City Council Resolution 2014-29CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
RESOLUTION NO. 2014-029
ADOPTING A MODIFICATION OF TAX INCREMENT FINANCING DISTRICT NO.
1 -39 WITHIN CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1, AND
THE PROPOSED MODIFICATION OF THE TAX INCREMENT FINANCING PLAN
RELATING TO TAX INCREMENT FINANCING DISTRICT NO. 1 -39
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
Tax Increment Financing Plan (the "TIF Plan ") for Tax Increment Financing District No. 1 -39 (the
"District ");
WHEREAS, the City originally established the District and approved the TIF Plan therefor
on August 22, 2011 (Resolution No. 2011 -81), all pursuant to and in conformity with applicable
law, including Minnesota Statutes, Sections 469.001 to 469.047, Sections 469.090 to 469.1082
and Sections 469.174 to 469.1794, all inclusive, as amended, (the "Act ");
WHEREAS, the City proposes to approve a modification to the TIF Plan to amend the
estimated bonded indebtedness and the estimated source and use of tax increment;
WHEREAS, the City Council has investigated the facts and has caused to be prepared a
modification to the TIF Plan for the District; and
WHEREAS, the City has performed all actions required by law to be performed prior to
the modification of 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 City Council of the City of Monticello
as follows:
Section 1. Findings; TIF Plan for District No. 1 -39
1.01. It is found and determined that it is necessary and desirable for the sound and
orderly development of the Redevelopment Project, and for the protection and preservation of the
public health, safety, and general welfare, that the authority of the Act be exercised by the City to
provide public financial assistance to the District and the Redevelopment Project.
1.02. It is further found and determined, and it is the reasoned opinion of the City, that
the development proposed in the Redevelopment Program and the TIF Plan could not reasonably
be expected to occur solely through private investment within the reasonably foreseeable future
and that therefore the use of tax increment financing is necessary.
1.03. The proposed public improvements to be financed in part through tax increment
financing are necessary to permit the City to realize the full potential of the District and the
Redevelopment Project in terms of development intensity, employment opportunities and tax base.
1.04. The TIF Plan, as modified, conforms to the general plan of development of the City
as a whole.
1.05. The TIF Plan, as modified, will afford maximum opportunity, consistent with the
sound needs of the City as a whole, for the development of the District and the Redevelopment
Project by private enterprise.
1.06. The modification of the TIF Plan does not change the classification or boundaries
of the District. The District remains classified as a economic development district pursuant to the
Act.
1.07. Reasons and facts supporting the above findings are set forth in the TIF Plan and
are incorporated herein by reference. The City Council has also relied upon the reports and
recommendations of its staff and consultants as well as the personal knowledge of members of the
City Council in reaching its conclusions regarding the TIF Plan, as modified.
Section 2. Modifications Adopted; Filing
2.01. The Modifications are hereby approved and adopted.
2.02. The geographic boundaries of the Redevelopment Project and the District are not
changed by this action.
2.03. The Executive Director of the City of Monticello Economic Development
Authority is authorized and directed to file a copy of the Modification with the Wright County
Auditor, the Office of the State Auditor and the Minnesota Commissioner of Revenue as required
by the Act; provided that nothing herein shall be deemed to constitute a request for certification of
any parcel or TIF district.
ADOPTED BY the City Council of Monticello, Minnesota on this 24th day of March, 2014.
CITY OF MONTICELLO
Clint Herbst, Mayor
ATTEST:
Jeff O >k � ity A ministrator
ATTACHMENT 1
MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO. 1-39 WITHIN THE CENTRAL
MONTICELLO REDEVELOPMENT PROJECT NO.1
I. Background
The City of Monticello (the "City ") originally established Tax Increment Financing District No. 1 -39
(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,
2011 (Resolution No. 2011 -81);
The City and the Authority have now determined a need to modify the TIF Plan in order to amend
the estimated bonded indebtedness and the estimated source and 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 Modifications to TIF District No. 1-39
The following sections of the TIF Plan for TIF District No. 1 -39 are modified as shown:
Subsection 2 -9. Sources of Revenue/Bonds to be Issued. Language added to read as
follows:
The TIF Plan, as originally adopted, included an estimated bonded indebtedness
amount of $391,100. The bonded indebtedness amount is modified and increased to an
amount of $413,994, an increase of $22,894. An interfund loan or advance is defined in
the TIF Act as a bond or a qualifying obligation. The EDA adopted Resolution No.
2011 -74, on September 14, 2011, authorizing an interfund loan for advance of certain
costs in connection with TIF District 1 -39 in the amount of $413,994.
Subsection 2 -10. Uses of Funds. Replaced in its entirety to read as follows:
Subsection 2 -10. Source and Use of Funds. The estimated sources of revenue, along
with the estimated public costs of the District, are itemized in Figure 2 -10. 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. The EDA and City reserve the right to
administratively adjust the amount of any of the items listed in Figure 2 -10 or to incorporate
additional eligible items, so long as the total estimated project/financing costs to be paid from
tax increment is not increased.
FIGURE 2 -10
Tax Increment Financing District No. 1-39
Projected Tax Increment
Modification
Original No.1
Estimated Tax Increment Revenues (from tax increment generated by the district)
Tax increment revenues distributed from the county $467,600 $550,000
Interest and investment earnings $7,400 $8,000
Sales /lease proceeds $0 $0
Market value homestead credit $0 $0
Total Estimated Tax Increment Revenues $475,000 $558,000
Estimated Project /Financing Costs (to be paid or financed with tax increment)
Project costs
Land /building acquisition
$329,340
$413,994
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
$46,760
$46,760
Estimated Tax Increment Project Costs
$391,100
$460,754
Estimated financing costs
Interest expense
$83,900
$97,246
Total Estimated Project /Financing Costs to be Paid from Tax Increment
$475,000
$558,000
Estimated Financing
Total amount of bonds to be issued $391,100 $413,994
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
MONTICELLO, MINNESOTA
HELD: March 24, 2014
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Monticello, Wright County, Minnesota, was duly held at the Monticello City Hall on Monday,
the 24th day of March, 2014 at 7:00 p.m. for the purpose, in part, adopting a modification of the
Tax Increment Financing Plan for Tax Increment Financing District No. 1 -39.
The following Council members were present
Brian Stumpf
and the following were absent: Lloyd Hilgart.
Clint Herbst, Tom Perrault, Glen Posusta,
Councilmember Brian Stumpf introduced the Resolution and moved its adoption;
The motion for the adoption of the foregoing resolution was duly seconded by Councilmember
Glen Posusta and upon vote being taken thereon, the following voted in favor:
Clint Herbst, Tom Perrault, Glen Posusta, Brian Stumpf
and the following voted against the same: None.
Whereupon said resolution was declared duly passed and adopted.
CERTIFICATION
STATE OF MINNESOTA )
ss.
COUNTY OF WRIGHT )
I, the undersigned, being the duly qualified and acting Deputy City Clerk of the City of
Monticello, Minnesota, DO HEREBY CERTIFY that the attached resolution is a true and correct
copy of an extract of minutes of a meeting of the City Council of the City of Monticello, Minnesota
duly called and held, as such minutes relate to the adopting of modification of the Tax Increment
Financing Plan for Tax Increment Financing District No. 1 -39.
a�
WITNESS my hand as such Deputy City Clerk of the City of Monticello this x.51 day of
March, 2014.
Ca herine Shuman, beputy City Clerk