EDA Resolution 2013-095CITY OF MONTICELLO
ECONOMIC DEVELOPMENT AUTHORITY
WRIGHT COUNTY, MINNESOTA
RESOLUTION NO. 2013-095
RESOLUTION ADOPTING A MODIFICATION OF THE REDEVELOPMENT PROGRAM
FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1 AND ADOPTING A
MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT
FINANCING DISTRICT NO. 1-6
WHEREAS, it has been proposed by the City of Monticello Economic Development
Authority (the "Authority ") that the City of Monticello (the "City ") adopt a modification of the
Redevelopment Program (the "Redevelopment Program ") for Central Monticello
Redevelopment Project No. 1 (the Redevelopment Project ") and adopt a modification of the Tax
Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District No. 1 -6 (the
"District');
WHEREAS, the City originally established the District and approved the TIF Plan
therefor on November 12, 1985 (Resolution No. 85 -23);
WHEREAS, the City adopted modifications to the TIF Plan for the District on September
28, 1987 (Resolution No. 87 -30) and on February 13, 2006 (Resolution No. 2006 -7);
WHEREAS, the Authority proposes further modification to.the TIF Plan to authorize the
use of tax increment from the District for acquisition of land within the Redevelopment Project
and to modify the estimate of costs and sources of revenue without increasing the total overall
budget for the District as authorized in the TIF Plan;
WHEREAS, the Authority has investigated the facts and has caused to be prepared a
modification to the Redevelopment Program for the Redevelopment Project, and a modification
to the TIF Plan for the District (together, the "Modifications "); and
WHEREAS, the City has performed all actions required by law to be performed prior to
the modification of the Redevelopment Program and the TIF Plan, including, but not limited to,
notification of Wright County and Independent School District No. 882 having taxing
jurisdiction over the property included in the District and the holding of a public hearing upon
published and mailed notice as required by law.
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the City of
Monticello Economic Development Authority as follows:
1. The Modifications as set forth in Attachment 1 to this resolution are
hereby approved and adopted.
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2. 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 Attachment 1, to the Office of the State Auditor, the
Minnesota Department of Revenue, and Wright County.
Approved this 131h day of November, 2013, by the Board of Commissioners of the City of
Monticello Economic Development Authority.
President
ATTEST:
l r
Secret
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ATTACHMENT 1
AMENDMENT OF THE REDEVELOPMENT PROGRAM FOR CENTRAL MONTICELLO
REDEVELOPMENT PROJECT NO.1 AND MODIFICATION OF THE TAX INCREMENT
FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-6 WITHIN
REDEVELOPMENT PROJECT NO.1
I. Background
The City of Monticello (the "City ") originally established Tax Increment Financing District No. 1 -6
(the "District ") within Central Monticello Redevelopment Project No. 1 (the "Redevelopment
Project") and adopted the Tax Increment Financing Plan (the "TIF Plan") therefor on November 12,
1985 (Resolution No. 85 -23). The City subsequently adopted modifications to the District on
September 28,1987 (Resolution No. 87 -30) and on February 13, 2006 (Resolution No. 2006 -7);
The September 28, 1987 modification, among other things, approved additional project
expenditures, extended the original decertification but not to exceed the duration of the District to
accommodate retirement of additional project costs, and increased total tax increment
expenditures or designation of additional property to be acquired.
The February 13, 2006 modification, among other things, authorized the City or the Housing
Redevelopment Authority in and for the City of Monticello (which has since transferred the
administration of the District to the City of Monticello Economic Development Authority, hereafter
called the "Authority ") to acquire any parcel within the District, approved additional project
expenditures and modification to the budget, increased the authority to incur bonded
indebtedness, modified the estimated sources of revenue, and clarified the duration of the District.
The City and the Authority have now determined a need to further modify the Redevelopment
Program and TIF Plan in order to authorize the use of tax increment from the District for
acquisition of land within the Redevelopment Project and to modify the estimate of costs and
sources of revenue without increasing the total overall budget for the District as authorized in
the TIF Plan.
The modification to the Redevelopment Program for the Redevelopment Project includes budget
revisions to coincide with the TIF Plan for the District. Nothing in this modification is intended to
supersede or alter the activities described in the original Redevelopment Program. The TIF Plan
remains in full force and effect and is not modified except as described in this modification
document.
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II. TIF Plan Modifications to TIF District No. 1-6
The following sections of the TIF Plan for TIF District No. 1-6 are modified as shown:
Subsection F. Parcels in Acquisition. Replaced in its entirety to read as follows:
Subsection F. Parcels in Acquisition. The City or Authority may acquire any parcel
located within the boundaries of the Redevelopment Project, including adjacent street
rights of way. Property may be acquired by the City or Authority only in order to
accomplish one or more of the following: storm sewer improvements; provide land for
needed public street utilities and facilities; or transfer to private developers in order to
accomplish the uses and objectives set for in the TIF Plan. The City or Authority may
acquire property by gift, dedication, condemnation or direct purchase from willing sellers
in order to achieve the objectives of the TIF Plan. Such acquisition will be undertaken only
when there is assurance of funding to finance the acquisition and related costs. The City or
Authority may also reimburse developers for costs of land acquisition in lieu of direct
acquisition by the City or Authority.
Subsection G. Estimate of Costs. Replaced in its entirety to read as follows:
Subjection G. Estimated Sources and Uses of Funds. The estimated sources of
revenue, along with the estimated public costs of the District, are itemized in Figure G-1.
These estimates are based on the best available information in the sources and uses of
funds. Such costs are eligible for reimbursement from tax increment derived from property,
and other listed sources of tax increment revenue from the District.
Subsection I. Sources of Revenue. Deleted in its entirety.
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FIGURE G -1
City of Monticello, MN
Tax Increment Financing District No. 1-6
Projected Tax Increment
TOTAL
Estimated Tax Increment Revenues (from tax increment generated by the district)
Tax increment revenues distributed from the county
1,650,000
Interest and investment earnings
267,000
Sales /lease proceeds
67,500
Market value homestead credit
-
Total Estimated Tax Increment Revenues
1,984,500
Estimated Project/Financing Costs (to be paid or financed with tax increment)
Project costs:
Land/building acquisition
933,000
Site improvements /preparation costs
247,197
Utilities
-
Other qualifying improvements
320,930
Construction of affordable housing
-
Small city authorized costs, if not already included above
-
Administrative costs
45,000
Estimated Tax Increment Project Costs
1,546,127
Estimated financing costs
Interest expense
397,373
Total Estimated Project/Financing Costs to be Paid from Tax Increment
1,943,500
Revenue Less Expense (Fund Balance)
41,000
Estimated Financing
Total amount of bonds to be issued
350,000
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EXTRACT OF MINUTES OF A MEETING OF THE
CITY OF MONTICELLO
ECONOMIC DVELOPMENT AUTHORITY
WRIGHT COUNTY, MINNESOTA
HELD: November 13, 2013
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 Monday, the 13th day of November, 2013 at 7:00 p.m. for the purpose, in part, of
adopting a modification of the Redevelopment Program for Central Monticello Redevelopment
Project No. 1 and adopting a modification of the Tax Increment Financing Plan for Tax
Increment Financing District No. 1 -6.
The following Commissioner were present: President Bill Demeules, Vice President Bill
Tapper, Treasurer Tracy Hinz, Vice Treasurer Matt Frie, Rod Dragsten, Tom Perrault and Brian
Stumpf
and the following were absent: None.
Commissioner TaI212er introduced the following resolution and moved its adoption:
The motion for the adoption of the foregoing resolution was duly seconded by
Commissioner Stump and upon vote being taken thereon, the following
voted in favor: Bill Demeules, Bill Tapper, Tracy Hinz, Matt Frie, Rod Dragsten, Tom Perrault
and Brian Stumpf
and the following voted against the same: None.
Whereupon said resolution was declared duly passed and adopted.
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CERTIFICATION
STATE OF MINNESOTA )
ss.
COUNTY OF WRIGHT )
I, the undersigned, being the duly qualified and Secretary 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 Board of Commissioners of the
City of Monticello Economic Development Authority, duly called and held, as such minutes
relate to the calling of a public hearing on the Central Monticello Redevelopment Project No. 1,
and tax increment financing plan modification for Tax Increment Financing District No. 1 -6.
WITNESSsmy hand as such Secretary of the City of Monticello Economic Development
Authority this,Z / day of November, 2013.
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MRA/
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