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City Council Resolution 1998-21CITY OF MONTICELLO WRIGHT COUNTY STATE OF MINNESOTA Council member Ciint HerbGt introduced the following resolution and moved its adoption: RESOLUTION NO. 98-21 RESOLUTION ADOPTING THE MODIFIED REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO ~ REDEVELOPMENT PROJECT NO. 1; AND ESTABLISHING WITHIN CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1 TAX INCREMENT FINANCING DISTRICT NO. 1-23 AND ADOPTING THE RELATED 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. It has been proposed that the City Council adopt the Modified Redevelopment Plan for Central Monticello Redevelopment Project No. 1 and establish within Central Monticello Redevelopment Project No. 1 Tax Increment Financing District No. 1-23 ("District No. 1-23") and adopt the related Tax Increment Financing Plan therefor (collectively, the "Plans"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 through 469.047 and 469.174 through 469.179, all inclusive, as amended, all as reflected in the Plans, and presented for the Council's consideration. 1.02. The Council has investigated the facts relating to the Plans. 1.03. The City has performed all actions required by law to be performed prior to the adoption and approval of the proposed Plans, including, but not limited to, notification of Wright County and School District No. 882 having taxing jurisdiction over the property to be included in District No. 1-23, 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 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. Section 2. Findings for the AdoRtion and Approval of the Plans. 2.01. The Council hereby finds that the Plans, are intended and, in the judgment of this Council, N:UvtINNSOTAVNONTICEL\T[Fl -23\CITY.RES ution 98-21 z2 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. 1-23. 3.01. The Council hereby finds that Tax Increment Financing District No. 1-23 is in the public interest and is an "economic development district" under Minnesota Statutes, Section 469.174, subd. 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 on 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 District No. 1-23 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 development of District No. 1-23 by private enterprise. 3.03. The City elects to make a qualifying local contribution in accordance with Minnesota Statutes, Section 273.1399, subd. 6(d), in order to qualify District No. 1-23 for exemption from state aid losses set forth in Section 273.1399. 3.04. 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. Approval and Adoption of the Plans. 4.01. 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. 4.02. The staff of the City and 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. 4.03 The Auditor of Wright County is requested to certify the original net tax capacity of District No. 1-23, 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 City of Monticello 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 District No. 1-23 for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. N:Uv1INNSOTAUv10NTIC EL\TIFI -23\CITY. RES 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: Bill Fair, Clint Herbst, Brian Stumpf, Roger Carlson, Bruce Thielen and the following voted against the same: none Dated: May 26, 1998 Mayor ATTEST: ~~ City Administrator (Seal) N:Vvt INNSOTA\MONTICEL\TIF I -23\CITY.RES EXHIBIT A RESOLUTION # 98-21 The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 1-23, ("District No. 1-23") as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that the District No. 1-23 is an economic development district as defined in M.S., Section 469.174, Subd. 12. Tax Increment Financing District No. 1-23 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. District No. I-23 consists of a portion of Central Monticello Redevelopment Project No. 1 not meeting requirements for other types of tax increment financing districts, and is in the public interest because it will facilitate construction of a 60,000 square foot production/warehouse facility which will increase employment in the state, and preserve and enhance the tax base of the state. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable fuh~re and that the increased market vahle 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 vah~e estimated to result from the proposed development rafter subtracting the present value of the projected tax increments for the maximum duration of District No. 1-23 permitted by the Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the development proposed in this plan is a manufacturing and warehouse facility that meets the City's and HRA's objectives for industrial development and job growth. The cost of land acquisition, site improvements and stormwater charges make development of the facility infeasible without HRA assistance. The developer has submitted a pro forma on file in City Hall demonstrating the need for the assistance, and the developer's tenant has certified to the city that financing for the project would not be available but for the tax increment assistance to be provided under this plan. The increased market value of the site that could reasonable 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 maximum duration of the TIF District permitted by the Plan: The City supported this finding on the grounds that any development on this site is likely to be industrial (given the zoning), and will have the same type of costs to be incurred by the Midwest Graphics project. In addition, the cost of acquiring the property from the current owner would add to the total development cost. This site has been marketed for at least 6 years without success. Historically, land and site development costs in this industrial area have made manufacturing development infeasible without tax increment assistance. Therefore, the City reasonably determines that no other development of any kind is anticipated on this site without substantially similar assistance being provided to the Midwest Graphics development. Accordingly, the increased market value anticipated without tax increment assistance is $0. 3. Finding that the Tax Increment Financing Plan for District No. 1-23 conforms to the general plan for the development or redevelopment of the municipality as a whole. N:VNINNSOTAVv10NTICEL\TIFI -23\CITY.RES .A elution 98-21 'he Plan was reviewed by the Planning Commission on May 5, 1998. The Planning Commission found that he Plan conforms to the general development plan of the City. 4. Findi~ig that the Tax increment Financi~ig Plait for District No. 1-23 will word maxinu~m opportunity, consistent with the sou~id needs of the Ciry as a whole, for the development of Central Monticello Redevelopment Project No. 1 by private enterprise. The project to be assisted by District No. 1-23 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. N:Vv1INNSOTAVv10NTICEL\TIF I -23\C ITY. RES