EDA Resolution 2021-06CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO.2021-06
RESOLUTION EXPRESSING SUPPORT FOR THE PROPOSED USE OF TAX
INCREMENT FINANCING FOR A MULTIFAMILY HOUSING DEVELOPMENT BY
DUFFY DEVELOPMENT COMPANY, INC.
WHEREAS, the City of Monticello Economic Development Authority (the "Authority")
and the City of Monticello, Minnesota (the "City") have received a request to assist an entity to
be formed by Duffy Development Company, Inc. (the "Developer") with certain costs of
construction of an affordable multifamily rental housing development to be located in the City of
Monticello, consisting of an approximately 53-unit apartment building and three four -bedroom
duplex structures (the "Project"); and
WHEREAS, in 2020, the City commissioned a comprehensive housing market study,
which was completed in September 2020 and provides recommendations on the amount and type
of housing that could be built in the City to satisfy demand from current and future residents
through 2025, and which showed a demand for affordable rental housing in the City; and
WHEREAS, a stated goal of the Authority's 2020 Annual Economic Development Work
Plan is to act as a partner in creating affordable housing development for the community; and
WHEREAS, the success of the Developer's application for low-income housing tax
credits in connection with the Project is predicated on local support of the proposal; and
WHEREAS, the Developer has requested that the Authority indicate its support of the
use of tax increment for the Project; and
WHEREAS, Authority staff has reviewed the proposal and recommends that the Board
of Commissioners support the use of tax increment for the Project.
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of
the City of Monticello Economic Development Authority that:
1. The Board of Commissioners supports the Project and the use of tax increment
financing for the Project; provided, however, that authorization of tax increment financing for
the Project is solely within the discretion of the City and of the Board of Commissioners
following all legally required proceedings pursuant to Minnesota Statues 469.174 through
469.1794, as amended, including (i) a public hearing and approval by the City Council of the
City; (ii) a determination, based on an analysis performed by the City's municipal advisor, that
tax increment financing assistance is necessary for the Project; (iii) verification of development
financing need, based on an analysis performed by the City's municipal advisor, that
substantiates that "but for" the use of tax increment financing, the Project would be unable to
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proceed; and (iv) the negotiation of a development agreement including (among other things) the
conditions under which the City or the Authority will provide financial assistance.
2. The Board of Commissioners supports the Developer's application to MHFA for
tax credits for the Project.
3. The Board of Commissioners recommends that the City Council of the City adopt
a resolution supporting the Developer's application to MHFA for tax credits for the Project and
expressing support for providing tax increment financing assistance to the Developer for the
Proj ect.
Adopted by the City of Monticello Economic Development Authority this 9th day
of June, 2021.
ATTEST:
isle Director
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