EDA Resolution 2018-11CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2018-11
RESOLUTION APPROVING DECERTIFICATION OF TAX INCREMENT
FINANCING DISTRICT NO. 1-35
BE IT RESOLVED By the Board of Commissioners ("Board") of the City of Monticello
Economic Development Authority (the "Authority") as follows:
Section 1. Recitals.
1.01. The City previously established the Tax Increment Financing District No. 1-35
(the "TIF District"), a redevelopment TIF District, within Central Monticello Redevelopment
Project No. 1 in the City and approved a Tax Increment Financing Plan ("TIF Plan") for the TIF
District. The TIF District is administered by the Authority.
1.02. Pursuant to the terms of the Contract for Private Development between the
Authority, as assignee of the Housing and Redevelopment Authority in and for the City of
Monticello, Minnesota, and Masters Fifth Avenue, Inc. (the "Developer"), dated September 7,
2005, as amended (the "Agreement"), the Authority granted tax increment financing assistance
to the Developer in the form of a tax increment revenue note (the "TIF Note") to reimburse the
Developer for the purchase price of the Property through tax increments from the TIF District.
The Agreement provided that payments of principal and interest on the TIF Note would
commence upon receipt by the Authority of tax increment from the Minimum Improvements to
be constructed on the Property.
1.03. Despite five amendments extending the required dates of commencement and
completion of construction of the Minimum Improvements, the Developer has not commenced
construction of the Minimum Improvements as of the date hereof, and has notified the Authority
that Developer will not construct the Minimum Improvements and has requested that the parties
terminate the Agreement and decertify the TIF District.
1.04. The Authority agrees that decertification of the TIF District and termination of the
Agreement are in the best interest of the Authority and City, because such actions will allow the
creation of a new housing tax increment financing district encompassing the Property, thereby
increasing workforce rental housing options for City residents.
Section 2. TIF District Decertified; Filing.
2.01. The Authority hereby approves decertification of the TIF District.
2.02. Subject to formal decertification of the TIF District by the City, Authority staff is
authorized and directed to transmit a copy of this Resolution to Wright County with instructions
to decertify the TIF District as of the date hereof, it being the intent of the City and Authority
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that any tax increment derived from the TIF District and collected after the date hereof should be
redistributed by the County Auditor to the taxing jurisdictions within the TIF District.
2.03. The TIF District has not generated any tax increment as of the date hereof, but if
any tax increment derived from the TIF District is generated and received by the Authority after
the date hereof, Authority staff is directed to return such tax increment to the County Auditor for
distribution to the taxing jurisdictions within the TIF District.
Adopted by the Board of Commissioners of the City of Monticello Economic Development
Authority this 13th day of June, 2018.
Presi ent
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xe tive Director
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