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July 14, 2015

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Cal Brink, Economic Development Director Brian Pellowski, PBK Investments (overall developer). Eric Miller, Sambatek Introductory Project Background Actions This Evening: Resolution Granting Vacation of a Portion of Peterson Street Resolution Approving Marshall Square Addition Final Plat Consider & Approve Ordinance Amending Chapter 86 of the City Code of Ordinances relating to Planned United Developments Adopt Planned Unit Development (PUD) Agreement Resolution Approving Contract for Private Development Resolution Approving Reimbursement for TIF proceeds HRA Meeting Tonight Adopt Resolution

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Development Site Plan Mall Demolition 65,488 sf (45% of total) Mall Improvements $5.95M 84,070 sf Mall Retail Lots $1.96M 20,700 sf (4 bldgs.) Apartments $7.11M 72 units Hotel $4.28M 56 rooms

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Mall and Retail 50% complete by December 31, 2016 and 100% complete by December 31, 2017. Apartments 25% complete by December 31, 2015 and 100% complete by December 31, 2016. Hotel 25% complete by December 31, 2015 and 100% complete by December 31, 2016. Development Site Plan

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A financing tool Used by local governments Finances qualifying costs of new development or redevelopment Uses the incremental increase in taxes Prequalification findings (complete) 1. Redevelopment District 2. But for TIF the project would not occur 3. Conforms to City comprehensive plan 4. Will afford maximum opportunity for redevelopment by private enterprise

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Industrial: Schwans (numerous), MCP (ADM), Heartland (Turkey Valley Farms), US Bank, Grillworks, Bend Rite, Action Sports, Beverage Wholesalers, Runnings Workforce Housing : Parkway Additions, Dano Addition Apartments (Taylor), Downtowner Apartment (including law office site) Assisted Living : Hill Street Place, Heritage Pointe Commercial Redevelopment: SuperValue, Downtown Block 11, Southwest Sanitation, Prairie Pride/N. Ambulance Facility, Memorial Park, Marshall Hotel (pending) Aviation Business Expansion: Airpark East

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25-Year Max Pay 2015 $5,634,200 $29,156,382 Dollars Used for Project TIF Expenses Pay 2016 $4,910,100

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Minn. Stat. 469.174, subd. 9 Tax Increment Financing (TIF) Market Street Mall TIF established for the purpose of financing redevelopment Tax increment generated in a defined district area Expenses eligible in defined project area Delineated in the TIF plan Approved by the HRA and City

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OAKDALE, MN

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WORTHINGTON, MN Editorial: Mall site offers ample opportunity Feb 5, 2015 at 8:17 a.m. Rather than shake our heads and doubt such a vision, we should all do our part in getting behind it and collaborating where we can as community members to make it come to fruition.

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Max term 25 years. Pay as You Go developer assumes risk/returns. April Max increment revenue $11,463,169 April Estimated max present value TIF $5,776,313

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Final Total Max increment revenue $8,797,827 Final Max present value TIF Note $4,140,837 plus interest at 4% of $3,175,598 City retains 15% administrative & redevelopment cost plus surplus $1,481,392 Initial Request was approximately $5.7M and was reduced to $4.14M based on the financials

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DescriptionCost ($) TIF Revenue Note Principal (Public utilities, site improvements, demo, etc.) $4,140,837 TIF Revenue Note Interest ( Payments @ 4%) $3,175,598 Administrative & Redevelopment Expenses ( 15% plus surplus ) $1,481,392 Total$8,797,827

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Existing site parking demolition, mall structure demolition, reconstruction of north wall. Mall related reconstruction of watermain, sanitary sewer, stormsewer, sidewalks, new parking lot, curb & gutter, security lighting. Mall related electrical and plumbing rework. Current tenant relocation.

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No TIF (privately financed) mall interior remodeling, landscaping, site engineering, and architecture. No TIF (privately financed and separate developer) for apartment construction, site improvements and infrastructure connection lines directly benefitting the property only. No TIF (privately financed and separate developer) for hotel construction, site improvements and infrastructure connection lines directly benefitting the property only.

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DescriptionCosts Mall Redevelopment$12,928,875 Apartments$7,111,500 Hotel$5,676,500 TOTAL$25,716,875* * The proposed tax increment assistance amount of $4,140,837 is approximately 16.1% of the total project budget $25,716,875.

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Approximate Demo Area 65,488 sf (45% building)

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Tonight Resolution Granting Vacation of a Portion of Peterson Street Resolution Approving Marshall Square Addition Final Plat Consider & Approve Ordinance Amending Chapter 86 of the City Code of Ordinances relating to Planned United Development Adopt Planned Unit Development (PUD) Agreement Resolution Approving Contract for Private Development Resolution Approving Reimbursement for TIF proceeds HRA Meeting Tonight Adopt Resolution.

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Cal Brink, Economic Development Director Brian Pellowski, PBK Investments, Inc. (Market Street Mall developer).

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Council Initial Comment and Questions. Public Comment: Approach Podium to Address the Mayor and Council. (Please Refrain From Audience Comments) State Name and Residence Prior to Questions or Comments. Council Continue Discussion. Council Close Public Hearing. Further Discussion and/or action by the City Council After Public Comment Completed.