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City Council Resolution 1995-47Councilmember Brian Stumpf introduced the following resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption: CITY OF MONTICELLO WRIGHT COUNTY STATE OF MINNESOTA RESOLUTION NO. 95-47 A RESOLUTION RELATING TO THE MODIFICATION, BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, OF THE REDEVELOPMENT PLAN RELATING TO REDEVELOPMENT PROJECT NO. 1, THE MODIFICATION OF THE TAX INCREMENT FINANCING PLANS RELATING TO TAX INCREMENT FINANCING DISTRICTS NO. 1-1 THROUGH 1-18, AND THE MODIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. 1-19, ALL LOCATED WITHIN REDEVELOPMENT PROJECT NO. 1, AND THE APPROVAL AND ADOPTION OF THE TAX INCREMENT FINANCING PLANS RELATING THERETO. 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 and adopted by the Housing and Redevelopment Authority (the "Authority") in and for the City that the Authority modify, by increased Project costs, Redevelopment Project No. 1, pursuant to and in accordance with Minnesota Statutes, Sections 469.001 to 469.047, inclusive, as amended. It has been further proposed and adopted by the Authority that the Authority modify the Tax Increment Financing Plans for Tax Increment Financing Districts No. 1-1 through 1-19 located within Redevelopment Project No. 1, and approve the Tax Increment Financing Plans relating thereto, pursuant to and in accordance with Minnesota Statutes, Sections 469.174 to 469.179, inclusive, as amended. -1- -Lution 95-47 1.02. The Authority has caused to be prepared and this Council has investigated the facts with respect thereto, a proposed Modified Redevelopment Plan (The "Modified Redevelopment Plan") for Redevelopment Project No. 1, defining more precisely the increased Project costs to be made to Redevelopment Project No. 1, and the proposed Modified Tax Increment Financing Plans for Tax Increment Financing Districts No. 1- 1 through 1-19 (collectively referred to as the "Plans"). 1.03. The Authority and the City have performed all actions required by law to be performed prior to the modification of Redevelopment Project No. 1, and the modification of Tax Increment Financing Districts No. 1-1 through 1-19 and the adoption of the Plans relating thereto, including, but not limited to, notification to the County Commissioner who represent the area included in the Tax Increment Financing District No. 1-19 and Wright County, Independent School District No. 882 and the Monticello - Big Lake Community Hospital, having jurisdiction over the property to be included in Tax Increment Financing District No. 1-19 and the holding of a public hearing upon published and mailed notice as required by law. 1.04. The Authority hereby determines that it is necessary and in the best interest of the City at this time to modify Redevelopment Project No. 1, and to modify Tax Increment Financing Districts No. 1-1 through 1-19, and approve the Plans relating thereto. Section 2. Findings for the Modification of Redevelopment Proiect No. 1, and Modification of Tax Increment Financing Districts No. 1-1 through No. 1-19. -2- ..Lution 95-47 2.01. The Council hereby finds, determines and declares that the modification of Tax Increment Financing Districts No. 1-1 through 1-19, all located within Redevelopment Project No. 1, is intended and, in the judgement of the Council, its effect will be, to further provide an impetus for commercial and industrial development, increase employment and otherwise promote certain public purposes and accomplish certain objectives as specified in the Modified Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 1-1 through 1-19. 2.02. The Council hereby finds that Tax Increment Financing District No. 1-19 does meet the requirements of Housing District in that it consists of any project, or any portions of a project which the Authority and City finds to be in the public interest because: (a) The project, or a portion of the project is intended for occupancy, in part, by persons or families of low and moderate income, as defined in chapter 462A, Title II of the National Housing Act of 1934, the National Housing Act of 1959, the United States Housing Act of 1937, as amended, Title V of the Housing Act of 1949, as amended, any other similar present or future federal, state, or municipal legislation, or the regulations promulgated under any of those acts. (b) The fair market value of the improvements which are constructed for commercial uses or for uses other than low and moderate income housing does not consist of more than 20 percent of the total fair market value of the planned improvements in the development plan or agreement. The City also anticipates that Tax Increment Financing District No. 1-19 will be a Qualified Housing District pursuant to Minnesota Statutes, Section 273.1399, as described below: "Qualified Housing District" means a housing district for a residential rental project or projects in which the only properties receiving assistance from revenues derived from tax increments from the district meet all of the requirements for a low-income housing credit under section 42 of the Internal Revenue Code of 1986, as amended through December 31, 1992, regardless of whether the project actually received a low-income housing credit. -3- -Lution 95-47 2.03. The Council finds, determines and declares that the proposed development, in the opinion of the Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of Tax Increment Financing is deemed necessary. 2.04. The Council finds, determines, and declares that the modified Redevelopment Project No. 1, the proposed Modified Tax Increment Financing Plan for Tax Increment Financing District No. 1-19 and the plans will afford maximum opportunity and be consistent with the sound needs of the City as a whole for the development or redevelopment of Redevelopment Project No. 1 by private enterprise. 2.05. The Council finds that the Modified Redevelopment Plan and the Modified Tax Increment Financing Plan for Tax Increment Financing District No. 1-19 conform to the general plan for development or redevelopment of the city as a whole. 2.06. The Council further finds, determines and declares that the City made the above findings stated in Section 2 and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. Section 3. Adoption of Respective Plans. 3.01. The respective Plans presented to the Council on this date are hereby approved. -4- iution 95-47 Section 4. Implementation of the Modified Redevelopment Plan and Modified Tax Increment Financing Plans. 4.01. The officers of the City, the City's financial advisor, underwriter and the City's legal counsel and bond counsel are authorized and directed to proceed with the implementation of the respective Plans and for this purpose to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary to accomplish this purpose. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Tom Perrault , and upon vote being taken thereon, the following voted in favor thereof: Brad Fyle, Shirley Anderson, Clint Herbst, Brian Stumpf, Tom Perrault And the following voted against the same: None Whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor and attested to by the City Mministrator. Dated: June 26, 1995 Attest: Z//o��. City Adm' istrator (SEAL) -5- ,�N EXHIBIT A TO RESOLUTION NO. 95-47 The reasons and facts supporting the findings for the modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 1-19 as required, pursuant to Minnesota Statutes, Section 469.175, Subd. 3, are as follows: 1) Finding that Tax Increment Financing District No. 1-19 is an "Housing District" as defined in Minnesota Statutes, Section 469.174, Subd. 11. Tax Increment Financing District No. 1-19 consists of two parcels which meet the requirements of a housing district because: (a) The project, or a portion of the project is intended for occupancy, in part, by persons or families of low and moderate income, as defined in chapter 462A, Title II of the National Housing Act of 1934, the National Housing Act of 1959, the United States Housing Act of 1937, as amended, Title V of the Housing Act of 1949, as amended, any other similar present or future federal, state, or municipal legislation, or the regulations promulgated under any of those acts. (b) The fair market value of the improvements which are constructed for commercial uses or for uses other than low and moderate income housing does not consist of more than 20 percent of the total fair market value of the planned improvements in the development plan or agreement. The project is a 48 -unit facility. Presbyterian Homes of Minnesota will covenant that at least 40 percent of the units will be occupied by persons or families whose income does not exceed 60 percent of the areawide median income. ,ibit to Resolution 95-47 The City also anticipates that Tax Increment Financing District No. 1- 19 will be a "qualified housing district" pursuant to Minnesota Statutes, Section 273.1399, because the facility to be developed within the district is expected to meet all the requirements for a low-income housing credit under section 42 of the Internal Revenue Code of 1986, as amended through December 31, 1992. Presbyterian Homes of Minnesota, Inc. will agree to use its best efforts to ensure that rents for all income -limited units as described in paragraph (b) above will not exceed 30 percent of the areawide median income by at least the first tax year after the facility is placed in service. If such rent and income limitations are not met and maintained during the life of the district, the City understands that Tax Increment District No. 1-19 will not be a "qualified housing district" and thus will be subject to state aid reductions in accordance with Minnesota Statutes, Section 273.1399. 2) Finding that the proposed development, in the opinion of the Council, would not occur solely through private investment within the reasonable foreseeable future, and therefore, the use of Tax Increment Financing is deemed necessary. City staff has reviewed the costs for this development. Due to the costs of public improvements, site preparation, demolition and land acquisition, the project would not be financially feasible without the City's assistance. Studies and analysis supporting this finding include the proforma submitted by Presbyterian Homes of Minnesota, on file in City Hall. 3) Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 1-19 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of Redevelopment Project No. 1 by private enterprise. The plan is consistent with the comprehensive plan of the City. The project to be developed, which will be located within Tax Increment Financing District No. 1-19, consists of the development of a 48 -unit senior housing facility. The Planning Commission passed a resolution on February 7, 1995 finding that the project is consistent with the comprehensive plan of the City. This project is expected to begin in 1995 and be substantially completed by January 2, 1996. -7- _nit to Resolution 95-47 4) Finding regarding duration of Tax Increment Financing District No. 1-19. The duration of Tax Increment Financing District No. 1-19 will be twenty-five (25) years from the date of receipt of the first tax increment. Pursuant to Minnesota Statutes, Section 469.177, Subd. 3, the City requests 100 percent of the available increase in assessed value for current expenditures.