City Council Resolution 2018-55CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO. 2018-55
RESOLUTION APPROVING DECERTIFICATION OF TAX INCREMENT
FINANCING DISTRICT NO. 1-35
BE IT RESOLVED By the City Council ("Council") of the City of Monticello, Minnesota
(the "City") as follows:
Section 1. Recitals.
1.01. The City previously established 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 City of Monticello Economic Development Authority
(the "Authority").
1.02. Pursuant to the tenns 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 Improveiments as of the date hereof, 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. By resolution on June 13, 2018, the Authority approved the decertification of the
TIF District subject to ratification by the City, finding 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.
1.05. The Council ratifies the Authority's findings that decertifying the TIF District is
in the best interest of the City, for the reasons stated in Section 1.04.
Section 2. TIF District Decertified; Filing.
526909v 1 MN I MN 190-156
2.01. The City hereby approves decertification of the TIF District.
2.02. The City hereby authorizes Authority staff 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 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.
Adopted by the City Council of the City of Monticello this 25th day of June, 2018.
Mayor
ATTEST:
City Clerk
5269090 MNI MN190-156 2