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City Council Resolution 1994-36Councilmember cent Herbst 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. 94-36 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 1-17, SPECIFICALLY TAX INCREMENT FINANCING DISTRICT NO. 9, 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 1-17, specifically Tax Increment Financing District No. 9, 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- Resolution 94-36 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 1-17, specifically Tax Increment Financing District No. 9 (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 1-17, specifically Tax Increment Financing District No. 1-9 and the adoption of the Plans relating thereto, including, but not limited to, notification to 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. 1-9 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- 17, specifically Tax Increment Financing District No. 9 and approve the Plans relating thereto, contingent upon execution of the Redevelopment and Assessment Agreements by and between the Housing and Redevelopment Authority of the City of Monticello and William R. Tapper and Barbara R. Tapper. Section 2. Findings for the Modification of Redevelopment Proioect No. 1, and Modification of Tax Increment Financing Districts No. 1-1 through 1-17, specifically Tax Increment Financing District No. 1-9. —2— Resolution 94-36 2.01. The Council hereby finds, determines and declares that the modification of Tax Increment Financing Districts No. 1-1 through 1-17, specifically Tax Increment Financing District No. 1-9, 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 1-17. 2.02. The Council hereby finds that Tax Increment Financing District No. 1-9 does meet the requirements of an Economic Development District pursuant to section 469.174, subdivision 12, 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) It will discourage commerce, industry or manufacturing from moving their operations to another state; or (b) It will result in increased employment in the municipality; or (c) it will result in the preservation and enhancement of the tax base of the municipality. 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 proposed Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 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 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. —3— Resolution 94-36 2.06. The Council determines and declares that Redevelopment Project No. 1 is hereby modified, and that Tax Increment Financing Districts No. 1-1 through 1-17, specifically Tax Increment Financing District No. 9 are hereby modified, contingent upon the execution of the Redevelopment and Assessment Agreements by and between the Housing and Redevelopment Authority of the City of Monticello and William R. Tapper and Barbara R. Tapper. Section 3. Adoption of Respective Plans. 3.01. The respective Plans presented to the Council on this date are hereby approved, contingent upon execution of the Redevelopment and Assessment Agreements by and between the Housing and Redevelopment Authority of the City of Monticello and William R. Tapper and Barbara R. Tapper shall be placed on file in the office of the City Administrator. 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 Warren Smith , and upon vote being taken thereon, the following voted in favor thereof: Clint Herbst, Warren Smith, Shirley Anderson, Dan Blonigen And the following voted against the same: Brad Fyle —4— Aesolution 94-36 Whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor and attested to by the Dated: November 28, 1994 Attest: City Admi 'strator (SEAL) -5- EXHIBIT A TO RESOLUTION NO. 94-36 The reasons and facts supporting the findings for the modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 as required, pursuant to Minnesota Statutes, Section 469.175, Subd. 3, are as follows: 1) Finding that Tax Increment Financing District No. 1-9 is an "Economic Development District" as defined in Minnesota Statutes, Section 469.174, Subd. 12. Tax Increment Financing District No. 1-9 consists of one parcel which does not meet the requirements of a redevelopment district, mined underground space development district, housing district or soils condition district. The Authority and the City find Tax Increment Financing District No. 1-9 to be in the public interest because: (a) It will discourage commerce, industry or manufacturing from moving their operations to another state; or (b) It will result in increased employment in the municipality; or (c) it will result in the preservation and enhancement of the tax base of the municipality. 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 cost of site preparation and lender requirements for subordinations, the project would not be financially feasible without the City's assistance. Wm Exhibit to Resolution 94-36 3) Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 1-9 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 project to be developed, which will be located within Tax Increment Financing District No. 1-9, consists of an 18,000 square foot expansion of the company's 26,650 square foot office/manufacturing facility. This project is expected to begin in 1995 and be substantially completed by January 2, 1996. 4) Finding regarding the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, Subd. 3, Clause (b), if applicable. The Council does not elect the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, Subd. 3, Clause (b). 5) Finding regarding duration of Tax Increment Financing District No. 1-9. Tax Increment Financing District No. 1-9 was originally established on February 26, 1990 with a ten year duration. Therefore, the Tax Increment Financing District will expire on February 26, 2000. Pursuant to Minnesota Statutes, Section 469.177, Subd. 3, the City requests 100 percent of the available increase in assessed value for current expenditures. -7-