City Council Resolution 1998-34;.
CITY OF MONTICELLO
WRIGHT COUNTY
STATE OF MINNESOTA
Council member Stumpf introduced the following resolution and moved its adoption:
RESOLUTION NO. 98-34
RESOLUTION ADOPTING THE MODIFIED REDEVELOPMENT PLAN FOR
CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1; AND
ESTABLISHING WITHIN CENTRAL MONTICELLO REDEVELOPMENT
PROJECT NO. 1 TAX INCREMENT FINANCING DISTRICT NO. 1-24 AND
ADOPTING THE RELATED TAX INCREMENT FINANCING PLAN THEREFOR.
BE IT RESOLVED by the City Council (the "Council") of the City of Monticello, Minnesota (the
"City"), as follows:
Section 1. Recitals.
1.01. It has been proposed that the City Council adopt the Modified Redevelopment Plan for the
Central Monticello RedevelopmentProject No. 1 and establish within Central Monticello Redevelopment
Project No. 1 Tax Increment Financing District No. 1-24 ("District No. 1-24") and adopt the related Tax
Increment Financing Plan therefor (collectively, the "Plans"); all pursuant to and in conformity with
applicable law, including Minnesota Statutes, Sections 469.001 through 469.047 and 469.174 through
469.179, all inclusive, as amended, all as reflected in the Plans, and presented for the Council's consideration.
1.02. The Council has investigated the facts relating to the Plans.
1.03. The City has performed all actions required by law to be performed prior to the adoption and
approval of the proposed Plans, including, but not limited to, notification of Wright County and School
District No. 882 having taxing jurisdiction over the property to be included in District No. 1-24, notice of
a potential qualified housing district to the local county commissioner, a review of and written comment on
the Plans by the City Planning Commission, and the holding of a public hearing upon published notice as
required by law.
1.04. Certain written reports (the "Reports") relating to the Plans and to the activities contemplated
therein have heretofore been prepared by staff and submitted to the Council and/or made a part of the City
files and proceedings on the Plans. The Reports include data, information and/or substantiation constituting
or relating to the bases for the other findings and determinations made in this resolution. The Council hereby
confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this
resolution to the same extent as if set forth in full herein.
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solution 98-34
ae 2
Section 2
Findings for the Adoption and Approval of the Plans.
2.01. The Council hereby finds that the Plans, are intended and, in the judgment of this Council,
the effect of such actions will be, to provide an impetus for development in the public purpose and
accomplish certain objectives as specified in the Plans, which are hereby incorporated herein.
Section 3. Findings for the Establishment of Tax Increment Financing District No 1 24.
3.01. The Council hereby finds that Tax Increment Financing District No. 1-24 is in the public
interest and is a "qualified housing district" under Minnesota Statutes, Section 469.174, subd. 11 and
Minnesota Statutes, Section 273.1399, subd. 1(c).
3.02. The Council further finds that the proposed development would not occur solely through
private investment within the reasonably foreseeable future and therefore the use of tax increment financing
is deemed necessary, that the Plans conform to the general plan for the development or redevelopment of the
City as a whole; and that the Plans will afford maximum opportunity consistent with the sound needs of the
City as a whole, for the development of District No. 1-24 by private enterprise.
3.03. The City finds that District No. 1-24 is a qualified housing district and is exempt from state
aid losses in accordance with Minnesota Statutes, Section 273.1399 subd. 6(c).
3.04. The Council further finds, declares and determines that the City made the above findings
stated in this Section and has set forth the reasons and supporting facts for each determination in writing,
attached hereto as Exhibit A.
Section 4. Approval and Adoption of the Plans
4.01. The Plans, as presented to the Council on this date, including without limitation the findings
and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and
shall be placed on file in the office of the Executive Director of the HRA.
4.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to
proceed with the implementation of the Plans and to negotiate, draft, prepare and present to this Council for
its consideration all further plans, resolutions, documents and contracts necessary for this purpose.
4.03 The Auditor of Wright County is requested to certify the original net tax capacity of District
No. 1-24, as described in thePlans, and to certify in each year thereafter the amount by which the original
net tax capacity has increased or decreased; and the City of Monticello is authorized and directed to forthwith
transmit this request to the County Auditor in such form and content as the Auditor may specify, together
with a list of all properties within District No. 1-24, for which building permits have been issued during the
18 months immediately preceding the adoption of this resolution.
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lCesolution 98-34
Page 3
The motion for the adoption of the foregoing resolution was duly seconded by Council member
Herbst ,and upon a vote being taken thereon, the following voted in favor thereof:
Brian Stumpf, Clint Herbst, Bill Fair, Roger Carlson, Bruce Thielen
and the following voted against the same: None
Dated: August 24, 1998
Mayor
ATTEST:
~ of ~~
City Administrator
(Seal)
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EXHIBIT A
RESOLUTION # 98-34
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax
Increment Financing District No. 1-24, ("District No. 1-24") as required pursuant to Minnesota Statutes, Section
469.175, Subdivision 3 are as follows:
Finding that District No. 1-24 is a qualified housing district as defrned in M.S., Section 469.174, Subd. I1
and M.S., Section 273.1399, Subd. 1(c).
District No. 1-24 consists of a portion of one parcel. The development will consist of 60 units of senior
rental housing. No portion of the property will be used for purposes other than low and moderate income
housing. The development in DistrictNo. 1-24 will consist entirely of housing facilities which meet all
ofthe rent and income limitations for aloes-income housing credit under section 42 of the Internal Revenue
Code of 1986.
2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be
expected to occur solely through private investment within the reasonably foreseeable future and, therefore,
the use of tax increment frnancing is deemed necessary.
The City has determined that, in view of reduced revenues from a housing facility intended for occupancy
by low and moderate income persons, the development proposed in the Plan would not be financially
feasible without substantial public assistance including tax increment financing. In making this finding,
the City has relied upon the developer's pro forma submitted to the City and Authority, requirements of
other state and local assistance to the development, and analysis of the need for tax increment assistance
prepared by Ehlers and Associates and on file in City Hall.
3. Finding that the Tax Increment Financing Plan for District No. 1-24 conforms to the general plan for the
development or redevelopment of the municipality as a whole.
The Plan was reviewed by the Planning Commission on August 4, 1998. The Planning Commission found
that the Plan conforms to the general development plan of the City.
4. Finding that the Tax Increment Financing Plan for District No. 1-24 will afford maximum opportunity,
consistent with the sound needs of the City as a whole, for thelevelopment or redevelopment of Central
Monticello Redevelopment Project No. 1 by private enterprise.
Through the implementation of the Plan, the City or HRA will increase the tax base of the City, and will
increase the availability of safe and decent life-cycle housing in the City.
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