City Council Resolution 1994-41CouncilMember Smith 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- 41
A REVISED 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, AND THE
ESTABLISHMENT OF TAX INCREMENT FINANCING
DISTRICT NO. 1-18, ALL LOCATED WITHIN
REDEVELOPMENT PROJECT NO. 1, AND THE APPROVAL
AND ADOPTION OF THE TAX INCREMENT FINANCING
PLANS RELATING TO.
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 and enlarged geographic area, 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, and establish Tax Increment
Financing District No. 1-18, 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.
1.02. 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 and enlarged geographic area to be made to
Redevelopment Project No . 1, the proposed Modified Tax Increment Financing Plans
for Tax Increment Financing Districts No. 1-1 through 1-17, and the proposed Tax
Increment Financing Plan (the Tax Increment Financing Plan") for Tax Increment
Financing District No . 1-18 ( 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, the
modification of Tax Increment Financing Districts No. 1-1 through 1-17 and the
establishment of Tax Increment Financing District No. 1-18 and the adoption of the
Plans relating thereto, including, but not limited to, notification to Wright County,
SJ380434
MN190-46
_ution 94-41
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. 1-18 and the holding of a public hearing upon published and
mailed notice as required by law.
1.04. By Resolution No. 94-37 approved on November 28, 1994, this Council
approved the modification of Redevelopment Project No. 1 and the Tax Increment
Financing Districts Nos. 1-1 through 1-17 and the creation of Tax Increment
Financing District No. 1-18, contingent upon certain events. The City hereby
determines that it is necessary and in the best interest of the City at this time to
clarify that the actions approved by Resolution No. 94-37 are consistent with the
City's comprehensive plan, and to ratify Resolution No. 94-37 with certain
modifications.
Section 2. Findings for Modification of Redevelopment Project No. 1.
Modification of Tax Increment Financing Districts No. 1-1 through 1-17, and the
Establishment of Tax Increment Financing District No. 1-18.
2.01. The Council hereby finds, determines and declares that the modification
of Tax Increment Financing Districts No. 1-1 through 1-17 and the establishment of
Tax Increment Financing District No. 1-18, 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 1-18.
2.02. The Council hereby finds that Tax Increment Financing District No.
1-18 meets the requirements of a Soils Condition District under Minnesota Statutes,
Section 469.174, Subd . 19 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) Unusual terrain, the presence of hazardous substances, pollution
or contaminants, or soil deficiencies for 80 percent of the acreage in the
district require substantial filling, grading, removal, or remedial action, or
other physical preparation for use; and
(b) The estimated cost of the physical preparation under clause (1) ,
but excluding costs directly related to roads as defined in section 160.01 and
local improvements as described in sections 429.021, subdivision 1, clauses
(1) to (7) , (11) , and (12) , and 430.01, exceeds the fair market value of the
land before completion of the preparation.
2.03. The Council finds, determines and declares that the development
proposed in the modified Redevelopment Project No. 1, Tax Increment Financing
District No. 1-18 and the Plans, 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 Tax Increment Financing Plan for Tax
Increment Financing District No . 1-18 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.
SJB80434
MN190-46
cion 94-41
2.05. The Council finds that the modified Redevelopment Project No. 1, the
Tax Increment Financing Plan for Tax Increment Financing District No. 1-18 and the
Plans conform to the general plan for the 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.
2.07. The Council determines and declares that Redevelopment Project
No. 1 is hereby modified, that Tax Increment Financing Districts No. 1-1 through
1-17, are hereby modified and that Tax Increment Financing District No. 1-18 is
hereby adopted, contingent upon the final approval by the Municipal Board of
annexation of the area within Tax Increment Financing District No. 1-18 into the
City, and upon the execution of a Redevelopment Agreement by and between the
Authority and Residential Development, Inc.
Section 3. Adoption of Respective Plans .
3.01. The respective Plans presented to the Council on this date are hereby
approved, contingent upon final approval by the Municipal Board of annexation of
the area within Tax Increment Financing District No. 1-18 into the City, and upon
the execution of a Redevelopment Agreement by and between the Authority and
Residential Development, Inc. , and the Plans 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.
SJB80434 3
MN190-46
cion 94-41
The motion for the adoption of the foregoing resolution was duly
seconded by Councilmember Anderson and upon vote being taken
thereon, the following voted in favor thereof:
Warren Smith, Shirley Anderson, Brad Fyle, Clint Herbst, Dan Blonigen
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 City7) // "-7 /
Dated: December 12 , 1994
Attest:
- &4! �/'
City Administ for
(SEAL)
SJB80434
MN190-4b 4
EXHIBIT A TO RESOLUTION NO. 94- 41
The reasons and facts supporting the findings for the establishment of the Tax
Increment Financing Plan for Tax Increment Financing District No . 1-18 as required,
pursuant to Minnesota Statutes, Section 469.175, Subd. 3, are as follows:
1) Finding that Tax Increment Financing District No. 1-18 is a "Soils
Condition District" as defined in Minnesota Statutes, Section 469-174,,
Subd . 19.
Tax Increment Financing District No . 1-18 consists of two parcels which
do not meet the requirements of a redevelopment district, mined
underground space development district, housing district or economic
development district. The Authority and the City find Tax Increment
Financing District No. 1-18 to be in the public interest because:
(a) Unusual terrain, the presence of hazardous substances, pollution
or contaminants, or soil deficiencies for 80 percent of the acreage
in the district require substantial filling, grading, removal, or
remedial action, or other physical preparation for use; and
(b) The estimated cost of the physical preparation under clause (1) ,
but excluding costs directly related to roads as defined in section
160.01 and local improvements as described in sections 429.021,
subdivision 1, clauses (1) to (7) , (11) , and (12) , and 430.01,
exceeds the fair market value of the land before completion of the
preparation.
Facts supporting these findings can be found in A Geotechnical
Evaluation Report for Residential Development, Inc., Dated August 3,
1994, prepared by Braun Intertec Corporation, on file in City Hall.
2) Finding that the proposed development, in the opinion of the Council,
would not occur solely through private investment withinment Financithe ng
foreseeable future, and therefore, the use of Tax
is deemed necessary.
City staff has reviewed the costs for this development. Due to the high
cost of soil correction and site preparation, the project would not be
financially feasible without the City's assistance. See the Braun
Intertec report, cited above.
3) Finding that the Tax Increment Financing Plan for Tax Increment
Financing District No. 1-18 will afford maximum f p the development of
2 consistent
with the sound needs of the City as a whole,
Redevelopment Project No. 1 by private enterprise.
The project to be developed, which will be located within Tax Increment
Financing District No. 1-18, consists of the development of 83
single-family homes, 96 twin -family homes and, 2 commercial lots. This
project is expected to begin in 1996 and be substantially completed by
January 2, 1999.
SJB80434 5
MN190-46
exhibit A to Resolution 94-41
4) Finding regarding duration of Tax Increment Financing District No.
1-18.
The duration of Tax Increment Financing District No. 1-18 will be
twelve (12) years from the original approval of the Tax Increment
Financing Plan. Pursuant to Minnesota Statutes, Section 469.177,
Subd. 3, the City requests 100 percent of the available captured tax
capacity for current expenditures.
5) Finding that the modified Redevelopment Project and the Plans are
consistent with the City general plan:
The Council has on this date received a written comment from the
Monticello Planning Commission, finding that the modified
Redevelopment Project and the Plans are consistent with the City
comprehensive plan. Further, the Planning Commission previously
determined that the preliminary plat for the development within Tax
Increment Financing District No. 1-18 was consistent with the
comprehensive plan.
Sa80434
MN190-46 6