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HomeMy Public PortalAbout2004-031 Resolution Adopting a Mod. to Devel. Program to Est. TIF Dist.CITY OF MEDINA COUNTY OF HENNEPIN STATE OF MINNESOTA Council member Brinkman introduced the following resolution and moved its adoption: RESOLUTION NO.04-31 RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1; AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1-9 THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. BE IT RESOLVED by the City Council (the "Council") of the City of Medina, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. The City Council (the "Council") of the City of Medina (the "City") has heretofore established Development District No. 1 and adopted a Development Program therefor. It has been proposed that the City adopt a Modification to the Development Program for Development District No. 1 (the "Development Program Modification") and establish Tax Increment Financing District No. 1-9 (the "District") therein and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Program Modification and TIF Plan"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.124 to 469.134 and Sections 469.174 to 469.1799, all inclusive, as amended, (the "Act") all as reflected in the Program Modification and TIF Plan, and presented for the Council's consideration. 1.02. The City has investigated the facts relating to the Program Modification and TIF Plan and has caused the Program Modification and TIF Plan to be prepared. 1.03. The City has performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Program Modification and TIF Plan, including, but not limited to, notification of Hennepin County and Independent School District No. 284 having taxing jurisdiction over the property to be included in the District, a review of and written comment on the Program Modification and TIF Plan by the City Planning Commission, and the holding of a public hearing upon published notice as required by law. 1.04. Certain written reports (the "Reports") relating to the Program Modification and TIF Plan and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and/or made a part of the City files and proceedings on the Program Modification and TIF Plan. The Reports include data, information and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. 1.05 The City is not modifying the boundaries of Development District No. 1. Resolution No. 04-31 May 18, 2004 Section 2. Findings for the Adoption and Approval of the Program Modification and TIF Plan. 2.01. The Council hereby finds that the Program Modification and TIF Plan, are intended and, in the judgment of this Council, the effect of such actions will be, to provide an impetus for development in the public interest and accomplish certain objectives as specified in the Program Modification and TIF Plan, which are hereby incorporated herein. Section 3. Findings for the Establishment of Tax Increment Financing District No. 1-9. 3.01. The Council hereby finds that the District is in the public interest and is a "redevelopment district" under Minnesota Statutes, Section 469.174, Subd. 10 (a)(1). 3.02. The Council further finds that the proposed redevelopment would not occur solely through private investment within the reasonably foreseeable future and that the `increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Tax Increment Financing Plan, that the Program Modification and TIF Plan conform to the general plan for the development or redevelopment of the City as a whole; and that the Program Modification and TIF Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development or redevelopment of the District by private enterprise. 3.03. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. 3.04. The City elects to calculate fiscal disparities for the District in accordance with Minnesota Statutes, Section 469.177, Subd. 3, clause a, which means the fiscal disparities contribution would be taken from outside the District. Section 4. Public Purpose 4.01. The adoption of the Program Modification and TIF Plan conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the City which is already built up, to provide employment opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. Section 5. Approval and Adoption of the Program Modification and TIF Plan. 5.01. The Program Modification and TIF Plan, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the City Administrator. 5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Program Modification and TIF Plan and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 5.03 Hennepin County is requested to certify the original net tax capacity of the District, as described in the Program Modification and TIF Plan, and to certify in each year thereafter the amount by Resolution No. 04-31 May 18, 2004 which the original net tax capacity has increased or decreased; and the City is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. 5.04. The City Administrator is further authorized and directed to file a copy of the Program Modification and TIF Plan with the Commissioner of the Minnesota Department of Revenue pursuant to Minnesota Statutes 469.175, Subd. 4a. DATED: May 18, 2004 ATTEST: Ge„/(9,1. 4,„tt,✓ Chad M. Adams, City Administrator -Clerk Philip ti( Zietlow, Ma er The motion for the adoption of the foregoing resolution was duly seconded by Council member Workman and upon a vote being taken thereon, the following voted in favor thereof: Workman, Lane, Zietlow, Smith, Brinkman and the following voted against the same: None Whereupon said resolution was declared duly passed and adopted. Resolution No. 04-31 May 18, 2004 EXHIBIT A RESOLUTION NO. 04-31 The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District No. 1-9 (the "District"), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that the District is a redevelopment district as defined in M.S., Section 469.1 74, Subd. 10(a)(1). The District consists of 54 parcels and adjacent right of ways, with plans to redevelop the area for commercial and mixed -use purposes. At least 70 percent of the area in the parcels in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings in the District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance (See Appendix F of the TIF Plan). 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is justified on the grounds that the current infrastructure is at capacity and cost of site improvements, public improvements, and utilities add to the total redevelopment cost. Historically, the current infrastructure in this area has made redevelopment infeasible without adding capacity. Tax increment assistance is needed to assist to finance the costs of the additional public improvements necessary to allow for redevelopment. Therefore, the City reasonably determines that no other redevelopment of similar scope is anticipated on this site without substantially similar assistance being provided to the development. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. If all development which is proposed to be assisted with tax increment were to occur in the District, the total increase in market value would be up to $83,860,400. The present value of tax increments from the District is estimated to be $6,353,402. It is the Councils finding that no development with a market value of greater than $77,506,998 would occur without tax increment assistance in this district within 25 years. This finding is based upon evidence from general past experience with the high cost of site and public improvements in the general area of the District (see Cashflow in Appendix D of the TIF Plan). 3. Finding that the TIF Plan for the District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. Resolution No. 04-31 May 18, 2004 4. Finding that the TIF Plan for the District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Development District No. 1 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax base of the State and add a high quality development to the City. Significant public infrastructure investments, including safety improvements to existing roadway, signalization, new roadway construction, storm water storage, control and treatment, signage, pedestrian trails, lighting, utility, streetscape and related improvements will also be assisted by the District. Through the implementation of the TIT Plan, the City will increase the availability of safe and decent life - cycle housing in the City. Resolution No. 04-31 May 18, 2004