City Council Resolution 2013-98CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
RESOLUTION NO. 2013-098
RESOLUTION ADOPTING A MODIFICATION OF THE REDEVELOPMENT
PROGRAM FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1
AND ADOPTING A MODIFICATION OF THE TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 1 -6
WHEREAS, it has been proposed by the City of Monticello Economic Development
Authority (the "Authority ") that the City of Monticello (the "City ") adopt a modification of the
Redevelopment Program (the "Redevelopment Program ") for Central Monticello Redevelopment
Project No. 1 (the Redevelopment Project ") and adopt a modification of the Tax Increment
Financing Plan (the "TIF Plan ") for Tax Increment Financing District No. 1 -6 (the "District ");
WHEREAS, the City originally established the District and approved the TIF Plan
therefor on November 12, 1985 (Resolution No. 85 -23), all pursuant to and in conformity with
applicable law, including Minnesota Statutes, Sections 469.001 to 469.047, Sections 469.090 to
469!..1082, and Sections 469.174 through 469.1794, all inclusive, as amended (collectively, the
"Act") .
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WHEREAS, the City adopted modifications to the TIF Plan for the District on September
285 1987 (Resolution No. 87 -30) and on February 13, 2006 (Resolution No. 2006 -7);
WHEREAS, the City proposes to approve further modification to the TIF Plan to
authorize the use of tax increment from the District for acquisition of land within the
Redevelopment Project and to modify the estimate of costs and sources of revenue without
increasing the total overall budget for the District as authorized in the TIF Plan;
WHEREAS, the City Council has investigated the facts and has caused to be prepared a
modification to the Redevelopment Program for the Redevelopment Project, and a modification
to the TIF Plan for the District (together, the "Modifications "); and
WHEREAS, the Planning Commission of the City has reviewed the Modifications and
found that the Modifications conform to the general plan for the development of the City as a
whole; and
WHEREAS, the City has performed all actions required by law to be performed prior to
the modification of the Redevelopment Program and the TIF Plan, including, but not limited to,
notification of Wright County and Independent School District No. 882 having taxing
jurisdiction over the property included in the District and the holding of a public hearing upon
published and mailed notice as required by law.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Monticello
as follows:
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Section 1. Findings; Redevelopment Program
1.01. It is found and determined that the Redevelopment Program remains in full force
and effect and that the goal of the Redevelopment Program is to encourage development and
redevelopment in accordance with the general plan of development of the City as a whole.
1.02. The Redevelopment Program, as modified, confirms to the general plan of
development of the City as a whole.
Section 2. Findings, TIF Plan for District No. 1 -6
2.01. It is found and determined that it is necessary and desirable for the sound and
orderly development of the Redevelopment Project, and for the protection and preservation of
the public health, safety, and general welfare, that the authority of the Act be exercised by the
City to provide public financial assistance to the District and the Redevelopment Project.
2.02. It is further found and determined, and it is the reasoned opinion of the City, that
the development proposed in the Redevelopment Program and the TIF Plan could not reasonably
be expected to occur solely through private investment within the reasonably foreseeable future
and that therefore the use of tax increment financing is necessary.
2.03. The proposed public improvements to be financed in part through tax increment
financing are necessary to permit the City to realize the full potential of the District and the
Redevelopment Project in terms of development intensity, employment opportunities and tax
base.
2.04. The TIF Plan, as modified, conforms to the general plan of development of the
City as a whole.
2.05. The TIF Plan, as modified, will afford maximum opportunity, consistent with the
sound needs of the City as a whole, for the development of the District and the Redevelopment
Project by private enterprise.
2.06. The modification of the TIF Plan does not change the classification or boundaries
of the District. The District remains classified as a redevelopment district pursuant to the Act.
2.07. Reasons and facts supporting the above findings are set forth in the TIF Plan and
are incorporated herein by reference. The City Council has also relied upon the reports and
recommendations of its staff and consultants as well as the personal knowledge of members of
the City Council in reaching its conclusions regarding the Redevelopment Program and the TIF
Plan, as modified.
Section 3. Modifications Adopted; Filing
3.01. The Modifications are hereby approved and adopted.
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3.02. The geographic boundaries of the Redevelopment Project and the District are not
changed by this action.
3.03. The Executive Director of the City of Monticello Economic Development
Authority is authorized and directed to file a copy of the Modifications with the Wright County
Auditor, the Office of the State Auditor and the Minnesota Commissioner of Revenue as
required by the Act; provided that nothing herein shall be deemed to constitute a request for
certification of any parcel or TIF district.
Approved this 25th day of November, 2013, by the City Council of the City of Monticello,
Minnesota.
CITY OF MONTICELLO
'0/7
Mayor
ATTEST:
C' inistrator
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ATTACHMENT 1
AMENDMENT OF THE REDEVELOPMENT PROGRAM FOR CENTRAL
MONTICELLO REDEVELOPMENT PROJECT NO. 1 AND MODIFICATION OF THE
TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING
DISTRICT NO. 1-6 WITHIN THE REDEVELOPMENT PROJECT
I. Background
The City of Monticello (the "City ") originally established Tax Increment Financing District No. 1 -6
(the "District ") within Central Monticello Redevelopment Project No. 1 (the "Redevelopment
Project ") and adopted the Tax Increment Financing Plan (the "TIF Plan") therefor on November 12,
1985 (Resolution No. 85 -23). The City subsequently adopted modifications to the District on
September 28, 1987 (Resolution No. 87 -30) and on February 13, 2006 (Resolution No. 2006 -7);
The September 28, 1987 modification, among other things, approved additional project
expenditures, extended the original decertification but not to exceed the duration of the District to
accommodate retirement of additional project costs, and increased total tax increment expenditures
or designation of additional property to be acquired.
The February 13, 2006 modification, among other things, authorized the City or the Housing
Redevelopment Authority in and for the City of Monticello (which has since transferred the
administration of the District to the City of Monticello Economic Development Authority, hereafter
called the "Authority ") to acquire any parcel within the District, approved additional project
expenditures and modification to the budget, increased the authority to incur bonded indebtedness,
modified the estimated sources of revenue, and clarified the duration of the District.
The City and the Authority have now determined a need to further modify the Redevelopment
Program and TIF Plan in order to authorize the use of tax increment from the District for
acquisition of land within the Redevelopment Project and to modify the estimate of costs and
sources of revenue without increasing the total overall budget for the District as authorized in the
TIF Plan.
The modification to the Redevelopment Program for the Redevelopment Project includes budget
revisions to coincide with the TIF Plan for the District. Nothing in this modification is intended to
supersede or alter the activities described in the original Redevelopment Program. The TIF Plan
remains in full force and effect and is not modified except as described in this modification
document.
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II. TIF Plan Modifications to TIF District No. 1-6
The following sections of the TIF Plan for TIF District No. 1 -6 are modified as shown:
Subsection F. Parcels in Acquisition.
follows:
Replaced in its entirety to read as
Subsection F. Parcels in Acquisition. The City or Authority may acquire any parcel
located within the boundaries of the Redevelopment Project, including adjacent street rights
of way. Property may be acquired by the City or Authority only in order to accomplish one
or more of the following: storm sewer improvements; provide land for needed public street
utilities and facilities; or transfer to private developers in order to accomplish the uses and
objectives set for in the TIF Plan. The City or Authority may acquire property by gift,
dedication, condemnation or direct purchase from willing sellers in order to achieve the
objectives of the TIF Plan. Such acquisition will be undertaken only when there is
assurance of funding to finance the acquisition and related costs. The City or Authority may
also reimburse developers for costs of land acquisition in lieu of direct acquisition by the
City or Authority.
Subsection G. Estimate of Costs. Replaced in its entirety to read as follows:
Subjection G. Estimated Sources and Uses of Funds. The estimated sources of
revenue, along with the estimated public costs of the District, are itemized in Figure G -1.
These estimates are based on the best available information in the sources and uses of funds.
Such costs are eligible for reimbursement from tax increment derived from property, and
other listed sources of tax increment revenue from the District.
Subsection I. Sources of Revenue.
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Deleted in its entirety.
FIGURE G -1
City of Monticello, MN
Tax Increment Financing District No. 1 -6
Projected Tax Increment
TOTAL
Estimated Tax Increment Revenues (from tax increment generated by the district)
Tax increment revenues distributed from the county
1,650,000
Interest and investment earnings
267,000
Sales /lease proceeds
67,500
Market value homestead credit
-
Total Estimated Tax Increment Revenues
1,984,500
Estimated Project/Financing Costs (to be paid or financed with tax increment)
Project costs:
Land/building acquisition
933,000
Site improvements /preparation costs
247,197
Utilities
-
Other qualifying improvements
320,930
Construction of affordable housing
-
Small city authorized costs, if not already included above
-
Administrative costs
45,000
Estimated Tax Increment Project Costs
1,546,127
Estimated financing costs
Interest expense
397,373
Total Estimated Project/Financing Costs to be Paid from Tax Increment
1,943,500
Revenue Less Expense (Fund Balance)
41,000
Estimated Financing
Total amount of bonds to be issued
350,000
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EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
MONTICELLO, MINNESOTA
HELD: November 25, 2013
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Monticello, Wright County, Minnesota, was duly held at the Monticello City Hall on Monday,
the 25th day of November, 2013 at 7:00 p.m. for the purpose, in part, adopting a modification of
the Redevelopment Program for Central Monticello Redevelopment Project No. 1 and adopting a
modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 1-6.
The following Council members were present: Mayor Clint Herbst, Council members Lloyd
Hilgart, Glen Posusta, Tom Perrault, Brian Stumpf
and the following were absent: None.
Councilmember Brian Stumpf introduced the foregoing resolution and moved its
adoption:
The motion for the adoption of the foregoing resolution was duly seconded by
Councilmember Lloyd Hilgart and upon vote being taken thereon, the following
voted in favor: Herbst, Hilgart, Perrault, Posusta, Stumpf
and the following voted against the same: None
Whereupon said resolution was declared duly passed and adopted,
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CERTIFICATION
STATE OF MINNESOTA )
ss.
COUNTY OF WRIGHT )
I, the undersigned, being the duly qualified and acting Deputy City Clerk of the City of
Monticello, Minnesota, DO HEREBY CERTIFY that the attached resolution is a true and correct
copy of an extract of minutes of a meeting of the City Council of the City of Monticello,
Minnesota duly called and held, as such minutes relate to the adopting of modification of the
Redevelopment Program for Central Monticello Redevelopment Project No. 1 and adopting a
modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 1 -6.
WITNESS my hand as such Deputy City Clerk of the City of Monticello this ��`'day of
November, 2013.
Ca `ne Shuman, Deputy City Clerk
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