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City Council Resolution 1993-12Councilmember Shirley Anderson 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. 93-12 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 NOS. 1-1 THROUGH 1-14 AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 1-15, 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, 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 Nos. 1-1 through 1-14 and establish Tax Increment Financing District No. 1-15, located within Redevelopment Project No. 1, and approve the Tax Increment Financing Plan relating thereto, pursuant to and in accordance with Minnesota Statutes, Sections 469.174 to 469.179, inclusive, as amended. cion 93-12 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 to be made to Redevelopment Project No. 1, the proposed Modified Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 1-1 through 1-14 and the proposed Tax Increment Financing Plan (the "Tax Increment Financing Plan") for Tax Increment Financing District No. 1-15 (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 Nos. 1-1 through 1-14 and the establishment of Tax Increment Financing District No. 1-15 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. 1-15 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 Nos. 1-1 through 1-14 and to establish Tax Increment Financing District No. 1-15 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 Stephen P. and Joan M. Birkeland. Section 2. Findings for the Modification of Redevelopment Proiect No 1, Modification of Tax Increment Financing Districts Nos. 1-1 through 1-14 and the Establishment of Tax Increment Financing District No. 1-15. -2- ation 93-12 2.01. The Council hereby finds, determines and declares that the modification of Tax Increment Financing Districts Nos. 1-1 through 1-14 and the establishment of Tax Increment Financing District No. 1-15, all located within Redevelopment Project No. 1, is intended and, in the judgement of the 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 1-15. 2.02. The Council hereby finds that Tax Increment Financing District No. 1-15 does meet the requirements of an Economic Development District in that it consists of any project, or any portions of a project which does not meet the requirements found in the definition of a redevelopment district, mined underground space development district, housing district, or soil corrections district, but which the Authority and City finds to be in the public interest because: 1) It will discourage commerce, industry, or manufacturing from moving their operations to another state; or 2) It will result in increased employment in the municipality; or 3) It will result in the preservation and enhancement of the tax base of the municipality. 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. 1-15 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. -3- cion 93-12 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. 2.06. The Council determines and declares that Redevelopment Project No. 1 is hereby modified, that Tax Increment Financing Districts No. 1-1 through 1-14 are hereby modified and that Tax Increment Financing District No. 1-15 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 Stephen P. and Joan M. Birkeland. 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 Stephen P. and Joan M. Birkeland 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. ation 93-12 The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Brad Fyle , and upon vote being taken thereon, the following voted in favor thereof: Ken Maus, Shirley Anderson, Clint Herbst, Brad Fyle, Patty Olsen And the following voted against the same: None Whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor and attested to by the City Administrator. Dated: April 12, 1993 Attest: City Adm nistrator (SEAL) -5- Mayor EXHIBIT A TO RESOLUTION NO. 93-12 The reasons and facts supporting the findings for the establishment of the Tax Increment Financing Plan for Tax Increment Financing District No. 1-15 as required, pursuant to Minnesota Statutes, Section 469.175, Subd. 3, are as follows: 1) Finding that Tax Increment Financing District No. 1-15 is an "Economic Development District" as defined in Minnesota Statutes, Section 469.174, Subd. 12. Tax Increment Financing District No. 1-15 consists of one parcel which does not meet the requirements of a redevelopment district, mined underground space development district, housing district or soils correction district. The Authority and the City find Tax Increment Financing District No. 1-15 to be in the public interest because: 1) It will discourage commerce, industry, or manufacturing from moving their operations to another state; and 2) It will result in increased employment in the municipality; and 3) It will result in the preservation and enhancement of the tax base of the municipality. 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 available financing costs for the development. Due to the high costs of site development, the project would not be financially feasible without the City's assistance. 3) Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 1-15 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. M it A to Resolution 93-12 The project to be developed, which will be located within Tax Increment Financing District No. 1-15, consists of an 9,320 square foot office/manufacturing facility. This facility is to be constructed in the summer of 1993 and completed by January 2, 1994. The company currently employs 11 people. It is anticipated that 2-3 additional full- time positions will be created as a result of this project. 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. 1-15. The duration of Tax Increment Financing District No. 1-15 will be eight (8) years from the date of receipt of the first tax increment or ten (10) years from the original approval of the Tax Increment Financing Plan, whichever is less. Pursuant to Minnesota Statutes, Section 469.1779 Subd. 3, the City requests 100 percent of the available increase in assessed value for current expenditures. -7-