HRA Resolution 2000-02MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION NO. 00-02
RESOLUTION APPROVING A MODIFIED REDEVELOPMENT PLAN
FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. I
AND A MODIFIED TAX INCREMENT PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 1-22
WHEREAS, the Monticello Housing and Redevelopment Authority ( "Authority ") currently
administers its Central Monticello Redevelopment Project No. 1 ( "Project ") and Redevelopment
Plan ( "Project Plan ") therefor and Tax Increment Financing District No. 1 -22 ( "TIF District ") within
the Project and a Tax Increment Financing Plan ( "TIF Plan ") therefor, all pursuant to Minnesota
Statutes, Sections 469.001 to 469.047 ( "HRA Act ") and Minnesota Statutes, Sections 469.174
through 469.179 ( "TIF Act "); and
WHEREAS, under Section 469.175, subd. 4 of the TIF Act, the Authority is authorized to
modify the TIF Plan without the notice and approval procedures required for approval of the initial
plan if the modification does not involve: reduction or enlargement of the geographic area of the
district, increase in the amount of bonded indebtedness to be incurred, including a determination to
capitalize interest on debt if that determination was not a part of the original plan, increase or
decrease the amount of interest on the debt to be capitalized, increase in the portion of the captured
tax capacity to be retained by the Authority, increase in total estimated tax increment expenditures
or designation of additional property to be acquired by the Authority; and
WHEREAS, the Authority has determined a need to clarify the role of private development
in the TIF District where tax increment assistance is not provided; and
WHEREAS, the Authority has reviewed a document titled Modification to Tax Increment
Financing Plan for Tax Increment Financing District No. 1 -22, dated January 5, 2000 (the "Plan
Modification ");
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Monticello Housing and Redevelopment Authority as follows:
1. The Plan Modification is approved.
2. The Project Plan and the TIF Plan are in no other way modified and the budgets
contained therein are not increased by this modification.
3. All actions taken by Authority staff and consultants with respect to this modification
are hereby approved and ratified.
4. Authority staff is authorized and directed to include a copy of the Plan Modification
in the Authority's official records of the TIF Plan for the TIF District, and to forward a copy of the
document to the County Auditor and the Minnesota Department of Revenue for their records of the
TIF District.
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Approved by the Board of Commissioners of the Monticello Housing and Redevelopment
Authority this 5th day of January, 2000.
Chair
ATTEST:
4
Executive Director
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MODIFICATION TO
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 1-22
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
January 5, 2000
A. Background
The Monticello Housing and Redevelopment Authority ( "Authority ") approved a Tax Increment
Financing Plan ( "TIF Plan ") for its Tax Increment Financing District No. 1 -22 on March 5, 1997;
and the City Council approved the TIF Plan after public hearing on March 10, 1997.
As explained in Section 23 -1 of the original TIF Plan, the size and scope of activities contemplated
in the TIF District grew out of the downtown revitalization study conducted by the Hoisington
Koegler Group ( "HKG ") in 1996. That study contemplated redevelopment activities throughout the
downtown area, and the TIF District was intended to facilitate those efforts.
Many, if not most, of the redevelopment activities in the TIF District will require substantial tax
increment assistance. Certain development may occur without direct subsidy from the Authority,
though the Authority continues to believe that activities financed by the Authority help stimulate
other private efforts that would not likely have occurred without public intervention to help reshape
the downtown area. Private developments are also expected to provide tax increment revenue
sources needed to solve other difficult redevelopment problems in the TIF District, particularly in
situations where the increments from a specific development are insufficient to finance the costs of
that development.
In order to clarify the role of ongoing private development in the TIF District, the Authority has
determined to modify the text of the TIF Plan as described below. The purpose of this modification
is to re -state and emphasize the Authority's original intent when adopting the TIF Plan in 1997.
B. TIF Plan Modifications
Subsection 23 -3, Statement of Objectives, is modified to add the following language:
The Authority acknowledges that direct tax increment assistance may not be necessary for
development of all parcels in the TIF District. However the Authority specifically finds that any
development by private owners that is consistent with City comprehensive plans, the HKG study
and the overall objectives for the Project will be considered "activity in accordance with the TIF
Plan" for the purposes of Section 469.176, subd. 6 of the TIF Act.
Subsection 23 -4, Redevelopment Plan Overview, is modified to add the following language:
5. The Authority encourages development and redevelopment activities by private
owners to accomplish improvement of the TIF District and Project area as a whole, all in
accordance with this TIF Plan.
Subsection 23 -16 is modified to add the following language:
Consistent with the overall purpose of TIF District No. 1 -22, the Authority contemplates that
activity on some parcels in the district will be undertaken by private owners without direct
assistance from the Authority. Any demolition, rehabilitation or renovation or other site preparation
that is undertaken by the private owners and is consistent with the overall objectives of this TIF Plan
(as described in Subsections 23 -1 and 23 -3) is considered activity "in accordance with the TIF Plan"
for the purposes of Minnesota Statutes, Sections 469.176, subdivision 6. Consequently, the
Authority anticipates that parcels so improved by private owners by approximately March, 2001
will remain within the TIF District for purposes of tax increment collection. Further, parcels that
are removed due to lack of activity by that date may be recertified if activity consistent with the TIF
Plan later occurs and the county auditor is properly notified. The Authority intends to work with
private owners in coordinating their activities so as to maximize the redevelopment potential of the
TIF District.
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