City Council Resolution 1997-11CITY OF MONTICELLO
WRIGHT COUNTY
STATE OF MINNESOTA
Council member Clint Herbst introduced the following resolution and moved its adoption:
RESOLUTION NO.97-> >
RESOLUTION MODIFYING CENTRAL MONTICELLO REDEVELOPMENT
PROJECT NO. 1 AND ADOPTING THE MODIFIED REDEVELOPMENT PLAN
THEREFOR AND ESTABLISHING WITHIN CENTRAL MONTICELLO
REDEVELOPMENT PROJECT NO.1 TAX INCREMENT FINANCING DISTRICT
NO.1-22 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 (the"Council") of the City of Monticello (the
"City") modify Central Monticello Redevelopment Project No. 1 (the "Redevelopment Project No. 1 ") and
adopt the Modified Redevelopment Plan therefor and adopt a Tax Increment Financing Plan for the
establishment of Tax Increment Financing District No. 1-22, (collectively, the "Plans") all pursuant to and in
accordance with Minnesota Statutes, Sections 469.001 to 469.047 and Sections 469.174 to 469.179, inclusive,
as amended (the "Acts"), 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 Tax Increment Financing District No.
1-22 ("District No. 1-22"), 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 (1) the "studies and analyses" on why the new Tax Increment Financing District No. 1-22 meets
the so-called "but for" test; and (2) 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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lution 97-11
2
on 2. Findings for the Adoption and Approval of the Plans.
2.01. The Council hereby finds that the Plans, are intended and, in the judgement of this Council,
the effect of such actions will be, to provide an impetus for redevelopment 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. 1-22.
3.01. The Council hereby finds that Tax Increment Financing District No. 1-22 is in the public
interest and is a "redevelopment district" under Minnesota Statutes, Section 469.174, subd. 10 (a)(1).
3.02. The Council further finds that the proposed developments would not occur solely through
private investment within the reasonably foreseeable future and that the increased market value on the site that
could reasonably be expected to occur without the use of tax increment financing would be less than the
increase in the market value estimated to result from the proposed development after subtracting the present
value of the projected tax increments for the maximum duration of District No. 1-22 permitted by the Tax
Increment Financing Plan, 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. 1-22 by private enterprise.
3.03. The City elects to make a qualifying local contribution in accordance with Minnesota Statutes,
Section 273.1399, subd. 6(d), in order to qualify District No. 1-22 for exemption from state aid losses set forth
in Section 273.1399.
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 5. 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. 1-22, as described in the Plans, 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. 1-22, for which building permits have been issued during the 18
months immediately preceding the adoption of this resolution
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Resolution 97-11
Page 3
The motion for the adoption of the foregoing resolution was duly seconded by Council member
Roger Carlson ,and upon a vote being taken thereon, the following voted in favor thereof:
Bill Fair, Clint Herbst, Roger Carlson, Brian Stumpf, Bruce Thielen
and the following voted against the same:
Dated: March 10, 1997
C~~~-~--~ ~~
Mayor
(Seal)
None
ATTEST:
,~
City Admimstrat
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EXHIBIT A
RESOLUTION# 97-11
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax
Increment Financing District No. 1-22, ("District No. 1-22") as required pursuant to Minnesota Statutes, Section
469.175, Subdivision 3 are as follows:
Finding that the District No. 1-22 is a "redevelopment district" as defined in Minnesota Statutes, Section
469.174, Subdivision 10 (a) (1 ).
District No. 1-22 consists of 640 parcels, with plans to redevelop the area for commerciaUindustrial purposes.
Parcels that make up over 70 percent of the area in District No. 1-22 are occupied by buildings, streets,
utilities, or other improvements and more than 50 percent of the buildings in District No. 1-22, not including
outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance, all as
demonstrated by the information found in Appendix E of the Tax Increment Financing Plan for Tax
Increment Financing District No. 1-22.
2. Finding that the proposed development, in the opinion of the Council, would not occur solely through
private investment within the reasonably foreseeable future and that the increased market value of the site
that could reasonably be expected to occur without the use of tax increment financing would be less than
the increase in the market value estimated to result from the proposed development after subtracting the
present value of the projected tax increments for the maximum duration of the district permitted by the plan.
Due to the high cost of redevelopment on the parcels currently occupied by or adjoining parcels with
substandard buildings, the limited amount of commerciaUindustrial property for expansion adjacent to the
existing project, the incompatible land uses at close proximity, and the cost of financing the proposed
improvements, this project is feasible only through assistance, in part, from tax increment financing.
A comparative analysis of estimated market values both with and without establishment of District No. 1-22
and the use of tax increments has been performed as described above. If all development which is proposed
to assisted with tax increment were to occur in District No. 1-22, the total increased market value would be
up to $33,000,000. It is the Council's finding that no development with a market value of greater than
$17,750,000 would occur without tax increment assistance in this district within 25 years. Even if the actual
increased market value due to tax increment assistance were only 1/3 of the maximum estimate of
$33,000,000, the Council finds that it is reasonable to assume that no more than $6,000,000 of new
development would occur without tax increment assistance. This finding is based upon evidence from
general past experience with the high cost of acquisition and new construction of redevelopment within
downtown and the building inspector's evidence that building permits since June 1995 totaled less than
$59,500.
3. Finding that the District No. 1-22 conforms to the general plan for the development or redevelopment of the
municipality as a whole.
The Tax Increment Financing Plan for District No. 1-22 has been reviewed by the Planning Commission and
been found by resolution to conform to the general development and redevelopment plan of the City.
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.t A
~tion 97-11
Finding that the Tax Increment Financing Plan for District No
consistent with the sound needs of the City as a whole, for
Redevelopment Project No. 1 by private enterprise.
1-22 will afford maximum opportunity,
the development of Central Monticello
The commercial/industrial development to be assisted by District No. 1-22 will result in increased
employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax
base of the State and add a high quality development to the City.
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