HomeMy WebLinkAboutIV.B - TIF Application
Memorandum
To: HEDRA Commissioners
From: Rusty Fifield, Economic Development Coordinator
Date: September 19, 2019
Subject: Application for TIF Assistance
Action Requested: Approve the attached form to apply for tax increment financing assistance
from HEDRA.
Background: As we are able to attract developers to potential housing and redevelopment
projects in Hastings, HEDRA will face more requests to consider the use of tax increment
financing (TIF) to provide financial assistance to projects. In anticipation of these requests, it is
important to give the process a little more structure.
The proposed Application Form serves several purposes:
Completing the Form provides an initial indicator that the Applicant has a real project
and an approach to undertaking it.
The contents of the Form provide information we can use to evaluate the project and the
requested assistance.
The Form acknowledges the requirement to pay for the professional services needed to
establish the TIF district and prepare the development agreement.
Some cities attach a fee to an application for financial assistance. The purpose of the fee is to
cover technical and legal services related to the use of TIF. The proposed establishment of an
escrow is consistent with other land development applications, following the principle that
applicants should pay for related costs. The Applicant does not pay unless we accept the
application and decide to initiate the TIF process. We have the internal capacity to review the
application and set up the TIF process. It is not necessary to collect money at time of
application. The Applicant also receives any money left in the escrow.
Financial Impact: Positive. Provides funds to cover professional services needed to establish a
TIF district and a development agreement for the use of TIF.
Attachments: Proposed TIF Assistance Application form
Subject
MM DD, 2019
Page 2
Page 1 of 2
City of Hastings
Hastings Economic Development and Redevelopment Authority (HEDRA)
Tax Increment Financing (TIF) Assistance Application
Name of Project
Name of Applicant
Corporation/Partnership
Address Street
City State Zip
Name of Primary Contact Email
Phone
Prior to the initiation of the process to establish a TIF district, the Applicant will deposit funds into an escrow account to
pay for the professional services needed by HEDRA to prepare the TIF Plan and the development agreement. The
amount of the escrow deposit will be determined based on the review of this Application, but will not be greater than
$15,000. Money remaining in the escrow after HEDRA costs have been paid will be returned to the Applicant.
Certification of Application
The undersigned certifies that all information provided in this application is true and correct to the best
of the undersigned’s knowledge. The undersigned authorizes the City of Hastings/HEDRA to check
credit references and verify financial and other information. The undersigned also agrees to provide any
additional information as may be requested by the City/HEDRA after the filing of this application.
Name (print) Title
Signature Date
Supporting Information
The application must include the following information attached as exhibits. The applicant can structure
the exhibits in the manner that best explains the project as long as the required information is provided.
1. Project Description (Attach as Exhibit A)
Briefly describe the proposed project. At a minimum, the description shall include:
Project address
Parcel identification numbers
Type of development
Amount of development (building square footage or number of dwelling units)
Dates for start and completion of construction
Assumed Estimated Market Value of project upon completion
Site concept plan (if available)
Page 2 of 2
2. Applicant Information (Attach as Exhibit B)
Brief description of firm’s business
Names of officers and shareholders/partners with 5% or more ownership interest
Location and address of comparable projects completed by the firm
Name and contact information attorney, engineer, architect, or other member of applicant
project team that may be involved with this application
Note – The City may require the applicant to submit other financial information needed to evaluate
the project and the requested assistance. This information may include, but is not limited to,
financial statements and project financing commitments.
3. Description of Requested Assistance (Attach as Exhibit C)
Description of requested assistance, including amount and use of assistance.
Explanation of why the proposed project is not feasible without this assistance.
Description of benefits to the City from the proposed project.
Table containing detailed description of sources and use of funds for the project.
Project proforma with and without requested TIF assistance over the life of the requested
assistance.
Unless otherwise agreed to by the City tax increment assistance is provided on a pay-as-you-go
basis through a TIF Note. Indicate your intentions for holding the Note or selling it to a third
party.
4. Land Use Controls
Please indicate if any of the following are needed:
Yes No Don’t
Know
Comprehensive Plan Amendment
Rezoning
Variance
Conditional Use Permit
Replatting
Please send the completed application and direct questions about the application to:
Rusty Fifield, Economic Development Coordinator
City of Hastings
101 4th Street East
Hastings, MN 55033
651.480.2379
rfifield@hastingsmn.gov