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EDA Resolution 2015-003CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA- 2015 -003 ACTION NO.2 PARTIALLY RESCINDING RESOLUTION NO. 2014-096 AND APPROVING A REVISED MODIFICATION OF THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT DISTRICT NO. 1 -36 AND TAX INCREMENT FINANCING DISTRICT NO. 1-37 WHEREAS, the City of Monticello Economic Development Authority (the "Authority") previously established its Tax Increment Financing District No. 1 -36 and Tax Increment Financing District No. 1 -37 (the "TIF Districts ") and approved Tax Increment Financing Plans (the "TIF Plans ") for the TIF Districts, pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the "TIF Act "); and WHEREAS, the Authority approved Resolution No, 2014 -096 on October 8, 2014 (the "Prior Resolution "), which among other things authorized budgetary modifications to the TIF Plans resulting in an overall increase in budgeted project costs (the "Prior Modifications "), but has subsequently determined that consideration and approval of the Prior Modifications required publication of a notice of public hearing and the holding of a public hearing on such Prior Modifications; and WHEREAS, the Authority proposes a revised budgetary modification to the TIF Plans for the TIF Districts to reallocate budgetary authority among the project costs authorized in the original budget for the TIF Plans, not including financing (interest) costs to be paid or financed with tax increment (together, the "Modifications "); and WHEREAS, the Authority has investigated the facts and has caused to be prepared the Modifications; and WHEREAS, the Authority proposes rescinding its approval of the Prior Modifications in the Prior Resolution, and approving the Modifications, as such Modifications are authorized to be approved without notice and public hearing under Section 469.175, subd. 4 of the TIF Act. NOW, THEREFORE, BE IT RESOLVED, BY THE CITY OFMONTICELLO ECONOMIC DEVELOPMENT A UTHORITY: 1. The Authority hereby rescinds its approval of the Prior Modifications in the Prior Resolution, but ratifies and confirms all other approvals made in the Prior Resolution, including without limitation approval of budgetary modifications to its Tax Increment Financing District No. 1 -38. 2. The Authority finds, determines and declares that with respect to the Modifications: CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. FDA- 2015 -003 a) The Authority is not modifying the boundaries of the TIF Districts, nor increasing the budget in the Modifications therefor, but is reallocating expenditures among the project costs previously authorized. b) The Authority affirms the findings previously made with respect to the TIF Districts. c) The Modifications conform to the general plan for the development of the City as a whole. d) The Modifications do not require a public hearing, pursuant to Section 469.175, Subd. 4 of the Act. 3. The Modifications to the TIF Plan for Tax Increment Financing District No. 1 -36 as set forth in Attachment 1 to this resolution are hereby approved and adopted. 4. The Modifications to the TIF Plan for Tax Increment Financing District No. 1 -37 as set forth in Attachment 2 to this resolution are hereby approved and adopted. 5. Subject to approval of the Modifications by the City Council, the Executive Director of the Authority is hereby authorized and directed to transmit a certified copy of this resolution and a certified copy of the City Council resolution approving and adopting the Modifications, together with Attachments 1 and 2, to the Office of the State Auditor, the Minnesota Department of Revenue, and Wright County. Approved this 11 h day of March, 2015, by the City of Monticello Economic Development Authority. ATTEST: Execut' irector 2 President ATTACHMENT 1 MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-36 WITHIN THE CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1 I. Background The City of Monticello (the "City ") originally established Tax Increment Financing District No. 1 -36 (the "District ") within Central Monticello Redevelopment Project No. 1 (the "Redevelopment Project ") and adopted the Tax Increment Financing Plan (the "TIF Plan") therefor on August 22, 2005; The City and the Authority have now determined a need to modify the TIF Plan in order to amend the estimated use of tax increment; 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 -36 Use of Tax Increment Shown in Table A. 3 TABLE A Tax Increment Financing District No. 1 -36 Projected Tax Increment Original, Adopted Modification 8/22/2005 No.1 Estimated Tax Increment Revenues (from tax increment generated by the district) Tax increment revenues distributed from the county $680,000 $650,000 Interest and investment earnings $20,000 $50,000 Sales /lease proceeds $0 $0 Market value homestead credit $0 $0 Total Estimated Tax Increment Revenues $700,000 $700,000 Estimated Project /Financing Costs (to be paid or financed with tax increment) Project costs Land /building acquisition $50,000 $411,768 Site improvements /preparation costs $50,000 $135,776 Utilities $200,000 $0 Other qualifying improvements $200,000 $0 Construction of affordable housing $0 $0 Small city authorized costs, if not already included above $0 $0 Administrative costs $68,000 $20,456 Estimated Tax Increment Project Costs $568,000 $568,000 Estimated financing costs Interest expense $132,000 $132,000 Total Estimated Project /Financing Costs to be Paid from Tax Increment $700,000 $700,000 Estimated Financing Total amount of bonds to be issued $600,000 $600,000 ATTACHMENT 2 MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-37 WITHIN THE CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1 I. Background The City of Monticello (the "City ") originally established Tax Increment Financing District No. 1 -37 (the "District ") within Central Monticello Redevelopment Project No. 1 (the "Redevelopment Project") and adopted the Tax Increment Financing Plan (the "TIF Plan") therefor on April 24, 2006; The City and the Authority have now determined a need to modify the TIF Plan in order to amend the estimated use of tax increment; 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. 1-37 Use of Tax Increment Shown in Table A. 5 TABLE A Tax Increment Financing District No. 1 -37 Projected Tax Increment rol Original, Adopted Modification 4124/2006 No.1 Estimated Tax Increment Revenues (from tax increment generated by the district) Tax increment revenues distributed from the county $175,000 $175,000 Interest and investment earnings $0 $0 Sales /lease proceeds $0 $0 Market value homestead credit $0 $0 Total Estimated Tax Increment Revenues $175,000 $175,000 Estimated Project /Financing Costs (to be paid or financed with tax increment) Project costs Land /building acquisition $94,000 $122,113 Site improvements /preparation costs $5,000 $0 Utilities $5,000 $0 Other qualifying improvements $5,000 $0 Construction of affordable housing $0 $0 Small city authorized costs, if not already included above $0 $0 Administrative costs $16,000 $2,887 Estimated Tax Increment Project Costs $125,000 $125,000 Estimated financing costs Interest expense $50,000 $50,000 Total Estimated Project/Financing Costs to be Paid from Tax Increment $175,000 $175,000 Estimated Financing Total amount of bonds to be issued $150,000 $150,000 rol EXTRACT OF MINUTES OF A MEETING OF THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY WRIGHT COUNTY, MINNESOTA HELD: March 11, 2015 Pursuant to due call and notice thereof, a regular meeting of the City of Monticello Economic Development Authority, Wright County, Minnesota, was duly held at the Monticello City Hall on Wednesday, the 11' day of March, 2015 at 6:00 p.m. for the purpose, in part, of rescinding modification of the Tax Increment Financing Plans for Tax Increment Financing District No. 1 -36 and Tax Increment Financing District No. 1 -37 and adopting a revised modification of the Tax Increment Financing Plans for Tax Increment Financing District No. 1 -36 and Tax Increment Financing District No. 1 -37. The following Commissioners were present: Hinz, Hilgart, Tapper, Johnson, Davidson, Perrault and the following were absent: Demeules Commissioner Hinz introduced the following resolution and moved its adoption: The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Hilgart and upon vote being taken thereon, the following voted in favor: Hinz, Hilgart, Tapper, Johnson, Davidson, Perrault and the following voted against the same: None Whereupon said resolution was declared duly passed and adopted. 7 CERTIFICATION STATE OF MINNESOTA ) ss. COUNTY OF WRIGHT ) I, the undersigned, being the duly qualified and Executive Director of the City of Monticello Economic Development Authority, DO HEREBY CERTIFY that the attached resolution is a true and correct copy of an extract of minutes of a meeting of the City of Monticello Economic Development Authority, duly called and held, as such minutes relate to rescinding modification of the Tax Increment Financing Plans for Tax Increment Financing District No. 1 -36 and Tax Increment Financing District No. 1 -37 and adopting a revised modification of the Tax Increment Financing Plans for Tax Increment Financing District No. 1 -36 and Tax Increment Financing District No. 1 -37. WITNESS my hand as such Executive Director of the City of Monticello Economic Development Authority this I Ph day of March, 2015. , :. l" Director