red winus port authoritv 1

Red Winus Port Authoritv 1An Economic

Development

Agency

TO: Red Wing Port Authority Board

FROM: Dan Rogness, Director

Agenda Item No.: 12.A — 2021 Tax Levy and Budget Discussion

Meeting Date: July 7, 2020

ACTION REQUESTED:

Discussion Only

ATTACHMENTS:

1. 2020 Port Authority approved budgets2. Local economic factors ( provided at the annual workshop, but no time to discuss)

BACKGROUND:

I will lead a discussion at the meeting on a proposed Port Authority budget for 2021. The Port

Board must approve a Preliminary levy and budget in August, followed by final budget approvalin November. Some of the talking points should be ...

With the uncertain economy, what is the proper balance of levying taxes for revenueversus budgeting expenses that can help strengthen the local economy. What are some key actions to consider in 2021 that the Port can influence and/ or moveforward, including such things as marketing plans, redevelopment opportunities, downtown business growth, etc.

What improvements will be done for the bulkhead in 2020, and what additional

improvements are needed in 2021.

DISCUSSION:

The Port Authority' s total budget in 2020 is $ 923, 130, which was a significant increase from the

2019 budget of $445,311. The tax levy increased from $ 345, 311 in 2019 to $ 400, 500 in 2020.

Additional revenue in 2020 included $ 120, 000 from leases, $ 176, 000 from state Port

Development Assistant funding, and $ 226, 630 as a Port fund balance transfer. In 2021, the

maximum levy may likely again range between $ 400, 000 and $ 425,000.

Below are the 2020 budgets, including the five loan funds ( NOTE: the five loan fund budgets do

not recognize unknown expenses, such as the grants/ loans that have been expended this year):

Operating Budget = $ 923, 130 Revenue; $ 923, 130 Expenses

of 2

1. Acct. 231 Industrial Revolving Loan FundBudget Revenue = 15, 000; Budget Expenses 0

2. Acct. 232 Downtown Revolving Loan FundBudget Revenue = 1, 000; Budget Expenses = 0

3. Acct. 233 Intermediary Re -Lending Loan FundBudget Revenue = 10, 000; Budget Expenses 36, 000

4. Acct. 243 DEED Loan Fund

Budget Revenue = 4, 000; Budget Expenses = 2, 000

5. Acct. 244 CDBG Revolving Loan FundBudget Revenue = 0; Budget Expenses = $ 0

RECOMMENDATION:

Discussion only; direction provided by the Port Board.

of 2

RED WING PORT AUTHORITY

RESOLUTION #313

Approving the Red Wing Port Authority Fiscal Year 2020 Budget

WHEREAS, the Red Wing Port Authority has developed the Red Wing Port Authority budgetwhich is contained in the attachment labeled EXHIBIT A; and,

WHEREAS, the Red Wing Port Authority was developed to meet the anticipated programmaticneeds for Fiscal year 2020; and,

WHEREAS, Section 9 of the Red Wing Port Authority Enabling Resolution provides for thebudgetary process of the Red Wing Port Authority; and

WHEREAS, such provides that the City Council may impose such conditions upon the approvalof the transfer of City funds as it may determine; and,

WHEREAS, such further provides that the Council Administrator shall submit such budget to

the City Council for review and approval as part of the City budgetary process; and,

WHEREAS, state law, the City Charter and Port Authority Enabling Resolution require theadoption of a budget for Fiscal year 2020 and all conditions precedent thereto and required bystate law, including truth -in -taxation hearings and other requirements by law, City Charter andPort Enabling Resolution, will be fulfilled prior to the City Council' s approval and adoption ofthe 2020 budget.

NOW, THEREFORE, BE IT RESOLVED BY THE PORT AUTHORITY BOARD OF

THE CITY OF RED WING, MINNNESOTA, that the annual budget of the Red Wing PortAuthority Fiscal Year 2020, beginning January 1, 2020, as contained in the attachment labeledEXHIBITA; is hereby adopted by the Red Wing Port Authority and appropriated for the

purposes noted and the fund transfers authorized, all as contained therein pending the CityCouncil' s imposition of any such conditions upon the approval of the transfer of City funds as it

may determine and the City Council' s review and approval of the Port Authority budget.

BE IT FURTHER RESOLVED, that the Red Wing Port Authority Director is directed, in

accordance with the Port Authority Enabling Resolution, to submit such budget to the Council

Administrator in a timely manner such that the Council Administrator may submit such to theCity Council for review and approval as part of the City budgetary process.

BE IT FURTHER RESOLVED, the Red Wing Port Authority Board encourages the Red Wing

City Council to adopt the Port Authority' s budget as presented, and that the imposition on any

additional conditions on transfer of City funds be carefully considered in the broader context of

the Port Authority' s overall mission of enhancing economic development.

Adopted by the Red Wing Port Authority on this5th

day of November, 2019

Red Wing Port Authority ATTEST:

Q A

P wide " , John Guerber Director, Dan Rog

EXHIBIT A - RED WING PORT AUTHORITY OPERATING BUDGET

Fiscal Year 2020 (Beginning 1/ 01/ 20) - FINAL

236-00000

Acct. #

41010

xxx

xxx

43599

46230

49999

236-46600

Acct. #

51115- 51505

52105

52110

52115

52299

52405

53100

53105

53120

53125

53150

53165

53199

53205

53210

53305

53310

53320

53325

53330

53345

53410

53455

53499

53505

53555- 53599

53605- 53699

53710

53904

53906- 53907

53920

53950

53990

53999

54120

54150

56101

TOTAL REVENUES 2019 Budget

Property Taxes 345, 311.00

Intergovernmental 0. 00

Charges for Services 0. 00

State Grants & Aids - Other ( Port Assist) 0. 00

Miscellaneous Revenue ( Ind. Leases) 100, 000.00

Fund Balance Transfer 0.00

TOTAL REVENUE 445, 311. 001

TOTAL EXPENDITURES 2019 Budget

Wages, Salaries and Benefits 5, 498.00

Office Accessories 1, 900.00

Duplicating & Copying Supplies 1, 400.00

Printed Forms & Paper 0.00

Other Operating Supplies 0. 00

Small Tools 700.00

Administration Services 9, 391.00

Contractual Services 35, 000.00

Engineering Services 1, 500.00

Legal Services 0. 00

IT Services 8, 810.00

Public Works Labor 2, 500.00

Other Professional Services 10,000.00

Telephone 2, 500.00

Postage 300. 00

Travel 3, 000.00

Lodging 1, 500.00

Meals 1, 500.00

Mileage 0. 00

Registration & Tuition 3, 000.00

Vehicle Allowance ( in 56101, Transfer) 3, 000.00

Marketing & Promotion 40, 000.00

Legal Notices Publishing 300.00

Other Printing & Binding 0. 00

Insurance Premiums 3, 000.00

Electricity / Water / Other Utilities 0.00

Building/ Maintenance / Repairs 0. 00

Building Rentals & Leases 29, 000.00

Dues & Memberships 12,500.00

Subscriptions / Books 1, 000.00

Loan Expenses 0. 00

Real Estate ( Property) Taxes 250.00

Special Events & Projects 2, 000. 00

Other Miscellaneous 1, 500.00

Land Improvements 119, 957. 00

Improvements other than Buildings 0.00

Transfer to General ( 1/ 3 Dan, 3/ 4 Shari) 144,305. 00

TOTAL EXPENDITURES 445,311.001

2020 BUDGET

400,500.00

0.00

0.00

176,000.00

120,000.00

226,630.00

923, 130. 00

2020 BUDGET

5, 635. 00

1, 000.00

1, 500.00

0. 00

0. 00

500.00

9,625. 00

40,000.00

500.00

0. 00

9,030.00

2, 000.00

10,000.00

3, 000. 00

500.00

2, 500.00

1, 000.00

1, 000.00

0. 00

2, 500.00

0. 00

40,000.00

250.00

0. 00

2, 500.00

0. 00

0. 00

31, 000.00

12, 500.00

1, 000.00

0. 00

8, 000.00

1, 500.00

1, 500.00

356,000.00

220,000.00

158,590.00

923, 130. 00

EXHIBIT A - RED WING PORT AUTHORITY REVOLVING FUND BUDGETS

Fiscal Year 2020 ( Beginning 1/ 01/ 20) - FINAL

231

Acct. #

00000-46210

00000-46216

00000-46299

46700-53910

46700-53920

46700- 53950

46700- 55120

232

Acct. #

00000-46210

00000-46216

00000-46299

46700-53910

46700-53920

46700- 53950

233

Acct. #

00000-46210

00000-46216

00000-46299

46700- 53199

46700- 53902

46700- 53910

46700- 55120

243

Acct. #

00000-43490

00000-46210

00000-46216

00000-46299

00000-49231

46700-53199

46700- 53902

46700-53910

46700-53920

46700-53924

46700-55120

INDUSTRIAL REVOLVING LOAN FUND 2019 Budget

REV. Interest - Deposit/ Investments 0. 00

REV. Interest - Notes & Loans 15, 000.00

REV. Other Miscellaneous 0. 00

TOTAL REVENUE 15, 000.00

EXP. Bad Debt 0. 00

EXP. Loan Expenses 0. 00

EXP. Real Estate ( Property) Taxes 0. 00

EXP. Debt Service Interest 0. 00

TOTAL EXPENSES 0.00

DOWNTOWN REVOLVING LOAN FUND 2019 Budget

REV. Interest - Deposit / Investments 0.00



TOTAL REVENUE 2, 000.00

EXP. Bad Debt 0.00


EXP. Real Estate ( Property) Taxes 0.00

TOTAL EXPENSES 0.00

INTERMEDIARY RE -LENDING FUND 2019 Budget

REV. Interest - Deposit / Investments 0. 00


REV. Other Miscellaneous 0.00

TOTAL REVENUE 20,000.00

EXP. Other Professional Services 0.00

EXP. Bank Charges 0.00

EXP. Bad Debt 0. 00

EXP. Debt Service 36,000.00

TOTAL EXPENSES 36,000.00

DEED LOAN 2019 Budget

REV. State DEED Loan 0.00

REV. Interest - Deposit / Investments 0.00

REV. Interest - Notes & Loans 4,000.00

REV. Other Miscellaneous 0.00

REV. Transfer from Industrial Revolving 0.00

TOTAL REVENUE 4,000.00

EXP. Auditing Services 0. 00

EXP. Marketing & Promotion 0. 00

EXP. Bad Debt 0. 00

EXP. Loan Expenses 3, 000.00

EXP. Subgrantee Grant Expense 0. 00


TOTAL EXPENSES 3, 000.00

2020 BUDGET

0. 00

15,000.00

0. 00

15,000.00

0.00

0. 00

0.00

0. 00

0. 00

2020 BUDGET

0. 00

1, 000.00

0. 00

1, 000.00

0. 00

0. 00

0. 00

0. 00

2020 BUDGET

0. 00

10,000.00

0. 00

10,000.00

0.00

0.00

0. 00

36,000.00

36,000.00

2020 BUDGET

0. 00

0. 00

4,000.00

0.00

0. 00

4,000.00

0. 00

0.00

0. 00

2, 000.00

0. 00

0. 00

2, 000.00

245

Acct. #

00000-46210

00000-46216

00000-46299

00000-49231

46700-53199

46700- 53902

46700-53910

46700-53920

46700-53924

46700- 55120

CDBG REVOLVING FUND 2019 Budget

REV. Interest - Deposit / Investments 0. 00

REV. Interest - Notes & Loans 0.00


REV. Transfer from Industrial Revolving 0. 00

TOTAL REVENUE 0.00

EXP. Auditing Services 0. 00

EXP. Marketing & Promotion 0. 00

EXP. Bad Debt 0. 00


EXP. Subgrantee Grant Expense 0. 00


TOTAL EXPENSES 0.00

2020 BUDGET

0. 00

0. 00

0.00

0.00

0.00

0. 00

0. 00

0. 00

0.00

0.00

0.00

0.00

1

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

9

10

11

12

RED WING INDUSTRIAL PROPERTY - HIGHEST VALUE - TAXES PAY 2019

those properties above $2 million estimated market value)

PID OWNER / BUSINESS CORP CITY ST ADDRESS VALUE

557050160 NSP ( Xcel) Nuclear Plant* Minneapolis MN 258, 218,700

556100070 NSP ( Xcel) Steam Plant Minneapolis MN 24,490,900

559020030 BIC Graphic Clearwater FL 5151 Moundview Dr. $ 6,516, 100

557220300 3M - DB Industries St. Paul MN 3833 Sala Way $ 5, 687,700

557220240 Red Wing Shoe Co. Red Wing MN 135 Cannon River Ave. $ 5, 407, 200

559200010 Red Wing Industrial Larchmont NY 4079 Pepin Ave. $ 4, 150,000

550054230 Archer Daniels Midland Decatur IL 118 Main St. $ 4, 142,500

550054700 Red Wing Grain Red Wing MN 810 Levee Rd. $ 3, 070,300

558520010 Food Service Specialties Red Wing MN 5202 Moundview Blvd. $ 3, 065, 300

559210010 Greater RW Dev. Corp. IRed Wing I MN 13965 Pepin Ave. $ 2, 526,400

317, 275, 1100

The NSP Nuclear Plant is taxed with equipment (not included above); their

total taxable value including equipment = $762, 502,400 for taxes payable 2019.

RED WING COMMERCIAL PROPERTY - HIGHEST MARKET VALUE - TAXES PAY 2019

those properties above $2 million estimated market value)

PID OWNER/ BUSINESS CORP CITY ST ADDRESS VALUE

559100011 Red Wing Mall Properties Red Wing MN 160 Tyler Rd 10,550,400

558930010 Walmart Bentonville AR 295 Tyler Rd 8, 734,400

559030020 Menards Eau Claire WI 320 Tyler Rd 8, 486, 100

558910100 Mayo Clinic Red Wing MN 701 Hewitt Blvd 8,405, 100

559310020 Target Minneapolis MN Highway 61 / Tyler Rd. 6, 078,400

550054450 St. James Hotel / Goodyear Bldg Red Wing MN 406 Main St. 5, 098, 600

559150020 Red Wing Plaza Properties Minneapolis MN Highway 61 / Tyler Rd. 4,238, 800

550054040 Red Wing Shoe Offices/ Retail Red Wing MN 315 Main St. 3, 542, 700

551570030 Holiday Inn Express Aberdeen SD 1919 Old West Main St. 3, 055, 200

557270490 Country Inn & Suites Eden Prairie MN 4275 Highway 61 2, 717, 200

551570010 Nichols Inn & Americlnn Red Wing MN 1819 Main St. 2, 715, 900

558350480 Red Wing News/ Publishing Red Wing MN 2760 Sevice Dr. 2, 594,800

66, 2 , 777

CITY OF RED WING COMMERCIAL MARKET VALUES

At the Truth In Taxation public hearing, Paul Brown spoke about the dramatic increasesin the 2019 estimated property taxes related to the Red Wing Mall. Staff responded that

the property valuations likely increased, and that he should review this with the CountyAssessor. The Red Wing Mall consists of seven parcels, and the table below shows thecounty's estimated market value changes from 2018 to 2019. Each parcel varies in

terms of the percent change, and an overall increase of 29.6% is shown.

The second table shows market value increases from 2019 to 2020; the largest

increase related to the old JC Penny space that was occupied and leased byNanohealth.

RED WING MALL PROPERTY VALUES 2018 - 2019


2018

County Value

2019

County Value Change ChangeParcel ID Notes

55-910-0010 288, 100 376, 100 88, 000 30. 5% Old JC Penny (1/ 2) 55- 910-0011 911, 500 1, 034, 300 122, 800 13. 5% Dollar Tree

55- 910-0020 1, 935,200 3, 337, 300 1, 402, 100 72. 5% Large mall area

55- 910-0030 2, 150, 700 2, 685, 300 534,600 24. 9% Movie theater

55- 910-0031 1, 039,800 978, 900 60, 900 5. 9% Famous Footwear

55- 910-0040 333, 300 467,200 133, 900 40. 2% Old JC Penny ( 1/ 2) 55- 910-0050 837,300 837, 300 0 0. 0% Applebee' s

TOTAL 7, 495, 900 9, 716,400 2, 220,500 29. 6%


2019

County Value

2020

County Value Change ChangeParcel ID Notes

55- 910-0010 376,100 466, 200 90, 100 24.0% Old JC Penny ( 1/ 2) 55- 910-0011 1, 034,300 1, 057,800 23, 500 2. 3% Dollar Tree

55- 910-0020 3, 337, 300 3, 709, 900 372,600 11. 2% Large mall area

55- 910-0030 2, 685, 300 2, 888, 700 203, 400 7. 6% Movie theater

55-910-0031 978,900 1, 001, 500 22, 600 2. 3% Famous Footwear

55- 910-0040 467,200 578,500 111, 300 23. 8% Old JC Penny ( 1/ 2) 55- 910-0050 837,300 847, 800 10, 500 1. 3% Applebee' s

TOTAL 9, 716,400 10, 550,400 834,000 8. 6%

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Red Wing Commercial Taxes

Estimated Property Taxes for a commercial property in Red Wing with anestimated county market value of $1 million for taxes payable 2019.

1. City tax 12, 600 35. 3%

2. County tax 8, 800 24. 7%

3. State tax 7, 650 21. 5%

4. School tax 6, 100 17. 2%

5. HRA tax 250 0. 7%

6. Port tax = 200 0.6%

35, 600 100%

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RED WING MEDIAN SALE PRICE OF HOMES 2014-2019

includes all homes sold by a realtor or broker)

Source: Minneapolis Area Realtors Market Reports

RED WING NEW HOUSING UNITS - BUILDING PERMITS ISSUED/ YEAR

2014- 2019

Median

Sale Price

Annual

Change

Annual

Change

Closed

SalesYear

2019 191, 250 7, 250 3. 94%

108

309

2018 184,000 14, 750 8. 71%

14

292

2017 169, 250 7, 250 4.48%

13

267

2016 162, 000 14,050 9. 50%

2016

306

2015 147, 950 8, 575 6. 15% 1 275

2014 139, 375

0

1 277

2014 17 0 0

5 Yr Change 51, 875 10,375 7.44%

Source: Minneapolis Area Realtors Market Reports

RED WING NEW HOUSING UNITS - BUILDING PERMITS ISSUED/ YEAR

2014- 2019

Source: City of Red Wing Community Development Department

Residential

1 & 2 -Family

Residential

Townhomes

Multifamily

Units

TOTAL

No Multifamily

TOTAL

UNITSYear

2019 17 9 108 26 134

2018 10 14 0 24 24

2017 13 13 0 26 26

2016 10 4 61 14 75

2015 17 3 0 20 20

2014 17 0 0 17 17

6 Yr Average 14 7 28 21 49

Total 84 43 169 127 296

Source: City of Red Wing Community Development Department

red winus port authoritv 1

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