City Council Resolution 2018-54CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO. 2018-54
RESOLUTION APPROVING THE ESTABLISHMENT OF TAX INCREMENT
FINANCING DISTRICT NO. 1-40 (BRIGGS) WITHIN CENTRAL MONTICELLO
REDEVELOPMENT PROJECT NO. 1; AND THE ADOPTION OF THE TAX
INCREMENT FINANCING PLAN RELATING THERETO
WHEREAS, the City of Monticello Economic Development Authority (the "EDA") has
requested that the City of Monticello, Minnesota (the "City") create Tax Increment Financing
District No. 1-40 (the "TIF District") within Central Monticello Redevelopment Project No. 1
(the "Project") and adopt a tax increment financing plan for the TIF District (the "TIF Plan"),
pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 and 469.174 to 469.1794, as
amended (collectively, the "Act"); and
WHEREAS, the City and EDA have investigated the facts relating to the proposed TIF
District and have caused the TIF Plan for the TIF District to be prepared; and
WHEREAS, the City and its consultants have perfonned all actions required by law to be
performed prior to the creation of the TIF District and the adoption of the Program and TIF Plan
relating thereto, including, but not limited to, notification of Wright County and Independent
School District No. 882 (Monticello Public Schools), Wright County, Minnesota, having taxing
jurisdiction over the property to be included in the TIF District, approval of the TIF Plan by the
EDA on June 13, 2018, and the holding of a public hearing upon published and required notice
as required by law.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Monticello as follows:
1. Tax Increment Financing District No. _ 1-40. The City hereby approves the
establishment of the TIF District within the Project, the boundaries of which are
described in Section 2.03.2 and Exhibit V of the TIF Plan.
2. Tax Increment Financing Plan. The TIF Plan is adopted as the tax increment
financing plan for the TIF District and is incorporated herein by reference, and the
City Council snakes the following findings consistent with the TIF Plan:
(a) The TIF District is a housing district as defined in Section 469.174, Subd. 11 of
the Act, as described in Section 2.03.3 of the TIF Plan.
(b) In the opinion of the City Council, the development proposed in connection with
establishment of the TIF District would not occur solely through private
investment within the reasonably foreseeable future, and the increased market
value of the site that could reasonably be expected to occur without the use of tax
increment financing ("TIF Assistance") would be less than the increase in the
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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
TIF District as described in the TIF Plan.
The above finding is based on a request to the City submitted by the Developer,
stating that the TIF Assistance is needed from the City and that without the use of
tax increment financing, the proposed development could not proceed.
The City also finds that due to the extraordinary cost of structured parking and the
limitation on rents available to developers of multifamily housing with an
affordable component, the City has no expectation that other similar development
would occur without TIF Assistance. Therefore, the City reasonably believes that
the expected increase in market value at this site without TIF Assistance would be
minimal. A comparative analysis of estimated market values both with and
without establishment of the TIF District and the use of tax increments has been
performed. There has been no economic activity over the past five years within
the TIF District, so the City projects a small inflationary rate of 1 %. Such
analysis, included as Exhibit I to the TIF Plan, indicates that:
1. the increase in estimated market value of the proposed development is $7,053,376;
and
2. the present value of expected tax increments collected over the maximum duration
of the TIF District is $8621,208; and
3. the expected increased estimated market value of the site without the use of tax
increment is $177,617; and
4. even if some development other than the proposed development were to occur, the
City finds that no alternative would occur that would produce a market value
increase greater than $6,052,668 (the amount in number 1 less the amount in
number 2).
(c) The TIF Plan for the TIF District No. 1-40 conforms to the general plan for
development or redevelopment of the City as a whole, because the City's
comprehensive plan provides for multifamily residential housing as identified
within the Small Area Plan.
(d) The TIF Plan will afford maximum opportunity, consistent with the sound needs
of the City as a whole, for the development or redevelopment of the TIF District
by private enterprise. Through the implementation of the TIF Plan, the City will
provide an impetus for construction of multifamily housing by a private developer
on currently underdeveloped land, thereby increasing housing options in the City
and encouraging potential further development of the surrounding properties by
other private developers within the Project.
3. Public Purpose. The adoption of the TIF Plan conforms in all respects to the
requirements of the Act and will help fulfill a need to redevelop an area of the City
which is already built up, to provide increased housing options to City residents, to
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improve the tax base, and to improve the general economy of the State, and thereby
serves a public purpose.
4. Certification. City and EDA staff and consultants are authorized and directed to
proceed with implementation of the TIF Plan and to transmit the request for
certification of the TIF District to the Wright County Auditor in such form and
content as the County Auditor may specify, together with a list of all properties
within Tax Increment District No. 1-40 for which building permits have been issued
during the 18 months immediately preceding the adoption of this Resolution. The
Wright County Auditor is requested to certify the original net tax capacity of the TIF
District as described in the TIF Plan, and to certify in each year thereafter the amount
by which the original net tax capacity has increased or decreased in accordance with
the Act.
5. Filing. The City Administrator is authorized and directed to file copies of the
Program and TIF Plan with the Commissioner of Revenue and Office of the State
Auditor.
Approved by the City Council of the City of Monticello, Minnesota on June 25, 2018.
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ATTEST:
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