City Council Resolution 2022-89CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO. 2022-89
RESOLUTION APPROVING A MODIFICATION OF THE TAX INCREMENT
FINANCING PLAN FOR TAX INCREMENT FINANCING (REDEVELOPMENT)
DISTRICT NO. 1-45
WHEREAS, on June 22, 2022, the City of Monticello Economic Development Authority (the
"Authority") approved a Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing
(Redevelopment) District No. 1-45 (Block 52) (the "TIF District") located within the Central
Monticello Redevelopment Project Area No. 1 (the "Redevelopment Project"), pursuant to
Minnesota Statutes, Sections 469.001 to 469.047, 469.090 to 469.1081, and 469.174 to 469.1794,
all as amended (collectively, the "Act"), and on June 27, 2022, the City of Monticello, Minnesota
(the "City") approved the establishment of the TIF District; and
WHEREAS, the City and Authority have determined a need to modify the TIF Plan in order
to amend the budget contained therein as reflected in that certain document provided in Exhibit A
attached hereto and labeled "Modification of the Tax Increment Financing Plan for Tax Increment
Financing (Redevelopment) District No. 1-45 within the Central Monticello Redevelopment Project
No. 1" (the "Amendment"); and
WHEREAS, the Amendment is consistent with the redevelopment plan for the
Redevelopment Project; and
WHEREAS, pursuant to Section 469.175, subd. 4(b) of the Act, a tax increment financing
plan may be modified without public hearing or the findings required to be made for the original
tax increment financing plan if the modification does not include (i) any reduction or enlargement
of the geographic area of the project or tax increment financing district; (ii) an increase in the
amount of bonded indebtedness; (iii) a determination to capitalize interest on debt if that
determination was not a part of the original plan; (iv) an increase in the portion of the captured
net tax capacity to be retained by the City; (v) an increase in the estimated cost of the project,
including administrative expenses, to be paid or financed with tax increment from the district; or
(vi) the designation of additional property to be acquired by the authority; and
WHEREAS, the Amendment revises the budget for the TIF District to increase the
amount budgeted for site improvements and preparation costs and to decrease the amount
budgeted for land acquisition and administrative costs but does not increase the total
estimated cost of the project or the total amount of bonded indebtedness; and
WHEREAS, on August 10, 2022, the Authority approved the Amendment.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Monticello,
Minnesota as follows:
1. The Amendment is hereby approved in substantially the form on file in City Hall and
attached hereto as Exhibit A.
2. Authority staff is authorized to forward a copy of the TIF Plan as modified by the
Amendment (the "Modified TIF Plan") to the Department of Revenue and the State
Auditor pursuant to Minnesota Statutes 469.175, subd.4(a).
3. The City Clerk is authorized and directed to forward a copy of the Modified TIF Plan
to Wright County.
DATED: August 22, 2022
Mayor
ATTEST:
a'0*
)CIt*Clerk
MN 190\ 159\815218.v l 2
EXHIBIT A
ATTACHMENT 1
MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT
FINANCING DISTRICT NO. 1-45 WITHIN THE CENTRAL MONTICELLO REDEVELOPMENT
PROJECT NO. 1
I. Background
The Tax Increment Financing Plan for Tax Increment Financing District No. 1-45 (the "TIF
District") within Central Monticello Redevelopment Project No. 1 (the "Redevelopment
Project") was originally approved by the City of Monticello (the "City") on June 27, 2022
(Resolution No. 2022-64), and by the Monticello Economic Development Authority (the
"Authority") on June 22, 2022 (Resolution No. 2022-17);
The City and the Authority have determined a need to modify the TIF Plan in order to
amend the estimated sources and uses of funds;
Nothing in this modification is intended to modify or supersede or alter the activities
described in the original Redevelopment Program for Central Monticello Redevelopment
Project No. 1. The TIF Plan remains in full force and effect and is not modified except as
described in this modification document.
II. TIF Plan Modification to TIF District No. 1-45
The following sections of the TIF Plan for TIF District No. 1-42 are modified as shown:
Subsection 2.04.3 Estimated Sources and Uses of Funds. Replaced in its entirety
to read as follows:
The estimated sources of revenue, along with the estimated Public Development
Costs of the TIF District, are itemized in Figure 2-1 that follows. Such costs are
eligible for reimbursement from tax increments from the TIF District.
The City and Authority reserve the right to administratively adjust the amount of
any of the Estimated Tax Increment Project Cost line items listed in Figure 2-1, so
long as the total Estimated Tax Increment Project Costs amount, not including
financing costs, is not increased.
MN 190\159\815218.vl
Figure 2-1
Estimated Sources and Uses of Funds
Total Modified
Budget
Estimated Tax Increment Revenues (from tax increment generated by the district)
Tax increment revenues distributed from the County 6,973,000 6,973,000
Interest and investment earnings 35,000 35,000
Sales/lease proceeds - -
Market value homestead credit - -
Total Estimated Tax Increment Revenues 7,008,000 7,008,000
Estimated Project/ Financing Costs (to be paid or financed with tax increment)
Project costs
Land/building acquisition
1,484,100
1,351,617
Site improvements/preparation costs
2,621,758
2,867,954
Utilities
-
-
Other public improvements
-
-
Administrative costs
163,713
50,000
Estimated Tax Increment Project Costs
4,269,571
4,269,571
Estimated financing costs
Interest expense
2,738,429
2,738,429
Total Estimated Project/ Financing Costs to be Paid from Tax Increment
7,008,000
7,008,000
Estimated Financing
Total amount of bonds to be issued
MN 190\159\815218.vl 4
7,008,000 7,008,000