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Home My WebLink About1997-01-03 TIF Commission ResolutionRESOLUTION NO. 97-O1-03 RESOLUTION OF THE TAX INCREMENT FINANCING COMMISSION OF RIVERSIDE, MISSOURI ("COMMISSION") APPROVING THE INCLUSION OF THE REDEVELOPMENT PROJECT I-PHASE C WITHIN THE L-385 LEVEE REDEVELOPMENT PLAN ("PLAN"); APPROVING THE DESIGNATION OF THE REDEVELOPMENT PROJECT I-PHASE C AREA; APPROVING THE ADOPTION OF TAX INCREMENT FINANCING FOR THE REDEVELOPMENT PROJECT I-PHASE C AREA; AND EXPRESSING ITS RECOMMENDATIONS TO THE CITY COUNCIL OF RIVERSIDE, MISSOURI WITH RESPECT TO THE SAME WHEREAS, the Commission was created pursuant to Ordinance No. 95-64, adopted by the Board of Aldermen of Riverside, Missouri (the "Board of Aldermen") on September 12, 1995; WHEREAS, the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to 99.865 of the Revised Statutes of Missouri, 1986, as amended (the "Act"), requires the Commission to: (a) hold hearings with respect to proposed redevelopment areas, redevelopment plans and redevelopment projects; (b) vote on the approval of the same; and (c) make its recommendations on the same to the Board of Aldermen; WHEREAS, the Commission, by Resolution No. 96-06-01, passed on June 27, 1996, classified the Redevelopment Area (as defined in the Plan) as a "blighted area" and designated it as a redevelopment area under the Act; approved the Plan, the Redevelopment Project I and the Redevelopment Project I Area; adopted tax increment financing for the Redevelopment Project I Area; and expressed its recommendation to the Board of Aldermen with respect to the same; and WHEREAS, the Board of Aldermen, by Ordinance No. 96-72, passed on July 16, 1996, classified the Redevelopment Area as a "blighted area" and designated it as a redevelopment area under the Act; approved the Plan, the Redevelopment Project I and the Redevelopment Project I Area; and adopted tax increment financing for the Redevelopment Project I Area; which designation provides for the approval of individual projects on aproject-by-project basis; and WHEREAS, the Commission has received and reviewed a Tax Increment Financing Application from Security Capital Industrial Trust regarding the construction of light industrial buildings (the "Redevelopment Project I-Phase C") within the Redevelopment Area, and on a tract of property more particularly described on attached Exhibit A (the "Redevelopment Project I-Phase C Area"). (A copy of the Application is attached as Exhibit B.) NOW, THEREFORE, BE IT RESOLVED by the Tax Increment Financing Commission of Riverside, Missouri; 1. The Commission has previously found that: a. the existing conditions of the Redevelopment Project I-Phase C Area, as described in Exhibit A, are a fair depiction of the Redevelopment Project I-Phase C Area and cause the Redevelopment Project I-Phase C Area to be a "blighted area" as defined in the Act; b. the Redevelopment Project I-Phase C Area has not been subject to growth and development through investment by private enterprise and would not reasonably be anticipated to be developed without the adoption of the Plan; c. the Plan, as amended, conforms to the comprehensive plan for development of the City of Riverside, Missouri as a whole; d. the estimated dates, which shall not be more than 23 years from the adoption of the respective ordinances approving the Redevelopment Projects, of completion of the Redevelopment Projects and retirement of obligations incurred to finance redevelopment project costs have been stated in the Plan; and e. there are currently no businesses or residences within the Redevelopment Project I-Phase C Area. 2. The Commission approves the designation of the Redevelopment Project I-Phase C Area as a redevelopment project area under the Act. 3. The Commission has previously approved the Plan. 4. The Commission approves the inclusion of the Redevelopment Project I-Phase C within the Plan and expects to adopt additional specific redevelopment project(s) and redevelopment project area(s) within the Redevelopment Area on a project- by-project basis. 5. The Commission recommends to the Board of Aldermen that the Board of Aldermen pass one or more ordinances: a. Finding the Redevelopment Project I-Phase C Area to be blighted and designating the Redevelopment Project I-Phase C Area as a redevelopment project area under the Act. b. Approving the inclusion of the Redevelopment Project I-Phase C within the Plan. c. Approving tax increment financing for the Redevelopment Project I-Phase C Area and providing that: (i) after the total equalized assessed valuation of the taxable real property in the Redevelopment Project I-Phase C Area exceeds the certified total initial equalized assessed valuation of the taxable real -2- property in such Redevelopment Project I-Phase C 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 I-Phase C Area by taxing districts and tax rates determined in the manner provided in subsection 2 of the Section 99,855 of the Act each year after the effective date of this ordinance until the Redevelopment Project Costs pursuant to the Plan have been paid, shall be divided as follows: (a) That portion of taxes levied upon each taxable lot, block, tract, or parcel of real property which is attributable to the initial equalized assessed value of each such taxable lot, block, tract, or parcel of real property in the Redevelopment Project I-Phase C Area shall be allocated to, and when collected shall be paid by the county collector to, the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing; (b) Payments in lieu of taxes attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract, or parcel of real property in the Redevelopment Project I-Phase C Area over and above the initial equalized assessed value of each such unit of property in the Redevelopment Project I-Phase C Area shall be allocated to, and when collected shall be paid to, the municipal treasurer who shall deposit such payment in lieu of taxes into a special fund called the "Special Allocation Fund" of the municipality for the purpose of paying redevelopment costs and obligations incurred in the payment thereof, Payments in lieu of taxes which are due and owing shall constitute a lien against the real estate of the redevelopment project from which they are derived. The municipality may, in the ordinance, pledge the funds in the special allocation fund for the payment of such costs and obligations and provide for the collection of payments in lieu of taxes, the lien of which may be foreclosed in the same manner as a special assessment lien as provided in Section 88.861 RSMo. No part of the current equalized assessed valuation of each lot, block, tract, or parcel of property in the Redevelopment Project I-Phase C Area attributable to any increase above the total initial equalized assessed value of such properties shall be used in calculating the general state school aid formula provided for in Section 163.031 RSMO., until such time as all -3- redevelopment costs have been paid as provided for in this section and Section 99.850. (ii) in addition to the payments in lieu of taxes described in Section 99.845.1(2) of the Act, the total additional revenues from taxes generated by economic activities in a Redevelopment Project Area, as described in Section 99.845.3 of the Act, shall be allocated as set forth in Section 99.845.3 of the Act. Passed this 15th day of January, 1997. Name: ~ `~; ~~~~- Title: L~/~l<v ~;;cr~~ ATTEST: Secretary -4- EXHIBTT A LEGAL DESCRIPTION ALL OF LOT 5 AND LOT 4, PLATTE VALLEY INDUSTRIAL PARK EAST, RIVERSIDE, PLATTE COUNTY, MISSOURI, ACCORDING TO THE RECORDED PLAT TIIDREOF; EXCEPT THAT PART OF LOT 4 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUT'HWFST CORNER OF SAID LOT 4; THENCE N 20°59'43" E ALONG THE WEST LINE OF SAID LOT 4 A DISTANCE OF 403.92 FEET TO THE SOUTH RIGHT-OF-WAY LINE OF N.W. PARKWAY AS IT NOW EXISTS; THENCE NORTHEASTERLY CONTINUING ALONG SAID SOUTH RIGHT-OF-WAY LINE ON A CURVE TO THE LEFT HAVING A CHORD BEARING N 82°07'38" E, A RADIUS OF 60.00 FEET AND AN ARC DISTANCE OF 57.95 FEET; THENCE S 36°44'47" E A DISTANCE OF 90.18 FEET; THENCE S 20°59'43" W A DISTANCE OF 383.76 FEET TO THE SOUTHERLY LINE OF SAID LOT 4; THENCE N 69°00'17" W ALONG SAID SOUTHERLY LINE A DISTANCE OF 127.00 FEET TO THE POINT OF BEGINNING. J : \ 61492\00001 \S EC C AP'I'R. LG L E;(HIBIT B O APPLICATION QUESTIONS/ANSWERS FOR TAX INCREMENT FINANCING In no more than three pages provide relevant information on the Applicant's background and development experience. Include resumes of key individuals assigned to the project. Security Capital Industrial Trust (SCl) New York Stock Exchan;e Symbol: SCN) is the largest pub?icly held owner and operazor of industrial properties in the United States. SCI's primary objective is to ache. ; ve lono term, sustaiaabk ~owth in per share cash flow. SCI expects to achieve this objective through the SCi National Operating System, which is cr, t tzitted to creating shareholder value by providing exceptional customer service. Under the SCl N;rr.~nal Operating System, the National Services Group, the National Development Group and the Market Officer Group work together to meet the industrial real estate needs of SCI's corporate customers at the locsl, regions[ and national levels. SCI's investment strategy is to acquire generic distribution facilities and develop full-service, mater-planned distribution~narks in metropolitan areas that demonstrate strong demo~aphics and industrial real estate mazket f:radamentals. As of December 31, 1995, SCI had S1.S3 billion invested in assets operating or under development, mpresenting a total of 67.5 million square feet upon completion in 35 ;.~etropolitaa aeeas. James D. Cochran -Vice President of the REIT Manager since March 1994, where he has Market Officer responsibilities for Drnver, Colorado and Kansas Ciry, Missouri and Vice President of SCI; from Au,,°ust 1988 to March 1994, Viee President for TCW Realty Advisors, where hewass responsible for industrial acquisitions in southern California; from September 1984 to August 1987, Associate with Economics Research Associates, where he performed mazket and financial feasibility studies for a wide variety of land use :ievelopment projects. James R. Nass III is with Security Capital Industrial Trust where he is a member of the Nationsl ~~~ +zlopmcat Group with project management responsibilities for the Chicago and Kansas City markets. i'rir; to joining SCI, Mr. Nass was a project manager with the Opal North Catpvradon for seven yeah. °ri;.: thereto, Mr. Nass was a project engineer for the Mellon Sruart Company. Mr. Nass received his B.S. in ~'onsaucrion Management from Bradley University. 'l. Identify the Applicant's consultants involved or proposed to be involved in the project noting relevant experience on similar projects (i.e. civil rngineer, land use planner, Applicant's legal cotuisel, Applicant's financial advisor). Security Capital Industrial Trust has contracted Geatge Butler Associates, Inc. located in Lenexa, Kansaz to provide complete design services. Scctrrity Capital Industrial Trust's legal counsel is Mayer, Brown & Platt located in Chicago, lllinais. Banally Capital Industrial Trust's financing is all is house. l~'d8T:T6 96. TO 170 9iZ'd ~ QNI ~tilIdt~9 J.lIiyf193S Wd9t : T6 96, t0 190 9. Discuss the condition(s) that would qualify the proposed TIF District as a "blighted area" or "conservation area," as defined under Mo. Rev. Star. 99.805. Not Applicable 0. Identify sources, amounts and status of atl debt financing andlor equity funding available to complete the project. Does the applicant anticipate the debt to be privately financed by the construction lender or developer or publicly sold? Please prepare information in the following table format. Contact Contact Source Amount Term Status Pe on Telephone SCI $4,080,~~0.00 Equity Jim Cochin (303) 576-2620 t 1. Provide an outline of the costs associated with the development of the proposed project(s) and related parcel or parcels located within the TIF area. Identify in the outline those costs you would propose to fund with TIF financing and the proposed payback time frame. TIF assistance will not be needed. 12. In -.one page or less, discuss and document information used to describe the market feasibility of each element of the proposed project If a formal feasibility or comparable str ; ies have been prepared, attach such reports as an appendix to this application. 1. SCI's Riverside portfolio is currently 97.9% leased and over the past year has avereged 97% occupancy. 2. There are no nniu above 14,000 square feet currently vacant in SCI's Riverside portfolio and only one existing lease in the 15,000 tp 90,000 square foot range expires before January 1993. 3. There is a need for more space to accommodate the growth of SCPs Rrrrent customer base. 4. The development is designed to meet the needs of a variety of customers. Sui]ding fi10 (48,000 square feet), designed for smaller bu~c/Iight industrial users, caa be divided down to 9,600 square feet while Building ikl l (88,000 square feet) can accommodate larger bulk user ranging from 24,000 to 88,000 square feet S. The Kansas Ciry ewnomy remains strong with an unemployment rate of 4.0% in the metropolitan area and 2.5% in Platte Counry (Riverside). 13. On the attached TIF Revenue Worksheet estimate the incremental property taxes and economic activity taxes to be venerated by the project. Wd6T:T0 96, r0 1~0 9ib'd i QNI ~tilIdH~ ,llIbil~3S WdLT : TO 96, TO 170 i 4. T'ruvide an cstimatc of the market value of all fixtutcs and equipment to be used by all owners or tenants of the proposed project which will be taxed as personal property. Vot lmown at this time 15. Identify any proposed tenants of the project. Have leases been negotiated or signed? What type of lease is contemplated? Tt:?re have been no leases si,~ed to date 16. W:to will own the developed property? Su.zrity Capital Industrial Trust 17. Br.efly describe the "economic and quality of life" benefits of the proposed project to the C? ~ ~. This project will attract new business to Riverside 18. Attach a letter from a financial instittnion indicating that the applicant has sufficient financial resources to obtain the private financing for the project. See enclosed annual report Wd0Z:i0 96~ "~ 1J0 9iS'd ~ QNI ~H1Idti~ J,lIa(1~35 WdLI:Le 96, t8 1~0 TIF REVENUE wORxSHEET PROJECT SCHEDULE: Preliminary Constriction Start Date: Preliminary Constriction Completion Date: Phasing Anticipated: Date Occupied or Opened: SALES TAX REVENUE: September 23, 1996 May 1, 1997 N/A Estimated Annual Sales $ Total Annual Sales from New Development ... $ PROPERTY TAX REVENUE: Market Value of New Construction Commercial $ 4,080,000 Residential $ -0- Market Value of Land (Based on Optional Prices) $ 420,000 Total Market Value of New Development $ 4,500,000 Commercial Assessed Value -Rate of Market Value .32 Assessed Value of Land and New Constriction (a) $ 1,305,600 Assessed Value of Existing Property (b) $ 134,400 Net Assessed Value for TIF Capture (a-b) $ 1,440,000 Tax Rate Basis Per $ of Assessed Valuation $ 100 Tax Basis (Assessed Value =Tax Rate Basis) $ 1,439,900 Property Tax Rate Per $100 of Assessed Valuation $ 6.05 Annual Property Tax Captured by TlF from New Development $ 87,114 (Tax Basis x Property Tax Rate/$100) f:\61492\00001 \ WRKSHEET.SEC