EDA Agenda 03-28-2018 (Special Workshop)AGENDA
SPECIAL WORKSHOP MEETING - ECONOMIC DEVELOPMENT AUTHORITY
(EDA)
Wednesday, March 28th, 2018 — 4:30 p.m.
Boom Island Room, Monticello Community Center
Commissioners: President Steve Johnson, Vice President Bill Tapper, Treasurer Jon
Morphew, Tracy Hinz, 011ie Koropchak-White and Council members Lloyd
Hilgart and Jim Davidson
Staff: Jeff O'Neill, Angela Schumann, EDA Executive Director Jim Thares, Jacob
Thunander, Wayne Oberg
Consulting Staff: Tammy Omdal, Northland Securities and Martha Ingram, Kennedy & Graven,
LLP
1. Call to Order
2. Roll Call
3. Consideration of Briggs Properties Affordable Housing TIF District, 1-40, Application
4. Review of Block 36 Land Use Development Patterns and Small Area Study Intentions
5. Adjourn
EDA: 3/28/18
3. Consideration of Authorizing Preparation of a Preliminary Development Agreement in
connection with Briggs Properties Affordable Housing TIF Application and Adopting
Resolution #2018-06 recommending City Council call for a Public Hearing related to
creation of Affordable Housing TIF District #1-40(JT)
A. REFERENCE AND BACKGROUND:
Briggs Properties has submitted an Affordable Housing TIF Application to support
development of a 48 -unit market rate apartment building with an affordable component. The
proposed development site is the Master's Fifth Avenue parcel which is currently certified as
a Redevelopment TIF District (#1-35) and is under contractual agreement between the EDA
and Master's Fifth Avenue whereby $170,000 in TIF is committed to facilitate construction of
an "11,000 square foot retail, business, housing, or mixed use development project." Pat Briggs
attended the March 14, 2018 EDA meeting to present a concept of the proposed development
and get EDA feedback. The EDA decided to hold a Special Workshop Meeting at 4:30 p.m.
on Wednesday, March 28, 2018 to further discuss the possibility of utilizing the current
Redevelopment District (# 1-35) versus creating a new Affordable Housing District (# 1-40).
Northland Securities has completed two TIF runs (see attached) to allow a comparative review of
the two TIF districts. The runs show clear differences in increment that may be available to
support the proposed development. Tammy Omdal, Northland Securities, and Martha Ingram,
Kennedy & Graven, will be at the meeting to review information regarding the limitations of the
Redevelopment District and potential alternative funding outcomes from various options, and to
answer questions.
Staff is asking the EDA to discuss and determine action in relation to the use of Affordable
Housing TIF relative to the proposed 48 -unit multi -family housing project. The submitted
application materials have been provided to guide your discussion of a side -by side analysis
of the two potential TIF districts. Also, to clarify this consideration does not include a review
of the project nor of the final "but -for" determination by the EDA as they will both be
considered at a later date.
Al. STAFF IMPACT: There is a limited staff impact in considering the TIF application
from Briggs Properties. The review and organization of the application materials that occurs
during the creation of the staff report is part of in-house staff duties. The application fee paid
by Briggs Properties will cover the involvement of consulting staff from Northland Securities
and Kennedy & Graven.
A2. BUDGET IMPACT: The TIF application fee covers the cost of staff involvement in
reviewing and preparing the materials needed for the EDA Special Meeting. The budget
impact of the development project itself is self-supporting in the sense that it is proposing to
pay all standard fees such as SAC, WAC, Trunk Fees, Park Dedication, etc. TIF funding does
not affect existing budgets. Instead, it uses future tax revenue from "new development"
valuation. If a project never occurs, the community does not gain any new real property tax
nor tax increment flow.
EDA: 3/28/18
B. ALTERNATIVE ACTIONS:
1-A. Motion to authorize the EDA attorney to prepare a Preliminary Development Agreement
between the EDA and Briggs Properties/BP Pine 47, LLC, in connection with the
development of a 48 -unit affordable housing project.
I -B. Motion to adopt Resolution #2018-06 recommending that the City Council call for a
Public Hearing for the creation of Affordable Housing TIF District # 1-40.
2-A. Motion to deny authorizing the EDA attorney to prepare a Preliminary Development
Agreement between the EDA and Briggs Properties/BP Pine 47, LLC, in connection with the
development of a 48 -unit affordable housing project.
2-B. Motion to deny adoption of Resolution #2018-06 recommending that the City Council
call for a Public Hearing for the creation of Affordable Housing TIF District #1-40.
3-A. Motion to table authorizing the EDA attorney to prepare a Preliminary Development
Agreement between the EDA and Briggs Properties/BP Pine 47, LLC, in connection with the
development of a 48 -unit affordable housing project, allowing for more research and review.
3-B. Motion to table adoption of Resolution #2018-06 recommending the City Council call
for a Public Hearing for the creation of Affordable Housing TIF District # 1-40.
4. Motion of other as determined by the EDA.
C. STAFF RECOMMENDATION:
Staff recommends that the EDA proceed per Alternative #1. The adopted Downtown Small
Area Plan specifically supports additional housing opportunity within the downtown - and
illustrates both in schematic and text, for the Walnut Character area, the development of
multi -family housing on the proposed site. The Downtown plan supports heights of two to
five stories in the area. Further, the EDA has adopted a 2018 Workplan which states that the
EDA will "Support new multi -family housing development through the use of financing tools
such as excess TIF dollars in TIF 1-6, TIF 1-22 and per the adopted Policy Statement for
Available TIF Funds."
The materials submitted by the applicant indicate that it needs substantial assistance to
proceed with the proposed development. The two TIF spreadsheets clearly show a distinction
between the Redevelopment District and a potential Affordable Housing District. If the EDA
determines that it wants to use Affordable Housing TIF to support the proposal, then
Alternatives 1-A and 1-B are recommended. If the EDA determines that it prefers to mix and
match resources through a combination of the existing Redevelopment TIF District and the
extra available (excess) TIF dollars per the recently adopted Policies, then Alternative 4 is
appropriate, with direction from the EDA as desired.
D. SUPPORTING DATA:
EDA: 3/28/18
a. TIF Flow Analysis Spreadsheets
b. EDA TIF Guidelines
c. EDA Extra Available TIF Dollars Policy
d. Resolution # 2018-06
3/5/2018
Preliminary for Discussion Purposes Only
Monticello Economic Development Authority
Tax Increment Financing District No. 1-35
Projected Tax Increment
Housing Development
100.00% 0.36% I 90.0% 6.50%
TIF Taxes Captured Tax Less State Net TIF TIF to Pay
Value New Tax Base Tax Original After State Developer Present
Year Year
District Payable 1 Tax Capacity (TIF) Fee Increment Auditor
Year Capacity Capacity Tax Rate Auditor Fee Land Costs Value
(Indistrict)
1 2019
2020
2 2020
2021
3 2021
2022
4 2022
2023
5 2023
2024
6 2024
2025
7 2025
2026
8 2026
2027
9 2027
2028
10 2028
2029
11 2029
2030
12 2030
2031
13 2031
2032
14 2032
2033
15 2033
2034
16 2034
2035
17 2035
2036
18 2036
2037
19 2037
2038
20 2038
2039
21 2039
2040
22 2040
2041
23 2041
2042
24 2042
2043
25 2043
2044
26 2044
2045
75,000
(6,263)
68,737
90.028%
61,883
(223)
61,660
55,494
52,620
75,375
(6,263)
69,112
90.028%
62,220
(224)
61,996
55,796
102,249
75,752
(6,263)
69,489
90.028%
62,559
(225)
62,334
56,100
149,056
76,131
(6,263)
69,868
90.028%
62,900
(226)
62,674
26,761
170,000
76,511
(6,263)
70,248
90.028%
63,243
(228)
63,015
0
170,000
76,894
(6,263)
70,631
90.028%
63,588
(229)
63,359
0
170,000
77,278
(6,263)
71,015
90.028%
63,934
(230)
63,704
0
170,000
77,665
(6,263)
71,402
90.028%
64,282
(231)
64,051
0
170,000
78,053
(6,263)
71,790
90.028%
64,631
(233)
64,398
0
170,000
78,443
(6,263)
72,180
90.028%
64,982
(234)
64,748
0
170,000
78,836
(6,263)
72,573
90.028%
65,336
(235)
65,101
0
170,000
79,230
(6,263)
72,967
90.028%
65,690
(236)
65,454
0
170,000
79,626
(6,263)
73,363
90.028%
66,047
(238)
65,809
0
170,000
80,024
(6,263)
73,761
90.028%
66,406
(239)
66,167
0
170,000
80,424
(6,263)
74,161
90.028%
66,766
(240)
66,526
0
170,000
80,826
(6,263)
74,563
90.028%
67,128
(242)
66,886
0
170,000
81,230
(6,263)
74,967
90.028%
67,492
(243)
67,249
0
170,000
81,636
(6,263)
75,373
90.028%
67,857
(244)
67,613
0
170,000
82,045
(6,263)
75,782
90.028%
68,225
(246)
67,979
0
170,000
82,455
(6,263)
76,192
90.028%
68,594
(247)
68,347
0
170,000
82,867
(6,263)
76,604
90.028%
68,965
(248)
68,717
0
170,000
83,282
(6,263)
77,019
90.028%
69,338
(250)
69,088
0
170,000
83,698
(6,263)
77,435
90.028%
69,713
(251)
69,462
0
170,000
84,116
(6,263)
77,853
90.028%
70,090
(252)
69,838
0
170,000
84,537
(6,263)
78,274
90.028%
70,469
(254)
70,215
0
170,000
84,960
(6,263)
78,697
90.028%
70,849
(255)
70,594
0
170,000
194,152
TOTAL = 1,723,187 (6,203) 1,716,984
15.0%
TIF for
Other
Project
Costs
(Pooled)
6.5%
Present
Value
10.0%
TIF for
City
Admin
(Pooled)
Excess TIF to
be Returned to
County for
Redistribution
0
0
6,166
0
0
0
6,200
0
0
0
6,233
0
9,401
7,358
6,267
20,244
9,452
14,297
6,302
47,261
9,504
20,842
6,336
47,519
9,556
27,015
6,370
47,778
9,608
32,837
6,405
48,038
9,660
38,327
6,440
48,299
9,712
43,506
6,475
48,561
9,765
48,390
6,510
48,826
9,818
52,996
6,545
49,090
9,871
57,340
6,581
49,357
9,925
61,438
6,617
49,625
9,979
65,302
6,653
49,894
10,033
68,946
6,689
50,165
10,087
72,384
6,725
50,437
10,142
75,625
6,761
50,710
10,197
78,683
6,798
50,985
10,252
81,566
6,835
51,260
10,308
84,285
6,872
51,538
10,363
86,850
6,909
51,816
10,419
89,268
6,946
52,097
10,476
91,550
6,984
52,378
10,532
93,701
7,022
52,661
10,589
95,730
7,059
52,945
229,649
171,698
1,121,484
Key Assumptions
1 Base value annual growth assumption = 0.50%
2 Property tax rate based on Pay 2017 rate. Pay 2017 tax rate is less than original certified tax rate of 110.297%. Final pay 2018 tax rates not available as of date of report.
3 Base Value = $340,900 From Pay 2016 TIF Modeler County Report. Pay 2018 Report requested from County, not yet available.
4 New Value = $6,000,000 Assumes 48 Units at $125,000 per unit.
5 Present value is based on semi-annual payments and 6.5% rate.
6 Five year rule date for TIF 35 is 8/1/2016. 75% of annual TIF must be spent or set aside for indistrict obligations. Use of TIF for administration costs is included in the 25% pooling limitation.
6-.
NORTHLAND
��„r� PUBLIC FINANCE
PRELIMINARY - For Discussion Only
City of Monticello
Tax Increment Financing District No. 1-40 (Housing)
Briggs
NORTHLAND
�.r PUBLIC FINANCE
TIF District 1-40 (Housing) r 3/7/2018
Projected Tax Increment Cash Flow
6
Present
TIF
Taxes
Taxable
Base Tax
Captured
Assumed
Tax
Less
Net
Value
New Tax
Less City
Value Net
District
Payable
Market
Capacity
Tax
Original Increment
State
Available
Year
1 2
Capacity
s
a
Admin
Available
Year
Year
Value
Capacity
Tax Rate
(TIF)
Fee
TIF
TIF s
1
2019
2020
6,000,000
75,000
(1,731)
73,269
90.028%
65,962
(237)
(6,572)
59,152
55,927
2
2020
2021
6,030,000
75,375
(1,731)
73,644
90.028%
66,300
(239)
(6,606)
59,455
109,958
3
2021
2022
6,060,150
75,752
(1,731)
74,021
90.028%
66,639
(240)
(6,640)
59,759
162,157
4
2022
2023
6,090,451
76,131
(1,731)
74,399
90.028%
66,980
(241)
(6,674)
60,065
212,585
5
2023
2024
6,120,903
76,511
(1,731)
74,780
90.028%
67,323
(242)
(6,708)
60,373
261,304
6
2024
2025
6,151,508
76,894
(1,731)
75,163
90.028%
67,667
(244)
(6,742)
60,681
308,369
7
2025
2026
6,182,265
77,278
(1,731)
75,547
90.028%
68,014
(245)
(6,777)
60,992
353,840
8
2026
2027
6,213,176
77,665
(1,731)
75,933
90.028%
68,361
(246)
(6,811)
61,303
397,767
9
2027
2028
6,244,242
78,053
(1,731)
76,322
90.028%
68,711
(247)
(6,846)
61,617
440,205
10
2028
2029
6,275,463
78,443
(1,731)
76,712
90.028%
69,062
(249)
(6,881)
68,813
485,758
11
2029
2030
6,306,841
78,836
(1,731)
77,104
90.028%
69,415
(250)
(6,917)
69,165
529,767
12
2030
2031
6,338,375
79,230
(1,731)
77,498
90.028%
69,770
(251)
(6,952)
69,519
572,283
13
2031
2032
6,370,067
79,626
(1,731)
77,895
90.028%
70,127
(252)
(6,987)
69,875
613,358
14
2032
2033
6,401,917
80,024
(1,731)
78,293
90.028%
70,485
(254)
(7,023)
70,231
653,038
15
2033
2034
6,433,927
80,424
(1,731)
78,693
90.028%
70,846
(255)
(7,059)
70,591
691,374
16
2034
2035
6,466,096
80,826
(1,731)
79,095
90.028%
71,208
(256)
(7,095)
70,952
728,409
17
2035
2036
6,498,427
81,230
(1,731)
79,499
90.028%
71,571
(258)
(7,131)
71,313
764,187
18
2036
2037
6,530,919
81,636
(1,731)
79,905
90.028%
71,937
(259)
(7,168)
71,678
798,752
19
2037
2038
6,563,574
82,045
(1,731)
80,313
90.028%
72,305
(260)
(7,204)
72,045
832,144
20
2038
2039
6,596,392
82,455
(1,731)
80,724
90.028%
72,674
(262)
(7,241)
72,412
864,404
21
2039
2040
6,629,373
82,867
(1,731)
81,136
90.028%
73,045
(263)
(7,278)
72,782
895,569
22
2040
2041
6,662,520
83,282
(1,731)
81,550
90.028%
73,418
(264)
(7,315)
73,154
925,677
23
2041
2042
6,695,833
83,698
(1,731)
81,967
90.028%
73,793
(266)
(7,353)
73,527
954,764
24
2042
2043
6,729,312
84,116
(1,731)
82,385
90.028%
74,170
(267)
(7,390)
73,903
982,864
25
2043
2044
6,762,959
84,537
(1,731)
82,806
90.028%
74,548
(268)
(7,428)
74,280
1,010,011
26
2044
2045
6,796,773
84,960
(1,731)
83,228
90.028%
74,929
(270)
(7,466)
74,659
1,036,237
TOTAL =
1,829,260
(6,585) (182,267)
1,762,297
Key Asssumptions
1
Taxable
market value (TMV) annual growth assumption
= 0.50%.
2
Taxable
Market Value
= 48 units
at $125,000 per unit.
3
Base Tax Capacity calcluated on base taxable market value
= $138,500
PID: 155010036030
4
Assume
Pay 2017 Tax Year.
(Pay 2018 Tax
Rates not finalized
by Wright
County as
of date of this
report.)
5
Present value based on semi-annual
payments, stated rate
in the schedule
above, and beginning on date of (1/22/2018).
6
All figures are estimated.
NORTHLAND
�.r PUBLIC FINANCE
TIF District 1-40 (Housing) r 3/7/2018
EDA - TIF Criteria
Monticello
CITY OF MONTICELLO
ECONOMIC DEVELOPMENT AUTHORITY
TAX INCREMENT FINANCING
1. PROJECT EVALUATION CRITERIA
1:01 Tax increment financing proposals must meet a public purpose in addition to increasing tax
base; which can include but are not limited to, the creation of livable wage jobs, removal of
blight, and environmental clean up.
1:02 The EDA will utilize Tax Increment financing (TIF) to support the community's long-term
economic, redevelopment, and housing goals stipulated in the Comprehensive Plan and
Zoning Ordinance. TIF proposals will be considered under the Comprehensive Plan and City
Code in effect at the time the TIF proposal is received.
1:03 The EDA shall use the following guidelines when evaluating a TIF request.
A. All TIF requests shall meet the "but for" test. The "but for" test means that the project
would not develop solely on private investment in the reasonable future. The
developer shall provide findings for the "but for" test.
B. TIF will not be provided to projects that have the financial feasibility to proceed
without the benefit of the subsidy. In effect, TIF will not be provided solely to
broaden a developer's profit margins on a project.
C. TIF requests should create the highest feasible number of jobs on site from date of
occupancy where deemed appropriate.
D. For manufacturing and warehousing TIF requests, at least 90% of the jobs created
must pay at least 160% of the federal minimum wage requirements for individuals
over the age of 20 during the term of the assistance. In the case of a recipient with
existing jobs, the EDA may determine that the wage goal is satisfied if wages are
increased to at least the minimum specified in this paragraph. Annual written reports
are required until termination date. Failure to meet the job and wage level goals
require partial or full repayment of the assistance with interest.
E. In the case of a recipient with existing jobs, the EDA may determine that the wage
goal is satisfied if wages are increased by a specified amount over the federal
minimum wage. Annual written reports are required until termination date. Failure to
1
EDA - TIF Criteria
meet the job and wage level goals require partial or full repayment of the assistance
with interest.
F. TIF requests should result in a substantial increase in property value and/or property
taxes.
F. TIF requests should facilitate redevelopment or elimination of "substandard" or
"blighted" areas where deemed appropriate.
G. TIF requests should facilitate the "clean-up" of environmentally unsound property
where deemed appropriate.
H. TIF requests should increase housing options for area residents where deemed
appropriate.
2. TIF APPROVAL CRITERIA
2:01 All new projects considered by the EDA should meet the following minimum approval
criteria. However, it should not be presumed that a project meeting these criteria will
automatically be approved. Meeting these criteria creates no contractual right on the part of
any potential developer or the EDA.
2:02 Prior to approval by the EDA, the developer shall provide any and all applicable and required
market and financial documentation, appraisals, soil boring, information provided to private
lenders for the project, and other information or data as requested.
2:03 A recipient of TIF must make a commitment to continue operations at the site where the
subsidy is used for at least five years after the benefit date.
2:04 The EDA may determine job creation or retention is not a goal of the subsidy. In those cases,
the recipient must instead meet at least one of the following minimum requirements (in
addition to all other criteria in this document other than those relating to jobs and minimum
wages):
A. To remove blight and encourage redevelopment in the commercial and industrial areas
of the City in order to encourage high levels of property maintenance and private
reinvestment in those areas; or
B. The proposed subsidy must result in improvements to public infrastructure or public
facilities, including without limitations, sewers, storm sewers, streets, parks,
recreational facilities, and other City facilities; or
C. The proposed subsidy must remove physical impediments to development of land,
including without limitations poor soils, bedrock conditions, steep slopes, or similar
geotechnical problems.
3. PROCEDURES
2
EDA - TIF Criteria
3:01 Meet with appropriate Staff to discuss the scope of the project, define public assistance
requested, identify public participation eligibility, and other information as may be necessary.
3:02 The request shall be reviewed by Staff on a preliminary basis as to the feasibility of the
project.
3:03 The project concept shall be placed on the EDA agenda for concept review. The applicant
will make a presentation of the project. Staff will present its findings.
3:04 If EDA concept review is positive, Staff will provide the City Council with an informational
concept review.
3:05 The City will hold all required public hearings.
3:06 The applicant will execute and submit the Preliminary Development Agreement accompanied
by a deposit per approved fee schedule.
3:07 Building and site plans will be required to be submitted to the Community Development
Department.
3:08 If Planning and Zoning Commission action is required, it will be necessary for the applicant,
at this time, to make application to the Commission.
3:09 Staff will authorize the following steps:
A. Preparation for establishment of the Tax Increment Finance District and the Tax
Increment Financing Plan if required.
B. Preparation of the Purchase and Development Contract or Private Redevelopment
Contract (Subsidy Agreement) based upon agreed terms.
3:10 When action is required for the Tax Increment Finance District and Plan, Purchase and
Development Contract or Private Redevelopment Contract, or Zoning/Ordinance; the EDA,
Planning Commission and City Council shall take appropriate action such as public hearings
and consideration of approvals.
3:11 Building permit will be issued after the Tax Increment Finance District and Plan is approved
by the City Council, the Purchase and Development Contract or Private Redevelopment
Contract is executed by the developer and EDA, and the Building Permit Fees are paid.
3:12 Generally Tax Increment Financing projects take between six to eight weeks from time of
authorization to begin drafting plan and contract.
History:
Public Hearing and Adoption the 8th of September 1999
Public Haring and Adoption of Amendments the 4th day of October 2000
Public Hearing and Adoption of Amendments the 5th of May 2004
Public Hearing and Adoption of Amendments the 3rd day of May 2006
Public Hearing and Adoption the 12th day of November 2008
k
EDA - TIF Criteria
Public Hearing and Adoption the 23rd day of March 2009.
Policy Statements for Management of Available Tax
Increment Financing (TIF) Funds
The City of Monticello Economic Development Authority (the "EDA") has prepared the following policy
statements to guide both staff and EDA members to make consistent and informed financial decisions
regarding the use of available tax increment financing (TIF) funds. The policy statements are intended to
be a guide. The EDA may determine to allocate funds to other types of projects, not included below,
based on other criteria and factors that may exist. The EDA defines "available TIF funds" as both current
and future projected dollars legally available within established TIF funds, and not committed to existing
obligations, for the EDA to spend on redevelopment and/or assisting affordable housing projects, all
pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, inclusive, as amended (the "TIF
Act").
POLICY STATEMENTS:
Redevelopment Projects
The EDA will consider allocating available TIF funds, without priority order, to the following types
of redevelopment projects:
1. Acquisition of property — Block 52 to facilitate redevelopment consistent with the objectives
of the Downtown Small Area Study.
2. Acquisition of Property — Block 34 to facilitate redevelopment consistent with the objectives
of the Downtown Small Area Study.
3. Acquisition of Property - Other downtown sites that provide relatively immediate
development opportunities that support the objectives of the Comprehensive Plan and the
Downtown Small Area Study.
4. Masters Fifth Avenue Site —Assistance for underground or structured parking improvements
for a development consistent with the objectives of the Comprehensive Plan, the Downtown
Small Area Study, the TIF Plan and the existing Contract for Private Development, and
approved by the EDA.
5. Assistance for installation of public or private infrastructure and value-added site
improvements such as underground or structured parking for redevelopment projects
consistent with the objectives of the Comprehensive Plan and/or the Downtown Small Area
Study and approved by the EDA.
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Affordable Housing Projects
The EDA will consider allocating available TIF funds, without priority order, to the following types
of affordable housing projects:
1. Assistance to lower overall project costs via reimbursement of TIF -eligible expenses related
to projects that meet the EDA's value-added standards/criteria.
2. Block 52 — Assistance for underground or structured parking and/or value added site
improvements in connection with a market -rate, multi -family housing with an affordable
component.
3. City Core - Establishment of a scattered -site owner -occupied rehabilitation program.
4. Downtown Area - Assistance for underground or structured parking and/or value added site
improvements in connection with development of market -rate, multi -family projects with
an affordable component.
5. City-wide — Assistance for the installation of public or private infrastructure serving sites to
be developed with market rate, multi -family housing with an affordable component
6. Acquisition of property for purposes of facilitating development of a market -rate, multi-
family housing project with an affordable component consistent with the goals and
objectives of the Comprehensive Plan.
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CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2018-06
RESOLUTION REQUESTING A PUBLIC HEARING ON THE
ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 40.
BE IT RESOLVED, by the Board of Commissioners (the "Board") of the City of Monticello
Economic Development Authority (the "Authority") as follows:
WHEREAS, the City Council (the "Council") of the City of Monticello, Minnesota (the
"City") previously established its Central Monticello Redevelopment Project No. 1 (the
"Redevelopment Project") and has previously created multiple tax increment financing districts
within the Redevelopment Project, pursuant to Minnesota Statutes, Sections 469.174 to
469.1794, as amended (the "TIF Act"), in an effort to encourage the redevelopment of certain
designated areas within the City; and
WHEREAS, the City has transferred the administration and control of its tax increment
financing districts to the Authority; and
WHEREAS, the Authority recognizes an ongoing need to encourage the development of
housing opportunities within the Redevelopment Project; and
WHEREAS, the Authority is proposing the creation of Tax Increment Financing District No.
40 (the "TIF District"), a housing tax increment financing district, within the Redevelopment
Project, and the approval of a Tax Increment Financing Plan ("TIF Plan") for the TIF District,
pursuant to and in accordance with Section 469.175 of the TIF Act; and
WHEREAS, the creation of tax increment financing districts must be approved by the City
Council of the City after a duly noticed public hearing.
NOW, THEREFORE BE IT RESOLVED by the Board as follows:
1. The Authority hereby requests that the Council call for a public hearing on June 25, 2018 to
consider the proposed establishment of the TIF District and the adoption of a TIF Plan for
the TIF District, and to cause notice of said public hearing to be given as required by law.
2. The Authority directs the Executive Director to transmit copies of the TIF Plan to the
Planning Commission of the City and requests the Planning Commission's written opinion
indicating whether the proposed TIF Plan is in accordance with the Comprehensive Plan of
the City, prior to the date of the public hearing.
3. The Executive Director of the Authority is hereby directed to submit a copy of the TIF Plan
to the Council for its approval.
4. The Authority directs the Executive Director to transmit the TIF Plan to Wright County and
Independent School District No. 882 (Monticello Public Schools) not later than May 25,
2018.
5. Staff and consultants are authorized and directed to take all other steps necessary to prepare
the TIF Plan and related documents and to undertake other actions necessary to bring the
TIF Plan before the Council.
Adopted by the Board of Commissioners of the City of Monticello Economic
Development Authority this 28th day of March, 2018.
President
Attest:
Executive Director
EDA: 03/28/18
4. Review of Block 36 Land Use Development Patterns and Small Area Study
Intentions (JaT)
A. REFERENCE AND BACKGROUND:
The EDA is asked to review the Small Area Study as it relates to Block 36. Currently the
Block contains a variety of existing uses including: mixed use residential with a
restaurant, service and personal services, insurance and investment brokers, and realty
offices.
Per the Small Area Study, Block 36 is identified in the cross-section of two character
areas: Broadway, and Walnut Street and Cedar Street.
The Broadway character area calls for a "transition over time from a street with primarily
services, to one with unique retail and restaurants." The Walnut Street and Cedar Street
character area explains that they will "fill in with new housing (2-4 stories) that adds to
the market strength of downtown and provides additional housing choices for new and
existing residents of Monticello."
The Small Area Study also calls for block by block recommendations. For Block 36, it
includes: "maintain and expand mid -block lot [parking lot] (15 spaces) when
redeveloping southwest corner of block; locate residential parking underground; and
provide short term on -street parking on 3rd St."
The EDA is asked to provide feedback and direction, if any, regarding future
development goals for this area.
D. SUPPORTING DATA:
a. Items to be provided during meeting