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HomeMy WebLinkAbout2020_11_10 CC PKTCity Council City of Brookings Meeting Agenda - Final Brookings City Council Brookings City & County Government Center 520 3rd St., Suite 230 Brookings, SD 57006 Phone: (605) 692-6281 Fax: (605) 692-6907 "We are an inclusive, diverse, connected community that fuels the creative class, embraces sustainability and pursues a complete lifestyle. We are committed to building a bright future through dedication, generosity and authenticity. Bring your dreams!" Council Chambers6:00 PMTuesday, November 10, 2020 The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal management. 6:00 PM REGULAR MEETING 1. Call to Order / Pledge of Allegiance. 2. Record of Council Attendance. 3. Consent Agenda: Action: Motion to Approve, Request Public Comment, Roll Call Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time, without discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed from the Consent Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting documentation. 3.A. Action to approve the agenda. 3.B.ID 20-0456 Action to approve the October 27, 2020 City Council minutes. 10/27/2020 MinutesAttachments: 3.C.RES 20-093 Action on Resolution 20-093, a Resolution authorizing the City Manager to sign a Wine Operating Agreement renewal for the Swiftel Center, Tom Richter, Executive Director, 824 32nd Ave., legal description: Blocks 4-5, Wiese Addition. Page 1 City of Brookings November 10, 2020City Council Meeting Agenda - Final Resolution Operating Agreement Attachments: 3.D.RES 20-092 Action on Resolution 20-092, a Resolution authorizing the City Manager to sign a Wine Operating Agreement renewal for Wal-Mart Supercenter #1538, Dennis Tramp, Store Manager, 2233 6th St., legal description: Lot 2, Tract A-Z of Blocks 9-10, Telkamp Addition. Resolution Operating Agreement Attachments: 4. Items removed from Consent Agenda. Action: Motion to Approve, Request Public Comment, Roll Call 5. Open Forum/Presentations/Reports: 5.A. Open Forum. At this time, any member of the public may request time on the agenda for an item not listed. Items are typically scheduled for the end of the meeting; however, very brief announcements or invitations will be allowed at this time. 5.B. SDSU Student Association Report. 5.C.ID 20-0462 3rd Quarter CFO Report. PresentationAttachments: 6. Contracts/Change Orders: 6.A.RES 20-087 Action on Resolution 20-087, a Resolution Awarding Bids on City Crop Land Lease by the Brookings Regional Landfill (120 acres). Memo Resolution Map Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 6.B.RES 20-095 Action on Resolution 20-095, 1 Resolution Awarding Bids on City Crop Land Lease in Wiese and Freeland Additions. Memo Resolution Maps Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 6.C.RES 20-096 Action on Resolution 20-096, a Resolution Awarding Bids for City Hay Land Lease in Section 21-T110N-R50W (West of Brookings Airport). Page 2 City of Brookings November 10, 2020City Council Meeting Agenda - Final Memo Resolution Map Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 6.D.RES 20-097 Action on Resolution 20-097, a Resolution Awarding Bids for City Hay Land Lease in Section 11-T109N-R50W (Main Ave. S. & 32nd St. So.). Memo Resolution Map Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 7. Ordinance First Readings: The title of the Ordinance is read. No vote is required on the first reading of an Ordinance. Public Comment and Council discussion is permitted. The date for the second reading is announced. 7.A.ORD 20-024 Introduction and First Reading on Ordinance 20-024, an Ordinance Authorizing Supplemental Appropriation #6 to the 2020 Budget - Parts 1-3. Second Reading: November 24, 2020. Memo Ordinance Attachments: 8. Public Hearings and Second Readings: 8.A.ORD 20-023 Public Hearing and Action on Ordinance 20-023, an Ordinance Rezoning Lots 8A, 9, 10, 11, 12 & 13 Block 1, Fox Run Addition, from a Residence R-2 Two-Family District, Residence R-1D Single-Family / Residence R-2 Two-Family District, and Residence R-1D Single-Family District to a Residence R-3 Apartment District (Generally located south of 20th Street South and east of Fox Run Trail). Memo Ordinance Notice Planning Commission Minutes Current Zoning Map Future Land Use Map Attachments: Action: Open & Close Public Hearing, Motion to Approve, Roll Call Legislative History 10/27/20 City Council read into the record 9. Other Business: Page 3 City of Brookings November 10, 2020City Council Meeting Agenda - Final 9.A.RES 20-088 Action on Resolution 20-088, a Resolution Approving Special Assessments for Snow Removal and Mowing. Memo Resolution Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 9.B.RES 20-089 Action on Resolution 20-089, a Resolution amending Tax Increment District Number One (#1) Project Plan. Memo Resolution Minutes Project Plan Map Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 9.C.RES 20-090 Action on Resolution 20-090, a Resolution approving Tax Increment District #9 Project Plan. Memo Resolution Minutes Project Plan Map Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 9.D.RES 20-091 Action on Resolution 20-091, a Resolution approving Tax Increment District #10 Project Plan. Memo Resolution Minutes Project Plan Map Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 9.E.RES 20-098 Action on Resolution 20-098, a Resolution budgeting Third Penny Sales Tax Funds for the Brookings Area Chamber Gift Card Give Back Program. Memo Resolution Information Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 9.F.ID 20-0461 Discussion on transitioning to virtual City Council Meetings. Page 4 City of Brookings November 10, 2020City Council Meeting Agenda - Final 10.ID 20-0470 COVID-19 Update. 11. City Council member introduction of topics for future discussion. Any Council Member may request discussion of any issue at a future meeting only. Items cannot be added for action at this meeting. A motion and second is required stating the issue, requested outcome, and time. A majority vote is required. 12. Executive Session 12.A.ID 20-0468 Executive Session, pursuant to SDCL 1-25-2, for discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term, employee, does not include any independent contractor. Action: Motion to enter into Executive Session, Voice Vote Action: Motion to exit Executive Session, Voice Vote 13. Adjourn. Brookings City Council: Keith Corbett, Mayor; Patty Bacon, Deputy Mayor Council Members Leah Brink, Joey Collins, Ope Niemeyer, Holly Tilton Byrne, and Nick Wendell Council Staff: Paul M. Briseno, City Manager Steven Britzman, City Attorney Bonnie Foster, City Clerk View the City Council Meeting Live on the City Government Access Channel 9. Rebroadcast Schedule: Wednesday 1:00pm/Thursday 7:00pm/Friday 9:00pm/Saturday 1:00pm The complete City Council agenda packet is available on the city website: www.cityofbrookings.org Assisted Listening Systems (ALS) are available upon request by contacting (605) 692-6281. If you require additional assistance, alternative formats, and/or accessible locations consistent with the Americans with Disabilities Act, please contact Susan Rotert, City Human Resources Director and ADA Coordinator at (605) 692-6281 at least three working days prior to the meeting. Page 5 City of Brookings City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 20-0456,Version:1 Action to approve the October 27, 2020 City Council minutes. Attachments: 10/27/2020 Minutes City of Brookings Printed on 11/5/2020Page 1 of 1 powered by Legistar™ Brookings City Council October 27, 2020 (unapproved) The Brookings City Council held a meeting on Tuesday, October 27, 2020 at 6:00 PM, at the City & County Government Building Chambers with the following City Council members present: Mayor Keith Corbett and Council Members Holly Tilton Byrne, Leah Brink, Patty Bacon, Joey Collins, Nick Wendell, and Oepke Niemeyer. City Attorney Steve Britzman, City Manager Paul Briseno, and City Clerk Bonnie Foster was also present. 6:00 PM REGULAR MEETING Consent Agenda. A motion was made by Mayor Corbett, seconded by Council Member Wendell, to remove the Executive Session from the agenda. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins. A motion was made by Council Member Niemeyer, seconded by Council member Wendell, to approve the agenda as amended. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins. 3.A. Action to approve the agenda. 3.B. Action to approve the October 13 and October 20, 2020 City Council Minutes. Butler Human Rights Award Presentation. Mayor Corbett presented Dianne Nagy with the 2020 Butler Human Rights Award. SDSU Student Association Report. Zebadiah Johnson, SDSU Students Association Government Affairs Chair, provided an update on SDSU happenings to the City Council and public. Resolution 20-84. A motion was made by Council Member Brink, seconded by Council Member Niemeyer, that Resolution 20-084, a Resolution authorizing Change Order No. 1 for the Bob Shelden Athletic Field Complex Renovation Project, Clark Drew Construction, Inc., be approved. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins. Resolution 20-084 - Resolution Authorizing Change Order No. 1 for the Bob Shelden Athletic Field Complex Renovation Project; Clark Drew Construction, Inc. Be It Resolved by the City Council that the following change order be allowed for the Bob Shelden Athletic Field Complex Renovation Project. Construction Change Order Number 1: Adjustment for contracted soil removal transport, chain link fencing, bullpen slope modification and waterline connection creating an increase of $45,063.74 to the contract. The contingency identified for the Bob Shelden renovation contains $300,000. Resolution 20-085. A motion was made by Council Member Wendell, seconded by Council Member Niemeyer, that Resolution 20-085, a Resolution Approving a Development Agreement between the City of Brookings and Linchpin Corporation for the Development of the Armory Property, be approved. Public Comment: Angie Boersma, President of Linchpin Corporation. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins Resolution 20-085 - A Resolution Approving a Development Agreement between the City of Brookings and Linchpin Corporation, for the Development of the Armory Property in the City of Brookings Whereas, the City of Brookings is the owner of the Armory Building and adjacent parking lot located at 221 Main Avenue; and Whereas, one of the goals of the City of Brookings’ Strategic Plan for Economic Development is to assist new business expansion within the downtown central business district, and particularly to encourage renovation; and Whereas, the City of Brookings selected Linchpin Corporation, a private development company, through a competitive process as the preferred developer of the Armory property; and Whereas, the City of Brookings has negotiated a Development Agreement with Linchpin Corporation to form a public-private partnership to oversee the redevelopment, construction, marketing, recruitment, build-out, and overall development of the Armory property. Now, Therefore, Be It Resolved by the City Council of the City of Brookings, South Dakota that the proposed Development Agreement between the City of Brookings and Linchpin Corporation be approved, together with the terms and conditions included therein, for the comprehensive development of the Brookings Armory property. FIRST READING – Ordinance 20-023. An introduction and first reading was held on Ordinance 20-023, an Ordinance Rezoning Lots 8A, 9, 10, 11, 12 & 13 Block 1, Fox Run Addition, from a Residence R-2 Two-Family District, Residence R-1D Single-Family / Residence R-2 Two-Family District, and Residence R-1D Single-Family District to a Residence R-3 Apartment District (Generally located south of 20th Street South and east of Fox Run Trail). Public Hearing: November 10, 2020. On-Off Sale Malt License. A public hearing was held on a request for an On-Off Sale Malt License for Agua Fresh, Sinan Taskin, owner, for 420 Main Avenue, legal description: Lot 11A, Block 7, Original Plat Addition. A motion was made by Council Member Brink, seconded by Council Member Niemeyer, that the On-Off Sale Malt License be approved. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins. Resolution 20-086. A public hearing was held on Resolution 20 -086, a Resolution authorizing the City Manager to enter into an Operating Agreement for an On -Off Sale Wine License for Agua Fresh, Sinan Taskin, owner, 420 Main Avenue, Brookings, SD, legal description: Lot 11A, Block 7, Original Plat Addition. A motion was made by Council Member Niemeyer, seconded by Council Member Wendell, that Resolution 20- 086 be approved. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins. Resolution 20-086 - On-Off Sale Wine Operating Agreement, Agua Fresh Now, Therefore, Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Management Agreement for Wine between the City of Brookings and Agua Fresh, Sinan Taskin, owner, for the purpose of a manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at 420 Main Avenue: legal description: Block 7, Lot 11A, Original Plat Addition. Now, Therefore, Be It Further Resolved that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of five (5) years and renewal for another five (5) years. Ordinance 20-022. A second reading was held on Ordinance 20-022, an Ordinance Establishing a Public Works Department. A motion was made by Council Member Niemeyer, seconded by Council Member Wendell, that Ordinance 20-022 be approved. The motion carried by the following vote: Yes: 5 - Corbett, Niemeyer, Bacon, Wendell, and Collins; No: 2 - Brink, and Tilton Byrne. Ordinance 20-028. A second reading was held on Ordinance 20-028, an Emergency Ordinance Amending Emergency Ordinance 20-010, as previously amended, to Extend and to Comprehensively Adopt Provisions to Address a Public Health Crisis and to Revise Certain Measures which are Necessary for the Immediate Preservation of the Public Health, Safety and Welfare of the City and are Necessary to Slow the Community Spread of Coronavirus (COVID-19) in the City of Brookings, South Dakota. A motion was made by Council Member Wendell, seconded by Council Member Niemeyer, that Ordinance 20-028 be approved. Public Comment: Jason Merkley, President and Chief Executive Officer for Brookings Health System, Pastor Pete Grassow, and Bradley Walker. The motion carried by the following vote: Yes: 5 - Corbett, Niemeyer, Bacon, Wendell, and Tilton Byrne; No: 2 - Brink, and Collins. COVID-19 Update. City Manager Paul Briseno provided an update on COVID-19 to the City Council and public. Progress Report. Jacob Meshke, Assistant City Manager, provided a progress report highlighting the City’s activities and projects. Adjourn. A motion was made by Council Member Brink, seconded by Council Member Wendell, that this meeting be adjourned at 7:26 p.m. The motion carried by a unanimous vote. CITY OF BROOKINGS __________________________ ATTEST: Keith W. Corbett, Mayor __________________________ Bonnie Foster, City Clerk City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 20-093,Version:1 Action on Resolution 20-093, a Resolution authorizing the City Manager to sign a Wine Operating Agreement renewal for the Swiftel Center, Tom Richter, Executive Director, 824 32nd Ave., legal description: Blocks 4-5, Wiese Addition. Summary: The City of Brookings enters into Wine Operating Agreements for a 10-year period with a renewal at five years. This Resolution would allow the City Manager to enter into a 10-year agreement, with a mid-term renewal held in five (5) years. Recommendation: Staff recommends approval. Attachments: Resolution Operating Agreement City of Brookings Printed on 11/5/2020Page 1 of 1 powered by Legistar™ Resolution 20-093 Wine Operating Agreement - renewal Swiftel Center Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Renewal for the Wine Operating Management Agreement between the City of Brookings and the Swiftel Center, Tom Richter, Executive Director, for the purpose of a manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at 824 32nd Ave., legal description: Blocks 4-5, Wiese Addition. Now, Therefore, Be It Further Resolved that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of ten (10) years , with a renewal in five (5) years. Passed and approved this 10th day of November, 2020. CITY OF BROOKINGS Keith W. Corbett, Mayor ATTEST: Bonnie Foster, City Clerk WINE OPERATING AGREEMENT - renewal Swiftel Center THIS AGREEMENT made and entered into by and between the CITY OF BROOKINGS, a municipal corporation of the State of South Dakota, hereinafter referred to as the “City” and the Swiftel Center, Tom Richter, Executive Director, hereinafter referred to as “Manager.” The City and Manager are referred to as the “parties” herein. WITNESSETH; WHEREAS, the City has been issued an on-sale alcoholic beverage license and is engaged in the sale of alcoholic beverages, and WHEREAS, the City desires to enter into an Operating Agreement on a limited basis with the Manager for the purpose of operating an on-sale establishment or business for and on behalf of the City pursuant to law, and WHEREAS, the Manager has offered to have facilities in which to operate said on-sale establishment solely upon the premises hereinafter described. NOW, THEREFORE IT IS MUTUALLY AGREED AS FOLLOWS: I. This Agreement is made and entered into on a limited basis between the parties to allow the Manager to operate a retail on-sale premises, pursuant to and in accordance with all of the terms and conditions of this Agreement and in accordance with all State laws and City Ordinances now in effect and as may be enacted in the future. II. The Manager shall be individually responsible for all operating expenses of said on -sale establishment, including but not limited to utilities, taxes, insurance, and license fees, if any. The Manager shall furnish all equipment and fixtures necessary to operate t he establishment. III. The on-sale establishment shall be located upon real estate in the City of Brookings, South Dakota, described as: Blocks 4-5, Wiese Addition. IV. The Manager shall dispense only alcoholic beverages supplied by the Municipal off-sale establishment. V. This Agreement shall be in full force and effect for a period of five (5) years, with the Manager having the option and privilege of a five (5) year extension, subject to the approval of the governing body of the City of Brookings. VI. Either the Manager or the City may terminate this Agreement without cause upon ninety (90) days written notice served by either party upon the other. The City reserves the right to immediately suspend or revoke this Agreement without ninety (90) days written notice for alcohol related violations in accordance with the provisions of Resolution No. 25-88 or any amendments thereto or for any late payments for alcoholic beverages supplied by the Municipal off-sale establishment to be sold on the premises of Manager. VII. The Manager shall receive as full compensation for its services rendered, the net profit from the on-sale establishment under its management, and the sole profit to be derived by the City shall be the markup hereinafter set forth on alcoholic beverages furnished by the municipality to the Manager for the purposes of resale on the premises as above described. VIII. The Manager shall pay in a timely manner to the City for all alcoholic beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of distilled spirits and wine supplied by the City, plus eleven percent (11%) in excess of such cost; the Manager shall pay to the City for all malt beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of malt beverages, plus ten percent (10%) in excess of such cost. The actual cost shall include cost price and transportation charges. The markup percentages provided in this Agreement are subject to change by the City of Brookings. In the event markup percentages are changed by Ordinance, then the markup percentages provided by City Ordinance shall supercede the markup percentages provided herein. The Manager further agrees that if either of the markup percentages shall be increased at any time by the City, the Manager shall pay the markup as so increased. IX. A complete and detailed record shall be maintained by the City of all alcoholic beverages supplied to the on-sale Manager and such alcoholic beverages so supplied shall be evidenced by pre-numbered invoices prepared in triplicate showing the date, quality, brand, size, and actual cost of such item, and such invoice shall bear the signature of the authorized representative of the on -sale Manager or its authorized representative. One copy thereof shall be retained by the Municipal off -sale establishment, one copy shall be retained by the on-sale establishment, and one copy shall be filed with the City Clerk. All copies shall be kept as permanent records and made available for reference and audit purposes. The Manager also agrees to maintain a complete record of all alcoholic beverages received from the City. X. In consideration of the covenants herein contained, the Manager agrees to pay the CITY OF BROOKINGS, One Thousand Five Hundred, and no/100 Dollars ($1,500.00), constituting the Annual License Fee on or by the 1st day of November of each year thereafter as long as this agreement shall remain in force and effect. The payment of the Annual Renewal License Fee will not extend the term of this Operating Agreement beyond the term provided therein. The Manager further agrees that if the annual fee shall be increased at any time by the legislature, the Manager shall pay the amount of any such increase. XI. The Manager agrees to keep the premises in a neat, clean and attractive appearance, and Manager further agrees to operate said on-sale establishment only on such days and at such hours as permitted by state law and city ordinances. XII. The Manager shall have the right to return, at any time, alcoholic beverages received from the City which are eligible to be returned, and to receive in return any deposit made for such alcoholic beverages; in the event of termination of the business, all unused alcoholic beverages, which may be resold without discount may be returned to the City and the Manager shall be reimbursed for the of such alcoholic beverages. XIII. The Manager agrees to abide by the credit policies of the City and acknowledges, by execution of this Agreement, receipt of a copy of the credit policies of the City. The City reserves the right to change or terminate its credit policies at any time, but shall be required to provide written notice to Manager prior to the effective date of the change or termination date of the credit policies. XIV. The Manager agrees to furnish the City upon demand, evidence of payment of the following: A. All salaries of on-sale employees; B. Social Security and withholding taxes on said employees; C. Worker’s Compensation insurance premiums covering said employees; D. Unemployment taxes on the payrolls of said employees; E. General liability insurance protecting both the City and the Manager against claims for injury or damages to persons or property, said policy to have general liability limits of at least Five Hundred Thousand Dollars ($500,000.00) single limit, and One Million Dollars ($1,000,000.00) aggregate, and a limitation of Fifty Thousand Dollars ($50,000.00) for damage to property. The general liability insurance limits are subject to change and Manager agrees to change limits of insurance if required by the City; F. Rent and utility bills; and G. Any and all miscellaneous expenses, including taxes. XV. The Manager agrees to observe all Federal and State laws and ordinances of t he City of Brookings. XVI. The City covenants and agrees to furnish the on -sale license to Manager pursuant to the terms and conditions of this Operating Agreement and the terms and conditions of the on-sale license. XVII. The City has the right to make inspections and investigations of the premises during the hours of operation, and make audits and examinations of the records of the Manager relating to the on-sale establishment. XVIII. It is further specifically understood and agreed that the waiver of the rights of the City under this Agreement shall not constitute a continuous waiver, and any violation or breach of the terms of this Agreement by the Manager shall constitute a separate and distinct offense and grounds for immediate termination and revoc ation of this Agreement. XIX. This agreement shall not be assignable to another person or location without the written consent of the City. IN WITNESS WHEREOF, the parties hereto have executed this Agreement which is effective this 10th day of November, 2020. CITY OF BROOKINGS, South Dakota A Municipal Corporation By: ATTEST: Paul Briseno, City Manager Bonnie Foster, City Clerk MANAGER By: By: City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 20-092,Version:1 Action on Resolution 20-092, a Resolution authorizing the City Manager to sign a Wine Operating Agreement renewal for Wal-Mart Supercenter #1538, Dennis Tramp, Store Manager, 2233 6th St., legal description: Lot 2, Tract A-Z of Blocks 9-10, Telkamp Addition. Summary: The City of Brookings enters into Wine Operating Agreements for a 10-year period with a renewal at five years. This Resolution would allow the City Manager to enter into a 10-year agreement, with a mid-term renewal held in five (5) years. Recommendation: Staff recommends approval. Attachments: Resolution Operating Agreement City of Brookings Printed on 11/5/2020Page 1 of 1 powered by Legistar™ Resolution 20-092 Wine Operating Agreement - renewal Wal-Mart Supercenter #1538 Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Renewal for the Wine Operating Management Agreement between the City of Brookings and Wal-Mart Supercenter #1538, Dennis Tramp, Store Manager, for the purpose of a manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at 2233 6th St., legal description: Lot 2, Tract A-Z of Blocks 9-10, Telkamp Addition. Now, Therefore, Be It Further Resolved that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of ten (10) years , with a renewal in five (5) years. Passed and approved this 10th day of November, 2020. CITY OF BROOKINGS Keith W. Corbett, Mayor ATTEST: Bonnie Foster, City Clerk WINE OPERATING AGREEMENT - renewal Wal-Mart Supercenter #1538 THIS AGREEMENT made and entered into by and between the CITY OF BROOKINGS, a municipal corporation of the State of South Dakota, hereinafter referred to as the “City” and Wal-Mart Supercenter #1538, Dennis Tramp, Store Manager, hereinafter referred to as “Manager.” The City and Manager are referred to as the “parties” herein. WITNESSETH; WHEREAS, the City has been issued an on-sale alcoholic beverage license and is engaged in the sale of alcoholic beverages, and WHEREAS, the City desires to enter into an Operating Agreement on a limited basis with the Manager for the purpose of operating an on-sale establishment or business for and on behalf of the City pursuant to law, and WHEREAS, the Manager has offered to have facilities in which to operate said on-sale establishment solely upon the premises hereinafter described. NOW, THEREFORE IT IS MUTUALLY AGREED AS FOLLOWS: I. This Agreement is made and entered into on a limited basis between the parties to allow the Manager to operate a retail on-sale premises, pursuant to and in accordance with all of the terms and conditions of this Agreement and in accordance with all State laws and City Ordinances now in effect and as may be enacted in the futu re. II. The Manager shall be individually responsible for all operating expenses of said on -sale establishment, including but not limited to utilities, taxes, insurance, and license fees, if any. The Manager shall furnish all equipment and fixtures necessary to operate the establishment. III. The on-sale establishment shall be located upon real estate in the City of Brookings, South Dakota, described as: Lot 2, Tract A-Z of Blocks 9-10, Telkamp Addition. IV. The Manager shall dispense only alcoholic beverages supplied by the Municipal off-sale establishment. V. This Agreement shall be in full force and effect for a period of five (5) years, with the Manager having the option and privilege of a five (5) year extension, subject to the approval of the governing body of the City of Brookings. VI. Either the Manager or the City may terminate this Agreement without cause upon ninety (90) days written notice served by either party upon the other. The City reserves the right to immediately suspend or revoke this Agreement without ninety (90) days written notice for alcohol related violations in accordance with the provisions of Resolution No. 25-88 or any amendments thereto or for any late payments for alcoholic beverages supplied by the Municipal off-sale establishment to be sold on the premises of Manager. VII. The Manager shall receive as full compensation for its services rendered, the net profit from the on-sale establishment under its management, and the sole profit to be derived by the City shall be the markup hereinafter set forth on alcoholic beverages furnished by the municipality to the Manager for the purposes of resale on the premises as above described. VIII. The Manager shall pay in a timely manner to the City for all alcoholic beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of distilled spirits and wine supplied by the City, plus eleven percent (11%) in excess of such cost; the Manager shall pay to the City for all malt beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of malt beverages, plus ten percent (10%) in excess of such cost. The actual cost shall include cost price and transportation charges. The markup percentages provided in thi s Agreement are subject to change by the City of Brookings. In the event markup percentages are changed by Ordinance, then the markup percentages provided by City Ordinance shall supercede the markup percentages provided herein. The Manager further agrees that if either of the markup percentages shall be increased at any time by the City, the Manager shall pay the markup as so increased. IX. A complete and detailed record shall be maintained by the City of all alcoholic beverages supplied to the on-sale Manager and such alcoholic beverages so supplied shall be evidenced by pre-numbered invoices prepared in triplicate showing the date, quality, brand, size, and actual cost of such item, and such invoice shall bear the signature of the authorized representative of the on-sale Manager or its authorized representative. One copy thereof shall be retained by the Municipal off -sale establishment, one copy shall be retained by the on-sale establishment, and one copy shall be filed with the City Clerk. All copies shall be kept as permanent records and made available for reference and audit purposes. The Manager also agrees to maintain a complete record of all alcoholic beverages received from the City. X. In consideration of the covenants herein contained, the Manager agrees to pay the CITY OF BROOKINGS, One Thousand Five Hundred, and no/100 Dollars ($1,500.00), constituting the Annual License Fee on or by the 1st day of November of each year thereafter as long as this agreement shall remain in force and effect. The payment of the Annual Renewal License Fee will not extend the term of this Operating Agreement beyond the term provided therein. The Manager further agrees that if the annual fee shall be increased at any time by the legislature, the Manager shall pay the amount of any such increase. XI. The Manager agrees to keep the premises in a neat, clean and attractive appearance, and Manager further agrees to operate said on-sale establishment only on such days and at such hours as permitted by state law and city ordinances. XII. The Manager shall have the right to return, at any time, alcoholic beverages received from the City which are eligible to be returned, and to receive in return any deposit made for such alcoholic beverages; in the event of termination of the business, all unused alcoholic beverages, which may be resold without discount may be returned to the City and the Manager shall be reimbursed for the of such alcoholic beverages. XIII. The Manager agrees to abide by the credit policies of the City and acknowledges, by execution of this Agreement, receipt of a copy of the credit policies of the City. The City reserves the right to change or terminate its credit policies at any time, but shall be required to provide written notice to Manager prior to the effective date of the change or termination date of the credit policies. XIV. The Manager agrees to furnish the City upon demand, evidence of payment of the following: A. All salaries of on-sale employees; B. Social Security and withholding taxes on said employees; C. Worker’s Compensation insurance premiums covering said employees; D. Unemployment taxes on the payrolls of said employees; E. General liability insurance protecting both the City and the Manager against claims for injury or damages to persons or property, said policy to have general liability limits of at least Five Hundred Thousand Dollars ($500,000.00) single limit, and One Million Dollars ($1,000,000.00) aggregate, and a limitation of Fifty Thousand Dollars ($50,000.00) for damage to property. The general liability insurance limits are subject to change and Manager agrees to change limits of insurance if required by the City; F. Rent and utility bills; and G. Any and all miscellaneous expenses, including taxes. XV. The Manager agrees to observe all Federal and State laws and ordinances of the City of Brookings. XVI. The City covenants and agrees to furnish the on -sale license to Manager pursuant to the terms and conditions of this Operating Agreement and the terms and conditions of the on-sale license. XVII. The City has the right to make inspections and investigations of the premises during the hours of operation, and make audits and examinations of the records of the Manager relating to the on-sale establishment. XVIII. It is further specifically understood and agreed that the waiver of the rights of the City under this Agreement shall not constitute a continuous waiver, and any violation or breach of the terms of this Agreement by the Manager shall constitute a separate and distinct offense and grounds for immediate termination and revocation of this Agreement. XIX. This agreement shall not be assignable to another person or location without the written consent of the City. IN WITNESS WHEREOF, the parties hereto have executed this Agreement which i s effective this 10th day of November, 2020. CITY OF BROOKINGS, South Dakota A Municipal Corporation By: ATTEST: Paul Briseno, City Manager Bonnie Foster, City Clerk MANAGER By: By: City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 20-0462,Version:1 3rd Quarter CFO Report. Summary: Chief Financial Officer, Erick Rangel, will present the 3rd Quarter Financial Report to the City Council and members of the public Attachments: 3rd Quarter Financial Report City of Brookings Printed on 11/5/2020Page 1 of 1 powered by Legistar™ CFO’s Report 3rd Quarter 2020 City of Brookings REVENUES FY2020 B Prorated YTD 2020 B 2020 YTD A Δ $ F/(U)Δ% Sales Tax: 1st Penny $7,038,785 $5,300,968 $5,343,677 $42,709 0.8% 2nd Penny $7,015,766 $5,283,826 $5,326,201 $42,375 0.8% 3rd Penny $935,000 $703,703 $613,146 ($90,557)(12.9%) BID (Pillow Tax)$245,000 $180,800 $151,718 ($29,082)(16.1%) Total $15,234,551 $11,469,297 $11,434,742 ($34,556)(0.3%) Property Tax:$3,266,500 $1,772,644 $1,787,012 $14,368 0.8% Grand Total $18,501,051 $13,241,942 $13,221,754 ($20,188)(0.2%) 2 2020 Jan –Sep Tax Revenue Revenue Tax Collected vs LY vs Budget (0.4%) Year to date, total sales tax revenue collected is (0.4%) lower than last year and (0.3%) below budget ─Sales tax collected includes a $144K settlement received for the 2014-17 period ─When taking out this settlement to understand true economic activity, tax revenue was (1.6%) lower than last year and below budget A Actuals Δ Variance B Budget 2020 Tax Revenue & Other Income Note-proration of tax revenue is based on average monthly historical timing of collections (0.3%) $%$% 1Q (39,063)(1.0%)(72,626)(1.9%) 2Q (304,378)(8.2%)(57,230)(1.7%) 3Q 157,233 4.0%(49,598)(1.2%) Adjusted Year over Year Vs Budget 3 2020 Jan –Sep Tax Revenue by Quarter Tax collections show a recovery from second quarter’s contraction (-8.2%) due to COVID Third quarter was +4.0% higher than the previous year or $157K driven mostly by the construction, wholesale trade and retail trade industries Although the hospitality industry has materially improved in the last couple of months, it was still negative (-4%)on a quarterly basis : eating places +1%,drinking places (-4%) and Hotels (-22%) Adjusted figures exclude June’s $144K settlement in Q2 $%$% 1Q (39,063)(1.0%)(72,626)(1.9%) 2Q (159,480)(4.3%)87,668 2.5% 3Q 157,233 4.0%(49,598)(1.2%) Year over Year Vs BudgetCollected -10.3%-5.1%17.8%-12.6%10.3%-8.1%-53.1%-13.3%14.3%JULY AUG SEP Eating Places Drinking Places Hotels General Fund 4 2020 Jan –Sep Budget vs Actuals Total General Fund expense was at 61.7% of total annual budget, which represents a $2.6M surplus compared to a straight line prorated budget ─A large part of this surplus is attributed to city department’s efforts to reduce their expenses to meet COVID expected revenue decline ─Other drivers are vacancies and closing of recreational facilities during the summer Total revenues are up mainly driven by $1.7M in COVID reimbursed expense from the State program ─This helped offset ~$400K in department generated revenue declines A Actuals Δ Variance B Budget Note-proration of expenses and revenues in this slide are based on a monthly straight -line average EXPENDITURES:FY2020 B Prorated YTD 2020 B 2020YTD A Δ $ (F)/U % Used Δ Revenue $ F/(U) Net Surplus/ (Deficit) Mayor & Council $116,059 $87,044 $52,196 ($34,848)45.0%$0 $34,848 City Clerk $159,737 $119,803 $100,693 ($19,110)63.0%$7,107 $26,217 City Manager $605,658 $454,244 $385,628 ($68,615)63.7%$0 $68,615 City Attorney $122,000 $91,500 $133,599 $42,099 109.5%$8,104 ($33,995) Human Resources $395,642 $296,732 $246,415 ($50,317)62.3%$461 $50,777 Finance $566,375 $424,781 $411,028 ($13,753)72.6%($5,330)$8,423 IT $280,215 $210,161 $160,131 ($50,030)57.1%$0 $50,030 Government Buildings $136,566 $102,425 $97,041 ($5,384)71.1%$0 $5,384 Community Development $614,905 $461,179 $421,851 ($39,328)68.6%($149)$39,179 Engineering $523,656 $392,742 $331,498 ($61,244)63.3%($5,706)$55,538 County Reimbursement $384,026 $288,020 $176,385 ($111,634)45.9%($12,848)$98,786 Police Department $3,941,160 $2,955,870 $2,732,172 ($223,698)69.3%($77,359)$146,340 Fire Department $829,640 $622,230 $537,305 ($84,925)64.8%$31,399 $116,324 Hydrant Rental $100,000 $75,000 $65,933 ($9,067)65.9%$0 $9,067 Street Department $2,507,517 $1,880,637 $1,674,101 ($206,536)66.8%$56,514 $263,050 Animal Control $173,467 $130,100 $90,484 ($39,617)52.2%$4,013 $43,630 Dakota Nature Park $56,093 $42,070 $26,116 ($15,954)46.6%($15,800)$154 Aquatic Center $338,035 $253,526 $25,145 ($228,381)7.4%($137,835)$90,546 Recreation Department $434,299 $325,724 $237,927 ($87,797)54.8%($65,373)$22,425 Parks Department $1,519,042 $1,139,282 $1,073,214 ($66,068)70.7%($7,244)$58,824 Ice Arena $582,345 $436,759 $204,015 ($232,743)35.0%($78,610)$154,133 Forestry $410,886 $308,165 $273,691 ($34,473)66.6%$4,562 $39,036 Library $1,161,342 $871,007 $693,808 ($177,199)59.7%($7,266)$169,933 Subsidies/Appropriation $1,261,462 $946,097 $825,434 ($120,663)65.4%$10,046 $130,709 Non Departamental $2,425,855 $1,819,391 $1,146,528 ($672,863)47.3%$1,772,158 $2,445,021 Total $19,645,982 $14,734,487 $12,122,338 ($2,612,149)61.7%$1,480,844 $4,092,993 5 Jan –Sep 2020 Budget vs Actuals Capital Improvement Projects & Other * All Other –Other Government , Special, Capital Projects and Enterprise Funds managed by the City. Overall capital project expense is at 24.2% of budget or a $4.9M surplus driven by the following: ─$1.4M COVID reductions of non critical projects, most of them will be carried forward to next year ─$2.2M of debt payments scheduled for November All other expense is at 61.1% of budget A Actuals Δ Variance B Budget Note-proration of expenses and revenues in this slide are based on a monthly straight -line average EXPENDITURES:FY2019 B Prorated YTD 2019 B 2019YTD A Δ $ (F)/U % Used CIP $9,819,563 $7,364,672 $2,434,892 ($4,929,780)24.8% All Other*$28,543,117 $21,407,338 $17,427,034 ($3,980,304)61.1% Grand Total $58,008,662 $43,506,497 $31,984,264 ($11,522,233)55.1% 6 2020 Jan-Sep Swiftel Center Profit and Loss Summary Swiftel Center YTD, the Center is performing $134K ahead the original budget. This is largely due to the PPP loan/grant, July cattle shows, disinfecting city facilities and expense reductions The cattle shows and other events in July amounted to $310K in revenue during a pandemic. A typical July is approximately $70K in revenue YTD event revenues are down by 34% and expenses are down by 20%. Lost revenue for the year is estimated at $1.3M However, all things equal, the Center is projecting a balanced budget for this year With this goal, we were forced to implement several cost reduction initiatives which include: salary rollbacks and furloughed 2 FTEs as well as froze 2 FTE open positions. In addition, Starting Q4, we will have a rolling furlough with the remaining FTEs ─Due to this, all current employees’ workload and responsibilities have materially increased to continue operating and executing scheduled events ─Also, the Center will be closed to the public the weeks of November 23-29, and December 21-31 We are currently re-evaluating our 2021 business plan due to the uncertainty of the COVID-19 pandemic. YTD Actual YTD Budget Actual vs Budget F/(U) Yr/Yr Actual F/(U) Annual Budget 146,175 191,114 (44,939)(16,320)228,813 133,475 146,000 (12,525)(13,979)190,625 245,028 374,206 (129,178)(68,582)531,227 256,886 0 256,886 256,386 0 249,755 504,335 (254,580)(448,155)757,872 362,722 422,179 (59,457)244,452 519,349 54,184 118,302 (64,118)(89,146)205,656 14,348 653 13,695 12,970 870 1,462,575 1,756,789 (294,214)(122,375)2,434,412 (196,419)(251,498)55,079 16,336 (346,641) (551,595)(672,516)120,921 65,462 (896,688) (18,983)(18,240)(743)(7,373)(24,120) (186,917)(252,508)65,591 63,904 (362,437) (243,861)(292,833)48,972 18,199 (391,115) (26,650)(61,077)34,427 10,111 (76,629) (185,359)(250,227)64,868 67,782 (335,611) (93,575)(115,389)21,814 16,247 (158,602) (197,775)(206,854)9,079 (15,170)(306,121) (12,446)(21,380)8,934 10,767 (27,360) (1,713,581)(2,142,522)428,941 246,265 (2,925,324) (251,006)(385,733)134,727 123,890 (490,912) Revenue Reimbursed Event Expenses SBA Loans Building Rent Income Contractually Obligated Income Other Income Revenue Total: Expense Other Event Income Food & Beverage Income - Concessions Food & Beverage Income - Catering Services & Operations Expense Event Expense General & Administrative Expense Occupancy Expense Cost of Goods Sold Personnel Expense - Part-Time Event Personnel Expense - Taxes, Benefits & Fees Personnel Expense - Full-Time Personnel Expense - Part-Time Support Net Income: Food & Beverage Expense Expense Total: 7 2020 Third Quarter Economic Outlook According to First Midwest Wealth Management, after a record recessionary decline (-31.7%) in the second quarter, the U.S. economy is expected to show a record improvement (+25%) in the third quarter, with continued recovery (+5%) estimated in the fourth quarter1 Additionally, The Midwest Economy Index (MEI), which approximates quarterly growth at a monthly frequency, rose to +4.3 in September from +1.55 in August2 Looking further ahead, The Conference Board3 currently has three recovery scenarios for the U.S. Economy: 1First Midwest Wealth Management 3Q Market Outlook 2Federal Reserve Bank of Chicago 3https://www.conference-board.org/research/us-forecast21 GDP Scenario 4Q 2020 Full Year 2020 GDP Full Year 2021 GDP Main Assumptions Upside -2.9%+7.1%-Growth momentum seen between May and August is sustained for the remainder of the year -U.S. monthly economic output recovers completely to pre-pandemic levels by Jan 2021 Base +1.5%-3.5%+3.4%Consumer spending was the largest driver of growth over the summer, but is expected to stall as high levels of unemployment and elevated savings rates damage spending later in the year Downside -6.0%-2.6% -US economy contracts at the end of 2020 before stabilizing in early 2021 -The recovery seen earlier this year falters due to: a large resurgence in COVID-19 cases, no additional government stimulus until at least Q1 2021, delays in the Coronavirus vaccine, and a contested US presidential election that damages consumer and business confidence. 8 2020 Key Funds Forecast Given recent macro and local economic factors, the city updated its 2020 annual tax revenue guidance as follows: •1st and 2nd Penny = (8%) contraction –General and CIP Funds •3B “Tourism” = (25%) contraction from (40%) •BID “Hotel” = (40%) contraction from (60%) City staff also estimated all other expected revenues (i.e. service fees, interest income); these estimates do not include COVID CARES Act relief funds As a result, the General and CIP funds are estimated to end the year at a $683K and $1.5M surplus respectively. This guidance is subject to economic conditions performing as planned City staff has re-activated key projects and initiatives that were originally cut that can be completed by end of year; other key initiatives will be carried forward to next year funded by current surplus 3B and BID funds are estimated to end at a ($52K) and ($48K) deficits; potential use of reserves might be needed to offset 3rd Quarter City COVID-19 Financial Response Plan Estimated Approved Budget Forecast Approved Budget Forecast Reserves/CF Net F/(U) General Fund 26,195,982$ 24,581,465$ 23,674,065$ 22,850,053$ 2,414,917$ $683,505 CIP Fund 9,819,563$ 7,804,524$ 8,859,882$ 8,321,651$ 1,000,556$ $1,517,683 3B 1,055,000$ 907,409$ 1,008,000$ 815,362$ 40,000$ ($52,046) BID 245,500$ 208,793$ 500,500$ 160,595$ -$ ($48,198) Fund Expense Income 9 COVID Relief Fund Progress Report Overall capital project expense is at 24.2% of budget or a $4.9M surplus driven by the following: ─$1.4M COVID reductions of non critical projects ─$2.2M of debt payments scheduled for November All other expense is at 61.1% of budget The City is estimating to recover $3.5M of the total allocation, this includes relief for BMU and the Hospital 10 City Council Priority Project List * Note-Excludes Larson Ice Arena and Bob Sheldon upgrade projects as they are financed with the $7.1M 2019A Series Bond **$1,204,998 funded with Economic Development Reserves per G&E Policy General Fund Reserves Secondary Projects 2019 EOY Unassigned Liquid Assets Balance 8,203,402$ 2020 15% General Fund Reserve Balance (-)2,543,974$ 2020 5% GF Budget Stabilization (-)847,991$ City Council Priority Funding Available Balance 4,811,437$ Secondary Projects FD Training Tower 370,000$ Public Safety Center TBD 2023 Facility Improvements 1,442,050$ 2024 Facility Improvements 1,756,957$ 2025 Facility Improvements 2,318,312$ Parks - Bike Trails 3,460,000$ Pay Down Debt TBD Total Unapproved Secondary Projects 9,347,319$ Cost Indoor Rec 850,000$ Food Bank 300,000$ Interchange** - CC action taken 795,002$ Parks Master Plan - CC action taken 100,000$ Total CC Approved Projects 2,045,002$ City Council Approved Projects Priority Funding Available Balance After Approved 2,766,435$ Primary Projects Cost 2020 Facility Improvements 121,900$ 2021 Facility Improvements 1,400,000$ 2022 Facility Improvements 1,100,000$ Downtown Master Plan 35,000$ Total Unapproved Primary Projects 2,656,900$ Priority Funding after Unapproved Primary Projects 109,535$ 11 Questions or Comments? Erick Rangel CFO 605-697-8640 erangel@cityofbrookings.org https://cityofbrookings.org/200/Finance-Department Please contact the City of Brooking’s Chief Financial Officer : 12 Appendix 13 City Council Priority Project List –Facility Improvements Detail 2020 Facility Improvements -$122k Library boiler -$107k Ice Arena radiant heat unit -$15k 2021 Facility Improvements -$1.4M Library Repairs (HVAC, Cabinet Heater, Doors, Juice Bar Cabinet Removal and Wall Repair) -$765k Police Emergency Repairs (HVAC) -$200k Larson Park Parking Lot -$175k Larson Ice Arena (HVAC, Flooring) -$100k Southbrook Restrooms -$100k Activity Center (Windows, Fire System –ADA Compliance) -$50k HAC Pool Heater -$38k 2022 Facility Improvements -$1.1M Library (Air Chiller, Windows, Ceiling Tiles) -$525k PD (Carpeting, Electrical Upgrade, Lighting (may be reduced)) -$210k Activity Center (Electrical Upgrades) -$145k Fire (East Station Remodel, Lighting (may go away with LED conversion energy savings project )) -$110k Swiftel (Doors, Restroom Upgrades), Nature Park (Resealing Building), Airport (Shed Doors/Frames ) -$110k City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 20-087,Version:1 Action on Resolution 20-087, a Resolution Awarding Bids on City Crop Land Lease by the Brookings Regional Landfill (120 acres). Summary: This resolution will award the bid for Landfill Farmland rent in the amount of $227.00 per acres to James Meyer. Background: Brookings Regional Landfill has 120 acres of farmland located on the north side of the landfill. The land lease is up on December 31, 2020. The land was last bid in 2016. The lease will be for a period of (5) five years, commencing on January 1, 2021 and ending on December 31, 2025. Annual rent payment will be due on April 1st of each year. Recommendation: Staff recommends approval. Attachments: Memo Resolution Map City of Brookings Printed on 11/5/2020Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Todd Langland, Director of Solid Waste Council Meeting: November 10, 2020 Subject: Landfill Farmland Bid Award Person(s) Responsible: Todd Langland, Director of Solid Waste Summary: This resolution will award the bid for Landfill Farmland rent in the amount of $227.00 per acres to James Meyer. This is a very favorable lease when compared to the previous year. Staff recommends approval. Background: Brookings Regional Landfill has 120 acres of farmland located on the north side of the landfill. The land lease is up on December 31, 2020. The land was last bid in 2016. When viewing the attached map, you we see the Flying Club has six (6) acres of non- farmable land that encompasses a drainage way. This is a separate lease from the 120 acres of farmland. The lease will be for a period of (5) five years, commencing on January 1, 2021 and ending on December 31, 2025. Annual rent payment will be due on April 1 st of each year. Item Details: The bid letting for the land rent was held on Tuesday, October 27, 2020 and the City received the following bids: James Meyer $227.00/per acre David Rochel $218.00/per acre Tim & Dan Bauer $167.50/per acre LNJ Farms $135.00/per acre James Meyer submitted the highest bid of $227.00 per acre, the previous lease rate was $211.00 per acre from 2016 through 2020 crop years. The bid prices exceeded staff expectations due to the COVID-19, changes in the farm economy and based on the estimated local cash rent report. Legal Consideration: Contract for lease has been reviewed and approved by City Attorney Britzman. Financial Consideration: The City will receive $27,240.00 in revenue in 2021 through 2025. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Refer to a Study Session 5. Do nothing Staff recommends approval of the resolution as presented. Supporting Documentation: Resolution Map Resolution 20-087 Resolution Awarding Bids on Crop Land Lease at the Brookings Regional Landfill (120 acres) Whereas, the City of Brookings opened bids for approximately 120 acres of Landfill Farm Land Lease for the City-owned parcel located in Section 8-T110N-R49W located north of the Brookings Regional Landfill on Tuesday, October 27, 2020 at 1:30 PM at the Brookings City & County Government Center; and Whereas, the City of Brookings has received the following bids for Landfill Farm Land Lease: James Meyer, White, SD $ 227.00/acre, David Rochel, Elkton, SD $ 218.00/acre, Tim and Dan Bauer Elkton, SD - $167.50/acre and LNJ Farms Aurora, SD $ 135.00/acre The lease will be for a period of (5) five years, commencing on January 1, 2021 and ending on December 31, 2025. Annual rent payment will be due on April 1st of each year. If a portion of the farm land is used for Solid Waste activities, the number of acres to be paid for will be adjusted at the bid price of $227.00 per acre. Now Therefore, Be It Resolved that the high bid of James Meyer, White, SD for $227.00 per acre be accepted. Passed and approved this 10th day of November, 2020. CITY OF BROOKINGS ________________________________ Keith W. Corbett, Mayor ATTEST: _________________________ Bonnie Foster, City Clerk 3 0 T H S T30TH S T 46TH AVE2 0 9 T H S T209TH ST 474TH AVE474TH AVE474TH AVE2 1 0 T H S T City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 20-095,Version:1 Action on Resolution 20-095, 1 Resolution Awarding Bids on City Crop Land Lease in Wiese and Freeland Additions. Summary: This resolution will award bids for the 2021 City Crop Lease in the Freeland and Wiese Additions to Lyle Bothe for the high bid of $170.00 per acre. Background: The City owns 10 acres of property available for a crop land lease in Freeland Addition and 30 acres in the Wiese Addition. The crop land lease will be a one-year lease for 2021, renewable for one additional year in 2022. A bid letting was held at 1:30 on Tuesday, November 3, 2020, and the following bids were received: Lyle Bothe $170.00 per acre Tim and Dan Bauer $157.50 per acre Following approval of this resolution to award the bids, the City will hold a public hearing with intent to lease to a private person at the November 24, 2020 City Council meeting. Recommendation: Staff recommends approval. Attachments: Memo Resolution Map City of Brookings Printed on 11/5/2020Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Jackie Lanning, City Engineer Council Meeting: November 10, 2020 Subject: Awarding Bids on City Crop Lease in Wiese Addition and Freeland Addition Person(s) Responsible: Jackie Lanning, City Engineer Summary: This resolution will award bids for the 2021 City Crop Lease located in the Wiese Addition and Freeland Addition to Lyle Bothe for the high bid of $170.00 per acre. Background: The City is leasing approximately 10 acres of crop land in the Freeland Addition and 30 acres of crop land in the Freeland Addition as shown on the attached map. The City Crop Lease will be for 2021 with an option to renew for one additional one year for 2022. The lease terms are shorter for these parcels since they are in t he industrial park and marketed for sale. Item Details: A bid letting was held at 1:30 on Tuesday, November 3, 2020, and the following bids were received: Lyle Bothe $170.00 per acre Tim and Dan Bauer $157.50 per acre Following approval of this resolution to award the bids, the City will hold a public hearing with intent to lease to a private person at the November 24, 2020 City Council meeting. Legal Consideration: None. Strategic Plan Consideration: The crop lease furthers the strategic initiative of financial responsibility, whereby the City receives revenue from the lease. The person providing the crop lease also provides weed control, thereby saving City staff and expenses for the weed control operations. Financial Consideration: The City will enter into a one-year contract for 2021 with Lyle Bothe for the high bid of $170.00 per acre for 40 acres resulting in the annual payment of $6,800.00. The contract may be renewed for one additional terms for 2022. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move the item to a work session 5. Do nothing Staff recommends approval of the resolution as presented. Supporting Documentation: Resolution Map Resolution 20-095 Resolution Awarding Bids on City Crop Land Lease in Wiese and Freeland Additions Whereas, the City of Brookings opened bids for approximately 40 acres of City Crop Lease for City-owned parcels located in Wiese Addition and Freeland Additions on Tuesday, November 3, 2020 at 1:30 PM at the Brookings City & County Government Center; and Whereas, the City of Brookings has received the following bids for City Crop Lease: Lyle Bothe - $170.00 per acre; Tim & Dan Bauer - $157.50; and Whereas, the crop lease will be a one-year lease for 2021, renewable for one additional year in 2022. Now, Therefore, Be It Resolved that the high bid of Lyle Bothe for $170.00 per acre be accepted. Passed and approved this 10th day of November, 2020. CITY OF BROOKINGS ________________________________ Keith W. Corbett, Mayor ATTEST: _________________________ Bonnie Foster, City Clerk I 29I 29US HWY 14 BYPRAMP 32ND AVERAMPBlock 10 Freeland Addn. 10 Acres +/- Freeland Addition Land Lease Map I 29RAMP6TH ST LEFEVRE DRI 2932ND AVE6TH STRAMP CAPITAL ST Block 9, Wiese Addition 30 Acres +/- Wiese Addition Land Lease Map City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 20-096,Version:1 Action on Resolution 20-096, a Resolution Awarding Bids for City Hay Land Lease in Section 21- T110N-R50W (West of Brookings Airport). Summary: A bid letting was held at 1:30 on Tuesday, November 3, 2020, and the following bids were received: Lyle Bothe $111.00 per acre Lyle Johnson $85.00 per acre Tim and Dan Bauer $51.00 per acre This resolution will award bids for the 2021-2022 City Hay Lease located in Section 21-T110N-R50W to Lyle Bothe for the high bid of $111.00 per acre with an option to renew for two additional one year terms for 2023 and 2024. Following approval of this resolution to award the bids, the City will hold a public hearing with intent to lease to a private person at the November 24, 2020 City Council meeting. Recommendation: Staff recommends approval. Attachments: Memo Resolution Map City of Brookings Printed on 11/5/2020Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Jackie Lanning, City Engineer Council Meeting: November 10, 2020 Subject: Awarding Bids on Hay Lease in Section 21-T110N-R50W (west of Brookings Airport) Person(s) Responsible: Jackie Lanning, City Engineer Summary: This resolution will award bids for the 2021-2022 City Hay Lease located in Section 21- T110N-R50W to Lyle Bothe for the high bid of $111.00 per acre. Background: The City owns an 85-acre parcel of property located in Section 21-T110N-R50W, which is west of the Brookings Regional Airport. The City has bid the hay lease for this parcel approximately every two years. This year, the hay lease was bid for a period of two years, 2021 and 2022, with an option to renew for two additional one year terms for 2023 and 2024, if agreeable to the City and the bidder. Item Details: A bid letting was held at 1:30 on Tuesday, November 3, 2020, and the following bids were received: Lyle Bothe $111.00 per acre Lyle Johnson $85.00 per acre Tim and Dan Bauer $51.00 per acre Following approval of this resolution to award the bids, the City will hold a public hearing with intent to lease to a private person at the November 24, 2020 City Council meeting. Legal Consideration: None. Strategic Plan Consideration: The hay lease furthers the strategic initiative of financial responsibility, whereby the City receives revenue from the lease. The person providing the hay removal also provides weed control, thereby saving City staff and expenses for the weed control operations. Financial Consideration: The City will enter into a two-year contract for 2021 and 2022 with Lyle Bothe for the high bid of $111.00 per acre for 85 acres resulting in the annual payment of $9,435.00. The contract may be renewed for two additional, one year terms, for 2023 and 2024. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move the item to a work session 5. Do nothing Staff recommends approval of the resolution as presented. Supporting Documentation: Resolution Map Resolution 20-96 Resolution Awarding Bids on City Hay Land Lease in Section 21-T110N-R50W (West of Brookings Airport) Whereas, the City of Brookings opened bids for approximately 85 acres of City Hay Land for the City-owned parcel located in Section 21-T110-R50W on Tuesday, November 3, 2020 at 1:30 PM at the Brookings City & County Government Center; and Whereas, the City of Brookings has received the following bids for City Hay Lease: Lyle Bothe - $111.00 per acre; Lyle Johnson - $85.00 per acre and Tim & Dan Bauer - $51.00 per acre; and Whereas, the hay lease will be a two-year lease for 2021 and 2022, renewable for two additional, one year terms for 2023 and 2024. Now, Therefore, Be It Resolved that the high bid of $111.00 per acre from Lyle Bothe be accepted. Passed and approved this 10th day of November, 2020. CITY OF BROOKINGS ________________________________ Keith W. Corbett, Mayor ATTEST: _________________________ Bonnie Foster, City Clerk W 16 T H A V E 10TH ST WW 2 8 T H A V EW 28TH AV E W 6TH STW 6TH ST212TH ST City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 20-097,Version:1 Action on Resolution 20-097, a Resolution Awarding Bids for City Hay Land Lease in Section 11- T109N-R50W (Main Ave. S. & 32nd St. So.). Summary: A bid letting was held at 1:30 on Tuesday, November 3, 2020, and the following bids were received: Lyle Bothe $52.50 per acre Tim and Dan Bauer $40.00 per acre Lyle Johnson $35.00 per acre This resolution will award bids for the 2021-2022 City Hay Lease located in Section 11-T109N-R50W to Lyle Bothe for the high bid of $52.50 per acre with an option to renew for two additional, one year terms for 2023 and 2024. Following approval of this resolution to award the bids, the City will hold a public hearing with intent to lease to a private person at the November 24, 2020 City Council meeting. Recommendation: Staff recommends approval. Attachments: Memo Resolution Map City of Brookings Printed on 11/5/2020Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Jackie Lanning, City Engineer Council Meeting: November 10, 2020 Subject: Awarding Bids on Hay Lease in Section 11-T109N-R50W (Main Ave. S. & 32nd St. So.) Person(s) Responsible: Jackie Lanning, City Engineer Summary: This resolution will award bids for the 2021-2022 City Hay Lease located in Section 11- T109N-R50W to Lyle Bothe for the high bid of $52.50 per acre. Background: The City owns a parcel in the Northeast ¼ of Section 11-T109N-R50W, which is located south of 32nd Street South and east of Main Avenue South as shown on the attached map. The City has bid the hay lease for this parcel approximately every two years. This year, the hay lease was bid for a period of two years, 2021 and 2022, with an option to renew for two additional one year terms for 2023 and 2024, if agreeable to the City and the bidder. Item Details: A bid letting was held at 1:30 on Tuesday, November 3, 2020, and the following bids were received: Lyle Bothe $52.50 per acre Tim and Dan Bauer $40.00 per acre Lyle Johnson $35.00 per acre Following approval of this resolution to award the bids, the City will hold a public hearing with intent to lease to a private person at the November 24, 2020 City Council meeting. Legal Consideration: None. Strategic Plan Consideration: The hay lease furthers the strategic initiative of financial responsibility, whereby the City receives revenue from the lease. The person providing the hay removal also provides weed control, thereby saving City staff and expenses for the weed control operations. Financial Consideration: The City will enter into a two-year contract for 2021 and 2022 with Lyle Bothe for the high bid of $52.50 per acre for 18 acres resulting in the annual payment of $945.00. The contract may be renewed for two additional, one year terms, for 2023 and 2024. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move the item to a work session 5. Do nothing Staff recommends approval of the resolution as presented. Supporting Documentation: Resolution Map Resolution 20-97 Resolution Awarding Bids on City Hay Land Lease in Section 11-T109N-R50W (32nd Street South and Main Avenue South) Whereas, the City of Brookings opened bids for a two-year lease of approximately 18 acres of City Hay Land in Section 11-T109N-R50W , southeast of 32nd Street South and Main Avenue South, on Tuesday, November 3, 2020 at 1:30 PM at the Brookings City & County Government Center; and Whereas, the City of Brookings has received the following bids for City Hay Lease: Lyle Bothe - $52.50 per acre, Tim & Dan Bauer - $40.00/acre and Lyle Johnson - $35.00/acre; and Whereas, the hay lease will be a two-year lease for 2021 and 2022, renewable for two additional, one year terms for 2023 and 2024. Now, Therefore, Be It Resolved that the high bid from Lyle Bothe for $52.50 per acre be accepted. Passed and approved this 10th day of November, 2020. CITY OF BROOKINGS ________________________________ Keith W. Corbett, Mayor ATTEST: _________________________ Bonnie Foster, City Clerk 36TH ST S MAPLE DR 32ND S T S 3 2 ND S T S 35 TH ST S MAIN AVE SMAIN AVE S City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ORD 20-024,Version:1 Introduction and First Reading on Ordinance 20-024, an Ordinance Authorizing Supplemental Appropriation #6 to the 2020 Budget - Parts 1-3. Second Reading: November 24, 2020. Staff is requesting the authorization of three budget adjustments. Part 1 will utilize a FEMA grant to for equipment and alternative projects. The amendment will increase the Engineering Department $26,000.00 for the purchase of a drone as well as FEMA- approved alternative projects. FEMA provides 85% of the costs and the City is responsible for the remaining 15%. Part 2 will increase the Library Department by $100,000.00 for a boiler. This was a top priority replacement identified in the 2019 Facility Condition Assessment. The City Council Priority Project Fund (CCPPF) as identified last year as the appropriate funding source. Rather than transferring the full budgeted amount staff will bring forward amendments for actual amounts. Part 3 will increase the Non Departmental Expenditure budget for miscellaneous expenditures related to COVID-19 and reimbursed by the South Dakota Local Government COVID Recovery fund. General Fund Revenues increase as reimbursements are received, offsetting the increase in expenditures. Recommendation: Staff recommends approval. Attachments: Memo Ordinance City of Brookings Printed on 11/5/2020Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Ashley Rentsch, Deputy Finance Manager Council Meeting: November 10, 2020 / November 24, 2020 Subject: Ordinance Authorizing Supplemental Appropriation #6 to the 2020 Budget – Parts 1-3 Person(s) Responsible: Erick Rangel, Chief Financial Officer; Ashley Rentsch, Deputy Finance Manager; Jackie Lanning, City Engineer; Mike Struck, Community Development Manager Summary: Part 1 will utilize a FEMA grant to for equipment and alternative projects. The amendment will increase the Engineering Department Furniture & Equipment Expense budget in the amount of $26,000.00 for the purchase of a drone in the amount of $15,279.99 to be used for pre-disaster inspections and post-disaster reconnaissance of areas difficult to inspect on foot or open areas in the floodplain. The remainder will be spent on other FEMA-approved alternative projects. Under the terms of the FEMA grant, 85% of the costs will be paid by the grant, and the City will be responsible for the remaining 15%. The City’s portion will be funded by the City Manager’s Contingency account. Part 2 will increase the Library Department Capital Expenditure budget in the Public Improvements fund by $100,000.00 for the purchase and installation of a boiler. This was a top priority replacement identified in the 2019 Facility Condition Assessment. As part of the budget staff identified City Council Priority Project Fund (CCPPF) as the funding source. Rather than transferring the full budgeted amount staff will bring forward amendments for actual amounts. Part 3 will increase the Non Departmental Expenditure budget for miscellaneous expenditures related to COVID-19 and reimbursed by the South Dakota Local Government COVID Recovery fund. General Fund Revenues increase as reimbursements are received, offsetting the increase in expenditures. Background: Part 1 The City was awarded a grant from FEMA in the amount of $25,785.55 to address underground damage. Due to a change in scope based on the extent of the damage, the actual project cost was $4,379.43, leaving $21,406.12 to fund 85% of costs incurred for approved alternative projects. Staff obtained authorization from FEMA to spend the funds on alternate projects. One of the authorized alternate projects was the purchase of a drone to use for inspection and reconnaissance of hard-to-reach areas and open areas of the floodplain. Under the terms of the grant, the City is responsible for 15% of the cost associated with alternative projects, meaning the City must incur $25,183.68 in costs to use up the remain ing grant funds of $21,406.12. Part 2 The 2019 Facility Condition Assessment identified the boiler at the Library as a top priority replacement need. Community Development staff secured a proposal in the amount of $95,166 from Johnson Controls, Inc. to complete this replacement before the end of 2020. Part 3 The City of Brookings was allocated $5,519,641 from the South Dakota Local Government COVID Recovery Fund. These funds are disbursed to the City on a reimbursement basis for approved payroll and ope rating expenditures. The COVID-19- related operating expenditures are being tracked in a designated account in Non Departmental Expenditures. To date, the City of Brookings has been authorized $2,350,574.67 in reimbursements for public safety payroll and operating expenditures. Item Details: Part 1 The City of Brookings recently purchased a Phantom 4 RTK + D-RTK 2 Mobile Station Combo (drone) and accessories in the amount of $15,279.99. This purchase was made following authorization from FEMA as an approved alternative project to utilize excess funding available after a previously approved project was completed and final costs were below the amount initially reimbursed to the City by FEMA. Under the terms of the grant, FEMA funds will reimburse 85% of these project costs, and the City is responsible for the remaining 15%. This means FEMA funding covered $12,988.00 the drone, and the City’s portion was $2,291.99. Engineering Department staff is identifying other FEMA-approved alternative projects to utilize the remaining $9,903.69 in funding. Part 2 Community Development staff determined that it was not practicable to utilize competitive sealed bids for the Library boiler due to the additional cost of bid documents and available time to complete the work prior to heating season. Proposals were requested from three vendors. Johnson Controls, Inc. provided the lowest proposed price of $95,166. Tessier’s, Inc. submitted a proposal for $106,960, and Midwest Mechanical did not submit a proposal. Staff is currently working with Johnson Controls, Inc. to complete this replacement before the end of 2020. Part 3 The City of Brookings is authorized to submit COVID-19 related expenses to the State of South Dakota to reimbursed by the South Dakota Local Government COVID Recovery Fund. This includes full payroll costs for public safety employees, as well as various operating expenses incurred due to the pandemic. At this point, the City has been reimbursed for $2,135,856.37 in payroll expenses and $214,718.30 in operating expenses, to include reimbursements for Brookings municipal Utilities and Brookings Health System. The City’s COVID-related operating expenses are being tracked in a designated account as a Non Departmental expense. Reimbursements may be claimed for expenses incurred between March 1, 2020 and December 30, 2020. The City anticipates approximately $500,000.00 in operating expenses to be incurred during the reimbursement period and must increase the budget to account for these expenses. These expenses are offset by the receipt of reimbursements from the State of South Dakota. Legal Consideration: None. Strategic Plan Consideration: None. Financial Consideration: This Ordinance allows the City of Brookings to take advantage of excess FEMA grant funding to purchase a drone, authorizes the City to make a necessary boiler replacement at the Library, and grants spending authority to the City for reimbursable expenses incurred due to the COVID-19 Pandemic. Part 1 authorizes a transfer of $4,593.88 from the City Manager’s Contingency account, with the remainder offset by grant revenue received. Part 2 increases 2020 capital expenditures by $100,000 for a necessary improvement funded by the CCPPF. Part 3 has essentially zero effect on the budget, as incurred expenses are offset by reimbursement revenue received. A majority of this amendment capitalizes on funds available from alternative sources. The utilization of these funds further extends Brookings existing resources. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Deny 3. Amend 4. Move the item to a work session 5. Do nothing Staff recommends approval of the ordinance as presented. Supporting Documentation: Memo Ordinance Ordinance 20-024 An ordinance Authorizing Supplemental Appropriation No. 6 to the 2020 Budget Be It Ordained by the City of Brookings, South Dakota: Whereas State Law (SDCL 9-21-7) and the City Charter (4.06 (a)) permit supplemental appropriations provided there are sufficient funds and revenues available to pay the appropriation when it becomes due. Now, Therefore, Be It Resolved by the City Council that the City Manager be authorized to make the following budget adjustments to the 2020 budget: Part 1 – Increase Engineering Department Expenditure budget for purchase of drone. 419 Engineering Department 101-419-5-920-00 – Furniture & Equipment $26,000.00 Total Appropriations $26,000.00 The Financing Source for this transfer is from the following account: 101-419-4-334-00 – Grants - Federal $21,406.12 101-405-5-856-99 – Contingency Fund $4,593.88 $26,000.00 Part 2 – Increase Library Department Capital Expenditure budget for purchase and installation of boiler. 213 Public Improvements Fund 213-000-5-940-09 Library Dep. Capital Exp. $100,000.00 Total Appropriations $100,000.00 The Financing Source for this transfer is from the following account: 213-000-6-700-07 Transfer in General Fund $100,000.00 101 General Fund 101-000-7-899-05 Transfer Out (CCPPF) $100,000.00 Total Appropriations $100,000.00 The Financing Source for this transfer is from the following account: Unassigned Fund Balance $100,000.00 Part 3 – Increase Non Departmental Expenditure Budget for COVID -19 Expenses. 405 Non Departmental 101-405-5-429-00 Miscellaneous Exp. COV-19 $500,000.00 Total Appropriations $500,000.00 The Financing Source for this transfer is from the following account: 101-000-4-334-01 CRF Reimbursements $500,000.00 All ordinances or parts of Ordinances in conflict herewith are hereby repealed. First Reading: November 10, 2020 Second Reading: November 24, 2020 Published: CITY OF BROOKINGS Keith W. Corbett, Mayor ATTEST: Bonnie Foster, City Clerk City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ORD 20-023,Version:2 Public Hearing and Action on Ordinance 20-023, an Ordinance Rezoning Lots 8A, 9, 10, 11, 12 & 13 Block 1, Fox Run Addition, from a Residence R-2 Two-Family District, Residence R-1D Single- Family / Residence R-2 Two-Family District, and Residence R-1D Single-Family District to a Residence R-3 Apartment District (Generally located south of 20th Street South and east of Fox Run Trail). Summary: The applicant is seeking approval of a rezoning request of 6 residential lots to R-3 Apartment District. Background: The property is located south of 20th Street South and east of Fox Run Trail. The rezoning request is to clear up a split zoning on one residential lot and rezoning the adjacent 5 residential lots to create consistency with setbacks. The zoning of the area was established when the property was contained in larger tracts of land. As the subdivision process ensued with the layout of lots, Lot 11 laid out across two zoning districts. The adjacent residential lots are zoned R-1D and R-2. The applicant would like to rezone all 6 residential lots to a R-3 Apartment District to create the same setbacks on each parcel. The Comprehensive Plan shows the future land use of this area as Medium to High Density Residential and the R-3 District is an appropriate zoning district. The lots meets the requirements of the Residence R-3 Apartment District regulations. The property is bordered by R-1B zoning to the north across 20th Street South, R-3 to the east, R-3 and R-1C to the west, and R-2 to the south. The requested R-3 District is appropriate for a medium or high density residential development. Recommendation: The Planning Commission voted 6 - 0 recommending approval of the rezoning proposal. The Development Review Team (DRT) and staff recommend approval of the rezoning request. Attachments: Memo Ordinance Notice Planning Commission Minutes Current Zoning Map Future Land Use Map City of Brookings Printed on 11/5/2020Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Mike Struck, Community Development Director Meeting: October 27, 2020 / November 10, 2020 Subject: Rezoning Request for Lots 8A, 9, 10, 11, 12, & 13, Block 1, Fox Run Addition, from Residence R-1D Single-Family District, Residence R-1D Single-Family / Residence R-2 Two-Family District, Residence R-2 Two-Family District to a Residence R-3 Apartment District (Generally located south of 20th Street South and east of Fox Run Trail) Person(s) Responsible: Mike Struck, Community Development Director Summary: The applicant is seeking approval of a rezoning request of 6 residential lots in the Fox Run Addition to a R-3 Apartment District. Background: The property is located south of 20th Street South and east of Fox Run Trail. The rezoning request is to clear up a split zoning on one residential lot and rezoning the adjacent 5 residential lots to create consistency with setbacks. The zoning of the area was established when the property was contained in larger tracts of land. As the subdivision process ensued with the layout of lots, Lot 11 laid out across two zoning districts. The adjacent residential lots are zoned R-1D and R-2. The applicant would like to rezone all 6 residential lots to a R -3 Apartment District to create the same setbacks on each parcel. The Comprehensive Plan shows the future land use of this area as Medium to High Density Residential and the R-3 District is an appropriate zoning district. The lots meet the requirements of the Residence R-3 Apartment District regulations. The property is bordered by R-1B zoning to the north across 20th Street South, R-3 to the east, R-3 and R-1C to the west, and R-2 to the south. The requested R-3 District is appropriate for a medium or high density residential development. Item Details: The rezoning amendment will create a consistent zoning along the east side of Fox Run Trail and will create uniformity with the front yard setbacks along this street frontage. Legal Consideration: None Strategic Plan Consideration: The proposed rezoning is consistent with the Comprehensive Plan ’s Future Land Use Map, which identifies this area as Medium to High Density Residential. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Approve as amended 3. Deny 4. Move the item to a work session 5. Do nothing The Planning Commission voted 6 – 0 recommending approval of the rezoning. The Development Review Team (DRT) and staff recommend approval of the rezoning. Supporting Documentation: Ordinance Notice Planning Commission Minutes Current Zoning Map Future Land Use Map Ordinance 20-023 An Ordinance to Change the Zoning Within the City Of Brookings Be It Ordained by the City of Brookings, South Dakota: Section 1. That the real estate situated in the City of Brookings, County of Brookings, State of South Dakota, described as follows, to-wit: Lot s 8A - 13, Block 1, Fox Run Addition (south of 20th Street South and east of Fox Run Trail) from Residence R-1D Single-Family/Residence R-2 Two-Family District and Residence R-2 Two-Family District to Residence R-3 Apartment District In accordance with Section 94-7 of Article I of the Code of Ordinances of Brookings, South Dakota, as said districts are more fully set forth and described in Articles III and IV, Chapter 94 of the City of Brookings, South Dakota. Section 2. The permitted use of the property heretofore described be and the same is hereby altered and changed in accordance herewith pursuant to Articles III and IV, Chapter 94 of the City of Brookings, South Dakota. Section 3. All sections and ordinances in conflict herewith are hereby repealed. First Reading October 27, 2020 Second Reading and Adoption November 10, 2020 Published November 13, 2020 CITY OF BROOKINGS, SD ________________________ Keith W. Corbett, Mayor ATTEST: _________________________ Bonnie Foster, City Clerk If you require assistance, alternative formats and/or accessible locations consistent with the Americans with Disabilities Act, please contact the City ADA Coordinator at 692-6281 at least 48 hours prior to the meeting. Published ______ time(s) at an approximate cost of $ _____________. NOTICE OF HEARING UPON PETITION TO REZONE NOTICE IS HEREBY GIVEN That Anita Thomas submitted a petition to rezone the following described real estate in the City of Brookings and Brookings County, South Dakota: Lots 8A, 9, 10, 11, 12, and 13, Block 1, Fox Run Addition in City of Brookings, Brookings County, South Dakota from Residence R-1D Single- Family/Residence R-2 Two-Family District and Residence R-2 Two-Family District to Residence R-3 Apartment District (Generally located South of 20th Street South and east of Fox Run Trail) NOTICE IS FURTHER GIVEN That said request will be acted on by the City Council at 6:00 PM on November 10, 2020, in the Chambers Room on the third floor of the Brookings City & County Government Center at 520 Third Street, Brookings, South Dakota. Any person interested may appear and be heard in this matter. Dated this 30th day of October, 2020. Bonnie Foster City Clerk Planning Commission Brookings, South Dakota October 6, 2020 OFFICIAL MINUTES Chairperson Tanner Aiken called the meeting of the City Planning Commission to order on Tuesday October 6, 2020, at 5:30 PM in the Council Chambers Room #310 on the third floor of the City & County Government Center. Members present were Ashley Biggar, James Drew, Greg Fargen, Gregg Jorgenson, Jacob Mills, Lee Ann Pierce, and Aiken. Absent were Jason Meusburger and Eric Rasmussen. Also present were Community Development Director Mike Struck, City Engineer Jackie Lanning, Deborah Steichen owner of RFP Beneficiaries, Joanne Anderson, David Kneip, Kyle Rausch, Ron Borchardt, and Paul Moriarty. Drew recused himself. Item #4b – Anita Thomas submitted a petition to rezone Lots 8A, 9, 10, 11, 12, and 13, Block 1, Fox Run Addition in City of Brookings, Brookings County, South Dakota from a Residence R-2 Two-Family District, Residence R-1D Single-Family/Residence R-2 Two-Family District, and Residence R-1D Single-Family District to a Residence R-3 Apartment District (Generally located south of 20th Street South and east of Fox Run Trail). (Fargen/Mills) Motion to approve the rezone request. All present voted aye. MOTION CARRIED. Summary of Discussion: Item #4b – This rezone request is for 6 lots in the Fox Run Addition. The use will remain as a twinhome development. The R-3 District has a 20 foot setback. The Comprehensive Plan has this area designated as medium or high density area. Drew representing the applicant, explained that they do plan to continue with the twinhome development and the 20 foot setback in the R-3 District is more suitable for the development. Mills is concerned with the 20 foot front yard setback and then with a sidewalk is this do-able. Struck explained that the 20 foot setback is pretty minimal, but can be done. Oversized vehicle could have issues with being parked over the sidewalk. Struck also explained that setbacks are minimums and the developers can use a larger setback. City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 20-088,Version:1 Action on Resolution 20-088, a Resolution Approving Special Assessments for Snow Removal and Mowing. Summary: Five property owners in the City of Brookings have outstanding invoices for mowing and snow removal services that were performed to bring properties into compliance with City ordinance. The City intends to collect payment on these outstanding invoices by including them on the annual special assessment roll to be applied to the property owner’s property taxes. Background: The City of Brookings sends invoices to property owners for snow removal and mowing when properties are out of compliance with City ordinance and City employees are required to perform the services. Outstanding invoices at the end of each year can be included on the annual special assessment roll to be applied to the property owner’s property taxes in accordance with SDCL 9-32- 12. Fiscal Impact: This Resolution will support the City’s efforts to collect payment on outstanding invoices for services rendered to bring properties into compliance with City ordinance. Recommendation: Staff recommends approval of the resolution as presented. Attachments: Memo Resolution City of Brookings Printed on 11/5/2020Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Ashley Rentsch, Deputy Finance Manager Council Meeting: November 10, 2020 Subject: Resolution approving special assessments for snow removal and mowing Person(s) Responsible: Erick Rangel, Chief Financial Officer; Ashley Rentsch, Deputy Finance Manager Summary: Five property owners in the City of Brookings have outstanding invoices for mowing and snow removal services that were performed to bring properties into complia nce with City ordinance. The City intends to collect payment on these outstanding invoices by including them on the annual special assessment roll to be applied to the property owner’s property taxes. Background: The City of Brookings sends invoices to property owners for snow removal and mowing when properties are out of compliance with City ordinance and City employees are required to perform the services. Outstanding invoices at the end of each year can be included on the annual special assessment roll to be applied to the property owner’s property taxes in accordance with SDCL 9-32-12. Item Details: There are currently six property owners in the City of Brookings with outstanding invoices totaling $2,620 for snow removal and mowing. These invoices will be added to the annual special assessment roll which is sent to the Brookings County Auditor to facilitate collection through property tax billed in 2021. Legal Consideration: None. Financial Consideration: This Resolution will support the City’s efforts to collect payment on outstanding invoices for services rendered to bring properties into compliance with City ordinance. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Deny 3. Amend 4. Move the item to a study session 5. Do nothing Staff recommends approval of the resolution as presented. Supporting Documentation: Memo Resolution Resolution 20-088 Resolution Approving Special Assessments for Snow Removal and Mowing Whereas, the City Manager has submitted to the City Council Special Assessments against the owner and legal description listed below as herein after set out for weed removal and snow removal fees; Be It Resolved by the City Council of the City of Brookings, South Dakota, these fees be assessed, in accordance with South Dakota Codified Law 9-32-12 as follows: Passed and approved this 10th day of November, 2020 CITY OF BROOKINGS _________________________ Keith W. Corbett, Mayor ATTEST: ____________________________ Bonnie Foster, City Clerk Celink 723 Main Ave. Mowing $195.00 Jacob Clement 725 9th Street Snow Removal $300.00 Hennen Properties 1342 4th St. / 321 4th St. Snow Removal $295.00 Katherine & John Holland 1646 15th St. S./ 1504 17th Ave. So. Snow Removal $690.00 David Knudsen 914 2nd St. Mowing/Snow Removal $1,140.00 City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 20-089,Version:1 Action on Resolution 20-089, a Resolution amending Tax Increment District Number One (#1) Project Plan. Summary: The City is proposing an amendment to Tax Increment District #1 Project Plan to allow for utilization of the project costs funds for public improvements within the district boundaries as well as extending the duration of the tax increment district to twenty (20) years. Background: Tax Increment District #1 was created in May, 2007 for the infrastructure associated with developing a 125-acre research park. As part of the creation of a tax increment district, a project plan is required to address items such as the eligible project costs, district boundaries, economic feasibility and more. The Project Plan for Tax Increment District #1 established total project costs of $4,399,000 for infrastructure improvements. The City fronted the costs of the infrastructure improvements and to date a total of $2,484,727.60 has been expended. The City is proposing to utilize the remaining $1.9 million in project costs for street improvements on 25th Avenue and 10th Street, two streets within the Tax Increment District #1 boundaries as well as future mill and overlay of streets as needed within the research park. An amendment to the Project Plan for Tax Increment District #1 is proposed. The procedure for amending a project plan is provided in SDCL 11-9-18. 11-9-18. Amendment to project plan - Procedure. The planning commission may at any time adopt an amendment to a project plan which shall be subject to approval by the governing body in the same manner as an initial project plan. State law allows tax increment districts to be established for a specified period of time, however, in no instance shall it extend beyond twenty (20) years. Tax Increment District #1 was established as a fifteen (15) year district within the project plan. Recommendation: The Planning Commission voted 8-0 recommending approval of the Tax Increment District Number One Project Plan amendment. The Development Review Team (DRT) recommends approval of the amendment to Tax Increment District #1 Project Plan. Attachments: Memo Resolution City of Brookings Printed on 11/5/2020Page 1 of 2 powered by Legistar™ File #:RES 20-089,Version:1 Minutes Project Plan Map City of Brookings Printed on 11/5/2020Page 2 of 2 powered by Legistar™ City Council Agenda Memo From: Mike Struck, Community Development Director Council Meeting: November 10, 2020 Subject: Tax Increment District #1 Project Plan Amendment Person(s) Responsible: Mike Struck, Community Development Director Summary: The City is proposing an amendment to Tax Increment District #1 Project Plan to allow for utilization of the project costs funds for public improvements within the district boundaries as well as extending the duration of the tax increment district to twenty (20) years. Background: Tax Increment District #1 was created in May, 2007 for the infrastructure associated with developing a 125-acre research park. As part of the creation of a tax increment district, a project plan is required to address items such as the eligible project costs, district boundaries, economic feasibility and more. The Project Plan for Tax Increment District #1 established total project costs of $4,399,000 for infrastructure improvements. The City fronted the costs of the infrastructure improvements and to date a total of $2,484,727.60 has been expended. The City is proposing to utilize the remaining $1.9 million in project costs for street improvements on 25th Avenue and 10th Street, two streets within the Tax Increment District #1 boundaries as well as future mil and overlay of streets as needed within the research park. An amendment to the Project Plan for Tax Increment District #1 is proposed. The procedure for amending a project plan is provided in SDCL 11-9-18. 11-9-18. Amendment to project plan – Procedure. The planning commission may at any time adopt an amendment to a project plan which shall be subject to approval by the governing body in the same manner as an initial project plan. State law allows tax increment districts to be established for a specified period of time, however, in no instance shall it extend beyond twenty (20) years. Tax Increment District #1 was established as a fifteen (15) year district within the project plan. Discussion: The City is proposing an amendment to the Tax Increment District #1 Project Plan. The proposed amendments would extend the duration of Tax Increment District #1 from fifteen (15) years to twenty (20) years as well as expand the project costs to include public improvements within the district not specified in the original Project Plan. Legal Consideration: None. Financial Consideration: TIF #1 has $1,914,272.40 available for eligible project costs. These funds would assist with capital needs and augment the needed revenues from the second penny sales tax. Strategic Plan Consideration: Tax Increment Financing District #1 supports the economic devel opment goal of the City by providing public streets improvements which aid if retail development at Wilbert Square and business opportunities in the Research Park. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Approve as amended 3. Deny 4. Move the item to a work session 5. Do nothing The Planning Commission voted 8 – 0 recommending approval of the Tax Increment District #1 Project Plan amendment. The Development Review Team (DRT) recommends approval of the amendment to Tax Increment District #1 Project Plan. Supporting Documentation: Memo Resolution Minutes Project Plan Map Resolution 20-089 Resolution Amending Tax Increment District Plan Number One (#1) Whereas, the Planning Commission pursuant to SDCL § 11-9-18 has passed an amendment to the project plan of Tax Increment District Number One; and Whereas, Tax Increment District Number One has $1,914,272.40 of Project Costs (the “Remaining Project Costs”) yet to be spent; and Whereas, the duration of Tax Increment District Number One is twenty (20) years pursuant to SDCL § 11-9-25; and Whereas, pursuant to SDCL § 11-9-18, the City Council is required to approve any amendment to the initial project plan. Now, Therefore, Be It Resolved by the City Council of the City of Brookings, South Dakota, that Tax Increment District Number One initial Project Plan be amended to reflect that the duration of Tax Increment District Number One shall be twenty (20) years and the Remaining Project Costs shall be incurred and paid for 10,000 linear feet of infrastructure prior to the expiration of the Tax Increment District Number One. Passed and Approved this 10th day of November, 2020. CITY OF BROOKINGS ___________________________ Keith W. Corbett, Mayor ATTEST: ___________________________________ Bonnie Foster, City Clerk Planning Commission Brookings, South Dakota November 2, 2020 OFFICIAL MINUTES Chairperson Tanner Aiken called the meeting of the City Planning Commission to order on Monday November 2, 2020, at 5:30 PM in the Council Chambers Room #310 on the third floor of the City & County Government Center. Members present were Ashley Biggar, Eric Rasmussen, Greg Fargen, Gregg Jorgenson, Jason Meusburger, Jacob Mills, Lee Ann Pierce, and Aiken. Also present were Community Development Director Mike Struck and City Planner Ryan Miller. Item #4a – The City of Brookings has proposed an amendment to Tax Increment District #1 Project Plan to allow for utilization of the project costs funds for public improvements within the district boundaries as well as extending the duration of the tax imcrement district to twenty (20) years. (Rasmussen/Jorgenson) Motion to approve the amendments to Tax Increment District #1. All present voted aye. MOTION CARRIED. OFFICIAL SUMMARY Item #4a – This district was created in 2007 for infrastructure associated with developing a 125 acre research park. The original project plan included up to $4,399,000.00. To date there has been $2,484,727.60 expended. The City is proposing to utilize the remaining $1.9 million for improvements on 25th Avenue and 10th Street, two streets within the boundaries, as well as future mill and overlay of streets as needed within the research park. The proposal is not requesting an increase in the original project costs. The original plan was written for a 15 year project phase, but the City is requesting to extend this for the full 20 years that is allowed. This TID is preforming as planned. Rasmussen asked why the original TID was written for 15 years and not the 20 years that could have been allowed. Struck didn’t know the answer to this question. Mills wondered if there would be street extensions included in this project. Struck explained that it would be maintenance to current streets. Pierce asked what street Struck was referencing when he stated that a portion of a street wouldn’t be eligible. Struck explained that the western end of 10th Street is not included in the boundaries of the TID. Mills wondered if there were other TID’s that were used for maintenance of streets? Struck explained that they haven’t used funds for street maintenance however, they have used funds to bring roads/streets up to City standards. Mills agrees that this road is in need of maintenance, but he is concerned about future requests for street maintenance within a TID. TAX INCREMENTAL DISTRICT NUMBER ONE, CITY OF BROOKINGS TAX INCREMENTAL PROJECT PLAN Tax Increment District One, City of Brookings, South Dakota Page 0 TABLE OF CONTENTS INTRODUCTION AND PURPOSE ..................................................................................................................................... 2 GENERAL DEFINITIONS AS USED IN THIS PLAN .............................................................................................................. 2 PROPERTY WITHIN THE TAX INCREMENT ZONE ............................................................................................................ 5 Listing Of Kind, Number, Location And Detailed Costs Of Proposed Public Works And Improvements. ...................... 5 Costs of Public Works or Improvements ................................................................................................................... 6 Expenditures exceeding Estimated Cost ................................................................................................................... 7 FEASIBILITY STUDY. ........................................................................................................................................................ 7 BLIGHT STUDY 7 DETAILED LIST OF ESTIMATED PROJECT COSTS ............................................................................................................. 7 FISCAL IMPACT STATEMENT .......................................................................................................................................... 7 METHOD OF FINANCING, TIMING OF COSTS AND MONETARY OBLIGATIONS .............................................................. 7 Maximum Amount of Note or Bonded Indebtedness ................................................................................................... 8 DURATION OF TAX INCREMENTAL PLAN ....................................................................................................................... 8 ESTIMATED IMPACT OF TAX INCREMENT FINANCING ON REVENUES OF TAXING JURISDICTIONS .............................. 8 CONDITIONS MAP, IMPROVEMENTS MAP, ZONING CHANGE MAP .............................................................................. 8 CHANGES TO THE CITY OF BROOKINGS MASTER PLAN, MAP, BUILDINGS CODES AND CITY ORDINANCES. ................ 8 LIST OF ESTIMATED NON-PROJECT COSTS. ................................................................................................................... 9 STATEMENT OF DISPLACEMENT AND RELOCATION PLAN ............................................................................................ 9 PERFORMANCE BOND, SURETY BOND OR GUARANTY. ................................................................................................ 9 SCHEDULE 1 – "DETAIL OF PROJECT COSTS" ............................................................................................................... 11 SCHEDULE 2 – "ESTIMATED CAPTURED TAXABLE VALUES" ........................................................................................ 12 SCHEDULE 3 – “ECONOMIC FEASIBILITY STUDY” ......................................................................................................... 14 SCHEDULE 4. BLIGHT STUDY ....................................................................................................................................... 17 Section 1- Introduction ........................................................................................................................................... 17 Tax Increment District One, City of Brookings, South Dakota Page 1 Section 2 - Study Area Boundary ............................................................................................................................ 17 Section 3 - Establishing Blight ................................................................................................................................. 17 Section 4 - History of the Study Area ...................................................................................................................... 18 Section 5 - Study Area Description ......................................................................................................................... 19 Section 6 - Conditions Within the Study Area ......................................................................................................... 20 Section 7 - Findings within the Study Area – Analysis ............................................................................................ 21 Section 8 - Conclusions ........................................................................................................................................... 21 SCHEDULE 5 - “FISCAL IMPACT STATEMENT” .............................................................................................................. 22 FISCAL IMPACT STATEMENT- TAX INCREMENT DISTRICT NUMBER ONE ............................................................... 22 Introduction ....................................................................................................................................................... 22 Definitions .......................................................................................................................................................... 22 Assumptions: ...................................................................................................................................................... 22 FISCAL IMPACT: .................................................................................................................................................. 23 ATTACHMENT 1 ........................................................................................................................................................... 24 ATTACHMENT 2 ........................................................................................................................................................... 25 ATTACHMENT 3 ........................................................................................................................................................... 26 Tax Increment District One, City of Brookings, South Dakota Page 2 INTRODUCTION AND PURPOSE The purpose of this Plan, to be implemented by the City of Brookings, is to satisfy the requirements for a Tax Incremental District Plan Number One, City of Brookings as specified in SDCL Chapter 11-9. There are 11 mandated requirements of the Plan, each to be addressed in this Plan. The principal purpose of the Plan is to define eligible property and to define a Tax Increment Plan for funding eligible activities of a functionally obsolete and blighted area of the City. This Plan was prepared for adoption by the City Council in recognition that the renewal area requires a coordinated, cooperative strategy, with financing possibilities, to eliminate the blight and prevent the spread of blight, and accomplish the City’s development objectives for improving the continued viability of public and private development in the City. The driving interest in the establishment of this Plan is to offer tax increment financing as a tool to stimulate and leverage private sector development and redevelopment, to help eliminate statutory defined blight, and to prevent the spread of such blight. Development and redevelopment in the area is anticipated to occur in the near future through public and private partnerships, with the potential for Tax Increment financing to provide the impetus and means to undertake this redevelopment at a faster pace than might occur otherwise. The development of commercial and residential property and to stimulate further economic development is an essential governmental purpose. GENERAL DEFINITIONS AS USED IN THIS PLAN The following terms found in this Plan have the following meanings: “Base” or “Tax Incremental Base” means the aggregate assessed value of all taxable property located within a Tax Incremental District on the date the district is created, as determined by SDCL § 11-9-20. "Blighted" means property that meets any of the following criteria: Any area, including slum area, in which the structures, buildings, or improvements, by reason of: (1) dilapidation, age, or obsolescence; (2) inadequate provisions for ventilation, light, air, sanitation, or open spaces; (3) high density of population and overcrowding; (4) the existence of conditions which endanger life or property by fire and other causes; or (5) any combination of such factors; Tax Increment District One, City of Brookings, South Dakota Page 3 are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and which is detrimental to the public health, safety, morals, or welfare, is a blighted area1; or Any area which by reason of: (1) the presence of a substantial number of substandard, slum, deteriorated, or deteriorating structures; (2) predominance of defective or inadequate street layouts; (3) faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (4) unsanitary or unsafe conditions; (5) deterioration of site or other improvements; (6) diversity of ownership, tax, or special assessment delinquency exceeding the fair value of the land; (7) defective or unusual conditions of title; (8) the existence of conditions which endanger life or property by fire and other causes; or (9) any combination of such factors; substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use, is a blighted area 2; or Any area which is predominantly open and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substa ntially impairs or arrests the sound growth of a municipality, is a blighted area.3 "City Councils" means the Brookings City Council. "City of Brookings" means Brookings, South Dakota, a home rule form of government. "Department of Revenue" means the South Dakota Department of Revenue. “District” means the Tax Incremental District. "Economic Development" means all powers expressly granted and reasonably inferred pursuant to SDCL §9 -54. "Fiscal year" means that fiscal year of the City of Brookings. 1 SDCL § 11-9-9 2 SDCL § 11-9-10 3 SDCL § 11-9-11. Tax Increment District One, City of Brookings, South Dakota Page 4 "Generally Applicable Taxes" shall have the same meaning as set forth in 26 CFR § 1.141 -4(e). "Governing body" means the Brookings City Council "Infrastructure Improvements" means a street, road, sidewalk, parking facility, pedestrian mall, alley, bridge, sewer, sewage treatment plant, property designed to reduce, eliminate, or prevent the spread of identified soil or groundwater contamination, drainage system, waterway, waterline, water storage facility, rail line, utility line or pipeline, or other similar or related structure or improvement, together with necessary easements for the structure or improvement, for the benefit of or for the protection of the health, welfare, or safety of the public generally. "Municipality" any incorporated city in this state. "Planning Commission" means the City Planning Commission. “Plan” means this Project Plan. “Project Costs” means any expenditure or monetary obligations by the City of Brookings, whether made, estimated to be made, incurred or estimated to be incurred , which are listed as Project Costs herein will include any costs incidental thereto but diminished by any income, special assessments, or other revenues, other than tax increments, received, or reasonably expected to be received, by the City of Brookings in connection with the implementation of this Plan. “Project Plan” means properly approved Plan for the development or redevelopment of a tax incremental district including all properly approved amendments thereto as recommended pursuant to SDCL § 11-9-13. "Public Works" means the acquisition by purchase or condemnation of real and personal property within the Tax Incremental District and the sale, lease, or other disposition of such property to private individuals, partnerships, corporations, or other entities at a price less than the cost of such acquisition which benefit or further the health, safety, welfare and economic development of the City. "Taxable Property" all real taxable property located in a Tax Incremental District; "Tax Incremental District" a contiguous geographic area within a City defined and created by resolution of the governing body and named City of Brookings Tax Incremental District Number One; "Tax Increment Valuation" is the total value of the Tax Incremental District minus the tax incremental base pursuant to § 11-9-19. “Tax Increment Law” means South Dakota Codified Laws Chapter 11-9. Tax Increment District One, City of Brookings, South Dakota Page 5 PROPERTY WITHIN THE TAX INCREMENT ZONE The real property to be located within the Tax Increment District is legally described as follows: Description: NW 1/4 of Section 19-T110N-R49W NE 1/4, SW 1/4, excl. platted areas thereof, in Section 19 -T110N-R49W Lot 3, Block 1, Telkamp Addition Lot 4, Block 1, Telkamp Addition Lot 5, Block 1, Telkamp Addition Lot 2, Block 2, Telkamp Addition Lowes First Addition Tract A, Block 13, Telkamp Addition Tract B, Block 13, Telkamp Addition Block 12, Telkamp Addition East 104.5 feet of Lot 1, Block 2, Telkamp Addition. (the “District”). LISTING OF KIND, NUMBER , LOCATION AND DETAILED COSTS OF PROPOSED PUBLIC WORKS AND I MPROVEMENTS 4. In order to implement the provisions of SDCL Chapter 11-9, the following are Project Costs and expenditures made or estimated to be made and the monetary obligations incurred or estimated to be incurred by the City. The Project Costs includes capital costs, financing costs, real property assembly costs, professional fee costs, imputed administration costs, relocation costs, organizational costs and discretionary costs, plus any costs incidental thereto, diminished by any income, special assessments, or other revenues, other than tax increments, received, or reasonably expected to be received, by the City. The City is working to develop an economic and competitive base to benefit the City and the State as a whole. All the Project Costs, land acquisition and professional fees, are found to be necessary and convenient to the creation of the Tax Incremental District and the implementation of the Tax Increment District. The City shall enter into all contracts in accordance with South Dakota law. A combination of private investment, public investment and tax increment recapiture will assist progress toward the following additional objectives:  To address and remedy conditions in the area that impair or arrest the sound growth of the City;  To implement the Comprehensive Plan and its related element;  To redevelop and rehabilitate the area in a manner which is compatible with and complementary to unique circumstances in the area;  To effectively utilize undeveloped and underdeveloped land ; 4 SDCL §11-9-13(1). Tax Increment District One, City of Brookings, South Dakota Page 6  To improve pedestrian, bicycle, vehicular, and transit-related circulation and safety;  To ultimately contribute to increased revenues for all taxing entities ;  To encourage the voluntary rehabilitation of buildings, improvements, and conditions;  To watch for market and/or project opportunities to eliminate bli ght, and when such opportunities exist, to take action within the financial, legal and political limits of the Authority to acquire land, demolish and remove structures, provide relocation benefits, and pursue redevelopment, improvem ent and rehabilitation projects; and  To improve areas that is likely to enhance significantly the value of substantially all property in the district. COSTS OF PUBLIC WORKS OR IMPROVEMENTS In accordance with SDCL 11-9-13(1) & (3) the following is the kind, number, location and dollar amount of estimated Project Costs, costs of public works and improvements. Kind of Project Cost Number Location5 Amount Reference6 Capital Costs 11 In District $3,844,000* 11-9-14(1) Financing Costs 11-9-14(2) Real Property Assembly 11-9-14(3) Professional Fees $10,000 11-9-14(4) Administrative Costs 11-9-14(5) Relocation Costs 1-9-14(6) Organizational Costs $5,000 11-9-14(7) Discretionary Costs $500,000 11-9-14(8) Eligible Project Costs $4,399,000* *Eligible Project costs may be reallocated during the five years from creation of the TIF . The above total represents eligible Project Costs. 5District shall mean the Tax Increment District . 6SDCL §11-9-14 (1) Capital costs, including the actual costs of the construction of public works or improvements, buildings, structures, and permanent fixtures; the demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, and permanent fixtures; the acquisition of equipment; the clearing and grading of land; and the amount of interest payable on tax incremental bonds or notes issued pursuant to this chapter until such time as positive tax increments to be received from the district, as estimated by the Project Plan, are sufficient to pay the principal of and interest on the tax incremental bonds or notes when due; (2) Financing costs, including all interest paid to holders of evidences of indebtedness issued to pay for Project Costs, any premium paid over the principal amount thereof because of the redemption of such obligations prior to maturity and a reserve for the payment of principal of and interest on such obligatio ns in an amount determined by the governing body to be reasonably required for the marketability of such obligations; (3) Real property assembly costs, including the actual cost of the acquisition by a municipality of real or personal property within a tax incremental district less any proceeds to be received by the municipality from the sale, lease, or other disposition of such property pursuant to a Project Plan; (4) Professional service costs, including those costs incurred for architectural, planning, engineering, and leg al advice and services; (5) Imputed administrative costs, including reasonable charges for the time spent by municipal employees in connection with the implementation of a Project Plan; (6) Relocation costs; (7) Organizational costs, including the costs of conducting environmental impact and other studies and the costs of informing the public of the creation of tax incremental districts and the implementation of project plans; and (8) Payments made, at the discretion of the governing body, which are found to be necessary or convenient to the creation of tax incremental districts or the implementation of pro ject plans. Tax Increment District One, City of Brookings, South Dakota Page 7 EXPENDITURES EXCEEDING ESTIMATED COST Any expenditures which in sum would exceed the total amount stated above will require an amendment of this plan. All amendments are undertaken pursuant to S DCL §11-9-23. When the expenditures are increased above the total above, the Department of Revenue will be required to reset the base, in accordance with SDCL §11-9-23. FEASIBILITY STUDY.7 An economic feasibility study is attached as Schedule 3. BLIGHT STUDY Not less than 25% of the area within the proposed district is blighted and in need of redevelopment as indicated in the Blight Study attached as Schedule 4. DETAILED LIST OF ESTIMATED PROJECT COSTS8 Attached as Schedule 1 is a detailed list of estimated Project Costs. No expenditure for Project Costs is provided for more than five years after the district. FISCAL IMPACT STATEMENT 9 Attached as Schedule 5 is the Fiscal Impact Statement on other taxing districts found within the Tax Increment District, both until and after the bonds are repaid. METHOD OF FINANCING , TIMING OF COSTS AND MONETARY OBLIGATIONS 10 Project Costs shall be paid by the City. There shall be multiple advances by the City. The City will reimburse for employee time and expense from the tax increment fund. 7 SDCL §11-9-13(2) 8 SDCL §11-9-13(3) 9 SDCL § 11-9-13(4). 10 SDCL § 11-9-13(5) Tax Increment District One, City of Brookings, South Dakota Page 8 M AXIMUM AMOUNT OF NOTE OR BONDED INDEBTEDNESS The City intends to issue no bonded indebtedness payable from the tax increment fund. The City will provide for the improvements through general funds and pay itself back through tax increment revenue. DURATION OF TAX INCREMENTAL PLAN The duration of the Plan will extend to the number of years it will take for the retirement of bonded indebtedness except that the Plan duration shall not exceed 15 years from the date of creation of the District. ESTIMATED IMPACT OF TAX INCREMENT FINANCING ON REVENUES OF TAXING JURISDICTIONS The site will generate taxes to the local jurisdictions at or above the assessed of the Base. All taxing districts shall receive that base which will be the value set for 2010 taxable payable in 2011. The tax increment will be available to the taxing jurisdictions at or before 20 years after at the creation of the District. Schedule 3 details the tax capture implications to each of the local taxing jurisdictions. After the repayment of the bonds, taxing entities will receive their proportionate share of tax dollars for the base value and the tax incremental values. CONDITIONS MAP 11, IMPROVEMENTS MAP 12, ZONING CHANGE MAP 13 The conditions map is attached as Attachment 1. The Improvements map is attached as Attachment 2. The Zoning Change Map is attached as Attachment 3. CHANGES TO THE CITY OF BROOKINGS MASTER PLAN, MAP, BUILDINGS CODES AND CITY ORDINANCES 14. The City has made changes in the master plan, map, building codes and City ordinances as indicated on Attachment 3. 11 SDCL § 11-9-16(1) 12 SDCL § 11-9-16(2) 13 SDCL § 11-9-16(3) 14 SDCL §11-9-16(4) Tax Increment District One, City of Brookings, South Dakota Page 9 LIST OF ESTIMATED NON-PROJECT COSTS 15. The following is a list of the projected non-Project Costs. Research and technology buildings and facilities in an amount not determinable at this time. STATEMENT OF D ISPLACEMENT AND RELOCATION PLAN16 No residents or families will be displaced by the Project. There are no families or persons residing on the premises. Therefore, no relocation Plan is needed. PERFORMANCE BOND, S URETY BOND OR GUARAN TY. As security for its fulfillment of the agreement with the governing body, a purchaser or lessee of redevelopment property shall furnish a performance bond, with such surety and in such form and amount as t he governing body may approve or make such other guaranty as the governing body may deem necessary in the public interest. 15 SDCL §11-9-16(5) 16 SDCL § 11-9-16(16) Tax Increment District One, City of Brookings, South Dakota Page 10 LIST OF SCHEDULES SCHEDULE 1 Detail of Project Costs SCHEDULE 2 Estimated Captured Taxable Values SCHEDULE 3 Economic Feasibility Schedule SCHEDULE 4 Blight Study SCHEDULE 5 Fiscal Impact Statement ATTACHMENTS Attachment 1. Map and Legal Description and existing uses and conditions Attachment 2. Map of Real property Improvement and uses Attachment 3. Map of proposed changes in zoning ordinances Tax Increment District One, City of Brookings, South Dakota Page 11 SCHEDULE 1 – "DETAIL OF PROJECT COSTS" The project contains 8,732 linear feet of infrastructure and two on-site storm water retention ponds. This project provides for complete infrastructure for a 125 acre research/technology park adjacent to SDSU in Brookings. The park contains 32 parcels averaging 2.9 acres each. Phase I infrastructure is under construction as is the first building, a 28,000 square foot business incubator building. Tax Increment District One, City of Brookings, South Dakota Page 12 SCHEDULE 2 – "ESTIMATED CAPTURED TAXABLE VALU ES" BASE-ESTIMATED TAXES THAT WILL GO TO TAXING DISTRICTS DURING TIF INCREMENT-ESTIMATED TAXES THAT WILL GO TO TAX INCREMENT FUND DURING TIF Equalized 94% Construction Year Valuation Year Revenue Year Accumulated Positive Valuation Increment City Mill Rate School Mill Rate County Mill Rate Total Mill Rate Total Increment Total Increment for Debt Service 2007 2008 2009 1,335,300.00$ 2.54 15.77 4.74 23.05 29,055.06$ 29,055.06$ 2008 2009 2010 -$ 2.54 15.77 4.74 23.05 -$ 29,055.06$ 2009 2010 2011 2,000,000.00$ 2.54 15.77 4.74 23.05 43,518.40$ 72,573.46$ 2010 2011 2012 2,000,000.00$ 2.54 15.77 4.74 23.05 43,518.40$ 116,091.86$ 2011 2012 2013 2,000,000.00$ 2.54 15.77 4.74 23.05 43,518.40$ 159,610.26$ 2012 2013 2014 2,000,000.00$ 2.54 15.77 4.74 23.05 43,518.40$ 203,128.66$ 2013 2014 2015 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2014 2015 2016 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2015 2016 2017 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2016 2017 2018 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2017 2018 2019 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2018 2019 2020 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2019 2020 2021 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2020 2021 2022 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2021 2022 2023 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2022 2023 2024 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2023 2024 2025 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2024 2025 2026 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2025 2026 2027 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 9,335,300.00$ Present Value of Revenue Stream 3.00%2,389,193.54$ Assumptions 1. Current Tax Increment District has a positive increment of $1,335,300 2. The Den Wil project will be built in 2009, payable in 2011. $8,000,000 was used for increased valuation 3. The discretionary was formula taken into account on a 25%-%50%-75% basis, starting in 2011 for taxes payable 4. Den Wil was the only new development used for projection purposes 5. Any positive increment, in addition to Den Wil, will go towards TIF debt Note: These numbers are for projection purposes only and do not reflect what the actual number(s) may be. The projection numbers are based on assumptions provided by the developer. Projected Revenue for Tax Increment District #1 Base Value Non Ag. Z Payable in 2009 10,481,800.00$ Tax Increment District One, City of Brookings, South Dakota Page 13 Tax Increment District One, City of Brookings, South Dakota Page 14 SCHEDULE 3 – “ECONOMIC FEASIBILITY STUDY” The City of Brookings has been approached concerning the development of a research park adjacent to South Dakota State University. An essential component of the City’s participation is City funding for certain Project Costs (“Project Costs”) needed to support the Project (or any other comprehensive redevelopment of the site), all of which is currently estimated to cost in excess of . The City has made it clear that City funding for these public improvements must be supported by the tax revenues generated by the Project, and not by the general revenues of the City. The vehicle through which this can be accomplished is “tax increment financing” under the South Dakota Tax Incremental District Law (South Dakota Codified Laws Chapter 11-9). Tax increment financing is an indispensable self-financing tool used throughout the United States to help local governments successfully develop and redevelop areas and encourage economic development. In tax increment financing, the current real property tax assessed value of all properties in a designated project area (“tax increment financing district”) is established as the “base value.” As development in the tax Tax Increment District One, City of Brookings, South Dakota Page 15 increment financing district increases the assessed values of the redeveloped properties, a portion of the additional tax revenue generated by the increase in assessed value o ver the base value is set aside and committed by the City for debt service on tax increment bonds, the proceeds of which would be used for the construction of the Project Costs. Use of a Tax increment fund is permitted only in connection with a “Project Plan” duly adopted by the City. The process is set forth in the Tax Increment District Law, and is generally as follows:  Any person may request the City Council to designate a tax increment financing district. The request may be through a formal application process, or a presentation to the City Council. Upon receiving any request, the City Commission determines preliminary feasibility of the project. This preliminary feasibility determination includes fiscal, legal and political considerations.  If it is determined feasible, the City Commission directs staff or the Planning Commission to initiate the process. The Planning Commission then sets a proposed hearing date and starts the notice procedure.  Notice of the intent to create a Tax Increment District is published and sent to all taxing districts not less than 10 days prior to the hearing.  The Planning Commission holds a hearing and allows members of the general public to comment upon the proposed creation of a Tax Increment District. At the end of the hearing, the Planning Commission may recommend the creation of the Tax Increment District to the City Commission. The Planning Commission may also recommend a tax increment Project Plan and forward to the City Commission for their determination.  The City Commission places the recommendation on the agenda and at the public meeting may pass a resolution to create the Tax Increment District in accordance with the Tax Increment District Law. The resolution is published and becomes effective on the 21 st day after publication, unless it is referred to a vote of the electors. This resolution may also approve the project plan.  After the resolution becomes effective, the Department of Revenue of the State of South Dakota is sent a letter requesting to determine the base.  After the Project Plan is approved, the City Council at any time may authorize the issuance of tax increment bonds “for the purpose of carrying out or administering a Project Plan”. The resolution would irrevocably pledge its tax increment revenues to the debt service on the City’s tax increment bonds. (See Tax Increment District Law Section 11-9-37).  The City has five years to spend tax increment revenues or bond proceeds on or for Project Costs. Tax Increment District One, City of Brookings, South Dakota Page 16 Estimated Tax Increment Fund Balance is as follows: Equalized 94% Construction Year Valuation Year Revenue Year Accumulated Positive Valuation Increment City Mill Rate School Mill Rate County Mill Rate Total Mill Rate Total Increment Total Increment for Debt Service 2007 2008 2009 1,335,300.00$ 2.54 15.77 4.74 23.05 29,055.06$ 29,055.06$ 2008 2009 2010 -$ 2.54 15.77 4.74 23.05 -$ 29,055.06$ 2009 2010 2011 2,000,000.00$ 2.54 15.77 4.74 23.05 43,518.40$ 72,573.46$ 2010 2011 2012 2,000,000.00$ 2.54 15.77 4.74 23.05 43,518.40$ 116,091.86$ 2011 2012 2013 2,000,000.00$ 2.54 15.77 4.74 23.05 43,518.40$ 159,610.26$ 2012 2013 2014 2,000,000.00$ 2.54 15.77 4.74 23.05 43,518.40$ 203,128.66$ 2013 2014 2015 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2014 2015 2016 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2015 2016 2017 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2016 2017 2018 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2017 2018 2019 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2018 2019 2020 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2019 2020 2021 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2020 2021 2022 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2021 2022 2023 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2022 2023 2024 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2023 2024 2025 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2024 2025 2026 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 2025 2026 2027 -$ 2.54 15.77 4.74 23.05 -$ 203,128.66$ 9,335,300.00$ Present Value of Revenue Stream 3.00%2,389,193.54$ Assumptions 1. Current Tax Increment District has a positive increment of $1,335,300 2. The Den Wil project will be built in 2009, payable in 2011. $8,000,000 was used for increased valuation 3. The discretionary was formula taken into account on a 25%-%50%-75% basis, starting in 2011 for taxes payable 4. Den Wil was the only new development used for projection purposes 5. Any positive increment, in addition to Den Wil, will go towards TIF debt Note: These numbers are for projection purposes only and do not reflect what the actual number(s) may be. The projection numbers are based on assumptions provided by the developer. Projected Revenue for Tax Increment District #1 Base Value Non Ag. Z Payable in 2009 10,481,800.00$ Since the City is reimbursing itself through collected tax increment, the plan is feasible. The City will collect only such tax increments as are collected in the tax increment fund. The above sheet is only an estimate and will be subject to actual collections. This document has represents the feasibility study required under Tax Increment Tax Increment District One, City of Brookings, South Dakota Page 17 District Law Section 11-9-13 (Subsections 2, 4 and 5). The study concludes that the proposed redevelopment project in the project area is feasible. SCHEDULE 4. BLIGHT STUDY S ECTION 1- INTRODUCTION The City has been approached concerning the creation of a tax increment district located in the northern part of the city. In order to determine whether a tax increment district may be created, it has been rec ommended that city staff together with outside consultants conduct a study of the area to determine if conditions exist that meet the definitions of blight described in Title 11-9 and allow consideration of a Tax Increment District to alleviate those conditions. If the City finds, by Resolution, that "blighted" conditions exist in not less than 25% of the area, it may after notification of affected taxing districts and after a public hearing to create a Tax Increment district. The Purpose of the study is to determine if impediments to development and other issues of blight exist, pursuant to state law, sufficient enough to warrant the creation of a district in the northern portion of the City. In addition to studying the subject area for the defined blighted conditions, staff has evaluated the area for the existence of assets or opportunities for private investment, as creation and reinvestment of TIF funds in a District depends primarily on new private investment generating new property taxes. Finally , staff reviewed the Study Area for localized physical and institutional impediments to investment in the study area. S ECTION 2 - STUDY AREA BOUNDARY The Study of Blight is broadly described as: Description: NW 1/4 of Section 19-T110N-R49W NE 1/4, SW 1/4, excl. platted areas thereof, in Section 19-T110N-R49W Lot 3, Block 1, Telkamp Addition Lot 4, Block 1, Telkamp Addition Lot 5, Block 1, Telkamp Addition Lot 2, Block 2, Telkamp Addition Lowes First Addition Tract A, Block 13, Telkamp Addition Tract B, Block 13, Telkamp Addition Block 12, Telkamp Addition East 104.5 feet of Lot 1, Block 2, Telkamp Addition S ECTION 3 - ESTABLISHING BLIGHT South Dakota law describes a blighted area as one that contains a set of conditions which constitute bl ight. There are three statutory areas of blight: SDCL § 11-9-9 Any area, including slum area, in which the structures, buildings, or improvements, by reason of: (1) Dilapidation, age, or obsolescence; Tax Increment District One, City of Brookings, South Dakota Page 18 (2) Inadequate provisions for ventilation, light, air, sanitation, or open spaces; (3) High density of population and overcrowding; (4) The existence of conditions which endanger life or property by fire and other causes; or (5) Any combination of such factors; are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and which is detrimental to the public health, safety, morals, or welfare, is a blighted area. SDCL § 11-9-10. Developed areas impairing growth defined as blighted. Any area which by reason of: (1) The presence of a substantial number of substandard, slum, deteriorated, or deteriorating structures; (2) Predominance of defective or inadequate street layouts; (3) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (4) Insanitary or unsafe conditions; (5) Deterioration of site or other improvements; (6) Diversity of ownership, tax, or special assessment delinquency exceeding the fair value of the land; (7) Defective or unusual conditions of title; (8) The existence of conditions which endanger life or property by fire and other causes; or (9) Any combination of such factors; substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use, is a blighted area. SDCL § 11-9-11. Any area which is predominantly open and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of a municipality, is a blighted area. Under South Dakota law the finding of blight may be made based upon a single factor found in SDCL § 11 -9-9, 11- 9-10 or 11-9-11. S ECTION 4 - HISTORY OF THE STUDY AREA The study area is comprised of a commercial, multi family and state educational area. A majority of the area is non developable without direct action by the South Dakota Legislature. The City has initiated a development plan whereby it intends to expand into the geographical area and provide infrastructure improvements where private developers will not. Tax Increment District One, City of Brookings, South Dakota Page 19 S ECTION 5 - STUDY AREA DESCRIPTION An open area with inadequate street layouts, no sewer, water or fire control improvements, which, due to geographical limitations, substantially arrests the sound growth of a municipality, constitutes an economic or social liability and is a menace to welfare of the City in its present condition and use. Area contains substantial diversity of ownership which substantially impairs and arrests the sound growth of a municipality Tax Increment District One, City of Brookings, South Dakota Page 20 S ECTION 6 - CONDITIONS WITHIN THE STUDY AREA Infrastructure Public Utilities Sewer- Analysis of the City of Brookings Sanitary Sewer Maps reveals that the Study Area has limited wastewater coverage. Storm water – Analysis of the City of Brookings Sanitary Sewer Maps reveals that the Study Area has limited storm sewer coverage. Potable Water – Analysis of the City of Brookings Water Maps reveals that the Study Area has limited water coverage. Street & Sidewalk Condition – Analysis of the City of Brookings Street Maps reveals that the Study Area is in need of additional street and sidewalk infrastructure. Transportation According to the Engineering department, the District is in need of significant reconfiguration so that there is better control where traffic commercial users. Public Safety Fire – The City of Brookings Fire Department supplied information pertaining to life safety aspects within the study area. More than twenty-five percent of the District does not meet fire safety standards. Demographic Character of the Study Area There exists population in less than 25 % of the study area. Tax Generation from the Area The District currently generates limited taxes. More than twenty-five percent of the District does not generate taxes sufficient to supply the required infrastructure improvements. Land Use and Planning Comprehensive Plan The Comprehensive plan suggests that public and private improvements are needed within the District. Zoning No modification of zoning is required in the District. Tax Increment District One, City of Brookings, South Dakota Page 21 S ECTION 7 - F INDINGS WITHIN THE STUDY AREA – ANALYSIS In accordance with State Law, the following addresses specific chara cteristics of blight found within the Study Area with corresponding portions of 11-9-10 and 11-9-11: Defective or inadequate street layout. For the most part, the streets in the Study Area are not adequate, according to the Engineering department, could benefit greatly from significant re-configuration. Faulty lot layout in relation to size, adequacy, accessibility, or usefulness. Lots and blocks in the Study Area need to be laid out in not less than 25% of the area. Unsanitary or unsafe conditions. Some conditions within localized portions of the Study Area listed above achiev e unsafe status due to life-safety issues. The existence of conditions that endanger life or property by fire or other causes. Some conditions within localized portions of the Study Area listed above achieve unsafe status due to life-safety issues. S ECTION 8 - CONCLUSIONS Based on the findings of this study, it is determined that the Study Area contains conditions defined as “blight”. Tax Increment District One, City of Brookings, South Dakota Page 22 SCHEDULE 5 - “FISCAL IMPACT STATEMENT” FISCAL IMPACT STATEMENT - TAX INCREMENT DISTRICT NUMBER ONE INTRODUCTION The fiscal impact statement is intended to provide a succinct analysis of the estimated impact of the Tax Increment District to the public pursuant to SDCL § 11-9-13(4). It is not intended to rival the level of detail required by a detailed financial analysis. A fiscal impact statement shows the impact of the Tax Increment District, both until and after the City is repaid, upon all entities levying taxes upon property in the district. D EFINITIONS “Assumptions” means factors or definitions used in the fiscal analysis. Assumptions may include facts and figures identified by the District and educated guesses that are sometimes necessary when not all of the information is available. Assumptions are often used to extrapolate an estimate. Assumptions may include an estimate of tax levies of each taxing entity, the school aid formula contribution, the value of the real property , etc. "Base Revenues” means the taxes collected on the base value. “Fiscal Impact” means the increase or decrease in revenues and generally refers to an impact to revenues caused by the district. “Revenue” means ad valorem taxes. “Tax Increment District “ means City of Brookings, Tax Increment District Number One. “Taxing Districts” means all political subdivisions of the state which have ad valorem taxing power over property within the boundaries of the Tax Increment District. “Tax Increment Revenues" means all revenues above the Base Revenues. ASSUMPTIONS : 1. The property will have improvements which at completion will be valued for taxable purposes at $9,335,300. 2. The average tax levy of all taxing districts will be $23.03 per thousand dollars of taxable valuation. 3. Tax increment will start to be collected in 2009 and end in 2027. 4. Interest: None: 5. The discretionary formula: None. Tax Increment District One, City of Brookings, South Dakota Page 23 FISCAL IMPACT: The total fiscal impact upon the taxing entities during the term of the Tax Increment District is as follows: Taxing District will continue to receive taxes on approximately $10,481,000 of taxable value throughout the duration of the District. Estimated Base Value Construction Year Valuation Year Revenue Year Valuation Increment School Mill Rate* Yearly School Impact Cumulative Impact Present Value at 3% County Mill Rate Yearly County Impact Cumulative Impact Present Value at 3% 2007 2008 2009 1,335,300.00$ 3.50 4,673.55$ 4,673.55$ 4,537.43$ 4.74 6,329.32$ 6,329.32$ 6,144.97$ 2008 2009 2010 -$ 3.50 -$ 4,673.55$ 4,405.27$ 4.74 -$ 6,329.32$ 5,965.99$ 2009 2010 2011 2,000,000.00$ 3.50 7,000.00$ 11,673.55$ 10,682.95$ 4.74 9,480.00$ 15,809.32$ 14,467.77$ 2010 2011 2012 2,000,000.00$ 3.50 7,000.00$ 18,673.55$ 16,591.21$ 4.74 9,480.00$ 25,289.32$ 22,469.24$ 2011 2012 2013 2,000,000.00$ 3.50 7,000.00$ 25,673.55$ 22,146.23$ 4.74 9,480.00$ 34,769.32$ 29,992.32$ 2012 2013 2014 2,000,000.00$ 3.50 7,000.00$ 32,673.55$ 27,363.58$ 4.74 9,480.00$ 44,249.32$ 37,058.11$ 2013 2014 2015 -$ 3.50 -$ 32,673.55$ 26,566.59$ 4.74 -$ 44,249.32$ 35,978.75$ 2014 2015 2016 -$ 3.50 -$ 32,673.55$ 25,792.80$ 4.74 -$ 44,249.32$ 34,930.82$ 2015 2016 2017 -$ 3.50 -$ 32,673.55$ 25,041.56$ 4.74 -$ 44,249.32$ 33,913.42$ 2016 2017 2018 -$ 3.50 -$ 32,673.55$ 24,312.19$ 4.74 -$ 44,249.32$ 32,925.65$ 2017 2018 2019 -$ 3.50 -$ 32,673.55$ 23,604.07$ 4.74 -$ 44,249.32$ 31,966.65$ 2018 2019 2020 -$ 3.50 -$ 32,673.55$ 22,916.57$ 4.74 -$ 44,249.32$ 31,035.58$ 2019 2020 2021 -$ 3.50 -$ 32,673.55$ 22,249.10$ 4.74 -$ 44,249.32$ 30,131.64$ 2020 2021 2022 -$ 3.50 -$ 32,673.55$ 21,601.07$ 4.74 -$ 44,249.32$ 29,254.01$ 2021 2022 2023 -$ 3.50 -$ 32,673.55$ 20,971.91$ 4.74 -$ 44,249.32$ 28,401.96$ 2022 2023 2024 -$ 3.50 -$ 32,673.55$ 20,361.08$ 4.74 -$ 44,249.32$ 27,574.71$ 2023 2024 2025 -$ 3.50 -$ 32,673.55$ 19,768.04$ 4.74 -$ 44,249.32$ 26,771.57$ 2024 2025 2026 -$ 3.50 -$ 32,673.55$ 19,192.27$ 4.74 -$ 44,249.32$ 25,991.81$ 2025 2026 2027 -$ 3.50 -$ 32,673.55$ 18,633.27$ 4.74 -$ 44,249.32$ 25,234.77$ 9,335,300.00$ 490,123.90$ 358,103.89$ 663,767.80$ 510,209.75$ The school impact is calculated by the following: $3.00 for Capital Outlay $.30 for Pension $.20 for Special Ed. Assumptions 1. Current Tax Increment District has a positive increment of $1,335,300 2. The Den Wil project will be built in 2009, payable in 2011. $8,000,000 was used for increased valuation 3. The discretionary formula taken into account on a 25%-%50%-75% basis, starting in 2011 for taxes payable 4. Den Wil was the only new development used for projection purposes 5. Any positive increment, in addition to Den Wil, will go towards TIF debt Tax Increment District #1 - Impact on Local Jurisdictions Note: These numbers are for projection purposes only and do not reflect what the actual tax impact may be. The projection numbers are based on assumptions provided by the developer. * Note the full school levy is 15.77, but will only realize an impact of 3.50 per $1,000 of valuation. The difference is made up by the State of SD, holding the School's General Fund harmless 10,481,800.00$ Tax Increment District One, City of Brookings, South Dakota Page 24 ATTACHMENT 1 Tax Increment District One, City of Brookings, South Dakota Page 25 ATTACHMENT 2 (List of Real Property Improvements) Improvements are to be located and are shown below: The Improvements shall be located in the real property described in Attachment 1 in the 192 acres of undeveloped property and is the highest and best use for the real property. 8,732 linear feet of infrastructure and two on-site storm water retention ponds. Tax Increment District One, City of Brookings, South Dakota Page 26 ATTACHMENT 3 Zoning Changes The following map the property is currently zoned multi-family and commercial. There will be no zoning changes with regard to the comprehensive plan, zoning designation, map, building codes or municipal ordinances. City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 20-090,Version:1 Action on Resolution 20-090, a Resolution approving Tax Increment District #9 Project Plan. Summary: Adoption of a project plan detailing the proposed improvements, associated costs, and the plan for financing the improvements. Background: The City of Brookings is proposing the creation of Tax Increment District #9 to construct public improvements for the Svennes Industrial Park to extend the street network with the construction of 24 th Street and associated storm sewer improvements. Additional project costs include drainage improvements in 32nd Avenue, expansion of the drainage channel and pond, and 32nd Avenue street improvements. State law (SDCL 11-9-13) requires the Planning Commission adopt a project plan for each tax increment district and submit the plan to the governing body. The plan must contain specific information as stated in SDCL Chapter 11. The City is responsible to front the costs of the project improvements and will only be reimbursed property tax increment generated from development occurring with the district. Recommendation: The Planning Commission voted 8 - 0 recommending approval of the project plan. The Development Review Team (DRT) recommends approval of the project plan. Attachments: Memo Resolution Minutes Project Plan Map City of Brookings Printed on 11/5/2020Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Mike Struck, Community Development Director Council Meeting: November 10, 2020 Subject: Tax Increment District #9 Project Plan Person(s) Responsible: Mike Struck, Community Development Director Summary: Adoption of a project plan detailing the proposed improvements, associated costs, and the plan for financing the improvements. Background: The City of Brookings is proposing the creation of Tax Increment District #9 to construct public improvements for the Svennes Industrial Park to extend the street network with the construction of 24th Street and associated storm sewer improvements. Additional project costs include drainage improvements in 32nd Avenue, expansion of the drainage channel and pond, and 32nd Avenue street improvements. State law (SDCL 11-9-13) requires the Planning Commission adopt a project plan for each tax increment district and submit the plan to the governing body. The plan must contain specific information as stated in SDCL Chapter 11. The City is responsible to front the costs of the project improvements and will only be reimbursed property tax increment generated from development occurring with the district. The aggregate assessed value of the taxable property in Tax Increment D istrict #9 plus the tax increment base of all other existing districts is 1.3% of the total assessed value of all taxable property in the City. State law restricts the maximum percentage to ten (10%) percent. Discussion: The Project Plan provides an estimate of property tax increment generated from private development within the district, a schedule of the project improvements and costs, criteria meeting the state statutes for determination of a blighted area, economic feasibility of the project, and additional items satisfying the statutory requirements for a project plan. Legal Consideration: None. Strategic Plan Consideration: Tax Increment Financing District #9 supports the economic development goals of the City by putting infrastructure in place to support the development of industrial land. Financial Consideration: The City will front the project costs and be reimbursed by property tax increment generated within the district. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Approve as amended 3. Deny 4. Move to a work session 5. Do nothing The Planning Commission voted 8 – 0 recommending approval of the project plan. The Development Review Team (DRT) recommends approval of the project plan as presented. Supporting Documentation Memo Resolution Minutes Project Plan Map Resolution 20-090 Resolution Approving Tax Increment Financing District Number Nine (#9) Project Plan Whereas, the Brookings Planning Commission has recommended the approval of the Tax Increment Financing District Number Nine Project Plan, City of Brookings; and Whereas, the City Council finds that all requirements have been met in order to approve said Tax Increment Plan. Now, Therefore, Be It Resolved by the City Council 1. Approval of Project Plan. The project plan, a copy of which is on file with the City Finance Officer hereby approved. 2. Findings. The City Council finds that the project plan is feasible and that it conforms to the City’s master plan. All findings made in the tax increment financing project plan are included herein by reference. 3. Effective 20 days after publication. This resolution shall become effective 20 days after publication and absent any challenge at law all findings and conclusions in the Tax Increment Financing Project Plan for Tax Increment Financing District Number Nine, City of Brookings shall be final. Passed and Approved this 10th day of November, 2020. CITY OF BROOKINGS ____________________________________ Keith W. Corbett, Mayor ATTEST: ___________________________________ Bonnie Foster, City Clerk Planning Commission Brookings, South Dakota November 2, 2020 OFFICIAL MINUTES Chairperson Tanner Aiken called the meeting of the City Planning Commission to order on Monday November 2, 2020, at 5:30 PM in the Council Chambers Room #310 on the third floor of the City & County Government Center. Members present were Ashley Biggar, Eric Rasmussen, Greg Fargen, Gregg Jorgenson, Jason Meusburger, Jacob Mills, Lee Ann Pierce, and Aiken. Also present were Community Development Director Mike Struck and City Planner Ryan Miller. Item #4b – The City of Brookings has submitted a project plan detailing the proposed improvements, associated costs, and the plan for financing Tax Increment District #9. (Pierce/Rasmussen) Motion to approve the Tax Increment District #9 Project Plan. All present voted aye. MOTION CARRIED. OFFICIAL SUMMARY Item #4b – This TID is to construct public improvements for the Svennes Industrial Park to extend the street network with the construction of 24th Street and associated storm sewer improvements. Additional projects costs included drainage improvements in 32nd Ave, expansion of the drainage channel and pond, and 32nd Avenue street improvements. The project plan does meet the requirements of state law for a TID. Mills asked if there would be a more detailed expense listing. Struck stated “no not at this time because an Engineer has not been assigned to this project yet.” TAX INCREMENTAL DISTRICT NUMBER NINE, CITY OF BROOKINGS TAX INCREMENTAL PROJECT PLAN Tax Increment District Nine, City of Brookings, South Dakota Page 1 T ABLE OF CONTENTS INTRODUCTION AND PURPOSE ..................................................................................................................................... 3 GENERAL DEFINITIONS AS USED IN THIS PLAN ............................................................................................................. 3 Listing Of Kind, Number, Location And Detailed Costs Of Proposed Public Works And Improvements. ...................... 6 Costs of Public Works or Improvements .................................................................................................................. 7 Expenditures exceeding Estimated Cost .................................................................................................................. 8 FEASIBILITY STUDY. ....................................................................................................................................................... 8 BLIGHT STUDY ............................................................................................................................................................... 8 DETAILED LIST OF ESTIMATED PROJECT COSTS ............................................................................................................ 8 FISCAL IMPACT STATEMENT ......................................................................................................................................... 8 METHOD OF FINANCING, TIMING OF COSTS AND MONETARY OBLIGATIONS ............................................................. 8 Maximum Amount of Note or Bonded Indebtedness ................................................................................................... 8 DURATION OF TAX INCREMENTAL PLAN ...................................................................................................................... 8 ESTIMATED IMPACT OF TAX INCREMENT FINANCING ON REVENUES OF TAXING JURISDICTIONS .............................. 9 CONDITIONS MAP, IMPROVEMENTS MAP, ZONING CHANGE MAP ............................................................................. 9 CHANGES TO THE CITY OF BROOKINGS MASTER PLAN, MAP, BUILDINGS CODES AND CITY ORDINANCES. ................ 9 LIST OF ESTIMATED NON-PROJECT COSTS. ................................................................................................................. 10 STATEMENT OF DISPLACEMENT AND RELOCATION PLAN .......................................................................................... 10 PERFORMANCE BOND, SURETY BOND OR GUARANTY. .............................................................................................. 10 SCHEDULE 1 – "DETAIL OF PROJECT COSTS" ............................................................................................................... 12 SCHEDULE 2 – "ESTIMATED CAPTURED TAXABLE VALUES" ........................................................................................ 13 SCHEDULE 3 – “ECONOMIC FEASIBILITY STUDY” ........................................................................................................ 14 SCHEDULE 4. BLIGHT STUDY ....................................................................................................................................... 18 Section 1- Introduction ........................................................................................................................................... 18 Section 2 - Study Area Boundary ............................................................................................................................ 18 Tax Increment District Nine, City of Brookings, South Dakota Page 2 Section 3 - Establishing Blight ................................................................................................................................. 18 Section 4 - History of the Study Area ..................................................................................................................... 19 Section 5 - Study Area Description ......................................................................................................................... 19 Section 6 - Conditions Within the Study Area ........................................................................................................ 20 Section 7 - Findings within the Study Area – Analysis ............................................................................................ 20 Section 8 - Conclusions ........................................................................................................................................... 21 SCHEDULE 5 - “FISCAL IMPACT STATEMENT” ............................................................................................................. 22 FISCAL IMPACT STATEMENT- TAX INCREMENT DISTRICT NUMBER NINE .............................................................. 22 Introduction ....................................................................................................................................................... 22 Definitions ......................................................................................................................................................... 22 Assumptions: ..................................................................................................................................................... 22 FISCAL IMPACT:.................................................................................................................................................. 23 ATTACHMENT 1 ........................................................................................................................................................... 25 ATTACHMENT 2 ........................................................................................................................................................... 26 ATTACHMENT 3 ........................................................................................................................................................... 27 Tax Increment District Nine, City of Brookings, South Dakota Page 3 INTRODUCTION AND PURPOSE The purpose of this Plan, to be implemented by the City of Brookings, is to satisfy the requirements for a Tax Incremental District Plan Number Nine, City of Brookings as specified in SDCL Chapter 11-9. There are 11 mandated requirements of the Plan, each to be addressed in this Plan. The principal purpose of the Plan is to define eligible property and to define a Tax Increment Plan for funding eligible activities of a functionally obsolete and blighted area of the City. This Plan was prepared for adoption by the City Council in recognition that the renewal area requires a coordinated, cooperative strategy, with financing possibilities, to eliminate the blight and prevent the spread of blight, and accomplish the City’s development objectives for improving the continued viability of public and private development in the City. The driving interest in the establishment of this Plan is to offer tax increment financing as a tool to stimulate and leverage private sector development and redevelopment, to help eliminate statutory defined blight, and to prevent the spread of such blight. Development and redevelopment in the area is anticipated to occur in the near future through public and private partnerships, with the potential for Tax Increment financing to provide the impetus and means to undertake this redevelopment at a faster pace than might occur otherwise. GENERAL DEFINITIONS AS USED IN THIS PLAN The following terms found in this Plan have the following meanings: “Base” or “Tax Incremental Base” means the aggregate assessed value of all taxable property located within a Tax Incremental District on the date the district is created, as determined by SDCL § 11-9-20. "Blighted" means property that meets any of the following criteria: Any area, including slum area, in which the structures, buildings, or improvements, by reason of: (1) dilapidation, age, or obsolescence; (2) inadequate provisions for ventilation, light, air, sanitation, or open spaces; (3) high density of population and overcrowding; (4) the existence of conditions which endanger life or property by fire and other causes; or (5) any combination of such factors; are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and which is detrimental to the public health, safety, morals, or welfare, is a blighted area1; or Any area which by reason of: 1 SDCL § 11-9-9 Tax Increment District Nine, City of Brookings, South Dakota Page 4 (1) the presence of a substantial number of substandard, slum, deteriorated, or deteriorating structures; (2) predominance of defective or inadequate street layouts; (3) faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (4) unsanitary or unsafe conditions; (5) deterioration of site or other improvements; (6) diversity of ownership, tax, or special assessment delinquency exceeding the fair value of the land; (7) defective or unusual conditions of title; (8) the existence of conditions which endanger life or property by fire and other causes; or (9) any combination of such factors; substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use, is a blighted area 2; or Any area which is predominantly open and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of a municipality, is a blighted area.3 "City Councils" means the Brookings City Council. "City of Brookings" means Brookings, South Dakota, a home rule form of government. "Department of Revenue" means the South Dakota Department of Revenue. “District” means the Tax Incremental District. "Economic Development" means all powers expressly granted and reasonably inferred pursuant to SDCL §9-54. "Fiscal year" means that fiscal year of the City of Brookings. "Generally Applicable Taxes" shall have the same meaning as set forth in 26 CFR § 1.141-4(e). "Governing body" means the Brookings City Council "Infrastructure Improvements" means a street, road, sidewalk, parking facility, pedestrian mall, alley, bridge, sewer, sewage treatment plant, property designed to reduce, eliminate, or prevent the spread of identified soil or groundwater contamination, drainage system, waterway, waterline, water storage facility, rail line, utility line or pipeline, or other similar or related structure or improvement, together with necessary 2 SDCL § 11-9-10 3 SDCL § 11-9-11. Tax Increment District Nine, City of Brookings, South Dakota Page 5 easements for the structure or improvement, for the benefit of or for the protection of the health, welfare, or safety of the public generally. "Municipality" any incorporated city in this state. "Planning Commission" means the City Planning Commission. “Plan” means this Project Plan. “Project Costs” means any expenditure or monetary obligations by the City of Brookings, whether made, estimated to be made, incurred or estimated to be incurred, which are listed as Project Costs herein will include any costs incidental thereto but diminished by any income, special assessments, or other revenues, other than tax increments, received, or reasonably expected to be received, by the City of Brookings in connection with the implementation of this Plan. “Project Plan” means properly approved Plan for the development or redevelopment of a tax incremental district including all properly approved amendments thereto as recommended pursuant to SDCL § 11-9-13. "Public Works" means the acquisition by purchase or condemnation of real and personal property within the Tax Incremental District and the sale, lease, or other disposition of such property to private individuals, partnerships, corporations, or other entities at a price less than the cost of such acquisition which benefit or further the health, safety, welfare and economic development of the City. "Taxable Property" all real taxable property located in a Tax Incremental District; "Tax Incremental District" a contiguous geographic area within a City defined and created by resolution of the governing body and named City of Brookings Tax Incremental District Number Nine; "Tax Increment Valuation" is the total value of the Tax Incremental District minus the tax incremental base pursuant to § 11-9-19. “Tax Increment Law” means South Dakota Codified Laws Chapter 11-9. Tax Increment District Nine, City of Brookings, South Dakota Page 6 PROPERTY WITHIN THE TAX INCREMENT ZONE The real property to be located within the Tax Increment District is legally described as follows: Description: Lots 1 & 2, Block 11, Freeland Addition and abutting rights-of-way of 32nd Avenue; Block 11 excluding Lots 1 & 2, Freeland Addition and abutting rights-of-way of 32nd Avenue and 24th Street; Block 10 Exc Lot 1 & Exc ROW, Freeland Addition and abutting rights-of-way of 32nd Avenue; and N 40’ of Lot 1, Shop Site Addition in NE ¼ SE ¼ in Section 18-T110N-R49W of the 5th P.M. and abutting rights-of-way of 24th Street and 34th Avenue. LISTING OF KIND, N UMBER , LOCATION A ND DETAILED COSTS OF PROPOSED P UBLIC WORKS AND IMPROVEMENTS 4. In order to implement the provisions of SDCL Chapter 11-9, the following are Project Costs and expenditures made or estimated to be made and the monetary obligations incurred or estimated to be incurred by the City. The Project Costs includes capital costs, financing costs, real property assembly costs, professional fee costs, imputed administration costs, relocation costs, organizational costs, grants, and discretionary costs, plus any costs incidental thereto, diminished by any income, special assessments, or other revenues, other than tax increments, received, or reasonably expected to be received, by the City. The City is working to develop an economic and competitive base to benefit the City and the State as a whole. All the Project Costs, land acquisition and professional fees, are found to be necessary and convenient to the creation of the Tax Incremental District and the implementation of the Tax Increment District. The City shall enter into all contracts in accordance with South Dakota law. A combination of private investment, public investment and tax increment recapture will assist progress toward the following additional objectives:  To address and remedy conditions in the area that impair or arrest the sound growth of the City;  To implement the Comprehensive Plan and its related element;  To redevelop and rehabilitate the area in a manner which is compatible with and complementary to unique circumstances in the area;  To effectively utilize undeveloped and underdeveloped land;  To improve pedestrian, bicycle, vehicular, and transit-related circulation and safety; 4 SDCL §11-9-13(1). Tax Increment District Nine, City of Brookings, South Dakota Page 7  To ultimately contribute to increased revenues for all taxing entities;  To encourage the voluntary rehabilitation of buildings, improvements, and conditions;  To watch for market and/or project opportunities to eliminate blight, and when such opportunities exist, to take action within the financial, legal and political limits of the Authority to acquire land, demolish and remove structures, provide relocation benefits, and pursue redevelopment, improvement and rehabilitation projects; and  To improve areas that are likely to enhance significantly the value of substantially all property in the district. COSTS OF PUBLIC WORKS OR IMPROVEMENTS In accordance with SDCL 11-9-13(1) & (3) the following is the kind, number, location and dollar amount of estimated Project Costs, costs of public works and improvements. Kind of Project Cost Location5 Amount Reference6 Capital Costs (Street, Water, Sewer, Storm Sewer, cleaning & grading of land & associated costs)6 District 11-9-15(1) Financing Costs District 11-9-15(2) Real Property Assembly District 11-9-15(3) Professional Fees District 11-9-15(4) Administrative Costs District 11-9-15(5) Relocation Costs District 1-9-15(6) Organizational Costs District 11-9-15(7) Discretionary Costs and Grants District $1,500,000 11-9-15(8) Eligible Project Costs $1,500,000 *Eligible Project costs may be reallocated during the five years from creation of the TIF. The above total represents eligible Project Costs. 5District shall mean the Tax Increment District. 6SDCL §11-9-15 (1) Capital costs, including the actual costs of the construction of public works or improvements, buildings, structures, and permanent fixtures; the demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, and permanent fixtures; the acquisition of equipment; the clearing and grading of land; and the amount of interest payable on tax incremental bonds or notes issued pursuant to this chapter until such time as positive tax increments to be received from the district, as estimated by the Project Plan, are sufficient to pay the principal of and interest on the tax incremental bonds or notes when due; (2) Financing costs, including all interest paid to holders of evidences of indebtedness issued to pay for Project Costs, any premium paid over the principal amount thereof because of the redemption of such obligations prior to maturity and a reserve for the payment of principal of and interest on such obligations in an amount determined by the governing body to be reasonably required for the marketability of such obligations; (3) Real property assembly costs, including the actual cost of the acquisition by a municipality of real or personal property within a tax incremental district less any proceeds to be received by the municipality from the sale, lease, or other disposition of such property pur suant to a Project Plan; (4) Professional service costs, including those costs incurred for architectural, planning, engineering, and legal advice and services; (5) Imputed administrative costs, including reasonable charges for the time spent by municipal employees in connection with the implementation of a Project Plan; (6) Relocation costs; (7) Organizational costs, including the costs of conducting environmental impact and other studies and the costs of informing the public of the creation of tax incremental districts and the implementation of project plans; and (8) Payments and grants made, at the discretion of the governing body, which are found to be necessary or convenient to the creation of tax incremental districts or the implementation of project plans. Tax Increment District Nine, City of Brookings, South Dakota Page 8 E XPENDITURES EXCEEDIN G ESTIMATED COST Any expenditures which in sum would exceed the total amount stated in Eligible Project Costs will require an amendment of this plan. All amendments are undertaken pursuant to SDCL §11-9-23. When the expenditures are increased above the total Eligible Project Costs, the Department of Revenue will be required to reset the base, in accordance with SDCL §11-9-23. FEASIBILITY STUDY .7 An economic feasibility study is attached as Schedule 3. BLIGHT STUDY Not less than 25% of the area within the proposed district is blighted and in need of redevelopment as indicated in the Blight Study attached as Schedule 4. DETAILED LIST OF ESTIMATED PROJECT COSTS 8 Attached as Schedule 1 is a detailed list of estimated Project Costs. No expenditure for Project Costs is provided for more than five years after the district. FISCAL IMPACT STATEMENT 9 Attached as Schedule 5 is the Fiscal Impact Statement on other taxing districts found within the Tax Increment District, both until and after the bonds are repaid. METHOD OF FINANCING, TIMING OF COSTS AND MONETARY OBLIGATIONS 10 Project Costs shall be paid by the City. There shall be multiple advances by the City. The City will reimburse for employee time and expense from the tax increment fund. MAXIMUM A MOUNT OF NOTE OR BONDED I NDEBTEDNESS The City intends to issue no bonded indebtedness payable from the tax increment fund. The City will provide for the improvements through general funds and pay itself back through tax increment revenue. DURATION OF TAX INCREMENTAL PLAN The duration of the Plan will extend to the number of years it will take for the retirement of bonded indebtedness except that the Plan duration shall not exceed 20 years from the date of creation of the District. 7 SDCL §11-9-13(2) 8 SDCL §11-9-13(3) 9 SDCL § 11-9-13(4). 10 SDCL § 11-9-13(5) Tax Increment District Nine, City of Brookings, South Dakota Page 9 ESTI MATED IMPACT OF TAX INCREMENT FINANCING ON REVENUES OF TAXING JURISDICTIONS The site will generate taxes to the local jurisdictions at or above the assessed of the Base. All taxing districts shall receive that base which was established in 2020. The tax increment will be available to the taxing jurisdictions at or before 20 years after the creation of the District. Schedule 3 details the tax capture implications to each of the local taxing jurisdictions. After the repayment of the project costs, taxing entities will receive their proportionate share of tax dollars for the base value and the tax incremental values. CONDITIONS MAP 11, IMPROVEMENTS MAP12, ZONING CHANGE MAP13 The conditions map is attached as Attachment 1. The Improvements map is attached as Attachment 2. The Zoning Change Map is attached as Attachment 3. CHANGES TO THE CITY OF BROOKINGS MASTER PLAN, MAP, BUILDINGS CODES AND CITY ORDINANCES 14. The City has made changes in the master plan, map, building codes and City ordinances as indicated on Attachment 3. 11 SDCL § 11-9-16(1) 12 SDCL § 11-9-16(2) 13 SDCL § 11-9-16(3) 14 SDCL §11-9-16(4) Tax Increment District Nine, City of Brookings, South Dakota Page 10 LIST OF ESTIMATED NON-PROJECT COSTS 15. The following is a list of the projected non-Project Costs. Commercial and industrial buildings and facilities in an amount not determinable at this time. STATEMENT OF DISPLACEMENT A ND RELOCATION PLAN16 No residents or families will be displaced by the Project. There are no families or persons residing on the premises. Therefore, no relocation Plan is needed. PERFORMANCE BOND, S URETY BOND OR GUARAN TY. As security for its fulfillment of the agreement with the governing body, a purchaser or lessee of redevelopment property shall furnish a performance bond, with such surety and in such form and amount as the governing body may approve or make such other guaranty as the governing body may deem necessary in the public interest. 15 SDCL §11-9-16(5) 16 SDCL § 11-9-16(16) Tax Increment District Nine, City of Brookings, South Dakota Page 11 LIST OF SCHEDULES SCHEDULE 1 Detail of Project Costs SCHEDULE 2 Estimated Captured Taxable Values SCHEDULE 3 Economic Feasibility Schedule SCHEDULE 4 Blight Study SCHEDULE 5 Fiscal Impact Statement ATTACHMENTS Attachment 1. Map and Legal Description and existing uses and conditions Attachment 2. Map of Real property Improvement and uses Attachment 3. Map of proposed changes in zoning ordinances Tax Increment District Nine, City of Brookings, South Dakota Page 12 SCHEDULE 1 – "DETAIL OF PROJECT COSTS" The project contains approximately 1,650 linear feet of street with a pavement width of 41 feet and associated storm sewer improvements for 24th Street, as well as storm sewer improvemetns in 32nd Avenue and approximately 1,300 linear feet of street mil and overlay, grading, and the necessary infrastructure to accommodate drainage and green space associated with the project. This project provides an expanded street network and infrastructure for an industrial park in the north portion of the community. Kind of Project Cost Location17 Amount Reference18 Capital Costs (Street, Water, Sewer, Storm Sewer, cleaning & grading of land & associated costs) District 11-9-15(1) Financing Costs District 11-9-15(2) Real Property Assembly District 11-9-15(3) Professional Fees District 11-9-15(4) Administrative Costs District 11-9-15(5) Relocation Costs District 1-9-15(6) Organizational Costs District 11-9-15(7) Discretionary Costs and Grants District $1,500,000 11-9-15(8) Eligible Project Costs $1,500,000 17District shall mean the Tax Increment District. 18SDCL §11-9-15 (1) Capital costs, including the actual costs of the construction of public works or improvements, buildings, structures, and permanent fixtures; the demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, and permanent fixtures; the acquisition of equipment; the clearing and grading of land; and the amount of interest payable on tax incremental bonds or notes issued pursuant to this chapter until such time as positive tax increments to be received from the district, as estimated by the Project Plan, are sufficient to pay the principal of and interest on the tax incremental bonds or notes when due; (2) Financing costs, including all interest paid to holders of evidences of indebtedness issued to pay for Project Costs, any premium paid over the principal amount thereof because of the redemption of such obligations prior to maturity and a reserve for the payment of principal of and interest on such obligations in an amount determined by the governing body to be reasonably required for the marketability of such obligations; (3) Real property assembly costs, including the actual cost of the acquisition by a municipality of real or personal property within a tax incremental district less any proceeds to be received by the municipality from the sale, lease, or other disposition of such property p ursuant to a Project Plan; (4) Professional service costs, including those costs incurred for architectural, planning, engineering, and legal advice and services; (5) Imputed administrative costs, including reasonable charges for the time spent by municipal employees in connection with the implementation of a Project Plan; (6) Relocation costs; (7) Organizational costs, including the costs of conducting environmental impact and other studies and the costs of informing the public of the creation of tax incremental districts and the implementation of project plans; and (8) Payments and grants made, at the discretion of the governing body, which are found to be necessary or convenient to the creation of tax incremental districts or the implementation of project plans. Tax Increment District Nine, City of Brookings, South Dakota Page 13 SCHEDULE 2 – "ESTIMATED CAPTURED TAXABLE VALUES" BASE-ESTIMATED TAXES THAT WILL GO TO TAXING DISTRICTS DURING TIF INCREMENT-ESTIMATED TAXES THAT WILL GO TO TAX INCREMENT FUND DURING TIF TIF Creation Date 9/22/2020 First Year Assessed 2021 First Year Collected 2022 Base $2,869,100 Year TIF Year Assessed Collected Assessed Valuation Taxes City County School District Water District 1 2020 2021 2022 $0 2 2021 2022 2023 $322,000 $6,441.29 $837.84 $1,351.11 $4,244.60 $7.73 3 2022 2023 2024 $644,000 $12,882.58 $1,675.69 $2,702.22 $8,489.21 $15.46 4 2023 2024 2025 $1,150,000 $23,004.60 $2,992.30 $4,825.40 $15,159.30 $27.60 5 2024 2025 2026 $1,932,000 $38,647.73 $5,027.06 $8,106.67 $25,467.62 $46.37 6 2025 2026 2027 $2,852,000 $57,051.41 $7,420.90 $11,966.99 $37,595.06 $68.45 7 2026 2027 2028 $3,450,000 $69,013.80 $8,976.90 $14,476.20 $45,477.90 $82.80 8 2027 2028 2029 $4,048,000 $80,976.19 $10,532.90 $16,985.41 $53,360.74 $97.15 9 2028 2029 2030 $4,462,000 $89,257.85 $11,610.12 $18,722.55 $58,818.08 $107.09 10 2029 2030 2031 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 11 2030 2031 2032 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 12 2031 2032 2033 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 13 2032 2033 2034 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 14 2033 2034 2035 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 15 2034 2035 2036 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 16 2035 2036 2037 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 17 2036 2037 2038 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 18 2037 2038 2039 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 19 2038 2039 2040 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 20 2039 2040 2041 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 Note: These numbers are for projection purposes only and do not reflect what the actual number(s) may be. These numbers are based on the following assumptions. Assumptions: 1. Calculations based on buildout schedule. 2. Assumes equalized factor rate of 92%. Tax Increment District Nine, City of Brookings, South Dakota Page 14 SCHEDULE 3 – “ECONOMIC FEASIBILITY STUDY ” The City of Brookings is installing necessary street and drainage improvements in an industrial area in the northeast portion of the community. The expansion of the street network and associated drainage improvements enhance an industrial area by improving the street network and access for larger industrial sized vehicles. An essential component of the City’s participation is City funding for certain Project Costs (“Project Costs”) needed to support the Project (or any other comprehensive redevelopment of the site), all of which is currently estimated to cost in excess of $1,500,000. The City is paying the project costs pursuant to (SDCL 11-9-30) and intends to be reimbursed through positive tax increment pursuant to SDCL (11-9-32). If the Tax Increment District #9 dissolves prior to full reimbursement, the City will not be reimbursed for the remaining outstanding balance. In tax increment financing, the current real property tax assessed value of all properties in a designated project area (“tax increment financing district”) is established as the “base value.” As development in the tax increment financing district increases the assessed values of the redeveloped properties, a portion of the additional tax revenue generated by the increase in assessed value over the base value is set aside and committed by the City for debt service on tax increment bonds, the proceeds of which would be used for the construction of the Project Costs. Use of a Tax increment fund is permitted only in connection with a “Project Plan” duly adopted by the City. The process is set forth in the Tax Increment District Law, and is generally as follows: Tax Increment District Nine, City of Brookings, South Dakota Page 15  Any person may request the City Council to designate a tax increment financing district. The request may be through a formal application process, or a presentation to the City Council. Upon receiving any request, the City Council determines preliminary feasibility of the project. This preliminary feasibility determination includes fiscal, legal and political considerations.  If it is determined feasible, the City Council directs staff or the Planning Commission to initiate the process. The Planning Commission then sets a proposed hearing date and starts the notice procedure.  Notice of the intent to create a Tax Increment District is published and sent to all taxing districts not less than 10 days prior to the hearing.  The Planning Commission holds a hearing and allows members of the general public to comment upon the proposed creation of a Tax Increment District. At the end of the hearing, the Planning Commission may recommend the creation of the Tax Increment District to the City Council. The Planning Commission may also recommend a tax increment Project Plan and forward to the City Council for their determination.  The City Council places the recommendation on the agenda and at the public meeting may pass a resolution to create the Tax Increment District in accordance with the Tax Increment District Law. The resolution is published and becomes effective on the 21st day after publication, unless it is referred to a vote of the electors. This resolution may also approve the project plan.  After the resolution becomes effective, the Department of Revenue of the State of South Dakota is sent a letter requesting to determine the base.  After the Project Plan is approved, the City Council at any time may authorize the issuance of tax increment bonds “for the purpose of carrying out or administering a Project Plan”. The resolution would irrevocably pledge its tax increment revenues to the debt service on the City’s tax increment bonds. (See Tax Increment District Law Section 11-9-37).  The City has five years to spend tax increment revenues or bond proceeds on or for Project Costs. Tax Increment District Nine, City of Brookings, South Dakota Page 16 TIF Creation Date 9/22/2020 First Year Assessed 2021 First Year Collected 2022 Base $2,869,100 Year TIF Year Assessed Collected Assessed Valuation Taxes City County School District Water District 1 2020 2021 2022 $0 2 2021 2022 2023 $322,000 $6,441.29 $837.84 $1,351.11 $4,244.60 $7.73 3 2022 2023 2024 $644,000 $12,882.58 $1,675.69 $2,702.22 $8,489.21 $15.46 4 2023 2024 2025 $1,150,000 $23,004.60 $2,992.30 $4,825.40 $15,159.30 $27.60 5 2024 2025 2026 $1,932,000 $38,647.73 $5,027.06 $8,106.67 $25,467.62 $46.37 6 2025 2026 2027 $2,852,000 $57,051.41 $7,420.90 $11,966.99 $37,595.06 $68.45 7 2026 2027 2028 $3,450,000 $69,013.80 $8,976.90 $14,476.20 $45,477.90 $82.80 8 2027 2028 2029 $4,048,000 $80,976.19 $10,532.90 $16,985.41 $53,360.74 $97.15 9 2028 2029 2030 $4,462,000 $89,257.85 $11,610.12 $18,722.55 $58,818.08 $107.09 10 2029 2030 2031 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 11 2030 2031 2032 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 12 2031 2032 2033 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 13 2032 2033 2034 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 14 2033 2034 2035 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 15 2034 2035 2036 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 16 2035 2036 2037 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 17 2036 2037 2038 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 18 2037 2038 2039 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 19 2038 2039 2040 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 20 2039 2040 2041 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 Note: These numbers are for projection purposes only and do not reflect what the actual number(s) may be. These numbers are based on the following assumptions. Assumptions: 1. Calculations based on build-out schedule. 2. Assumes equalized factor rate of 92%. Since the City is reimbursing itself through collected tax increment, the plan is feasible. The City will collect only such tax increments as are collected in the tax increment fund. The above sheet is only an estimate Tax Increment District Nine, City of Brookings, South Dakota Page 17 and will be subject to actual collections. This document represents the feasibility study required under Tax Increment District Law Section 11-9-13 (Subsections 2, 4 and 5). The study concludes that the proposed redevelopment project in the project area is feasible. Tax Increment District Nine, City of Brookings, South Dakota Page 18 SCHEDULE 4. BLIGHT STUDY SECTION 1- INTRODUCTION The City has initiated the creation of a tax increment district located in the northeast part of the city. In order to determine whether a tax increment district may be created, it has been recommended that city staff together with outside consultants conduct a study of the area to determine if conditions exist that meet the definitions of blight described in Title 11-9 and allow consideration of a Tax Increment District to alleviate those conditions. If the City finds, by Resolution, that "blighted" conditions exist in not less than 25% of the area, it may after notification of affected taxing districts and after a public hearing, create a Tax Increment district. The Purpose of the study is to determine if impediments to development and other issues of blight exist, pursuant to state law, sufficient enough to warrant the creation of a district in the northeast portion of the City. In addition to studying the subject area for the defined blighted conditions, staff has evaluated the area for the existence of assets or opportunities for private investment, as creation and reinvestment of TIF funds in a District depends primarily on new private investment generating new property taxes. Finally, staff reviewed the Study Area for localized physical and institutional impediments to investment in the study area. SECTION 2 - STUDY A REA B OUNDARY The Study of Blight is broadly described as: Description: Lots 1 & 2, Block 11, Freeland Addition and abutting rights-of-way of 32nd Avenue; Block 11 excluding Lots 1 & 2, Freeland Addition and abutting rights-of-way of 32nd Avenue and 24th Street; Block 10 Exc Lot 1 & Exc ROW, Freeland Addition and abutting rights-of-way of 32nd Avenue; and N 40’ of Lot 1, Shop Site Addition in NE ¼ SE ¼ in Section 18-T110N-R49W of the 5th P.M. and abutting rights-of-way of 24th Street and 34th Avenue, City of Brookings, Brookings County, South Dakota. SECTION 3 - ESTABLISHING BLIGHT South Dakota law describes a blighted area as one that contains a set of conditions which constitute blight. There are three statutory areas of blight: SDCL § 11-9-9 Any area, including slum area, in which the structures, buildings, or improvements, by reason of: (1) Dilapidation, age, or obsolescence; Tax Increment District Nine, City of Brookings, South Dakota Page 19 (2) Inadequate provisions for ventilation, light, air, sanitation, or open spaces; (3) High density of population and overcrowding; (4) The existence of conditions which endanger life or property by fire and other causes; or (5) Any combination of such factors; are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and which is detrimental to the public health, safety, morals, or welfare, is a blighted area. SDCL § 11-9-10. Developed areas impairing growth defined as blighted. Any area which by reason of: (1) The presence of a substantial number of substandard, slum, deteriorated, or deteriorating structures; (2) Predominance of defective or inadequate street layouts; (3) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (4) Insanitary or unsafe conditions; (5) Deterioration of site or other improvements; (6) Diversity of ownership, tax, or special assessment delinquency exceeding the fair value of the land; (7) Defective or unusual conditions of title; (8) The existence of conditions which endanger life or property by fire and other causes; or (9) Any combination of such factors; substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use, is a blighted area. SDCL § 11-9-11. Any area which is predominantly open and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of a municipality, is a blighted area. Under South Dakota law the finding of blight may be made based upon a single factor found in SDCL § 11 - 9-9, 11-9-10 or 11-9-11. SECTION 4 - HISTORY OF THE STUDY AREA The study area is comprised of agricultural and industrial area. A majority of the area is non developable without direct street and drainage improvements by the developer and City of Brookings. The City has initiated a development plan whereby it intends to expand into the geographical area and provide street and drainage improvements where private developers will not. SECTION 5 - STUDY A REA DESCRIPTION An open area with inadequate street layouts, lack of storm drainage, or fire control improvements, which, due to geographical limitations, substantially arrests the sound growth of a municipality, constitutes an economic or social liability and is a menace to welfare of the City in its present condition and use. Tax Increment District Nine, City of Brookings, South Dakota Page 20 SECTION 6 - CONDITIONS WITHIN THE STUDY AREA Sewer- Analysis of the City of Brookings Sanitary Sewer Maps reveals that the Study Area has wastewater coverage. Storm water – Analysis of the City of Brookings Storm Sewer Maps reveals that the Study Area has limited storm sewer coverage. Potable Water – Analysis of the City of Brookings Water Maps reveals that the Study Area has water coverage. Street & Sidewalk Condition – Analysis of the City of Brookings Street Maps reveals that the Study Area is in need of additional street and sidewalk infrastructure. Transportation - According to the Engineering department, the District is in need of street extension, alignment, and repair to maintain better control and flow of traffic. Fire – The City of Brookings Fire Department supplied information pertaining to life safety aspects within the study area. More than twenty-five percent of the District does not meet fire safety standards due to inadequate street network and access. Demographic Character of the Study Area There exists population in less than 25 % of the study area. Tax Generation from the Area More than twenty-five percent of the District does not generate taxes sufficient to supply the required infrastructure improvements. Land Use and Planning Comprehensive Plan - The Comprehensive plan suggests that public and private improvements are needed within the District. Zoning – No zoning changes will be necessary for development. SECTION 7 - FINDINGS WITHIN THE STUDY AREA – ANALYSIS In accordance with State Law, the following addresses specific characteristics of blight found within the Study Area with corresponding portions of 11-9-10 and 11-9-11: Defective or inadequate street layout. - For the most part, the streets in the Study Area are not adequate, as the current street dead-ends, needs a mil and overlay as conditions are deteriorating due to inadequate drainage, and no additional street access is available. Large vehicle access is minimized in the area due to inadequate street network. Additional drainage improvements are necessary to improve storm water management in the area as industrial development proceeds. The study area would benefit greatly from an improved street and connectivity with existing streets and drainage improvements. Tax Increment District Nine, City of Brookings, South Dakota Page 21 Faulty lot layout in relation to size, adequacy, accessibility, or usefulness. Lots and blocks in the Study Area need to be laid out in not less than 25% of the area. Unsanitary or unsafe conditions. Some conditions within localized portions of the Study Area listed above achieve unsafe status due to life- safety issues. The existence of conditions that endanger life or property by fire or other causes. Some conditions within localized portions of the Study Area listed above achieve unsafe status due to life- safety issues. SECTION 8 - CONCLUSIONS Based on the findings of this study, it is determined that the Study Area contains conditions defined as “blight”. Tax Increment District Nine, City of Brookings, South Dakota Page 22 SCHEDULE 5 - “FISCAL IMPACT STATEMENT ” FISCAL IMPACT STATEMENT- TAX INCREMENT DISTRICT NUMBER NINE INTRODUCTION The fiscal impact statement is intended to provide a succinct analysis of the estimated impact of the Tax Increment District to the public pursuant to SDCL § 11-9-13(4). It is not intended to rival the level of detail required by a detailed financial analysis. A fiscal impact statement shows the impact of the Tax Increment District, both until and after the City is repaid, upon all entities levying taxes upon property in the district. DEFINITIONS “Assumptions” means factors or definitions used in the fiscal analysis. Assumptions may include facts and figures identified by the District and educated guesses that are sometimes necessary when not all of the information is available. Assumptions are often used to extrapolate an estimate. Assumptions may include an estimate of tax levies of each taxing entity, the school aid formula contribution, the value of the real property, etc. "Base Revenues” means the taxes collected on the base value. “Fiscal Impact” means the increase or decrease in revenues and generally refers to an impact to revenues caused by the district. “Revenue” means ad valorem taxes. “Tax Increment District “ means City of Brookings, Tax Increment District Number Nine. “Taxing Districts” means all political subdivisions of the state which have ad valorem taxing power over property within the boundaries of the Tax Increment District. “Tax Increment Revenues" means all revenues above the Base Revenues. ASSUMPTIONS: 1. The property will have improvements which at completion will be valued for taxable purposes at $5,000,000. 2. The average tax levy of all taxing districts will be: Tax Increment District Nine, City of Brookings, South Dakota Page 23 Taxing Districts Levy $ per 1000 2019 Payable in 2020 Brookings School District 13.182 Brookings County 4.196 City 2.602 Water District 0.024 Total Tax Levy 20.004 Full & True 100% Taxable Factor 92.00% Assessed $5,000,000 Factored $4,600,000 Taxable $4,600,000 Taxes $92,018 3. Tax increment will start to be collected in 2021 and end in 2039. 4. The discretionary formula will be applied to the property. FISCAL IMPACT: The total fiscal impact upon the taxing entities during the term of the Tax Increment District is as follows: Taxing District will receive taxes on the base value of property within district, but will not receive any new increment generated until the expiration of the Tax Increment District. Tax Increment District Nine, City of Brookings, South Dakota Page 24 TIF Creation Date 9/22/2020 First Year Assessed 2021 First Year Collected 2022 Base $2,869,100 Year TIF Year Assessed Collected Assessed Valuation Taxes City County School District Water District 1 2020 2021 2022 $0 2 2021 2022 2023 $322,000 $6,441.29 $837.84 $1,351.11 $4,244.60 $7.73 3 2022 2023 2024 $644,000 $12,882.58 $1,675.69 $2,702.22 $8,489.21 $15.46 4 2023 2024 2025 $1,150,000 $23,004.60 $2,992.30 $4,825.40 $15,159.30 $27.60 5 2024 2025 2026 $1,932,000 $38,647.73 $5,027.06 $8,106.67 $25,467.62 $46.37 6 2025 2026 2027 $2,852,000 $57,051.41 $7,420.90 $11,966.99 $37,595.06 $68.45 7 2026 2027 2028 $3,450,000 $69,013.80 $8,976.90 $14,476.20 $45,477.90 $82.80 8 2027 2028 2029 $4,048,000 $80,976.19 $10,532.90 $16,985.41 $53,360.74 $97.15 9 2028 2029 2030 $4,462,000 $89,257.85 $11,610.12 $18,722.55 $58,818.08 $107.09 10 2029 2030 2031 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 11 2030 2031 2032 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 12 2031 2032 2033 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 13 2032 2033 2034 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 14 2033 2034 2035 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 15 2034 2035 2036 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 16 2035 2036 2037 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 17 2036 2037 2038 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 18 2037 2038 2039 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 19 2038 2039 2040 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 20 2039 2040 2041 $4,600,000 $92,018.40 $11,969.20 $19,301.60 $60,637.20 $110.40 Note: These numbers are for projection purposes only and do not reflect what the actual number(s) may be. These numbers are based on the following assumptions. Assumptions: 3. Calculations based on build-out schedule. 4. Assumes equalized factor rate of 92%. Tax Increment District Nine, City of Brookings, South Dakota Page 25 ATTACHMENT 1 Legal Description: Lots 1 & 2, Block 11, Freeland Addition and abutting rights-of-way of 32nd Avenue; Block 11 excluding Lots 1 & 2, Freeland Addition and abutting rights-of-way of 32nd Avenue and 24th Street; Block 10 Exc Lot 1 & Exc ROW, Freeland Addition and abutting rights-of-way of 32nd Avenue; and N 40’ of Lot 1, Shop Site Addition in NE ¼ SE ¼ in Section 18-T110N-R49W of the 5th P.M. and abutting rights-of-way of 24th Street and 34th Avenue. Tax Increment District Nine, City of Brookings, South Dakota Page 26 ATTACHMENT 2 (List of Real Property Improvements) Improvements are to be located and are shown below: The Improvements shall be located in the real property described in Attachment 1 in the 24th Street and 32nd Avenue, rights-of-way. Grading, storm sewer, street and drainage improvements adjacent to and necessary for the development of industrial lots. Tax Increment District Nine, City of Brookings, South Dakota Page 27 ATTACHMENT 3 Zoning Changes The following map reveals the property is currently zoned Industrial I-1 Light District (I-1). The property within the district is consistent with the comprehensive plan, building codes and municipal ordinances. Lot 1 Bl o c k 1 1 Bl o c k 1 0 Lot 2 Block 11 Excluding Lots 1 & 2 Lot 1 32ND AVE24TH ST 34TH AVEI-29I-29Tax increment district #9 City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 20-091,Version:1 Action on Resolution 20-091, a Resolution approving Tax Increment District #10 Project Plan. Summary: Adoption of a project plan detailing the proposed improvements, associated costs, and the plan for financing the improvements. Background: The City of Brookings is proposing the creation of Tax Increment District #10 to construct public improvements for the construction of 15th Street South and 7th Avenue South and associated water, sanitary sewer, storm sewer, and detention pond improvements. The improvements will complete the connection of two collector streets and expand the street network by connecting 20th Street South and 12th Street South via 7th Avenue South and Main Avenue to Medary Avenue with the completion of 15th Street South. State law (SDCL 11-9-13) requires the Planning Commission adopt a project plan for each tax increment district and submit the plan to the governing body. The plan must contain specific information as stated in SDCL Chapter 11. The City is responsible to front the costs of the project improvements and will only be reimbursed property tax increment generated from development occurring with the district. Recommendation: The Planning Commission voted 8 - 0 recommending approval of the project plan. The Development Review Team (DRT) recommends approval of the project plan. Attachments: Memo Resolution Minutes Project Plan Map City of Brookings Printed on 11/5/2020Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Mike Struck, Community Development Director Council Meeting: November 10, 2020 Subject: Tax Increment District #10 Project Plan Person(s) Responsible: Mike Struck, Community Development Director Summary: Adoption of a project plan detailing the proposed improvements, associated costs, and the plan for financing the improvements. Background: The City of Brookings is proposing the creation of Tax Increment District #10 to construct public improvements for the construction of 15th Street South and 7th Avenue South and associated water, sanitary sewer, storm sewer, and detention pond improvements. The improvements will complete the connection of two collector streets and expand the street network by connecting 20th Street South and 12th Street South via 7th Avenue South and Main Avenue to Medary Avenue with the completion of 15th Street South. State law (SDCL 11-9-13) requires the Planning Commission adopt a project plan for each tax increment district and submit the plan to the governing body. The plan must contain specific information as stated in SDCL Chapter 11. The City is responsible to front the costs of the project improvements and will only be reimbursed property tax increment generated from development occurring with the district. The aggregate assessed value of the taxable property in Tax Increment District #10 plus the tax increment base of all other existing districts is 1.4% of the total assessed value of all taxable property in the City. State law restricts the maximum percentage to ten (10%) percent. Item Details: The Project Plan provides an estimate of property tax increment generated from private development within the district, a schedule of the project improvements and costs, criteria meeting the state statutes for determination of a blighted area, economic feasibility of the project, and additional items satisfying the statutory requirements for a project plan. Legal Consideration: None. Financial Consideration: The City will front the project costs and be reimbursed by property tax increment generated within the district. Tax increment projections indicate approximately half of the total project costs could be reimbursed by the property tax increment generated within the district. Strategic Plan Consideration: Tax Increment Financing District #10 supports the economic development and workforce development goals of the City by providing public infrastructure supporting the development of commercial enterprises as well as a workforce housing project along 15th Street South. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Approve as amended 3. Deny 4. Move the item to a work session 5. Do nothing The Planning Commission voted 8 – 0 recommending approval of the project plan. The Development Review Team (DRT) recommends approval of the project plan as presented. Supporting Documentation Memo Resolution Minutes Project Plan Map Resolution 20-091 Resolution Approving Tax Increment Financing District Number Ten (#10) Project Plan Whereas, the Brookings Planning Commission has recommended the approval of the Tax Increment Financing District Number Ten Project Plan, City of Brookings; and Whereas, the City Council finds that all requirements have been met in order to approve said Tax Increment Plan. Now, Therefore, Be It Resolved by the City Council 1. Approval of Project Plan. The project plan, a copy of which is on file with the City Finance Officer hereby approved. 2. Findings. The City Council finds that the project plan is feasible and that it conforms to the City’s master plan. All findings made in the tax increment financing project plan are included herein by reference. 3. Effective 20 days after publication. This resolution shall become effective 20 days after publication and absent any challenge at law all findings and conclusions in the Tax Increment Financing Project Plan for Tax Increment Financing District Number Ten, City of Brookings shall be final. Passed and Approved this 10th day of November, 2020. CITY OF BROOKINGS ____________________________________ Keith W. Corbett, Mayor ATTEST: ___________________________________ Bonnie Foster, City Clerk Planning Commission Brookings, South Dakota November 2, 2020 OFFICIAL MINUTES Chairperson Tanner Aiken called the meeting of the City Planning Commission to order on Monday November 2, 2020, at 5:30 PM in the Council Chambers Room #310 on the third floor of the City & County Government Center. Members present were Ashley Biggar, Eric Rasmussen, Greg Fargen, Gregg Jorgenson, Jason Meusburger, Jacob Mills, Lee Ann Pierce, and Aiken. Also present were Community Development Director Mike Struck and City Planner Ryan Miller. Item #4c – The City of Brookings has submitted a project plan detailing the proposed improvements, associated costs, and the plan for financing Tax Increment District #10. (Jorgenson/Biggar) Motion to approve the Tax Increment District #10 Project Plan. All present voted aye. MOTION CARRIED. OFFICIAL SUMMARY Item #4c – TID #10 is for a project to complete two dead-end streets, associated water, sanitary sewer, storm sewer, and detention pond improvements. The improvements will complete the connection of two collector streets and expand the street network by connecting 20th Street South and 12th Street South via 7th Avenue South and Main Avenue to Medary Avenue. Land was purchased previously by the City and this land will act as water detention, with a network of channels and culverts, the water will flow to the pond towards the south. Additionally, there is also a plan to implement a workforce housing development in this area which is projected to be a significant boost to the City. The project will probably only payback about 50% of the expenses. Fargen asked if this was typical. Struck stated that this is typical with a City fronted project. If the City didn’t apply for TIF on this project, then other development or projects in the City would be delayed. Additionally, a project like this probably wouldn’t pencil out and work for a independent developer. Aiken asked if this project was already designed since an Engineer’s Estimate has been received. Struck stated yes. Additionally, Aiken wondered if this detention pond would collect water or would typically be dry. Struck explained that there is a significant amount of water in this area so it will typically have some water. TAX INCREMENTAL DISTRICT NUMBER TEN, CITY OF BROOKINGS TAX INCREMENTAL PROJECT PLAN Tax Increment District Ten, City of Brookings, South Dakota Page 1 T ABLE OF CONTENTS INTRODUCTION AND PURPOSE ..................................................................................................................................... 3 GENERAL DEFINITIONS AS USED IN THIS PLAN ............................................................................................................. 3 Listing Of Kind, Number, Location And Detailed Costs Of Proposed Public Works And Improvements. ...................... 6 Costs of Public Works or Improvements .................................................................................................................. 8 Expenditures exceeding Estimated Cost .................................................................................................................. 9 FEASIBILITY STUDY. ....................................................................................................................................................... 9 BLIGHT STUDY ............................................................................................................................................................... 9 DETAILED LIST OF ESTIMATED PROJECT COSTS ............................................................................................................ 9 FISCAL IMPACT STATEMENT ......................................................................................................................................... 9 METHOD OF FINANCING, TIMING OF COSTS AND MONETARY OBLIGATIONS ............................................................. 9 Maximum Amount of Note or Bonded Indebtedness ................................................................................................... 9 DURATION OF TAX INCREMENTAL PLAN ...................................................................................................................... 9 ESTIMATED IMPACT OF TAX INCREMENT FINANCING ON REVENUES OF TAXING JURISDICTIONS ............................ 10 CONDITIONS MAP, IMPROVEMENTS MAP, ZONING CHANGE MAP ........................................................................... 10 CHANGES TO THE CITY OF BROOKINGS MASTER PLAN, MAP, BUILDINGS CODES AND CITY ORDINANCES. .............. 10 LIST OF ESTIMATED NON-PROJECT COSTS. ................................................................................................................. 11 STATEMENT OF DISPLACEMENT AND RELOCATION PLAN .......................................................................................... 11 PERFORMANCE BOND, SURETY BOND OR GUARANTY. .............................................................................................. 11 SCHEDULE 1 – "DETAIL OF PROJECT COSTS" ............................................................................................................... 13 SCHEDULE 2 – "ESTIMATED CAPTURED TAXABLE VALUES" ........................................................................................ 14 SCHEDULE 3 – “ECONOMIC FEASIBILITY STUDY” ........................................................................................................ 15 SCHEDULE 4. BLIGHT STUDY ....................................................................................................................................... 18 Section 1- Introduction ........................................................................................................................................... 18 Section 2 - Study Area Boundary ............................................................................................................................ 18 Tax Increment District Ten, City of Brookings, South Dakota Page 2 Section 3 - Establishing Blight ................................................................................................................................. 19 Section 4 - History of the Study Area ..................................................................................................................... 20 Section 5 - Study Area Description ......................................................................................................................... 20 Section 6 - Conditions Within the Study Area ........................................................................................................ 20 Section 7 - Findings within the Study Area – Analysis ............................................................................................ 21 Section 8 - Conclusions ........................................................................................................................................... 21 SCHEDULE 5 - “FISCAL IMPACT STATEMENT” ............................................................................................................. 22 FISCAL IMPACT STATEMENT- TAX INCREMENT DISTRICT NUMBER TEN................................................................ 22 Introduction ....................................................................................................................................................... 22 Definitions ......................................................................................................................................................... 22 Assumptions: ..................................................................................................................................................... 22 FISCAL IMPACT:.................................................................................................................................................. 23 ATTACHMENT 1 ........................................................................................................................................................... 24 ATTACHMENT 2 ........................................................................................................................................................... 25 ATTACHMENT 3 ........................................................................................................................................................... 26 Tax Increment District Ten, City of Brookings, South Dakota Page 3 INTRODUCTION AND PURPOSE The purpose of this Plan, to be implemented by the City of Brookings, is to satisfy the requirements for a Tax Incremental District Plan Number Ten, City of Brookings as specified in SDCL Chapter 11-9. There are 11 mandated requirements of the Plan, each to be addressed in this Plan. The principal purpose of the Plan is to define eligible property and to define a Tax Increment Plan for funding eligible activities of a functionally obsolete and blighted area of the City. This Plan was prepared for adoption by the City Council in recognition that the renewal area requires a coordinated, cooperative strategy, with financing possibilities, to eliminate the blight and prevent the spread of blight, and accomplish the City’s development objectives for improving the continued viability of public and private development in the City. The driving interest in the establishment of this Plan is to offer tax increment financing as a tool to stimulate and leverage private sector development and redevelopment, to help eliminate statutory defined blight, and to prevent the spread of such blight. Development and redevelopment in the area is anticipated to occur in the near future through public and private partnerships, with the potential for Tax Increment financing to provide the impetus and means to undertake this redevelopment at a faster pace than might occur otherwise. The development of commercial, institutional, and residential property and to stimulate further economic development is an essential governmental purpose. GENERAL DEFINITIONS AS USED IN THIS PLAN The following terms found in this Plan have the following meanings: “Base” or “Tax Incremental Base” means the aggregate assessed value of all taxable property located within a Tax Incremental District on the date the district is created, as determined by SDCL § 11-9-20. "Blighted" means property that meets any of the following criteria: Any area, including slum area, in which the structures, buildings, or improvements, by reason of: (1) dilapidation, age, or obsolescence; (2) inadequate provisions for ventilation, light, air, sanitation, or open spaces; (3) high density of population and overcrowding; (4) the existence of conditions which endanger life or property by fire and other causes; or (5) any combination of such factors; are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and which is detrimental to the public health, safety, morals, or welfare, is a blighted area1; or 1 SDCL § 11-9-9 Tax Increment District Ten, City of Brookings, South Dakota Page 4 Any area which by reason of: (1) the presence of a substantial number of substandard, slum, deteriorated, or deteriorating structures; (2) predominance of defective or inadequate street layouts; (3) faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (4) unsanitary or unsafe conditions; (5) deterioration of site or other improvements; (6) diversity of ownership, tax, or special assessment delinquency exceeding the fair value of the land; (7) defective or unusual conditions of title; (8) the existence of conditions which endanger life or property by fire and other causes; or (9) any combination of such factors; substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use, is a blighted area 2; or Any area which is predominantly open and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of a municipality, is a blighted area.3 "City Councils" means the Brookings City Council. "City of Brookings" means Brookings, South Dakota, a home rule form of government. "Department of Revenue" means the South Dakota Department of Revenue. “District” means the Tax Incremental District. "Economic Development" means all powers expressly granted and reasonably inferred pursuant to SDCL §9-54. "Fiscal year" means that fiscal year of the City of Brookings. "Generally Applicable Taxes" shall have the same meaning as set forth in 26 CFR § 1.141-4(e). "Governing body" means the Brookings City Council "Infrastructure Improvements" means a street, road, sidewalk, parking facility, pedestrian mall, alley, bridge, sewer, sewage treatment plant, property designed to reduce, eliminate, or prevent the spread of identified soil or groundwater contamination, drainage system, waterway, waterline, water storage facility, 2 SDCL § 11-9-10 3 SDCL § 11-9-11. Tax Increment District Ten, City of Brookings, South Dakota Page 5 rail line, utility line or pipeline, or other similar or related structure or improvement, together with necessary easements for the structure or improvement, for the benefit of or for the protection of the health, welfare, or safety of the public generally. "Municipality" any incorporated city in this state. "Planning Commission" means the City Planning Commission. “Plan” means this Project Plan. “Project Costs” means any expenditure or monetary obligations by the City of Brookings, whether made, estimated to be made, incurred or estimated to be incurred, which are listed as Project Costs herein will include any costs incidental thereto but diminished by any income, special assessments, or other revenues, other than tax increments, received, or reasonably expected to be received, by the City of Brookings in connection with the implementation of this Plan. “Project Plan” means properly approved Plan for the development or redevelopment of a tax incremental district including all properly approved amendments thereto as recommended pursuant to SDCL § 11-9-13. "Public Works" means the acquisition by purchase or condemnation of real and personal property within the Tax Incremental District and the sale, lease, or other disposition of such property to private individuals, partnerships, corporations, or other entities at a price less than the cost of such acquisition which benefit or further the health, safety, welfare and economic development of the City. "Taxable Property" all real taxable property located in a Tax Incremental District; "Tax Incremental District" a contiguous geographic area within a City defined and created by resolution of the governing body and named City of Brookings Tax Incremental District Number Ten; "Tax Increment Valuation" is the total value of the Tax Incremental District minus the tax incremental base pursuant to § 11-9-19. “Tax Increment Law” means South Dakota Codified Laws Chapter 11-9. Tax Increment District Ten, City of Brookings, South Dakota Page 6 PROPERTY WITHIN THE TAX INCREMENT ZONE The real property to be located within the Tax Increment District is legally described as follows: Description: Block 3 and 4, D & D Addition and abutting roads rights-of-way, Lot 10, Block 13, Pheasant Nest Addition and abutting road rights-of-way, Lot 1, Block 12, Pheasant Nest Addition and abutting road rights-of-way, Lot 2A and 3A, Block 12A, Pheasant Nest Addition and abutting road rights-of-way, Lot 5B, Block 13, Pheasant Nest Addition and abutting road rights-of-way, Lot 10, Block 11, Pheasant Nest Addition and abutting road rights-of-way, Lot 1, Block 2, McClemans Addition and abutting road rights-of-way, NE ¼ of SE ¼ Exc S 300’ thereof, and Exc McClemans Addition of Section 35- T110N-R50W and abutting road rights-of-way, Lot 9 and 16A, Block 11, McClemans Addition and abutting road rights-of-way. LISTING OF KIND, N UMBER , LOCATION A ND DETAILED COSTS OF PROPOSED P UBLIC WORKS AND IMPROVEMENTS 4. In order to implement the provisions of SDCL Chapter 11-9, the following are Project Costs and expenditures made or estimated to be made and the monetary obligations incurred or estimated to be incurred by the City. The Project Costs includes capital costs, financing costs, real property assembly costs, professional fee costs, imputed administration costs, relocation costs, organizational costs and discretionary costs, plus any costs incidental thereto, diminished by any income, special assessments, or other revenues, other than tax increments, received, or reasonably expected to be received, by the City. The City is working to develop an economic and competitive base to benefit the City and the State as a whole. All the Project Costs, land acquisition and professional fees, are found to be necessary and convenient to the creation of the Tax Incremental District and the implementation of the Tax Increment District. The City shall enter into all contracts in accordance with South Dakota law. A combination of private investment, public investment and tax increment recapture will assist progress toward the following additional objectives:  To address and remedy conditions in the area that impair or arrest the sound growth of the City; 4 SDCL §11-9-13(1). Tax Increment District Ten, City of Brookings, South Dakota Page 7  To implement the Comprehensive Plan and its related element;  To redevelop and rehabilitate the area in a manner which is compatible with and complementary to unique circumstances in the area;  To effectively utilize undeveloped and underdeveloped land;  To improve pedestrian, bicycle, vehicular, and transit-related circulation and safety;  To ultimately contribute to increased revenues for all taxing entities;  To encourage the voluntary rehabilitation of buildings, improvements, and conditions;  To watch for market and/or project opportunities to eliminate blight, and when such opportunities exist, to take action within the financial, legal and political limits of the Authority to acquire land, demolish and remove structures, provide relocation benefits, and pursue redevelopment, improvement and rehabilitation projects; and  To improve areas that are likely to enhance significantly the value of substantially all property in the district. Tax Increment District Ten, City of Brookings, South Dakota Page 8 COSTS OF PUBLIC WORKS OR IMPROVEMENTS In accordance with SDCL 11-9-13(1) & (3) the following is the kind, number, location and dollar amount of estimated Project Costs, costs of public works and improvements. Kind of Project Cost Location5 Amount Reference6 Capital Costs District $2,500,000* 11-9-14(1) Financing Costs District 11-9-14(2) Real Property Assembly District 11-9-14(3) Professional Fees District $300,000* 11-9-14(4) Administrative Costs District 11-9-14(5) Relocation Costs District 1-9-14(6) Organizational Costs District 11-9-14(7) Discretionary Costs and Grants District $500,000* 11-9-14(8) Eligible Project Costs $3,300,000 *Eligible Project costs may be reallocated during the five years from creation of the TIF . The above total represents eligible Project Costs. 5District shall mean the Tax Increment District. 6SDCL §11-9-14 (1) Capital costs, including the actual costs of the construction of public works or improvements, buildings, structures, and permanent fixtures; the demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, and permanent fixtures; the acquisition of equipment; the clearing and grading of land; and the amount of interest payable on tax incremental bonds or notes issued pursuant to this chapter until such time as positive tax increments to be received from the district, as estimated by the Project Plan, are sufficient to pay the principal of and interest on the tax incremental bonds or notes when due; (2) Financing costs, including all interest paid to holders of evidences of indebtedness issued to pay for Project Costs, any premium paid over the principal amount thereof because of the redemption of such obligations prior to maturity and a reserve for the payment of principal of and interest on such obligations in an amount determined by the governing body to be reasonably required for the marketability of such obligations; (3) Real property assembly costs, including the actual cost of the acquisition by a municipality of real or personal property within a tax incremental district less any proceeds to be received by the municipality from the sale, lease, or other disposition of such property pursuant to a Project Plan; (4) Professional service costs, including those costs incurred for architectural, planning, engineering, and legal advice and services; (5) Imputed administrative costs, including reasonable charges for the time spent by municipal employees in connection with the implementation of a Project Plan; (6) Relocation costs; (7) Organizational costs, including the costs of conducting environmental impact and other studies and the costs of informing the public of the creation of tax incremental districts and the implementation of project plans; and (8) Payments made, at the discretion of the governing body, which are found to be necessary or convenient to the creation of tax incremental districts or the implementation of project plans. Tax Increment District Ten, City of Brookings, South Dakota Page 9 EXPENDITURES EXCEEDIN G ESTIMATED COST Any expenditures which in sum would exceed the total amount stated in Eligible Project Costs will require an amendment of this plan. All amendments are undertaken pursuant to SDCL §11-9-23. When the expenditures are increased above the total Eligible Project Costs, the Department of Revenue will be required to reset the base, in accordance with SDCL §11-9-23. FEASIBILITY STUDY .7 An economic feasibility study is attached as Schedule 3. BLIGHT STUDY Not less than 25% of the area within the proposed district is blighted and in need of redevelopment as indicated in the Blight Study attached as Schedule 4. DETAILED LIST OF ESTIMATED PROJECT COSTS 8 Attached as Schedule 1 is a detailed list of estimated Project Costs. No expenditure for Project Costs is provided for more than five years after the district. FISCAL IMPACT STATEMENT 9 Attached as Schedule 5 is the Fiscal Impact Statement on other taxing districts found within the Tax Increment District, both until and after the bonds are repaid. METHOD OF FINANCING, TIMING OF COSTS AND MONETARY OBLIGATIONS 10 Project Costs shall be paid by the City. There shall be multiple advances by the City. The City will reimburse for employee time and expense from the tax increment fund. MAXIMUM A MOUNT OF NOTE OR BONDED I NDEBTEDNESS The City intends to issue no bonded indebtedness payable from the tax increment fund. The City will provide for the improvements through general funds and pay itself back through tax increment revenue. DURATION OF TAX INCREMENTAL PLAN The duration of the Plan will extend to the number of years it will take for the retirement of bonded indebtedness except that the Plan duration shall not exceed 20 years from the date of creation of the District. 7 SDCL §11-9-13(2) 8 SDCL §11-9-13(3) 9 SDCL § 11-9-13(4). 10 SDCL § 11-9-13(5) Tax Increment District Ten, City of Brookings, South Dakota Page 10 ESTIMATED IMPACT OF TAX INCREMENT FINANCING ON REVENUES OF TAXING JURISDICTIONS The site will generate taxes to the local jurisdictions at or above the assessed of the Base. All taxing districts shall receive that base which was established in 2020. The tax increment will be available to the taxing jurisdictions at or before 20 years after the creation of the District. Schedule 3 details the tax capture implications to each of the local taxing jurisdictions. After the repayment of the bonds, taxing entities will receive their proportionate share of tax dollars for the base value and the tax incremental values. CONDITIONS MAP 11, IMPROVEMENTS MAP12, ZONING CHANGE MAP13 The conditions map is attached as Attachment 1. The Improvements map is attached as Attachment 2. The Zoning Change Map is attached as Attachment 3. CHANGES TO THE CITY OF BROOKINGS MASTER PLAN, MAP, BUILDINGS CODES AND CITY ORDINANCES 14. The City has made changes in the master plan, map, building codes and City ordinances as indicated on Attachment 3. 11 SDCL § 11-9-16(1) 12 SDCL § 11-9-16(2) 13 SDCL § 11-9-16(3) 14 SDCL §11-9-16(4) Tax Increment District Ten, City of Brookings, South Dakota Page 11 LIST OF ESTIMATED NON-PROJECT COSTS 15. The following is a list of the projected non-Project Costs. Commercial and residential buildings and facilities in an amount not determinable at this time. STATEMENT OF DISPLACEMENT AND RELOCATION PLAN16 No residents or families will be displaced by the Project. Therefore, no relocation Plan is needed. PERFORMANCE BOND, S URETY BOND OR GU ARANTY . As security for its fulfillment of the agreement with the governing body, a purchaser or lessee of redevelopment property shall furnish a performance bond, with such surety and in such form and amount as the governing body may approve or make such other guaranty as the governing body may deem necessary in the public interest. 15 SDCL §11-9-16(5) 16 SDCL § 11-9-16(16) Tax Increment District Ten, City of Brookings, South Dakota Page 12 LIST OF SCHEDULES SCHEDULE 1 Detail of Project Costs SCHEDULE 2 Estimated Captured Taxable Values SCHEDULE 3 Economic Feasibility Schedule SCHEDULE 4 Blight Study SCHEDULE 5 Fiscal Impact Statement ATTACHMENTS Attachment 1. Map and Legal Description and existing uses and conditions Attachment 2. Map of Real property Improvement and uses Attachment 3. Map of proposed changes in zoning ordinances Tax Increment District Ten, City of Brookings, South Dakota Page 13 SCHEDULE 1 – "DETAIL OF PROJECT COSTS" The project contains 2,900 lineal feet of street with associated water, sanitary sewer, and storm sewer improvements for 15th Street South and 7th Avenue South as well as improved detention pond facilities. This project provides for complete infrastructure for a commercial area west of 7th Avenue South, workforce housing south of 15th Street South, and the completion of two collector streets in the City of Brookings leading to an elementary school and intermediate school. Tax Increment District Ten, City of Brookings, South Dakota Page 14 SCHEDULE 2 – "ESTIMATED CAPTURED TAXABLE VALUES" BASE-ESTIMATED TAXES THAT WILL GO TO TAXING DISTRICTS DURING TIF INCREMENT-ESTIMATED TAXES THAT WILL GO TO TAX INCREMENT FUND DURING TIF TIF Creation Date 9/22/2020 First Year Assessed 2021 First Year Collected 2022 Base $1,086,000 Year TIF Year Assessed Collected Assessed Valuation Taxes City County School District Water District 1 2020 2021 2022 $142,600 $2,852.57 $371.05 $598.35 $1,879.75 $3.42 2 2021 2022 2023 $285,200 $5,705.14 $742.09 $1,196.70 $3,759.51 $6.84 3 2022 2023 2024 $1,546,060 $30,927.38 $4,022.85 $6,487.27 $20,380.16 $37.11 4 2023 2024 2025 $1,881,860 $37,644.73 $4,896.60 $7,896.28 $24,806.68 $45.16 5 2024 2025 2026 $3,789,388 $75,802.92 $9,859.99 $15,900.27 $49,951.71 $90.95 6 2025 2026 2027 $4,512,600 $90,270.05 $11,741.79 $18,934.87 $59,485.09 $108.30 7 2026 2027 2028 $4,724,200 $94,502.90 $12,292.37 $19,822.74 $62,274.40 $113.38 8 2027 2028 2029 $4,834,600 $96,711.34 $12,579.63 $20,285.98 $63,729.70 $116.03 9 2028 2029 2030 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 10 2029 2030 2031 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 11 2030 2031 2032 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 12 2031 2032 2033 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 13 2032 2033 2034 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 14 2033 2034 2035 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 15 2034 2035 2036 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 16 2035 2036 2037 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 17 2036 2037 2038 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 18 2037 2038 2039 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 19 2038 2039 2040 20 2039 2040 2041 Note: These numbers are for projection purposes only and do not reflect what the actual number(s) may be. These numbers are based on the following assumptions. Assumptions: 1. Land values included in base value per state statute except workforce housing project. 2. Calculations based upon projected build-out schedule of commercial structures and workforce housing. 3. The discretionary formula was taken into account on a 20%, 40%, 60%, 80% basis for commercial properties. Tax Increment District Ten, City of Brookings, South Dakota Page 15 SCHEDULE 3 – “ECONOMIC FEASIBILITY STUDY ” The City of Brookings is installing necessary infrastructure for a commercial and workforce housing development in the south-central portion of the community. The project will complete two important collector streets providing direct access to two schools as well as expanding the street network to provide improved connectivity for the community. With the expansion of industrial and manufacturing within the community, a key component is the availability of affordable workforce housing to continue economic development opportunities in attracting a quality workforce. The commercial development within the district is proposing to include office, warehousing, and wholesale related businesses which further expands upon diversifying the economic base while providing employment opportunities closer to residential areas. An essential component of the City’s participation is City funding for certain Project Costs (“Project Costs”) needed to support the Project (or any other comprehensive redevelopment of the site), all of which is currently estimated to cost in excess of $3,300,000. The City is paying the project costs pursuant to (SDCL 11-9-30) and intends to be reimbursed through positive tax increment pursuant to SDCL (11-9-32). If the Tax Increment District #10 dissolves prior to full reimbursement, the City will not be reimbursed for the remaining outstanding balance. In tax increment financing, the current real property tax assessed value of all properties in a designated project area (“tax increment financing district”) is established as the “base value.” As development in the tax increment financing district increases the assessed values of the redeveloped Tax Increment District Ten, City of Brookings, South Dakota Page 16 properties, a portion of the additional tax revenue generated by the increase in assessed value over the base value is set aside and committed by the City for debt service on tax increment bonds, the proceeds of which would be used for the construction of the Project Costs. Use of a Tax increment fund is permitted only in connection with a “Project Plan” duly adopted by the City. The process is set forth in the Tax Increment District Law, and is generally as follows:  Any person may request the City Council to designate a tax increment financing district. The request may be through a formal application process, or a presentation to the City Council. Upon receiving any request, the City Council determines preliminary feasibility of the project. This preliminary feasibility determination includes fiscal, legal and political considerations.  If it is determined feasible, the City Council directs staff or the Planning Commission to initiate the process. The Planning Commission then sets a proposed hearing date and starts the notice procedure.  Notice of the intent to create a Tax Increment District is published and sent to all taxing districts not less than 10 days prior to the hearing.  The Planning Commission holds a hearing and allows members of the general public to comment upon the proposed creation of a Tax Increment District. At the end of the hearing, the Planning Commission may recommend the creation of the Tax Increment District to the City Council. The Planning Commission may also recommend a tax increment Project Plan and forward to the City Council for their determination.  The City Council places the recommendation on the agenda and at the public meeting may pass a resolution to create the Tax Increment District in accordance with the Tax Increment District Law. The resolution is published and becomes effective on the 21st day after publication, unless it is referred to a vote of the electors. This resolution may also approve the project plan.  After the resolution becomes effective, the Department of Revenue of the State of South Dakota is sent a letter requesting to determine the base.  After the Project Plan is approved, the City Council at any time may authorize the issuance of tax increment bonds “for the purpose of carrying out or administering a Project Plan”. The resolution would irrevocably pledge its tax increment revenues to the debt service on the City’s tax increment bonds. (See Tax Increment District Law Section 11-9-37).  The City has five years to spend tax increment revenues or bond proceeds on or for Project Costs. Tax Increment District Ten, City of Brookings, South Dakota Page 17 Estimated Tax Increment Fund Balance is as follows: TIF Creation Date 9/22/2020 First Year Assessed 2021 First Year Collected 2022 Base $1,086,000 Year TIF Year Assessed Collected Assessed Valuation Taxes City County School District Water District 1 2020 2021 2022 $142,600 $2,852.57 $371.05 $598.35 $1,879.75 $3.42 2 2021 2022 2023 $285,200 $5,705.14 $742.09 $1,196.70 $3,759.51 $6.84 3 2022 2023 2024 $1,546,060 $30,927.38 $4,022.85 $6,487.27 $20,380.16 $37.11 4 2023 2024 2025 $1,881,860 $37,644.73 $4,896.60 $7,896.28 $24,806.68 $45.16 5 2024 2025 2026 $3,789,388 $75,802.92 $9,859.99 $15,900.27 $49,951.71 $90.95 6 2025 2026 2027 $4,512,600 $90,270.05 $11,741.79 $18,934.87 $59,485.09 $108.30 7 2026 2027 2028 $4,724,200 $94,502.90 $12,292.37 $19,822.74 $62,274.40 $113.38 8 2027 2028 2029 $4,834,600 $96,711.34 $12,579.63 $20,285.98 $63,729.70 $116.03 9 2028 2029 2030 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 10 2029 2030 2031 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 11 2030 2031 2032 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 12 2031 2032 2033 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 13 2032 2033 2034 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 14 2033 2034 2035 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 15 2034 2035 2036 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 16 2035 2036 2037 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 17 2036 2037 2038 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 18 2037 2038 2039 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 19 2038 2039 2040 20 2039 2040 2041 Note: These numbers are for projection purposes only and do not reflect what the actual number(s) may be. These numbers are based on the following assumptions. Assumptions: 1. Land values included in base value per state statute except workforce housing project. 2. Calculations based upon projected build-out schedule of commercial structures and workforce housing. 3. The discretionary formula was taken into account on a 20%, 40%, 60%, 80% basis for commercial properties. Tax Increment District Ten, City of Brookings, South Dakota Page 18 Since the City is reimbursing itself through collected tax increment, the plan is feasible. The City will collect only such tax increments as are collected in the tax increment fund. The above sheet is only an estimate and will be subject to actual collections. This document represents the feasibility study required under Tax Increment District Law Section 11-9-13 (Subsections 2, 4 and 5). The study concludes that the proposed redevelopment project in the project area is feasible. SCHEDULE 4. BLIGHT STUDY SECTION 1- INTRODUCTION The City has initiated the creation of a tax increment district located in the south-central part of the city. In order to determine whether a tax increment district may be created, it has been recommended that city staff together with outside consultants conduct a study of the area to determine if conditions exist that meet the definitions of blight described in Title 11-9 and allow consideration of a Tax Increment District to alleviate those conditions. If the City finds, by Resolution, that "blighted" conditions exist in not less than 25% of the area, it may after notification of affected taxing districts and after a public hearing, create a Tax Increment district. The Purpose of the study is to determine if impediments to development and other issues of blight exist, pursuant to state law, sufficient enough to warrant the creation of a district in the southwestern portion of the City. In addition to studying the subject area for the defined blighted conditions, staff has evaluated the area for the existence of assets or opportunities for private investment, as creation and reinvestment of TIF funds in a District depends primarily on new private investment generating new property taxes. Finally, staff reviewed the Study Area for localized physical and institutional impediments to investment in the study area. SECTION 2 - STUDY A REA B OUNDARY The Study of Blight is broadly described as: Description: Block 3 and 4, D & D Addition and abutting roads rights-of-way, Lot 10, Block 13, Pheasant Nest Addition and abutting road rights-of-way, Lot 1, Block 12, Pheasant Nest Addition and abutting road rights-of-way, Lot 2A and 3A, Block 12A, Pheasant Nest Addition and abutting road rights-of-way, Lot 5B, Block 13, Pheasant Nest Addition and abutting road rights-of-way, Lot 10, Block 11, Pheasant Nest Addition and abutting road rights-of-way, Lot 1, Block 2, McClemans Addition and abutting road rights-of-way, Tax Increment District Ten, City of Brookings, South Dakota Page 19 NE ¼ of SE ¼ Exc S 300’ thereof, and Exc McClemans Addition of Section 35- T110N-R50W and abutting road rights-of-way, Lot 9 and 16A, Block 11, McClemans Addition and abutting road rights-of-way. SECTION 3 - ESTABLISHING BLIGHT South Dakota law describes a blighted area as one that contains a set of conditions which constitute blight. There are three statutory areas of blight: SDCL § 11-9-9 Any area, including slum area, in which the structures, buildings, or improvements, by reason of: (1) Dilapidation, age, or obsolescence; (2) Inadequate provisions for ventilation, light, air, sanitation, or open spaces; (3) High density of population and overcrowding; (4) The existence of conditions which endanger life or property by fire and other causes; or (5) Any combination of such factors; are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and which is detrimental to the public health, safety, morals, or welfare, is a blighted area. SDCL § 11-9-10. Developed areas impairing growth defined as blighted. Any area which by reason of: (1) The presence of a substantial number of substandard, slum, deteriorated, or deteriorating structures; (2) Predominance of defective or inadequate street layouts; (3) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (4) Insanitary or unsafe conditions; (5) Deterioration of site or other improvements; (6) Diversity of ownership, tax, or special assessment delinquency exceeding the fair value of the land; (7) Defective or unusual conditions of title; (8) The existence of conditions which endanger life or property by fire and other causes; or (9) Any combination of such factors; substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use, is a blighted area. SDCL § 11-9-11. Any area which is predominantly open and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of a municipality, is a blighted area. Under South Dakota law the finding of blight may be made based upon a single factor found in SDCL § 11 - 9-9, 11-9-10 or 11-9-11. Tax Increment District Ten, City of Brookings, South Dakota Page 20 SECTIO N 4 - HISTORY OF THE STUDY AREA The study area is comprised of commercial and residential area. A majority of the area is non developable without direct infrastructure improvements by the City of Brookings. The City has initiated a development plan whereby it intends to expand into the geographical area and provide infrastructure improvements where private developers will not. SECTION 5 - STUDY A REA DESCRIPTION An open area with inadequate street layouts, lack of sanitary sewer and water facilities, no storm drainage, or fire control improvements, which, due to geographical limitations, substantially arrests the sound growth of a municipality, constitutes an economic or social liability and is a menace to welfare of the City in its present condition and use. Area contains substantial diversity of ownership which substantially impairs and arrests the sound growth of a municipality. SECTION 6 - CONDITIONS WITHIN THE STUDY AREA Infrastructure Public Utilities Sewer- Analysis of the City of Brookings Sanitary Sewer Maps reveals that the Study Area has limited wastewater coverage. Storm water – Analysis of the City of Brookings Sanitary Sewer Maps reveals that the Study Area has limited storm sewer coverage. Potable Water – Analysis of the City of Brookings Water Maps reveals that the Study Area has limited water coverage. Street & Sidewalk Condition – Analysis of the City of Brookings Street Maps reveals that the Study Area is in need of additional street and sidewalk infrastructure. Transportation According to the Engineering department, the District is in need of street extension and alignment to maintain better control and flow of traffic. Public Safety Fire – The City of Brookings Fire Department supplied information pertaining to life safety aspects within the study area. More than twenty-five percent of the District does not meet fire safety standards. Demographic Character of the Study Area There exists population in less than 25 % of the study area. Tax Increment District Ten, City of Brookings, South Dakota Page 21 Tax Generation from the Area More than twenty-five percent of the District does not generate taxes sufficient to supply the required infrastructure improvements. Land Use and Planning Comprehensive Plan - The Comprehensive plan suggests that public and private improvements are needed within the District. Zoning – No zoning changes are necessary to allow development to occur upon completion of the infrastructure improvements. SECTION 7 - FINDINGS WITHIN THE STUDY AREA – ANALYSIS In accordance with State Law, the following addresses specific characteristics of blight found within the Study Area with corresponding portions of 11-9-10 and 11-9-11: Defective or inadequate street layout. - For the most part, the streets in the Study Area are not adequate, as the current streets dead-end and do not provide acceptable turn-around. The existing street network is inadequate to handle the traffic volumes anticipated with the development of a 20 – 22 unit workforce housing project, along with the addition of commercial facilities as well as not providing access and connectivity. The study area would benefit greatly from an improved street and connectivity with existing streets. Faulty lot layout in relation to size, adequacy, accessibility, or usefulness. Lots and blocks in the Study Area need to be laid out in not less than 25% of the area. Unsanitary or unsafe conditions. Some conditions within localized portions of the Study Area listed above achieve unsafe status due to life- safety issues. The existence of conditions that endanger life or property by fire or other causes. Some conditions within localized portions of the Study Area listed above achieve unsafe status due to life- safety issues. SECTION 8 - CONCLUSIONS Based on the findings of this study, it is determined that the Study Area contains conditions defined as “blight”. Tax Increment District Ten, City of Brookings, South Dakota Page 22 SCHEDULE 5 - “FISCAL IMPACT STATEMENT ” FISCAL IMPACT STATEMENT- TAX INCREMENT DISTRICT NUMBER TEN INTRODUCTION The fiscal impact statement is intended to provide a succinct analysis of the estimated impact of the Tax Increment District to the public pursuant to SDCL § 11-9-13(4). It is not intended to rival the level of detail required by a detailed financial analysis. A fiscal impact statement shows the impact of the Tax Increment District, both until and after the City is repaid, upon all entities levying taxes upon property in the district. DEFINITIONS “Assumptions” means factors or definitions used in the fiscal analysis. Assumptions may include facts and figures identified by the District and educated guesses that are sometimes necessary when not all of the information is available. Assumptions are often used to extrapolate an estimate. Assumptions may include an estimate of tax levies of each taxing entity, the school aid formula contribution, the value of the real property, etc. "Base Revenues” means the taxes collected on the base value. “Fiscal Impact” means the increase or decrease in revenues and generally refers to an impact to revenues caused by the district. “Revenue” means ad valorem taxes. “Tax Increment District “ means City of Brookings, Tax Increment District Number Ten. “Taxing Districts” means all political subdivisions of the state which have ad valorem taxing power over property within the boundaries of the Tax Increment District. “Tax Increment Revenues" means all revenues above the Base Revenues. ASSUMPTIONS: 1. The property will have improvements which at completion will be valued for taxable purposes at $4,853,000. 2. The average tax levy of all taxing districts will be $20.004 per thousand dollars of taxable valuation. 3. Tax increment will start to be collected in 2021 and end in 2039. 4. Interest: None: 5. The discretionary formula: 20%, 40%, 60%, 80% applies to commercial structures. Tax Increment District Ten, City of Brookings, South Dakota Page 23 FISCAL IMPACT: The total fiscal impact upon the taxing entities during the term of the Tax Increment District is as follows: Taxing District will receive taxes on the base value of property within district, but will not receive any new increment generated until the expiration of the Tax Increment District. TIF Creation Date 9/22/2020 First Year Assessed 2021 First Year Collected 2022 Base $1,086,000 Year TIF Year Assessed Collected Assessed Valuation Taxes City County School District Water District 1 2020 2021 2022 $142,600 $2,852.57 $371.05 $598.35 $1,879.75 $3.42 2 2021 2022 2023 $285,200 $5,705.14 $742.09 $1,196.70 $3,759.51 $6.84 3 2022 2023 2024 $1,546,060 $30,927.38 $4,022.85 $6,487.27 $20,380.16 $37.11 4 2023 2024 2025 $1,881,860 $37,644.73 $4,896.60 $7,896.28 $24,806.68 $45.16 5 2024 2025 2026 $3,789,388 $75,802.92 $9,859.99 $15,900.27 $49,951.71 $90.95 6 2025 2026 2027 $4,512,600 $90,270.05 $11,741.79 $18,934.87 $59,485.09 $108.30 7 2026 2027 2028 $4,724,200 $94,502.90 $12,292.37 $19,822.74 $62,274.40 $113.38 8 2027 2028 2029 $4,834,600 $96,711.34 $12,579.63 $20,285.98 $63,729.70 $116.03 9 2028 2029 2030 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 10 2029 2030 2031 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 11 2030 2031 2032 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 12 2031 2032 2033 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 13 2032 2033 2034 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 14 2033 2034 2035 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 15 2034 2035 2036 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 16 2035 2036 2037 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 17 2036 2037 2038 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 18 2037 2038 2039 $4,853,000 $97,079.41 $12,627.51 $20,363.19 $63,972.25 $116.47 19 2038 2039 2040 20 2039 2040 2041 Note: These numbers are for projection purposes only and do not reflect what the actual number(s) may be. These numbers are based on the following assumptions. Assumptions: 1. Land values included in base value per state statute except workforce housing project. 2. Calculations based upon projected build-out schedule of commercial structures and workforce housing. 3. The discretionary formula was taken into account on a 20%, 40%, 60%, 80% basis for commercial properties. Tax Increment District Ten, City of Brookings, South Dakota Page 24 ATTACHMENT 1 Legal Description: Block 3 and 4, D & D Addition and abutting roads rights-of-way, Lot 10, Block 13, Pheasant Nest Addition and abutting road rights-of-way, Lot 1, Block 12, Pheasant Nest Addition and abutting road rights-of-way, Lot 2A and 3A, Block 12A, Pheasant Nest Addition and abutting road rights-of-way, Lot 5B, Block 13, Pheasant Nest Addition and abutting road rights-of-way, Lot 10, Block 11, Pheasant Nest Addition and abutting road rights-of-way, Lot 1, Block 2, McClemans Addition and abutting road rights-of-way, NE ¼ of SE ¼ Exc S 300’ thereof, and Exc McClemans Addition of Section 35- T110N-R50W and abutting road rights-of-way, Lot 9 and 16A, Block 11, McClemans Addition and abutting road rights-of-way. Tax Increment District Ten, City of Brookings, South Dakota Page 25 ATTACHMENT 2 (List of Real Property Improvements) Improvements are to be located and are shown below: The Improvements shall be located in the real property described in Attachment 1 in the 15th Street South and 7th Avenue South rights-of-way and the adjacent city owned land will comprise drainage pond and channel improvements. Commercial and workforce housing is the highest and best use for the real property. Water, sanitary sewer, storm sewer and street improvements on 15th Street South and 7th Avenue South along with drainage improvements and pedestrian access. Tax Increment District Ten, City of Brookings, South Dakota Page 26 ATTACHMENT 3 Zoning Changes The following map reveals the property is currently zoned Business (B-3) and Residential (R-1A, R-3, and R- 3A). The property within the district is consistent with the comprehensive plan, building codes and municipal ordinances. 11 12 13 10 9 8 7 6 5 4 3 2 15TH Street South 7TH AveTax Increment District #10 City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 20-098,Version:1 Action on Resolution 20-098, a Resolution budgeting Third Penny Sales Tax Funds for the Brookings Area Chamber Gift Card Give Back Program. Summary: The Chamber is requesting the reallocation of 2020 Downtown at Sundown funding for a small business gift card program “Gift Card Give Back”. This is a COVID19 small business response program. The $23,294 in funds originate from the three (3) B. It is assumed the promotion of small businesses and the local economy would benefit from the programs implementation. Recommendation: Staff recommends approval. Attachments: Memo Resolution Information City of Brookings Printed on 11/5/2020Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Paul M. Briseno, City Manager Council Meeting: November 10, 2020 Subject: Small Business Gift Card Program Request Person(s) Responsible: Paul Briseno, City Manager Summary: The Chamber is requesting the reallocation of 2020 Downtown at Sundown funding for a small business gift card program “Gift Card Give Back”. This is a COVID19 small business response program. The $23,294 in funds originate from the three (3) B. It is assumed the promotion of small businesses and the local economy would benefit from the programs implementation. Background: The City of Brookings provides funding for Downtown at Sundown annually. This year the Chamber canceled the event due to COVID 19. Approximately $23,294 was returned to the City. The funding for this program originates from the three (3) B which is a bed, board and booze tax. The governance and ends policy requires any unencumbered funds be returned to the City’s three (3) B fund. Staff originally recommended the redistribution of these funds to the three (3) B supported agencies. In April these agencies made necessary fiduciary augmentations to consume expected revenue reductions from the bed, board and booze tax as a result of COVID 19. These agencies include the Swiftel Center, The Brookings Area Chamber of Commerce, the Brookings Economic Development Corporation, Downtown and Visit Brookings. Discussion: The Chamber requested the Downtown at Sundown funds be re-purposed for a small business gift card program. The Chamber desires to raise $50,000 which will be used to match 50,000 in gift card purchases made by area residents. The programs intention is to assist local businesses and stimulate the economy. The program will commence November 19th, and close once all funds are exhausted. The three (3) B agencies are in full support of the program and recommended redistribution. Legal Consideration: There are no legal considerations at this time. Financial Consideration: There is no impact to the budget. State law requires that Monies will be appropriated from the three (3) B Fund to economic development and promotional endeavors with the capacity to progress and advertise the city, its facilities, attractions, and activities. It’s assumed the Chambers program will meet this intention. However, even though three (3) B Fund revenues have outperformed original expectations, the Fund may need to use reserves this year to meet its budget commitments depending on fourth quarter revenue performance. Strategic Plan Consideration: All three (3) B entities have agreed to the program. These entities have reduced their operating budget in 2020 and requested 2021 funds to meet the declining revenues. The utilization of these funds have been considered when anticipating a sustainable budget for these entities. Options and Recommendation: City Council has the following options: 1. Approve as recommended 2. Amend 3. Deny 4. Refer to a Work Session for further discussion 5. Do nothing Staff recommends approval of the re-purposing of the downtown at sundown funds for a small business endeavor. Supporting Documentation: Resolution Chamber “Gift Card Give Back” Information Resolution 20-098 A Resolution Budgeting Third Penny Sales Tax Funds for the Brookings Area Chamber Gift Card Give Back Program Be It Resolved, that the City of Brookings budgeted funds for the Downtown at Sundown Program which were not utilized due to the COVID-19 pandemic, and will use these funds to fund the Brookings Chamber Gift Card Give Back Program. Financing Source for this appropriation is from the following account: 284-000-5-856-72 Downtown at Sundown $ 23,294.00 Total amount budgeted for this expenditure $ 23,294.00 Whereas, this resolution is deemed necessary for the immediate preservation of the public peace, health, safety and support of the City, and shall become effective upon publication. Dated this 10th day of November, 2020. City of Brookings Keith W. Corbett, Mayor ATTEST: Bonnie Foster, City Clerk PROGRAM DESCRIPTION WHAT IS THE GIFT CARD GIVE BACK? If there a re m atch ing funds l eft after Dec e mber 1, 2020, Phase 2 will begin. Phase 2 wil l simply remov e the p ur c hase l imitation per household/business . Busin e sses who sign up are requ ired to agree to a s et of ter ms and condition s for p ar ticip ation . Cer tific ates wil l expire Dece mb er 3 1, 2021. Indivi duals and orga niza tions wish ing to contribute t o the m atch ing fun d are invi ted t o co ntac t Kim ber ly Ton at t he Br o okin gs Ar ea Ch am ber o f Commerce (692-8922). T his document ex plains how the pro gram wil l work. located in the Brookings area that are struggling as a result of the COVID-19 pandemic. Businesses may join the program by completing the form at brookingschamber.org/giveb ackform and sending to info@brookingschamber.org before Friday, November 13 at 5:00 pm. A membership to the Brookings Area Chamber of Commerce is required. The online store will go live on Thursday, November 19. Shoppers may visit brookingschamber.org/store to purchase gift certificates. The Brookings Area Chamber of Commerce has been conducting surveys of their membership over the past months and has found many continue to struggle, some even at risk of having to close their doors within mere months if conditions don't improve. In response, the Chamber of Commerce has created the Gift Card Give Back program. The Brookings Area Chamber of Commerce will build an online shop where gift certificates to participating local businesses will be sold. The program is open to all locally owned, for-profit small businesses The p rog ram will ma tch each purchase , do llar fo r dollar, for as long a s the matching fund lasts. That mea ns tha t for ea c h $20 uni t purchase d, the custom e r receiv es a $40 gift ce rtificate to be r edeemed when the time is right , and the busine ss receives th at $40 now, when cashf low is most crucial. The sho pping exp e rience will be b rok en in to two phase s. Pha se 1 will include a $500 purchase limi tati on per household; in addi tion, no m ore th an 5 gift ce rtificates t o a single busi ness may b e purch as e d. GIFT CARD GI VE BAC K WE'RE IN THIS TOGETHER. LET'S TEAM UP TO SAFELY SUPPORT THE BUSINESS COMMUNITY. A R E A C H AM B E R O F C O M ME R CE GIFT CARD GI VE BA CK WE'RE IN THIS TOGETHER. LET'S TEAM UP TO SAFELY SUPPORT THE BUSINESS COMMUNITY. AR E A C HA M BE R O F C O M M E R C E Customer redeems certificates Customer completes checkout and chooses whether they would like to pick up their gift certificates, or have them mailed. Registration is approved, and the business is loaded into the online store. Customer visits the online store (www.brookingschamber.org/store) starting November 19, 2020. Customer sees options for Restaurant, Retail or Service businesses During Phase 1, customer's household cannot purchase more than $500, nor can a customer purchase more than 5 certificates to a single business. Customer adds gift certificates to one or multiple businesses in increments of $20 each to their shopping cart. Business payment = customers purchases + equal match until matching fund is depleted. The Chamber sends payment, along with a list of gift certificate codes, to the business. Business signs up to participate at brookingschamber.org/givebackf orm by Friday, November 13 at 5:00 pm The Chamber will track matching funds remaining and will notify the public via the online store and the Brookings Area Chamber of Commerce Facebook page. The business keeps a record of all purchases made and manages any gift certificate balances through their own in- store process. A GENERAL OVERVIEW OF THE PROCESS WORKFLOW IS THERE A LIMIT TO HOW MANY GIFT CERTIFICATES I CAN PURCHASE? Yes. Each household is limited to purchasing 5 gift certificates per business. The limit for the total order per customer's household is $500. So you can buy 5 gift certificates at your favorite participating restaurant, then 5 at your second favorite restaurant, plus 5 at your favorite retailer, etc. Just don’t exceed $500 in your total order. Any customer who tries to exceed the limit by falsifying information will not be issued gift certificates. CAN I BUY CERTIFICATES TO MY OWN BUSINESS? No. Business owners and immediate family members (significant other, child, parent, sibling, etc.) are not allowed to buy gift certificates to their own business. Anyone found to be committing these acts will be immediately withdrawn from participating in the program. WHEN AND HOW DO I GET MY CERTIFICATES? Once your order is paid, you will receive an email that notifies you the order is confirmed. This should occur almost immediately after completing your payment. Please check your spam folder if you do not see it. During checkout, you will have chosen to either pick up your gift certificates or have them mailed to you. PICK UP: You will be able to pick up your certificates Tuesday, November 24 - Wednesday, November 25. The Chamber will be closed for the Thanksgiving holiday starting Thursday, November 26 and opening back up on Monday, November 30. MAILED: Gift certificates will be mailed as soon as our office is able to process them - estimated to be the week of November 30. After mailing, the Chamber is not liable for certificates lost or damaged in the mail. HOW DO I REDEEM A GIFT CERTIFICATE? For every $20 unit purchased, you will receive a $40 gift certificate with a unique code. You must present it at the time of payment. Each business is provided with a record of these unique codes, to verify the validity of the gift certificate. GIFT CARD GI VE BA CK WE'RE IN THIS TOGETHER. LET'S TEAM UP TO SAFELY SUPPORT THE BUSINESS COMMUNITY. AR E A C HA M BE R O F C O M M E R C E WHAT IF I DON’T SPEND THE ENTIRE AMOUNT IN ONE VISIT? Once you redeem a gift certificate, it is up to the business to utilize their own in-store credit process to handle any balances left after a purchase is made. This may be in the form of an in-store gift certificate or gift card or simply recording the new balance on your gift certificate for you to bring back later. The in-store credit method may still fall under the same expiration terms as stated on the gift certificate. Certificates cannot be redeemed for cash and change should not be given. WHAT IF THE MATCHING FUNDS RUN OUT WHEN I'VE ALREADY PURCHASED MY GIFT CARDS? Customers must understand that this is a program to assist the small businesses in our community. We will try our best to cut off the sales of matched gift certificates once the fund is depleted, however there may be some purchases that occur after that point. You will be notified if your purchase cannot be matched. You will be issued gift certificates that reflect the amount you actually paid. WHEN CAN I SPEND MY GIFT CERTIFICATE? Each gift certificate will expire on December 31, 2021. I OWN A BUSINESS - HOW DOES MY BUSINESS SIGN UP TO BE A PARTICIPATING BUSINESS? Interested business owners should download the "Participation Agreement Form" and return to the Chamber by end of day Friday, November 13th. WHAT IF THE BUSINESS CLOSES PERMANENTLY BEFORE I CAN REDEEM MY GIFT CERTIFICATE? We hope this program makes it possible for businesses to keep their doors open. However, if a business permanently closes it will be up to the business owner as to how any remaining gift certificates will be handled. CAN I GET A REFUND IF THE BUSINESS IS STILL OPEN? No refunds will be given. STILL HAVE QUESTIONS? EMAIL INFO@BROOKINGSCHAMBER.ORG FAQ FREQUENTLY ASKED QUESTIONS City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 20-0461,Version:1 Discussion on transitioning to virtual City Council Meetings. Summary: With the increase of COVID-19 infections in the City of Brookings / Brookings County, it is important to have a discussion of Council’s interest in transitioning to virtual City Council Meetings. Below are virtual options for consideration: 1)Continue meetings face to face with the public a.City Council, staff, or the public can participate virtually if desired 2)Go all virtual a.City Council, staff, and the public participate virtually 3)Combination: a.City Council and staff face to face, with the public only participating virtually 4)Combination II: a.Staff face to face, with the City Council and public participating virtually 5)Other recommendations? City of Brookings Printed on 11/5/2020Page 1 of 1 powered by Legistar™ City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 20-0470,Version:1 COVID-19 Update. Summary: City Manager Paul Briseno will provide a regular update on COVID-19 to the City Council and members of the public. Background: 7/14/2020 City Council Minutes excerpt: “Council Items for Future Discussion. A motion was made by Council Member Brink, seconded by Council Member Bacon, that a standing item to discuss the current status of COVID-19 be added to future City Council Agendas. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins.” City of Brookings Printed on 11/9/2020Page 1 of 1 powered by Legistar™ City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 20-0468,Version:1 Executive Session, pursuant to SDCL 1-25-2, for discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term, employee, does not include any independent contractor. SDCL 1-25-2. Executive or closed meetings--Purposes--Authorization--Violation as misdemeanor. Executive or closed meetings may be held for the sole purposes of: 1.Discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term, employee, does not include any independent contractor; 2.Discussing the expulsion, suspension, discipline, assignment of or the educational program of a student or the eligibility of a student to participate in interscholastic activities provided by the South Dakota High School Activities Association; 3.Consulting with legal counsel or reviewing communications from legal counsel about proposed or pending litigation or contractual matters; 4.Preparing for contract negotiations or negotiating with employees or employee representatives; 5.Discussing marketing or pricing strategies by a board or commission of a business owned by the state or any of its political subdivisions, when public discussion may be harmful to the competitive position of the business; or 6.Discussing information listed in subdivisions 1-27-1.5(8) and 1-27-1.5(17). However, any official action concerning such matters shall be made at an open official meeting. An executive or closed meeting shall be held only upon a majority vote of the members of the public body present and voting, and discussion during the closed meeting is restricted to the purpose specified in the closure motion. Nothing in § 1-25-1 or this section prevents an executive or closed meeting if the federal or state Constitution or the federal or state statutes require or permit it. A violation of this section is a Class 2 misdemeanor. Source: SL 1965, ch 269; SL 1980, ch 24, § 10; SL 1987, ch 22, § 1; SL 2014, ch 90, § 2; SL 2019, ch 2, § 1. City of Brookings Printed on 11/9/2020Page 1 of 1 powered by Legistar™