City Council Resolution 2021-38CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
RESOLUTION NO. 2021-38
RESOLUTION SUPPORTING TAX INCREMENT FINANCING
ASSISTANCE FOR AN AFFORDABLE HOUSING DEVELOPMENT
PROJECT BY DUFFY DEVELOPMENT COMPANY, INC.
WHEREAS, the City of Monticello ("City") and Monticello Economic Development
Authority ("EDA") have received a request to assist 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 approval from the EDA in support of the use of
tax increment financing for the Project; and
WHEREAS, EDA staff has reviewed the Developer's proposal and at its May 12, 2021
meeting the Board of Commissioners recommended approval to the Monticello City Council in
support of the use of tax increment financing in the preliminary estimated amount of $500,000
for the Project; and
WHEREAS, City staff and the City Council have reviewed the application and
recommendation by the EDA.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Monticello,
Minnesota, that:
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1. The City Council 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 Statutes 469.174 through 469.1794, as amended,
including (i) a public hearing and approval by the City Council; (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 proceed; and (iv) the negotiation of a
development agreement including (among other things) the conditions under which the City or
the EDA will provide financial assistance.
2. The City Council supports the Developer's application to MHFA for tax credits for
the Project.
3. The City Council of the City of Monticello expresses this financial support for the
Project conditioned upon its review and final land use approval in accordance with state law
and local ordinances.
APPROVED AND ADOPTED this 14th day of June, 2021, by the City Council of the City of
Monticello, Minnesota.
CITY OF MONTICELLO
By - A ,
. . ka}! r
ATTEST:
nnifer Schreib r, City Clerk
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