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City Council Resolution 2002-52Council memberBrian Stumpf CITY OF MONTICELLO WRIGHT COUNTY STATE OF MINNESOTA introduced the following resolution and moved its adoption: RESOLUTION NO. 2002-52 RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1, AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1-32 THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. BE iT RESOLVED by the City Council (the "Council") of the City of Monticello, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. The Monticello Housing and Redevelopment Authority (the "HRA") has heretofore established Central Monticello Redevelopment Project No. 1 and adopted the Redevelopment Plan therefor. It has been proposed by the HRA and the City that the City adopt a Modification to the Redevelopment Plan for Central Monticello Redevelopment Project No. I (the "Redevelopment Plan Modification") and establish Tax Increment Financing District No. 1-32 (the "District") therein and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Plans"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 to 469.047 and Sections 469.174 to 469.179, all inclusive, as amended, (the "Act") all as reflected in the Plans, and presented for the Council's consideration. 1.02. The City has investigated the facts relating to the Plans. 1.03. The HRA and City have performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Plans, including, but 110t limited to, notification of Wright County and Independent School District No. 882 having taxing jurisdiction over the property to be included in the District, a review of and written comment on the Plans by the City Planning Commission, and the holding of a public hearing upon published notice as required by law. 1.04. Certain written reports (the "Reports") relating to the Plans and to the activities contemplated therein have heretofore been prepared by staff and submitted to the Council and/or made a part of the City or HRA files and proceedings on the Plans. The Reports include data, information and/or substantiation constituting or relating to the bases for the other findings and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the Reports, 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. 1.05 The City is not modifying the boundaries of Central Monticello Redevelopment Project No. 1 but is, however, modifying the Redevelopment Plan therefor. Section 2. Findings for the Adoption and Approval of the Plans. 2.01. The Council hereby finds that the Plans, are intended and, in the judgment of this Council, the effect of such actions will be, to provide an impetus for development in the public purpose and accomplish certain objectives as specified in the Plans, which are hereby incorporated herein. Section 3. Findings for the Establishment of Tax Increment Financing District No. 1-32. 3.01. The Council hereby finds that the District is in the public interest and is an "economic development district" under Minnesota Statutes, Section 469.174, Szibcl 12. 3.02. The Council further finds that the proposed development would not occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the 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 District permitted by the Tax Increment Financing Plan, that the Plans conform to the general plan for the development or redevelopment of the City as a whole; and that the Plans will afford maximum opportunity consistent with the sound needs of the City as a whole, for the redevelopment or development of the District by private enterprise. 3.03. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. Section 4. Public Purpose 4.01. The Plans conform in all respects to the requirements of the Act and will help fulfill a need to develop an area of the City, which is already built up, to provide employment opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. Section 5. Approval and Adoption of the Plans. 5.01. The Plans, as presented to the Council on this date, Including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the Executive Director of the HRA. 5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 5.03 The Auditor of Wright County is requested to certify the original net tax capacity of the District, as described in the Plans, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the HRA is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. 5.04. The City Clerk is further authorized and directed to file a copy of the Plans with the Commissioner of Revenue pursuant to Minnesota Statutes 469.175, Subd. 4a. The motion for the adoption of the foregoing resolution was duly seconded by Council member Roger : Carlson , and upon a vote being taken thereon, the following voted in favor thereof: Roger Belsaas, Roger Carlson, Clint Herbst, Brian Stumpf and Bruce Thielen and the following voted against the same: None Dated: August 12, 2002 Mayor (Seal) ATTEST: 051e� �&- -- City Clerk J EXHIBIT A RESOLUTION NO. 2002-52 The reasons and facts suppo►-tin" the findings for the adoption of the Tax increment Financing Plan for Tax increment Financing, District No. 1-32 as required pursuant toMS., Section 469.173, Subal 3 are as follows: 1. Finding that the Tar I17creinent FinanCing District No. 1-32 Is all eC01701niC development district cis defined in All&, Section 469.174, Sithd. 12. Tax Increment Financing District No. 1-32 is a contiguous geographic area within the City's Central Monticello Redevelopment Project No. 1, delineated in the Plan, for the purpose of financing economic development in the City through the use of tax increment. The District consists of a portion of Central Monticello Redevelopment Project No. 1, which is in the public interest because it will facilitate construction of a 60,000 s.f. office/manufacturing facility for Production Stamping, inc. which will increase employment in the state. 2. Finding that the proposed developInent, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable fitture and that the increased market value of the .site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the inarket valise estimated to result from the proposed development after subtracting the present value of the projected taY increinents for the 177axi11711177 duration of ' Tax Incre177ent Financing District No. 1-32 permitted by the Plan. The proposed development, in the opinion of the City, would 1701 reasonably be expected to occur solely through private investment ivithin the reasol7tibly foreseeable future: This finding is supported by the fact that the developiiient proposed in this plan is a manufacturing facility that meets the City's objectives for economic development. The cost of land acquisition, site and public improvements and utilities makes development of the facility infeasible without City assistance. The increased market valise of the site that could reasonably be expected to occur without the use of tax Increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the ina_riinifin duration of the TIF District permitted by the Plan: The City supported this finding on the grounds that the cost of land acquisition, site and public improvements and utilities add to the total development cost. Historically, site development costs in this area have made development infeasible without tax increment assistance. This site has been marketed for several years without success. Therefore, the City reasonably determines that no other development of similar scope is anticipated on this site without substantially similar assistance being provided to the development. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. If all development which is proposed to be assisted with tax increment were to occur in the District, the total increase in market value would be up to $1,854,400. The present value of tax increments from the District is estimated to be $525,211. It is the Council's finding that.no development with a market value of greater than $1329,189 would occur without tax increment assistance in this district within 9 years. This finding is based upon evidence from general past experience with the high cost of acquisition and public improvements in the general area of the District (see Cashflow in Appendix D). 3. Finding that the Tux Increment Finuncing Plan for Tax Increment Financing District No. 1-32 conforms to the general plan for the development or redevelopment of the municipality cis a whole. The Planning Commission reviewed the Plan and found that the Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 1-32 ivill afford maximum opportuniry, consistent with the sound needs of the City as a whole, for the developtnent of Central Monticello Redevelopment Project No. 1 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, increased tax base of the State, and add a high quality development to the City. CERTIFICATION STATE OF MINNESOTA COUNTY OF WRIGHT I, Rick Wolfsteller, duly appointed, qualified, and acting City Administrator for the City of Monticello, County of Wright, State of Minnesota, do hereby certify that I have compared the foregoing copy of Resolution No. 2002-52 adopting a modification to the redevelopment plan for Central Monticello Redevelopment Project No 1 and establishing Tax Increment Financing District No. 1-32 therein and the adopting a tax increment financing pl therefor adopted by the City Council at a regular meeting of the City Council held on August 12, 2002 and on file in the office of the City Administrator, and have found the same to be a true and correct copy thereof. Witness my hand and the official seal of the City of Monticello, this 13th day of August, 2002. Rick Wolfsteller, ty Administrator STATE OF MINNESOTA COUNTY OF WRIGHT The foregoing was acknowled`7ed before me this 13th day of August, 2002 by Rick Wolfsteller, City Administrator on behalf of the City of Monticello. J This instrument was drafted by: City of Monticello 505 Walnut Street, Suite #1 Monticello, ININ 55362 (763) 295-2711 Signature of Notary DAWN M. GROSSINGER o ' NOTARY PUBLIC -MINNESOTA MY COMM. EXP. 01/3112005