1999-01-13 Planning Report
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~RTHWEST ASSOCIAeD CONSULTANTS
COMMUNITY PLANNING - DESIGN - MARKET RESEARCH
MEMORANDUM
TO:
Mike Couri
FROM:
Alan Brixius
DATE:
13 January 1999
RE:
Albertville - Land of Lakes Tile Company
FILE NO:
163.06 - 98.33
BACKGROUND
Per your request, I have provided a tax increment estimate for the Land of Lakes Tile
Company proposing to locate in Albertville. This estimate is based on the following
assumptions:
1. The land purchase price of $304,000 was considered the frozen tax base for this
tax increment calculation. Based on the conversation surrounding land purchase,
this amount may be greatly appreciated value over the estimated market value on
the County tax rolls. Appreciation of the land value may also contribute to future
tax increment revenues.
2. The proposed building value will be approximately $1,000,000.
3. The 1999 total tax rate for AlbertvillellSD 728 applied to this project is 138.399
percent and a market value levy of .0013616 percent.
4. The City will establish an economic development TIF district that will run for 11
years and provide nine years of TIF collection.
5775 WAYZATA BOULEVARD, SUITE 555 ST. LOUIS PARK, MINNESOTA 55416
PHONE 612-595-9636 FAX 612-595-9837 E-MAIL NAC@WINTERNET.COM
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TIF ESTIMATE
Building Value
$1,000,000
Tax Capacity Ratios:
< 150,000 @ 2.45% =
> 150,000 @ 3.50% =
$ 3,675.00
$29,750.00
Total Taxable Value
$33,425.00
TAX INCREMENT CALCULATION
Tax Capacity Tax Rate Tax Increment
$33,425.00 X 138.399% = $ 46,259.00
Market Value Tax Rate Tax Increment
$1,000,000 X .0013616% = $ 1,361.00
Total Annual Estimated TIF $ 47,620.00
Total Project Revenue $47,620.00 X 9 years $428,580.00
CONCLUSION
The $1,000,000 building will generate approximately $47,620.00 annually in TIF revenues
and $428,580.00 in total project revenues over the term of the TIF district. It should be
noted that the TIF increment is only a portion of the property taxes, the total estimated
property tax on a $1,000,000 building and $300,000 of land value will be approximately
$62,150.00
pc: Linda Goeb
Pete Carlson
Greg Mundahl
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d. The applicant make a cash contribution towards the City's park fund. The amount will be five
percent of the fair market value based upon a current appraisal or market value of the
property as determined by selling price of the parcel(s) in question.
e. The developer enters into a development with the City and post all necessary securities
required by it.
3. Site Plan and Conditional Use Permit's:
a. Approval of the Comprehensive Plan Amendment and Rezoning applications.
b. For Site Plan:
i. The applicant submit plans specifying type of material to be used on exterior wall
surfaces. Exposure of metal or fiberglass walls shall not exceed 50 percent of the
wall area along 62nd Street NE and Maciver Avenue NE.
ii. The applicant submit a Landscape Plan illustrating additional screening of the parking
area, loading areas with compliance to the standards outlined in Section 1000.7 of the
Albertville Zoning Ordinance.
iii. Approval for the CUPs are subject to approval of the site plan.
iv. Approval of the CUP for the reduction of parking requirements subject to the City
finding that the reduced number of parking spaces adequately supplies the site until
such time the City determined that additional parking is warranted (i.e. parking occurs
in the public right-of-way of on-site in areas other than those designated for parking).
v. Approval of the CUP for development of industrial use within the Shoreland Overlay
District subject to review and approval of the site grading plan by the City Engineer.
vi. Curb and gutter be required around the parking area, along the westerly driveway on
62nd Street NE, and along the driveway connecting the passenger vehicle parking lot
and the truck parking and driveway area.
Adopted by the Albertville City Council this 3rd day of May 1999.
City of Albertville
By:
John Olson, Mayor
Attest:
Linda Goeb, City Clerk
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