City Council Resolution 1996-45CITY OF MONTICELLO
COUNTY OF WRIGHT
STATE OF MINNESOTA
Council member Brian Stumpf introduced the following resolution and moved its adoption:
RESOLUTION NO. 96-45
RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR CENTRAL
MONTICELLO REDEVELOPMENT PROJECT NO.1 AND ESTABLISHING TAX
INCREMENT FINANCING DISTRICT NO. 1-21 AND APPROVING AND
ADOPTING THE CENTRAL MONTICELLO REDEVELOPMENT PLAN AND TAX
INCREMENT FINANCING PLAN RELATING THERETO, WITHIN CENTRAL
MONTICELLO REDEVELOPMENT PROJECT NO. 1.
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 modify the Central Monticello Redevelopment Plan (the
"Redevelopment Plan") for Central Monticello Redevelopment Project No. 1 and it has been proposed that
the City establish within the Central Monticello Redevelopment Project No. 1 Tax Increment Financing
District No. 1-21 and approve and adopt the related Tax Increment Financing Plan therefor (the "TIF Plan")
and the modified Redevelopment Plan therefor (the "Modified Redevelopment Plan"); all pursuant to and in
accordance with applicable law, including Minnesota Statutes, Sections 469.001 through 469.047 and 469.174
through 469.179, inclusive, as amended; all as reflected in the Modified Redevelopment Pian and TIF Plan,
and presented for the Council's consideration.
1.02. The Council has investigated the facts relating to the Modified Redevelopment Plan and TIF
Plan.
1.03. The City has performed all actions required by law to be performed prior to the establishment
of Tax Increment Financing District No. 1-21 and the adoption and approval of the proposed TIF Plan and
Modified Redevelopment Plan relating thereto, 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. 1-21, a review of and written comment on the Modified Redevelopment Plan and TIF
Plan 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 Modified Redevelopment Plan and TIF
Plan 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 Modified Redevelopment Plan and TIF
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Plan. The Reports include data, information and/or substantiation constituting or relating to (1) the "studies
and analyses" on why the new Tax Increment District 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.
Section 2. Findings for the Approval of the Modified Redevelopment Plan and the TIF Plan.
2.01. The Council hereby finds that the Modified Redevelopment Plan and the establishment of Tax
Increment Financing District No. 1-21 and the TIF Plan, 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 Plan, which are hereby incorporated herein.
Section 3. Findings for the Establishment of Tax Increment Financing District No. 1-21.
3.01. The Council hereby finds that Tax Increment Financing District No. 1-21 is an economic
development district under Minnesota Statutes, Section 469.174, subd. 12.
3.02. The Council further finds 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 on the site (Tax Increment Financing District No. 1-21) 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 TIF Plan, that the Modified Redevelopment Plan and
TIF Plan conform to the general plan for the development or redevelopment of the City as a whole; and that
the Modified Redevelopment Plan and TIF Plan will afford maximum opportunity consistent with the sound
needs of the City as a whole, for the development of Tax Increment Financing District No. 1-21 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 Tax Increment Financing District No. 1-21 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 4. Approval of the Modified Redevelopment Plan and TIF Plan.
4.01. The Modified Redevelopment Plan and TIF Plan, 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 City Administrator.
4.02. The City staff of the City, the City's advisors and legal counsel are authorized and directed
to proceed with the implementation of the Plan and to negotiate, draft, prepare and present to this Council for
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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 Tax
Increment Financing District No. 1-21, as described in the Plan, 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 Tax Increment Financing District No. 1-
21, for which building permits have been issued during the 18 months immediately preceding the adoption of
this resolution.
The motion for the adoption of the foregoing resolution was duly seconded by Council member
Tom Perrault , and upon a vote being taken thereon, the following voted in favor thereof:
Brian Stumpf, Tom Perrault, Brad Fyle, Clint Herbst, Shirley Anderson
and the following voted against the same: None
Dated: November 12, 1996
ATTEST:
City Administrator
(Seal)
EXHIBIT A
RESOLUTION # 96-45
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax
Increment Financing District No. 1-21 as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3
are as follows:
1. Finding that the District No. 1-21 is an economic development district as defined in Minnesota Statutes,
Section 469.174, Subdivision 12.
Tax Increment Financing District No. 1-21 qualifies as an Economic Development District because the
project is a manufacturing facility.
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.
A comparative analysis of estimated market values both with and without establishment of Tax Increment
Financing District No. 1-21 and the use of tax increments has been performed as described above. Such
analysis indicates that the increase in estimated market value of the proposed development (less the indicated
subtractions) exceeds the estimated market value of the site absent the establishment of Tax Increment
Financing District No. 1-21 and the use of tax increments (See Appendix B of the Tax Increment Financing
Plan). A report and analysis describing the rationale for tax increment financing is on file with the City.
3. Finding that the Tax Increment Financing Plan for District No. 1-21 conforms to the general plan for the
development or redevelopment of the municipality as a whole.
The Tax Increment Financing District No. 1-21 is properly zoned and the tax increment financing plan will
generally complement and serve to implement policies adopted in the City's comprehensive plan.
4. Finding that the Tax Increment Financing Plan for District No. 1-21 will afford maximum opportunity,
consistent with the sound needs of the City as a whole, for the development of Central Monticello
Redevelopment Project No. 1 by private enterprise.
The City's control of the site and utilities and the ability to provide assistance based upon specific needs of
the developments will increase its ability to promote orderly and high quality construction within the City
and stable employment for the community as a whole.