City Council Resolution 2022-59CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO. 2022-59
RESOLUTION APPROVING A MODIFICATION OF THE
TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO. 1-42
WHEREAS, on February 23, 2022, the City of Monticello Economic Development
Authority (the "Authority") approved a Tax Increment Financing Plan (the "TIF Plan") for
Tax Increment Financing District No. 1-42 (Headwaters Apartment Project) (the "TIF
District") located within the Central Monticello Redevelopment Project Area No. 1 (the
"Redevelopment Project"), pursuant to Minnesota Statutes, Minnesota Statutes, Sections
469.001 to 469.047, Sections 469.090 to 469.1081, as amended, and Sections 469.174 to
469.1794, as amended (collectively, the "Act"), and on February 14, 2022, the City of
Monticello, Minnesota (the "City") approved the establishment of the TIF District; and
WHEREAS, the City and Authority have determined a need to modify the TIF Plan
in order to amend the budget contained therein as reflected in that certain document
provided in Exhibit A attached hereto and labeled "Modification of the Tax Increment
Financing Plan for Tax Increment Financing District No. 1-42 within the Central Monticello
Redevelopment Project No. 1" (the "Amendment"); and
WHEREAS, the Amendment is consistent with the redevelopment plan for the
Redevelopment Project; and
WHEREAS, pursuant to Section 469.175, subd. 4(b) of the Act, a tax increment
financing plan may be modified without public hearing or the findings required to be made
for the original tax increment financing plan if the modification does not include (i) any
reduction or enlargement of the geographic area of the project or tax increment financing
district; (ii) an increase in the amount of bonded indebtedness; (iii) a determination to
capitalize interest on debt if that determination was not a part of the original plan; (iv) an
increase in the portion of the captured net tax capacity to be retained by the City; (v) an
increase in the estimated cost of the project, including administrative expenses, to be paid or
financed with tax increment from the district; or (vi) the designation of additional property
to be acquired by the authority; and
WHEREAS, the Amendment revises the budget for the TIF District to increase
the amount budgeted for the construction of affordable housing and to decrease the
amount budgeted for land acquisition but does not increase the total estimated cost of the
project or the total amount of bonded indebtedness.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of
Monticello, Minnesota as follows:
1. The Amendment is hereby approved in substantially the form on file in City
Hall and attached hereto as Exhibit A.
2. Upon approval of the Amendment by the Authority, Authority staff is
authorized to forward a copy of the TIF Plan as modified by the Amendment
(the "Modified TIF Plan") to the Department of Revenue and the State
Auditor pursuant to Minnesota Statutes 469.175, subd.4(a).
3. The City Clerk is authorized and directed to forward a copy of the Modified
TIF Plan to Wright County.
Adopted by the City Council of Monticello on May 23, 2022.
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EXHIBIT A
ATTACHMENT 1
MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO. 1-42 WITHIN THE CENTRAL
MONTICELLO REDEVELOPMENT PROJECT NO. 1
I. Background
The Tax Increment Financing Plan for Tax Increment Financing District No. 1-42 (the "TIF
District") within Central Monticello Redevelopment Project No. 1 (the "Redevelopment
Project") was originally approved by the City of Monticello (the "City") on February 14,
2022 (Resolution No. 2022-14), and by the Monticello Economic Development Authority
(the "Authority") on February 23, 2022 (Resolution No. 2022-03);
The City and the Authority have determined a need to modify the TIF Plan in order to
amend the estimated sources and uses of funds;
Nothing in this modification is intended to modify or supersede or alter the activities
described in the original Redevelopment Program for Central Monticello Redevelopment
Project No. 1. The TIF Plan remains in full force and effect and is not modified except as
described in this modification document.
II. TIF Plan Modification to TIF District No. 1-42
The following sections of the TIF Plan for TIF District No. 1-42 are modified as shown:
Subsection 2.04.3 Estimated Sources and Uses of Funds. Replaced in its
entirety to read as follows:
The estimated sources of revenue, along with the estimated Public Development
Costs of the TIF District, are itemized in Figure 2-1 that follows. Such costs are
eligible for reimbursement from tax increments from the TIF District.
The City and Authority reserve the right to administratively adjust the amount of any
of the Estimated Tax Increment Project Cost line items listed in Figure 2-1, so long
as the total Estimated Tax Increment Project Costs amount, not including financing
costs, is not increased.
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Figure 2-1
Estimated Sources and Uses of Funds
Estimated Project/Financing Costs (to be paid or financed with Tax Increment Revenues)
Total
Estimated Tax Increment Revenues
Land/building acquisition
Tax increment revenues distributed from the County
4,596,000
Interest and investment earnings
50,000
Sales/lease proceeds
-
Market value homestead credit
-
Total Estimated Tax Increment Revenues
4,646,000
Estimated Project/Financing Costs (to be paid or financed with Tax Increment Revenues)
Project costs
Land/building acquisition
180,697
Site improvements/preparation costs
-
Utilities
-
Other public improvements
-
Construction of affordable housing
2,946,303
Administrative costs
100,000
Estimated Tax Increment Project Costs
3,227,000
Estimated financing costs
Interest expense
1,419,000
Total Estimated Project/Financing Costs to be Paid from Tax Increment Revenues
4,646,000
Estimated Financing
Total amount of bonds to be issued 4,646,000
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