City Council Resolution 1994-37Councilmember Warren Smith introduced the following resolution, the
reading of which was dispensed with by unanimous consent, and moved its adoption:
CITY OF MONTICELLO
WRIGHT COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 94-37
A RESOLUTION RELATING TO THE
MODIFICATION, BY THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF MONTICELLO, OF THE REDEVELOPMENT
PLAN RELATING TO REDEVELOPMENT PROJECT
NO. 1, THE MODIFICATION OF THE TAX
INCREMENT FINANCING PLANS RELATING TO
TAX INCREMENT FINANCING DISTRICTS NO. 1-1
THROUGH 1-17, AND THE ESTABLISHMENT OF
TAX INCREMENT FINANCING DISTRICT NO. 1-18,
ALL LOCATED WITHIN REDEVELOPMENT
PROJECT NO. 1, AND THE APPROVAL AND
ADOPTION OF THE TAX INCREMENT FINANCING
PLANS RELATING THERETO.
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 and adopted by the Housing and
Redevelopment Authority (the "Authority") in and for the City that the
Authority modify, by increased Project costs and enlarged geographic area,
Redevelopment Project No. 1, pursuant to and in accordance with Minnesota
Statutes, Sections 469.001 to 469.047, inclusive, as amended. It has been
further proposed and adopted by the Authority that the Authority modify the
Tax Increment Financing Plans for Tax Increment Financing Districts No. 1-
1 through 1-17, and establish Tax Increment Financing District No. 1-18,
located within Redevelopment Project No. 1, and approve the Tax Increment
Financing Plans relating thereto, pursuant to and in accordance with
Minnesota Statutes, Sections 469.174 to 469.179, inclusive, as amended.
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Resolution 94-37
1.02. The Authority has caused to be prepared and this Council
has investigated the facts with respect thereto, a proposed Modified
Redevelopment Plan (The "Modified Redevelopment Plan") for
Redevelopment Project No. 1, defining more precisely the increased Project
costs and enlarged geographic area to be made to Redevelopment Project No.
1, the proposed Modified Tax Increment Financing Plans for Tax Increment
Financing Districts No. 1-1 through 1-17, and the proposed Tax Increment
Financing Plan (the "Tax Increment Financing Plan") for Tax Increment
Financing District No. 1-18 (collectively referred to as the "Plans").
1.03. The Authority and the City have performed all actions
required by law to be performed prior to the modification of Redevelopment
Project No. 1, the modification of Tax Increment Financing Districts No.
1-1 through 1-17 and the establishment of Tax Increment Financing District
No. 1-18 and the adoption of the Plans relating thereto, including, but not
limited to, notification to Wright County, Independent School District No.
882 and the Monticello -Big Lake Community Hospital, having jurisdiction
over the property to be included in Tax Increment Financing District No.
1-18 and the holding of a public hearing upon published and mailed notice as
required by law.
1.04. The Authority hereby determines that it is necessary and in
the best interest of the City at this time to modify Redevelopment Project
No. 1, to modify Tax Increment Financing Districts No. 1-1 through 1-17,
and to establish Tax Increment Financing District No. 1-18 and approve the
Plans relating thereto, contingent upon execution of the Redevelopment and
Assessment Agreements by and between the Housing and Redevelopment
Authority of the City of Monticello and Residential Development Inc.
Section 2. Findings for the Modification of Redevelopment Project
No. 1, Modification of Tax Increment Financing Districts No. 1-1 through
1-17, and the Establishment of Tax Increment Financing District No. 1-18.
2.01. The Council hereby finds, determines and declares that the
modification of Tax Increment Financing Districts No. 1-1 through 1-17 and
the establishment of Tax Increment Financing District No. 1-18, all located
within Redevelopment Project No. 1, is intended and, in the judgement of the
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Resolution 94-37
Council, its effect will be, to further provide an impetus for commercial and
industrial development, increase employment and otherwise promote certain
public purposes and accomplish certain objectives as specified in the Modified
Tax Increment Financing Plans for Tax Increment Financing Districts Nos.
1-1 through 1-18.
2.02. The Council hereby finds that Tax Increment Financing
District No. 1-18 does meet the requirements of a Soils Condition District in
that it consists of any project, or any portions of a project which the
Authority and City finds to be in the public interest because:
(a) Unusual terrain, the presence of hazardous substances, pollution or
contaminants, or soil deficiencies for 80 percent of the acreage in the
district require substantial filling, grading, removal, or remedial action,
or other physical preparation for use; or
(b) The estimated cost of the physical preparation under clause (1), but
excluding costs directly related to roads as defined in section 160.01
and local improvements as described in sections 429.021, subdivision
1, clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair
market value of the land before completion of the preparation.
2.03. The Council finds, determines and declares that the
proposed development, in the opinion of the Council, would not occur solely
through private investment within the reasonably foreseeable future and,
therefore, the use of Tax Increment Financing is deemed necessary.
2.04. The Council finds, determines, and declares that the
proposed Tax Increment Financing Plan for Tax Increment Financing District
No. 1-18 will afford maximum opportunity and be consistent with the sound
needs of the City as a whole for the development or redevelopment of
Redevelopment Project No. 1 by private enterprise.
2.05. The Council further finds, determines and declares that the
City made the above findings stated in Section 2 and has set forth the reasons
and supporting facts for each determination in writing, attached hereto as
Exhibit A.
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Resolution 94-37
2.06. The Council determines and declares that Redevelopment
Project No. 1 is hereby modified, that Tax Increment Financing Districts No.
1-1 through 1-17, are hereby modified and that Tax Increment Financing
District No. 1-18 is hereby adopted, contingent upon the execution of the
Redevelopment and Assessment Agreements by and between the Housing and
Redevelopment Authority of the City of Monticello and Residential
Development, Inc.
Section 3. Adoption of Respective Plans.
3.01. The respective Plans presented to the Council on this date
are hereby approved, contingent upon execution of the Redevelopment and
Assessment Agreements by and between the Housing and Redevelopment
Authority of the City of Monticello and Residential Development, Inc. and
shall be placed on file in the office of the City Administrator.
Section 4. Implementation of the Modified Redevelopment Plan and
Modified Tax Increment Financing Plans.
4.01. The officers of the City, the City's financial advisor,
underwriter and the City's legal counsel and bond counsel are authorized and
directed to proceed with the implementation of the respective Plans and for
this purpose to negotiate, draft, prepare and present to this Council for its
consideration all further plans, resolutions, documents and contracts necessary
to accomplish this purpose.
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Resolution 94-37
The motion for the adoption of the foregoing resolution was duly
seconded by Councilmember Shirley Anderson , and upon vote being taken
thereon, the following voted in favor thereof:
Warren Smith, Shirley Anderson, Brad Fyle
And the following voted against the same:
Clint Herbst, Dan Blonigen
Whereupon said resolution was declared duly passed and adopted, and
was signed by the Mayor and attested to by the
Dated: November 28, 1994
Attest:C12ZA
City Admi 'strator
(SEAL)
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EXHIBIT A TO RESOLUTION NO. 94-37
The reasons and facts supporting the findings for the establishment of
the Tax Increment Financing Plan for Tax Increment Financing District
No. 1-18 as required, pursuant to Minnesota Statutes, Section 469.175, Subd.
3, are as follows:
1) Finding that Tax Increment Financing District No. 1-18 is a "Soils
Condition District" as defined in Minnesota Statutes, Section 469.174,
Subd. 19.
Tax Increment Financing District No. 1-18 consists of two parcels
which do not meet the requirements of a redevelopment district, mined
underground space development district, housing district or economic
development district. The Authority and the City find Tax Increment
Financing District No. 1-18 to be in the public interest because:
(a) Unusual terrain, the presence of hazardous substances, pollution
or contaminants, or soil deficiencies for 80 percent of the acreage
in the district require substantial filling, grading, removal, or
remedial action, or other physical preparation for use; or
(b) The estimated cost of the physical preparation under clause (1),
but excluding costs directly related to roads as defined in section
160.01 and local improvements as described in sections 429.021,
subdivision 1, clauses (1) to (7), (11) , and (12), and 430.01,
exceeds the fair market value of the land before completion of the
preparation.
2) Finding that the proposed development, in the opinion of the Council,
would not occur solely through private investment within the reasonable
foreseeable future, and therefore, the use of Tax Increment Financing
is deemed necessary.
City staff has reviewed the costs for this development. Due to the high
cost of soil correction and site preparation, the project would not be
financially feasible without the City's assistance.
CUM
Exhibit to Resolution 94-37
3) Finding that the Tax Increment Financing Plan for Tax Increment
Financing District No. 1-18 will afford maximum opportunity,
consistent with the sound needs of the City as a whole, for the
development of Redevelopment Project No. 1 by private enterprise.
The project to be developed, which will be located within Tax
Increment Financing District No. 1-18, consists of the development of
83 single-family homes, 96 twin -family homes and, 2 commercial lots.
This project is expected to begin in 1996 and be substantially completed
by January 2, 1999.
4) Finding regarding the method of tax increment computation set forth in
Minnesota Statutes, Section 469.177, Subd. 3, Clause (b), if applicable.
The Council does not elect the method of tax increment computation set
forth in Minnesota Statutes, Section 469.177, Subd. 3, Clause (b).
5) Finding regarding duration of Tax Increment Financing District No.
1-18.
The duration of Tax Increment Financing District No. 1-18 will be
twelve (12) years from the original approval of the Tax Increment
Financing Plan. Pursuant to Minnesota Statutes, Section 469.177,
Subd. 3, the City requests 100 percent of the available increase in
assessed value for current expenditures.
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