City within the Southside Tax Increment Financing Redevelopment Area as designated by the Redevelopment Plan approved by the City Council on November 17, 2009 by Ordinance #14607 for the previous tax year totals one hundred eight two thousand two hundred sixty two dollars and eighty six cents ($182,262.86), derived from the imposition of a total of two (2%) percent combined sales tax levies, imposed by the City of Jefferson City. The amount collected by Cole for the same period is ninety one thousand one hundred thirty one dollars and forty three cents ($91, 131.43) derived from the imposition of a one (I%) percent combined sales tax levies. This is the baseline amount of tax dollars generated from all economic activity within the Redevelopment Area which shall be continued to be collected by the City of Jefferson City and Cole County respectively. Fifty- percent (50%) of any increase above this amount for each tax year, July I;< through June 30'", during the term of the Redevelopment Plan, beginning November 17, 2009, shall be paid to the Special Allocation Fund in accordance with the Redevelopment Plan. A list of all businesses, which are included in the Redevelopment Area, and generates these tolals Economic Activity Taxes are herein attached and made part of this certification. All amounts are obtained from the Missouri Department of Revenue reports. Shiela Pearre, Chief Accountant Date BASELINE LIST OF BUSINESSES LOCATED WITHIN THE SOUTHSIDE TIF DISTRICT BUSINESSES LISTED BY ADDRESS-NOT ALL HAD OR HAVE SALES TAX REPORTS NAME OF BUSINESS AT ADDRESS ADDRESS VACANT 105W. Dunklin Coleman Appliance 113E Dunklin Ewers Tires 111W. Dunklin RB Inti Food Store 116E. Dunklin Tribe Investments/Texas T Saloon 116E. Dunklin So Krispy 116E. Dunklin VACANT 118E. Dunklin Hiens Floor Covering NO REPORT 120W. Tanner Way Edgewise NO REPORT 120E. Dunklin Dunklin St Gallery 121W. Dunklin Perfect Fit NO REPORT 122E. Dunklin Masons Place NO REPORT 126E. Dunklin VACANT 126E. Dunklin Jefferson City Dance Academy 129W. Dunklin Wei Com Inn 130E. Dunklin VACANT 203E. Dunldin Jaegers Enterprises NO REPORT 206E. Dunklin Checkered Flag Collectables NO REPORT 220E. Dunklin Missouri Ag Services Corp 219E. Dunklin PR Enterprises of Missouri NO REPORT 219E. Dunklin Jeff City Filing NO REPORT 222E. Dunklin Our 365 Portraits 222E. Dunklin Aerea Spa NO REPORT 222E. Dunklin Silpada Designs 222E. Dunklin Anthony Jinson Photography NO REPORT 224E. Dunklin Capitol Chiropractic Care 225E. Dunklin C-Dubs Pub & Grub NO REPORT 226E. Dunklin Pasta Fresca NO REPORT 226E. Dunklin Clarkston Carpet Care NO REPORT 226E. Dunklin Decision One Corp NO REPORT 226E. Dunklin Prairie Farms 610 Madison WRG Inc/Accents 615 Jefferson Buschs Florist 620 Madison Korner Antiques 626 Jefferson JT's COs and Records NO REPORT 626 Jefferson B&B Quality Furniture 628 Jefferson Heartland Security Svcs NO REPORT 628 Jefferson Capitol Liquor NO REPORT 629 Jefferson Cut-n-Up w/Deidrea Hair Salon NO REPORT 701 Jefferson Marks Southside Conoco NO REPORT 701 Madison Doug's Boulevard Motors LLC NO REPORT 701 Madison ECCO Lounge 703 Jefferson ECCO MDS LLC NO REPORT 703 Jefferson Blattners 704 Madison CK's Fashion Consulting NO REPORT 705 Jefferson Show Me Printing 705 Madison JC Fire Specialists 705 Washington Lasting Impressions 707 Washington Lasting Impressions/Debra Veil NO REPORT 707 Washington Donna Kolb NO REPORT 707 Washington B&K Gifts LLC 707 Washington The Warming House 707 Washington Just Karl it NO REPORT 707 Washington Noah's Ark Learning Center NO REPORT 708 Jefferson Brigittes Alterations 709 Madison VACANT 709 Madison Emerald Island Tanning 710 Jefferson Parlour & Serendiptly Too NO REPORT 711 Jefferson Make Believe Parties NO REPORT 711 Jefferson Party Maids NO REPORT 711 Jefferson Naughty Nans NO REPORT 711 Jefferson Rumors/Club 710 NO REPORT 710 Madison Pioneer Systems/Rush Cash NO REPORT 711 Madison Universal Lending Corp NO REPORT 712 Jefferson Stone Management NO REPORT 712 Jefferson Frosted Art NO REPORT 712 Jefferson Family Dollar 713 Madison VACANT 716 Monroe Thompson & Thompson CPA NO REPORT 720 Madison Iss Facillity Services Inc 721 Jefferson BGM Industries NO REPORT 721 Jefferson Petals for You 722 Jefferson Unique Creations Studio LLC 722 Jefferson Sa Iisch Paint 722 Jefferson Victoria 1s Bridal 722 Jefferson K's Consignment 722A Jefferson Drapery Design 7228 Jefferson BASELINE OF ECONOMIC ACTIVITY TAXES COLLECTED WITHIN THE SOUTHSIDE TIF JULY, 2008 THROUGH JUNE 30, 2009 CITY COUNTY TOTAL 2% 1% 3% $182,262.86 $91,131.43 $273,394.29 DUTIES OF COUNTY ASSESSOR TAX INCREMENT FINANCING DISTRICTS (TIF'S) Under Missouri Law, the County Assessor only has obligations under the State Statues when a TIF (Tax Increment Finance District) is created. Under RSMo.99.855 the Assessor is required to certify the initial equalized assessed value of the taxable real property in such redevelopment project area. The initial equalized assessed value for each parcel shall be frozen at that rate for the duration of the TIF, not to exceed 23 years. The Assessor will in each subsequent year that the TIF is in place assess each parcel in the same manner as all other property in the county. The increase in assessed value over the initial assessed value shall be entered on the tax books separately and repmied to the County Clerk in the name of the Redevelopment Area. The Collector will be responsible for preparing tax bills which will collect the taxes on the initial assessed value for the benefit of the existing taxing districts and for the increase in assessed value for the benefit of the TIF. The increase is called the "PILOT's (Payments in lieu of taxes). The increase in assessed value under a TIF plan is a payment fi·om the property owner in lieu of taxes to be used for a specific use, i.e. the TIF improvements. Tax rates for districts containing redevelopment projects, method for establishing--county assessor's duties--method of extending taxes to terminate, when. 99.855. 1. If a municipality by ordinance provides for tax increment allocation financing pursuant to sections 99.845 and 99.850, the county assessor shall immediately thereafter determine total equalized assessed value of all taxable real property within such redevelopment project by adding together the most recently ascertained equalized assessed value of each taxable lot, block, tract, or parcel of real property within such project, and shall certify such amount as the total initial equalized assessed value ofthe taxable real property within such project. 2. After the county assessor has certified the total initial equalized assessed value of the taxable real property in such redevelopment project, then, in respect to eveJ)' taxing district containing a redevelopment project, the county clerk, or any other oflicial required by law to ascertain the amount of the equalized assessed value of all taxable property wilhin such district for the purpose of computing any debt service levies to be extended upon taxable property within such district, shall in every year that tax increment allocation financing is in effect ascertain the amount of value of taxable property in a redevelopment project by including in such amount the certified total initial equalized assessed value of all taxable real property in such area in lieu of the equalized assessed value of all taxable real property in such area. For the purpose of measuring the size of payments in lieu of taxes under sections 99.800 to 99.865, all tax levies shall then be extended to the current equalized assessed value of all property in the redevelopment project in the same manner as the tax rate percentage is extended to all other taxable property in the taxing district. The method of extending taxes established under this section shall terminate when the municipality adopts an ordinance dissolving the special allocation fund for the redevelopment project. (L. 19811-I.B. !411 & 1587 § 9. A.L. !986 S.B. 664 merged with 1-l.B. 989 & 1390. A.L. 19911-l.B. 501) CERTIFICATION OF ASSESSED VALUE CITY OF JEFFERSON CITY, MISSOURI SOUTHSIDE TAX INCREMENT FINANCING REDEVELOPMENT AREA I, Christopher Estes, County Assessor of Cole County, Missouri, in compliance with Section 99.855 of the RSMo. do hereby certify that the initial equalized assessed value of the Southside Tax Increment Financing Redevelopment Area of the City of Jefferson City, Missouri which was approved by the City ofJefferson City City Council on November 17,2009 by Ordinance #14607 is based on the Redevelopment Area as defined in the Redevelopment Plan, adopted and attached to Ordinance #14607. I have reviewed the equalized assessed value of each taxable lot, block, tract, or parcel of real property within the Redevelopment Area as approved and attest that the value above is the same as recorded on the official assessment records of Cole County for the tax year 2009. The total is obtained by adding the value of each parcel listed in the Redevelopment Area together. Lists of all property with assessed values are attached to this certification. Christopher Estes, Cole County Assessor DATE ATTESTED: ---------....,..,--,------------:::--- Marvin Register, Cole County Clerk Date --------------- STATEMENT OF PROJECT COST, EXPENSE, AND RECEIPT OF PAYMENTS DUNKLIN STREET PROPERTIES, LLC SOUTHSIDE TIF DATE OF STATEMENT 5/10/2012 Capital amount of Reimbursable Project Cost was certified by the City on December 21, 2011 Cost were incurred from November 16, 2009 through certification dale. Expenses are for interest and financing cost and other expenses in administration ofTIF. Income Is a credit from direct payments from the Cole County Collector for PILOTs. DATE DESCRIPTION 12/21/2011 Certified Capital Cost-See Exhibit 8 for Certification 5/10/2012 Less Payments of PILOTs-See Statement 5/10/2012 Consulting Cost-See Invoice 5/10/2012 Interest Accured 2012 AMOUNT PAYMENTS BALANCE $560,537.17 $560,537.17 $ 31,706.00 $528,831.17 $2,500.00 $531,331.17 $32,124.45 $563,455.62 PAYMENTS IN LIEU OF TAXES (PILOTs) RECEIVED BY DUNKLIN STREET PROPERTIES, LLC TAX YEARS 2010 AND 2011 PAYMENTS RECEIVED FROM THE COLE COUNTY COLLECTOR OF REVENUE DATE TAX YEAR 2010 AMOUNT 12/15/2010 DISTRIBUTION OF TAXES COLLECTED $444.54 1/25/2011 DISTRIBUTION OF TAXES COLLECTED $10,833.82 4/12/2011 DISTRIBUTION OF TAXES COLLECTED $1,812.42 TAX YEAR 2011 12/8/2011 DISTRIBUTION OF TAXES COLLECTED $4,150.55 1/27/2012 DISTRIBUTION OF TAXES COLLECTED $14,463.64 2/8/2012 DISTRIBUTION OFT AXES COLLECTED $1.03 All STATEMENTS ATTACHED YEARlY CUMUlATIVE TOTAl TOTAl $444.54 $444.54 $11,278.36 $11,278.36 $13,090.78 $13,090.78 $4,150.55 $17,241.33 $18,614.19 $31,704.97 $18,615.22 $31,706.00 Larry Vincent, Collector of Revenue f.1ern!~' TruLJe, Ch1el DeptJ1'y Cara Zregelt:>ein, Collector Supe.rv1sor 1\rls Vanr.JP.r Veen, Dr;:!pUty Col!ecl·or Dar11el!e Ice, Deputy Collenm LE COUNTY TAX COLLECTOR 311 ED.Sl High ~~!reel. Courlhow-,e Amw;;. !~oorn 100. Jefferson Cit)'. MO !:5510 ·1 S73-93-1--ll12<1, F<;>'. 5/]-h:.\·1-'.lOGO Dunklin Street Properties December 15, 2010 Enclosed is the receipt letter for distribution of taxes. This amount is for: Monthly Distribution of Taxes Partial Distribution of Taxes Final Distribution of Taxes A report of tile breakdown is included unless this is a partial payment. If there is a remaining balance it will be sent at a later date with a final report of the breakdown. If you have any questions please contact this office at your convenience. Received from Larry Vincent, Collector for the County of Cole, State of Missouri, for collection during the month of November 2010. Monthly Distrnll:mtiol11i $ Surtax Withheld $ Additional Surtax Paid $ Amount ol' !Payment $444.54 Received by: Please sign both copies of this receipt1 retain one tor your file and rnall the other to the Cole County Collector's Office in the enclnsetl return envelope. Larry Vincent, Collector of Revenue Cara Ziegelbein, Col!.:=ctor Supervisor l<:ns VanderVeen, Deputy Collector Danielle lee, Deputy Collector COLE COUNTY-TAX COllECTOR 311 Enst High Street, Counhouse Annex. Room ·JOO, Jeflemon City. MO 65"101 573-GJ .. l-9124, Fa;{ 57J-634-9060 DISTRIBUTION of TAXES COllECTED E.Dunk/in TIF January 25, 2011 Enclosed is the receipt letter for distribution of taxes. This amount is for: § Monthly Distribution of Taxes ;::artial Distribution of Taxes Final Distribution of Taxes A repor-t of the breal<down is included unless this is a partial payment. If there is a remaining balance it will be sent at a later-date with a final report of the br-eakdown. If you l1ave questions please contact this office at your convenience. Received from Larry Vincent, Collector for the County of Cole, State of f'.1issouri, for collection during the month of Decembe1·. Less Partial-$0 Less Surtax \Vith.held-$0 Total-$10,833.87 ;!;,-~I /~ ' ./} 9(".,:~ti{. Received by:~ 1f/, ·,e)~ Title: ,4/t{t!/1/C/;!1(; /)!_~_r;;6?/ jjtr;U/(L;.~; rf-l. /',r::ofJf;P+;£J, {t:C Please sign both copies of this receipt, retain one for your file and mail the other to the Cole County Collector's Office in the enclosed return envelope. Failure to sign and return this form will require you to pick up future payments at the Collector's office. Thank you. Larry Vincent, Collector of Revenue Cara ZF"tJell1t:ln, Cl1id Deputy l<n;; Vam!t~r Veen, Col!eci.or SLJLJerv1sor Daniell:· Ice, DerJ!Jt\' Colle~.::l"or COlE COUNTY TAX COllECTOR J11 East High Str~;et. Courlhous(~ Annoy, Room 100. Jeiiorson Citv. iv10 05101 DISTRIBUTIOH~ of TAXES COllECTED E Dunklin Street TIF April 12, 2011 Enclosed is your distribution of taxes report. This amount is for: D Distribution of Regular and Protested Taxes With this distribution there are two reports included for eacl1 month. One report is titled "PROTESTED ACCOUNTS" and the other "ACCOUNTS NOT PROTESTED". The two reports added together sl1ould equal your total monthly distribution. If you have questions, please contact the Collector's office at your convenience. Received from Larry Vincent, Collector fot-tile County of Cole, State of Missouri, for collection of the above marked tax distributions. Accounts Not JP;otested Distribution: $1,812.42 Protested Accounts Distribution: $ Total Dist;ibul:ion: $1,812.42 PAID BY CHECK !Xl PAID BY ACH 0 Please sign botl1 copies of tl1is receipt, retain one for your file and mail tile other to the Cole County Collector's Office in tile enclosed return envelope. Fauh.ure to sion and! reltu.u·n ithis fo;m will require yoll.! to tgici< IL!!Jl f1.1ture payments at the Colled:or's office. Thank yout Larry Vincent, Collector of Revenue Cara Ziege!bt?in, Chief Deputv t<ris VanderVeen, Collector Supervisor Danlelle fee, Deputy Colfecl-or COlE COUNrlf TAX COllECTOR 311 East High Street, Courthouse Anne.~. Room 100, Jeilerson City, MO 65101 573-634-912•!, Fax 573-6]•1-9060 DISTRIBUTION of TAXES COLLECTED E Dunklin Street TIF December 8, 2011 Enclosed is your distribution of taxes report. Til is amount is for: [;]/Distribution of Regular and Protested Taxes Wit/1 til is distribution there are two 1·eports included for each month. One report is titled "PROTESTED ACCOUNTS" and the otller "ACCOUNTS NOT PROTESTED". Tile two reports added together should equal your total monthly distribution. If there are no protested amounts collected for the month, you will only receive one report. If you have questions, please contact the Collector's office at your convenience. Received from Larry Vincent, Collector for the County of Cole, State of fvlissouri, f01· collection of the above marked tax distributions. Accounts Not Pmtested Distribution: $ 4,150.55 Protested Accounts Distribution: a;ffic..__ __ _ Total Distribution: $ 4,150.55 PAID BY CHECK r:1· PAID BY ACH 0 Please sign both copies of this 1·eceipt, retain one for your file and mail the other to the Cole County Collector's Office in the enclosed return envelope. Failure to sign and return this form will require you to pick up future payments at the Collector's office. Thank you! Larry Vincentt Collector of Revenue Cara Ziegelbein, Chief Deputy 1\ris Vander Vecn, Collector Supervisor' Danielle Ice, Deputy Collector COllE COUNTY TAX COLLECTOR 311 East Higt1 Street. Courthouse Annex, Room ·roo. Jefferson City, r\110 65101 S73·634-912<1, Fax 573-634-9060 E Dunklin Street TIF January 27, 2012 Enclosed is your distribution of taxes report. This amount is for: /vf Final Distribution of Taxes With tlris distribution there are two reports included for each month. One report is titled "PROTESTED ACCOUNTS" and the other "ACCOUNTS 1\!0T PROTESTED". The two reports added together should equal your total monthly distribution. If there are no protested amounts collected for the month, you will only receive one report. If you have questions, please contact the Collector's office at your convenience. Received from Larry Vincent, Collector for the County of Cole, State of Missouri, for collection of the above marked tal( distributions. Pa•·Ual Disto·ibution; distributed em 1/13/12 $ Non-Protested Distribution: $ 14,463.64 $ {) $ 14,463.64 Protested Distribution: Total Distribution: PAID BY CHECK[/!' PAID BY ACH 0 Please sign both copies of this receipt, retain one for your file and mail the other to tile Cole County Collector's Office In the enclosed return envelope. !Failure to sign and return !:his iform will require you to pick 1m fut.yre pavments at the Collector's office. Thank you! Lnny Vincent, Collector oi Revenue Cara Ziegelbein, Chief Deputy f{lis VanderVeen, Collector Supervisor COLE COUNTY TAX COLLECTOR 311 Fi!sl lligh Street, Cnunhou~'' .\l!lle\, lto1om 100. Jt:ffi.~r:;ill\ City. MO fl.'\11)1 573-634·9124, Fax 573-63(1-q060 E Dunklin TIF February 8, 2012 llECfED Enclosed is your distribution of taxes report. This amount is for: Distribution of Non Protested Taxes For the month of: January A report of the breakdown is included unless this is a partial payment. If there is a remaining balance it will be sent at a later date with a Dna! report of the breakdown. If you have any questions please contact this office at your convenience. Received from Larry Vincent, Collector for the County of Cole, State of Missouri, fi.1r collection of the above marked tax distlibutions. Accounts Not Protested Distribution: $ 1.03 Total Surtax Withheld: $ Total Distribution: $ 1.03 ., Received by: Title: DistTibution Paid by CHECK Please sign both copies of this receipt, retain one for your file and mail the other to the Cole County Collector's Office in the enclosed return envelope. Failure to sign a:nd retum this tcmn will require you to pick up future payments at the Collector's Office. Thank you!! 2131 Wasl Republic Road, ~Springfield, IVlO 68507 Telephone 417-125-9460 ~Fax W3i3-790·128B ¢'Email g[OSSJl!!.f@uJ}.DWi1JL[J.g:1 Darrell Gross-Cell -417-•125-9460 May 10, 2012 Dunklin Street Properties, LLC. P.O. Box 6850 Jefferson City, MO 65102-6850 RE: Statement & Invoice for Services In accordance with a contract for professional services dated February 29, 2012 a statement of payments and amounts due is herein provided with a list of services completed. Services were exclusively for consulting work on the Southside TIF with the City of Jefferson City. Contract was a fixed price contract of $2,500. Consultant has assisted Client and City in preparing an administrative and collection procedure for the City to collect and account for TIF revenue. Have assisted Client and City with the preparation of a pay as you go contract for the reimbursement of project cost by the City. Amount paid upon execution of contract: Balance Due TOTAL CONTRACT AMOUNT $1,250 $1 250 $2,500 INTEREST AND FINANCING COST FOR REIMBURSABLE PROJECT COST STATEMENT OF INTEREST PAID TO HAWTHORN BANK BY DUNKLIN STREET PROPERTIES, LLC FROM DATE OF EXPENDITURE OF FUNDS TO DATE APPROVED BUDGET AMOUNT $570,000 CERTIFIED REIMBURSABLE AMOUNT $560,537.17 DATE STATEMENT PERIOD 4/15/2010 November 16,2009 THROUGH MAY 1, 2010 5/27/2011 MAY 2, 2010 THROUGH MAY 10,2011 4/24/2012 MAY 11, 2011 THROUGH MAY 10, 2012 AMOUNT $2,348.15 $ $27,638.26 $ $32,124.45 CUMULATIVE BALANCE 2,348.15 29,986.41 $62,110.86 Hawthorn Banlc sn.JtJ1-hJOO BANK Hawthorn Bank PO Bw. /lC Belton, MO b'llll:! Hawthorn Banlc I'C) Bo:.. 646 Chnttm, 1:...-10 M/~1.') r'J60 .gr..~·:-! 7. ,)1 [,01\N BII,LING STATF:MENT DUNKLIN STREET PROPERTIES, LLC PO BOX 6850 JEFFERSON CITY MO 65102-6850 S'l'/\TEMEN'l' DATE ACCOUN'l' NUMBER CUHRENT BJ1LANCE INTEREST RATE INTEREST PAID Y'I'D f1ATUJU TY DATE 4/15/10 10102682 171,043.00 6.0000% 0.00 5/01/11 ACCOUNT NUMBER PAYMENT DUE DATE PRINCIPAL INTEREST /LATE CHARGE I OTHE:ll FEES tl PiWMENT DUE PAST DUE TOTAL DUE PAYM!;;~J'r DUE DllTE PRINCIPAL INTEREST LATE CIJJI.R G E OTHER FEES PAY~1ENT DUE PAST DUE TOTAL DUE Hawthorn Ban!~ :;; 1 \'V f.l;,l!il'lilc:ri ~:t Sprinqlm!ri. f'/10 (l'iHC(I 10102682 5/01/10 0.00 2,348.15 IJ.DO 0.00 2,348.15 0.00 5 <~ --j() 5/01/lll 0.00 2,348.15 0.00 0.00 2,348.15 0.00 ~~,]l18.15 DATE DESCRIPTION OF TRANSACTIONS AMOUNT EUNNING B.l\.Ll'.NCE J/29/10 l/29/10 l/29/10 :L/:29/10 )/18/10 PREVIOUS PRINCIPAL BALANCE ASSESSED -RELEASE FEES BR- Interest Rate Change Nev1 Loan Advance Principal Advance 3 0. 00 6. 0000001; 88,693.00 82,350.00 0.00 0.00 0.00 88,693.00 171,lHJ.OO I IAWTIIOI\N ll;\N[(: Accounr Transactions j/( View Transactions for: Dunklin St 10102682 Current Balance: $570,000.00 Curn~nl TriH1S:i1Ctiuns View Range: Since Last Statement J LQQ}:§. I J.~.J)QY_:; J J~p___pqy_s J HJ! :os;27/20ll 'os/27/2011 ~lm<~ Dtl 1015000002342 TO L!l10102682 Balance -----------·~-__ _. __ .. ~~~dl'--~:570,000.00 ~:27,638.26 :[:570,000.00 PER JASON SCHWARTZ "·-· ----·------------·· ·-·--·---·-----------.. -------------······------··' h n ps:// cm.nc tte J J er. com/! o gi n2 008/V i cws/ Ret a iII A ccoun tTransa ct ion:;. as rx J /24/20 J 2 Exhibit E Certification of Economic Activity Taxes for Calendar Years 201 0 and 2011 Page 19 of19 Business Name Crown Petro-could be JC Mart Convenience Store in the future Coleman Appliance Ewers Tires RB Inti Food Store Tribe Investments/Texas T Saloon So Krispy OldTown Tattoo Ellens Floor Covering Edgewise Dunklin St Gallery Perfect Fit Masom Place ~ed Parrot LLC lefferson City Dance Academy Nel Com Inn Jharma Yoga Missouri Noodley Building Maintenance-J&R nvestments aegers Enterprises :hiles E!ectrk :hiles Construction :heckered Flag Collectables llissour'l Ag Services Corp 'R Enterprises of Missouri eff City Filing lur 365 Portraits ,erea Spa il pad a oes·1gns nthony Jimon Photography apitol Chiropractic Care -Dubs Pub & Grub asta Fresca larkston Carpet carE! ecision One Corp rairie Farms IRG Inc/Accents uschs Florist Jrner Antiques ·•s COs and Records "..B Quality FurnitUrE! eartland Security Svcs lpitolliquor Jt-n-Up w/ Deidrea Hair Salon ark's Southside (oneco Jug's Boulevard Motors LLC :co lounge :CO MDS LLC attners ~·s Fash'1on Consu\t'mg 105 W. Dunklin 113 E. Dunklin/then 108 E. Dunklin 111 W. Dunklin 116 E. Dunklin 116 E. Dunklin 116 E. Dunklin 118 E. Dunklin 120 W. Tanner Way 120 E. Dunklin 121 W. Dunklin 12.2 E. Dunklin 12.6 E. Dunklin 126 E. Dunklin 12.9 W. Dunklin 130 E. Dunknn 203 E. Dunklin 205 E. Dunklin 206 E. Dunklin 208 Cedar Way 208 Cedar Way 2.10 E. Dunklin 219 E. Dunklin 219 E. Dunklin 222 E. Dunklin 222 E. Dunklin 2.22 E. Dunf:lin 22.2 E. Dunklin 224 E. Dunklin 22S E. Dunklin 226 E. Dunklin 226 E. Dunklin 226 E.. Dunklin 226 E. Dunklin 610 Madison 615 Jefferson 62.0 Madison 626 Jefferson 626 Jefferson 62.8 Jefferson 628 Jefferson 629 Jefferson 701 Jefferson 701 Matflson 701 Madison 703 Jefferson 703 Jefferson 704 Madison 70S Jefferson included in baseline included in baseline included in base!lne included !n baseline included In baseline included in baseline not included in baseline· opened after 2009 not included in baseline-no n:ported tax information from state not included in baseline-no reported tax infOrmation from state lncll!ded In baseline ·- not included in baseline -no reported tax information from state not included in baseline-no reported tax Information from state not included in baseline· opened after 2009 included in baseline included in baseline not included !n baseliile-opened after 2009 had business license but can't find anything on disk-no tax or ta~ id- FtA T UCENSE -No Sales Tax not included in'Laseline-no reported tax Information from state why no buslrl_~ss license-on steve's list why no busYriess license -on steve's Ust not included in baseline-no reported tax information from state included in baseline not included in baseline-no reported tax information from state not included in baseline-no reported tax information from state included in base!lne not included in baseline-no reported tax information from state included in baseline nat included in baseline-no reported tax information from state intluded in baseline not included in baseline-no reported tax information from state not included in baseline-no reported tax information from state not Included in baseline-no reported ta~ information from state not included in baseline-no reported tax information from state-FLAT liCENSE-NO SALES TAX included in baseline included in baseline included In baseline included in baseline not included in baseline· no reported tax information from 5tate Included In baseline not included in baseline-no reported tax information from state-FLAT LICENSE-NO SALES TAX not Included in baseline-no reported tax information from state not Included in base!ine-no reported tax information from state not Included ln baseline · no reported tax information from state not included in baseline-no reported ta~ information from state included in baseline not included in baseline· no reported tax information from state included in baseline not included in baseline· no reported tax information from state 07/08 -06/09 tax disk CY 2011 2011 TIF PAYOUT