Loading...
HomeMy WebLinkAbout11-111 Establish TIF No 1-4CITY OF PRIOR LAKE SCOTT COUNTY STATE OF MINNESOTA Council member Erickson introduced the following resolution and moved its adoption : RESOLUTION NO. 11 - 111 RESOLUTION ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1 - 4 THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. BE IT RESOLVED by the City Council (the "C ouncil") of the City of Prior Lake, Minnesota (the "City"), as follows: Section 1. Recitals . 1.01. The City Council of the City of Prior Lake (the "City") has heretofore adopted the Modification to Municipal Development District No. 1 and adopted the De velopment Program therefor. It has been proposed that the City establish Tax Increment Financing District No. 1 - 4 (the "District") located within Municipal Development District No. 1 and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor; all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.124 through 469.134 and Sections 469.174 to 469.1799, all inclusive, as amended, (the "Act") all as reflected in the TIF Plan, and presented for the Council's con sideration. 1.02. The City has investigated the facts relating to the TIF Plan and has caused the TIF Plan to be prepared. 1.03. The City has perform ed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed TIF Plan, including, but not limited to, notification of Scott County and Independent School District No. 719 having tax ing jurisdiction over the property to be included in the District, a review of and written comment on the 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 repor ts (the ''Reports") relating to the 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 TIF Plan. The Reports i nclude 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 ma de as fully a part of this resolution to the same extent as if set forth in full herein. 1.05 The Council recognizes that, pursuant to Minnesota Statutes, Section 469.177, Subd. 3, clause b, there is a mandatory fiscal disparities contribution for the Di strict, an economic development district. Section 2. Findings for the Establishment of Tax Increment Financing District No. 1 - 4. 2 .01. The Council hereby finds that the District is in the public interest and is an "economic development district" under M innesota Statutes, Section 469.174, Subd. 12 of the Act. 2 .02. The Council further finds that the proposed development 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 incre ments for the maximum duration of the District permitted by the Tax Increment Financing Plan, that the TIF Plan conforms to the general plan for the development or redevelopment of the City as a whole; and that the TIF Plan will afford s maximum opportunity consistent with the sound needs of the City as a whole, for the redevelopment or development of the District by private enterprise. 2 .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. Section 3 . Findings for Use of the District to Provide Assistance Pursuant to Section 469.176, Subdivision 4c(d) of the Act . 3 .01. The Counc il further expects that the District will meet the requirements of Minnesota S tatutes, Sections 469.176., Subd. 4c(d) (exempting the District from manufacturing/warehouse/ distribution use restrictions), because: (i) the proposed development will create or retain jobs in the State (including construction jobs), and that construction of the project would not have commenced before July 1, 2012; (ii) construction of the project begins no later than July 1, 2012 with the assistance under the TIF Plan; and (iii) the City and EDA will request certification of the District by no later than June 30, 2012. 3 .02. The findings in this section are based on the facts stated in Exhibit A and other materials on file at City Hall. Section 4 . Public Purpose . 4 .01. The adoption of the TIF Plan conforms in all respects to the requirements of the Act and will result in increased employment in the state, and will result in preservation and enhancement of the tax base of the State and thereby serves a public purpose. F or the reasons described in Exhibit A, the City believes these benefits directly derive from the tax increment assistance provided under the TIF Plan. A private developer will receive only the assistance needed to make this development financially feasibl e. As such, any private benefits received by a developer are incidental and do not outweigh the primary public benefits. Section 5 . Approval and Adoption of the TIF Plan . 5 .01. The TIF Plan, as presented to the Council on this date, including without l imitation the findings and statements of objectives contained therein, is hereby approved, ratified, established, and adopted and shall be placed on file in the office of the Finance Director. 5 .02. The staff of the City, the City's advisors and legal co unsel are authorized and directed to proceed with the implementation of the 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 The Auditor of Scott County is requested to certify the original net tax capacity of the District, as described in the TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the City of Prior Lake 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 is sued during the 18 months immediately preceding the adoption of this resolution. 5 .04. The City Clerk is further authorized and directed to file a copy of the TIF Plan with the Commissioner of Revenue and the Office of the State Auditor pursuant to Minne sota Statutes 469.175, Subd. 4a. The motion for the adoption of the foregoing resolution was duly seconded by Council member Soukup , and upon a vote being taken thereon, the following voted in favor thereof: Mayor Myser, Council member Erickson and Co uncil member Soukup. and the following voted against the same: Council member Keeney. Council member Hedberg was absent. Dated: September 19, 2011 ATTEST: __________________________________ _____________________________________ Mayor City Manager EXHIBIT A RESOLUTION NO. _____________ The reasons and facts supporting the findings for the adop tion of the Tax Increment Financing Plan for Tax Increment Financing District No. 1 - 4 as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: 1. Finding that the Tax Increment Financing District No. 1 - 4 is an economic development district a s defined in M.S., Section 469.174, Subd. 12. Tax Increment Financing District No. 1 - 4 is a contiguous geographic area within the City's Development Distri ct No. 1, delineated in the TIF Plan, for the purpose of financing economic development in the City through the use of tax increment. The District is in the public interest because it will facilitate construction of an expansion to a veterinarian clinic which will increase employment in the state, and preserve and enhance the tax base of the state. • T he private development to be assisted pursuant to the TIF Plan will create or retain jobs in the state, including construction jobs; • The development consists of an expansion to a veterinarian clinic in the City, construction will be required to commence no later than July 1, 2012; • Construction of the proposed development would not have commenced before July 1, 2012, without the tax increment financing assistance to be provided pursuant to the TIF Plan; and • The City will file the request for certificat ion of the District by June 30, 2012. 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 Tax Increment Financing District No. 1 - 4 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 wit hin the reasonably foreseeable future: This finding is supported by the fact that the development proposed in this plan is a veterinarian clinic that meets the City's objectives for economic development. The City has adopted its 2030 Vision and continues with its efforts to sustain and grow its downtown area. The cost of site improvements makes development of the facility infeasible without City assistance. The developer was asked for and provided a letter and a proforma as justification that the develop er would not have gone forward without tax increment assistance (see attachment in Appendix F). 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 market value estimated to result from the proposed developm ent after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan: The City supported this finding on the grounds that the cost of site improvements add to the total development cost. Historically, site development costs in this area have made development infeasible without tax increment assistance. The City reasonably determines that no other development of similar scop e is anticipated on this site without substantially similar assistance being provided to the development. Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. b. If the proposed development occurs, the total increase in market value will be $525,000 (see Appendix D and F of the TIF Plan) c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $ 80,019 (see Appendix D and F of the TIF Plan). d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that wou ld produce a market value increase greater than $ 444,981 (the amount in clause b less the amount in clause c) without tax increment assistance. 3. Finding that the TIF Plan for Tax Increment Financing District No. 1 - 4 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. 4. Finding that the Tax Increment Financing Plan for Tax Increm ent Financing District No. 1 - 4 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of Municipal Development District No. 1 by private enterprise. The project to be assisted by the District will resu lt in increased employment in the City and the State of Minnesota, increased tax base of the State, and the development of currently vacant and underutilized land by a private business.