EDA Resolution #2022-19 Establishment of TIF District 1-46CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO.2022-19
RESOLUTION ESTABLISHING AN ECONOMIC DEVELOPMENT TAX
INCREMENT FINANCING DISTRICT WITHIN CENTRAL MONTICELLO
REDEVELOPMENT PROJECT NO. 1 AND APPROVING A TAX INCREMENT
FINANCING PLAN THEREFOR
BE IT RESOLVED by the Board of Commissioners (the "Board") of the City of
Monticello Economic Development Authority (the "Authority") as follows:
Section 1. Recitals.
1.01 The City of Monticello, Minnesota (the "City") and the Authority have previously
established the Central Monticello Redevelopment Project No. 1 (the "Redevelopment Project")
within the City pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended
(the "TIF Act"), Minnesota Statutes, Sections 469.001 to 469.047 and Sections 469.090 to
469.1081, all inclusive, as amended (collectively, and together with the TIF Act, the "Act").
1.02 The Authority has proposed establishing Tax Increment Financing (Economic
Development) District No. 1-46 (the "TIF District") within the Redevelopment Project and
adopting the related Tax Increment Financing Plan (the "TIF Plan"), pursuant to and in
conformity with applicable law, including the TIF Act, all as reflected in that certain document,
dated March 11, 2022, entitled "Tax Increment Financing Plan for Tax Increment Financing
(Economic Development) District No. 1-46 (Wiha Tools) Within Central Monticello
Redevelopment Project No. 1" and presented for the Board's consideration.
1.03 The Board has investigated the facts relating to the establishment of the TIF
District and adoption of the TIF Plan.
1.04 The Authority and the City have performed all actions required by law to be
performed prior to the adoption and approval of the TIF Plan, including, but not limited to,
delivery of the TIF Plan to the County Auditor and School District Clerk, a review of the TIF
Plan by the City Planning Commission, and the holding of a public hearing by the City Council
(the "Council") of the City thereon following notice thereof published in the City's official
newspaper at least 10 but not more than 30 days prior to the public hearing.
1.05 The TIF Plan and certain information and material (collectively, the "Materials")
relating to the TIF Plan and to the activities contemplated therein have heretofore been prepared
and submitted to the Board and/or made a part of the City and Authority files and proceedings on
the TIF Plan. The Materials include the tax increment application, project pro forma financial
statement, project sources and uses and other information supplied by Wiha Tools USA, a
Minnesota corporation (or an affiliate thereof or entity related thereto, the "Developer"), as to the
activities contemplated therein, and information constituting or relating to (1) why the assistance
satisfies the so-called "but for" test and (2) the bases for the other findings and determinations
made in this resolution. The Board hereby confirms, ratifies and adopts the Materials, which are
hereby incorporated into and made as fully a part of this resolution to the same extent as if set
forth in full herein.
1.06 The Developer has proposed to acquire property within the TIF District and
construct and equip thereon an approximately 156,800 square foot facility, to be constructed in
two phases, and to be used for manufacturing hand tools for use in trade and industry
(collectively, the "Development") and has requested that the Authority provide tax increment
assistance to pay a portion of the public development costs of the Development. At least 85% of
the facility will be used for manufacturing, warehousing, distribution, or research, with less than
15% available for office or other space not related to such functions. Based on representations
by the Developer and the Developer, the Authority finds that jobs will be created and maintained
in this state, including construction jobs.
Section 2. Findings for the Creation of the TIF District and Adoption and Approval
of a TIF Plan Therefor.
2.01 The Board hereby finds that the land within the Redevelopment Project is proper
and desirable to establish and develop within the City, its effect will be to carry out the
objectives of the Redevelopment Plan for the Redevelopment Project (the "Redevelopment
Plan") by creating an impetus for the development of manufacturing facilities and related
structures in the City, and otherwise promote certain public purposes and accomplish certain
objectives as specified in the TIF Plan and the Redevelopment Plan. The Redevelopment Plan
has been previously established by the City and the Authority and is not being expanded in
connection with the establishment of the TIF District.
2.02 The Board hereby finds that the TIF District is in the public interest and is an
"economic development district" within the meaning of Minnesota Statutes, Section 469.174,
Subdivision 12, because it will discourage commerce and industry from moving their operations
to another state, it will result in increased employment in the state, and it will result in capital
investment in the City and therefore preserve and enhance the tax base in the state.
2.03 The Board hereby snakes the following additional findings in connection with the
TIF District.
(a) The Board further finds that the proposed Development, in the opinion of the
Board, would not occur solely through private investment within the reasonably foreseeable
future and, therefore, the use of tax increment financing is deemed necessary. The specific basis
for such finding being:
The Developer has represented that it could not proceed with the proposed construction
of the Development in the TIF District without tax increment assistance to offset the high cost of
the land acquisition and site improvements necessary for the Development. The Developer has
further represented that the facility planned for the Development is necessary for the Developer
to retain its current operations in the State, as well as to expand its business and increase jobs and
the tax base in the State.
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(b) The Board further finds that the TIF Plan conforms to the general plan for the
development or redevelopment of the City as a whole. The specific basis for such finding being:
The TIF Plan conforms with the general development plan of the City and will generally
complement and serve to implement policies adopted in the City's comprehensive plan.
The Development is in accordance with the existing zoning for the property and the
City's Planning Commission has determined that the Development is consistent with the
comprehensive plan.
(c) The Board further finds that the TIF Plan will afford maximum opportunity
consistent with the sound needs of the City as a whole for the development of the TIF District by
private enterprise. The specific basis for such finding being.
The proposed Development will be used by the Developer, a private enterprise, for
manufacturing products and will afford maximum opportunity for the development of the
applicable parcels consistent with the needs of the City. The Development will maximize
the potential of an underutilized site and will increase the taxable market valuation of the
City and the State, will increase jobs in the City and State, and will increase the available
manufacturing facilities in the City and State.
(d) For purposes of compliance with Minnesota Statutes, Section 469.175,
Subdivision 3(b)(2)(ii), the Board hereby finds that the increased market value of the property to
be developed within the TIF District that could reasonably be expected to occur without the use
of tax increment financing is less than the increased 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 based on the calculations set forth in Exhibit I of the TIF
Plan. Thus, the use of tax increment financing will be a positive net gain to the City, the School
District, and the County, and the tax increment assistance does not exceed the benefit which will
be derived therefrom.
2.04 The Authority elects to retain all of the captured tax capacity to finance the costs
of the TIF District.
2.05 The provisions of this Section 2 are hereby incorporated by reference into and
made a part of the TIF Plan.
2.06 The Board further finds that the TIF Plan is intended and, in the judgment of the
Board, its effect will be, to promote the public purposes and accomplish the objectives specified
therein. Background information and facts supporting all the above findings are set forth in the
TIF Plan which is hereby incorporated by reference into and made a part of this resolution.
Section 3. The adoption of the TIF Plan conforms in all respects to the requirements
of the Act. The TIF Plan will help facilitate development that will create new manufacturing
uses, provide employment opportunities, and improve the tax base in the City and State. The
Board expressly finds that any private benefit to be received by a private developer is incidental,
as the tax increment assistance is provided solely to make the development financially feasible
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and thus produce the public benefits described. Therefore, the Board finds that the public
benefits of the TIF Plan exceed any private benefits.
Section 4. Creation of the TIF District and Approval and Adoption of the TIF Plan.
4.01 The establishment of the TIF District and the adoption of the TIF Plan, as
presented to the Board on this date, including without limitation the findings and statements of
objectives contained therein, are hereby approved, ratified, established, and adopted. Approval
of the TIF Plan does not constitute approval of any project or a development agreement with any
developer. City and Authority 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. 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. The County
Auditor/Treasurer of the County is requested to certify the original net tax capacity of the TIF
District, as described in the TIF Plan.
4.02 Authority staff, advisors, and legal counsel are authorized and directed to proceed
with the implementation of the TIF Plan and to negotiate, draft, prepare, and present to the
Authority for its consideration all further plans, resolutions, documents, and contracts necessary
for this purpose.
Adopted by the Board of Commissioners of the City of Monticello Economic
Development Authority this 13t' day of July, 2022.
President
ATTEST:
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