HomeMy WebLinkAbout6A - TIF AGENDA:
PREPARED BY:
DATE:
BACKGROUND:
DISCUSSION:
#6A:
CONDUCT PUBLIC HEARING AND CONSIDER APPROVAL OF
RESOLUTION 94-40 - APPROVING DEVELOPMENT DISTRICT NO. 2
MODIFICATION PURSUANT TO MINNESOTA STATUTES, CHAPTER
469; RESOLUTION 94-41 - APPROVING TAX INCREMENT FINANCING
DISTRICT 2-3 AND THE USE OF TAX INCREMENT FINANCING; AND
RESOLUTION 94-42 - APPROVING TAX INCREMENT FINANCING
DISTRICT 2-4 AND THE USE OF TAX INCREMENT FINANCING.
BONITA CARLSON, ASSISTANT CITY MANAGER
AUGUST 1, 1994
The City of Prior Lake has established a goal to promote business
development within the City. As a result, the City developed Waterfront
Passage Business/Office Park and is currently marketing the sale of lots
to businesses. On May 18,1992, the City Council established
Development District No. 2, encompassing the Waterfront Passage
Business/Office Park and the industrial area on the north side of County
Road 21 in order to establish Tax Increment Financing Districts within the
District.
The City is considering the use of Tax Increment Financing for two
districts located on three separate parcels. The first project, designated
as Tax Increment Financing District 2-3 is a redevelopment project on two
sites; the property located adjacent to Pleasant, Walker and Main
Avenue, and the "triangle car wash" property at 170th and Highway 13
South. The proposed uses of the tax increment funds are
1)
The redevelopment of the blighted properties at Pleasant
and Main, namely, A-One Radiator, the adjacent house
and possibly Extra Innings
2) Relocation expense for Metro Cabinet
3)
Future public improvements to the intersection of 170th
and Highway 13.
In order to create this district the property must first be included in
a development district. This project is consistent with the City's
goal to encourage redevelopment of blighted retail and
commercial areas, and requires some public assistance in order to
make the project economically feasible. City staff recommends
that Development District No. 2 be modified to include these
parcels.
4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
'T
ALTERNATIVES:
RECOMMENDATION:
ACTION REQUIRED:
Reviewed By:
The second district, Tax Increment Financing District 2-4, is to be
located on approximately one acre in the Waterfront Passage
Office/Business park. The project developers, two local
businessmen, Tim Sinnen of Metro Cabinet and Guy Selinske, of
American Glass and Mirror, Inc propose to build a 10,000 square
foot building on the site. This project is also consistent with the
City's goal to promote business growth. Further, without the use
of tax increment financing, it likely that construction of the building
in the business office park would not occur.
Council has the following alternatives:
Approve resolution 94-40, modifying Development District
No 2; resolution 94-41 establishing Tax Increment
Financing District No 2-3; and resolution 94-42 establishing
Tax Increment Financing District 2-4.
2. Deny approval.
Alternative No 1.
Three separate motions as follows:
(1)
Motion to approve Resolution 94-40 - Approving Development
District No. 2 modification pursuant to Minnesota Statutes,
Chapter 460.
(2)
Motion to approve Resolution 94-41 - Approving Tax Increment
Financing District 2-3 and the use of Tax Increment Financing.
,~,,_ (3)~ ,~ Motion to approve Resolution 94-42 - Approving Tax Increment
/////z~Fin~ncing District 2-4 and the use of Tax Increment Financing.
Fr,~k B~es, City Manager
AGCC
MOTION BY:
RESOLUTION 94-40
A RESOLUTION OF THE CITY OF PRIOR LAKE
APPROVING DEVELOPMENT DISTRICT NO. 2
MODIFICATION PURSUANT TO MINNESOTA
STATUTES, CHAPTER 469
SECONDED BY:
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
it is desirable and in the public interest that the City of Prior Lake (hereinafter
the City) undertake and carry out a development program, pursuant to
Sections 469.124 to 469.134 of Minnesota Statutes, encompassing the area
which is more particularly described on Exhibit A attached hereto and made
a part hereof, (which area is herein called Development District No. 2
Modification or the Development District); and
the City Council has reviewed "Development District No. 2 Modification,
dated August 1, 1994" (herein called the Plan Booklet), which sets forth a
development program for the Development District; and
the Board of Commissioners of Scott County, Minnesota, has been notified
of the public hearing for the review of the Plan Booklet; and
the School Board of Independent School District No. 719 has been notified of
the public hearing for the review of the Plan Booklet; and
the City's Planning Commission has been consulted with concerning the
modification of the Development District; and
the City Council has received and considered the comments of the Board of
Commissioners of Scott County, the School Board of the Independent
School District No. 719, and the City's Planning Commission respecting the
contents of the Plan Booklet; and
the City Council on August 1, 1994, after having published a notice of public
hearing in the official newspaper of the City, conducted a public hearing on
the Plan Booklet and received public comments on the same;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
PRIOR LAKE, MINNESOTA, that
1. It is hereby found that there is a need for the Project activities in
Development District No. 2 Modification.
It is hereby found that Development District No. 2 Modification is an area
"already built up" within the meaning of Section 469.124 of Minnesota
Statutes for the following reasons:
4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
RS9440. CC
Page 2
o
ao
The vicinity of the Development District is urban. Existing land
uses in the vicinity include commercial, residential and industrial
properties. Zoning in the vicinity corresponds to the land use
pattern.
b. City sanitary sewer, storm sewer and water lines are in the vicinity.
The Development District abuts County Road 21, Highway 13 and
Main Street. County Road 21 is proposed to be a major arterial
linking Prior Lake to Interstate 35, Highway 13 and Main Street
run perpendicular to County Road 21.
d°
The City's comprehensive plan has designated the Development
District as a business/office/industrial area.
It is hereby found that the development program set forth in the Plan
Booklet will carry out the objectives of Development District No. 2
Modification by assisting the development of an industrial park and
redevelopment of commercial areas thus preventing/eliminating blight,
creating employment opportunities, enhancing the tax base and
improving the general economy of the area.
That the development program as set forth in the Plan Booklet, having
been duly reviewed and considered, is hereby approved, and the area
described in Exhibit A hereto is designated as a development district
pursuant to Section 469.126, Subd.1, of Minnesota Statutes.
That the City Council designates the City Manager to act as
administrator of the Development District.
That the City Council, acting pursuant to Section 469.132 of Minnesota
Statutes, declines to appoint an advisory board for the Development
District.
That the City states the environmental controls to be applied in
connection with the execution of the development program shall consist
of the applicable ordinances of this City, and the applicable provisions of
Minnesota Statutes.
That the City will provide for the relocation of all persons who would be
displaced by the proposed Development District prior to displacement
unless they desire otherwise.
That the City Manager is hereby directed to file a copy of this resolution
and a copy of the Plan Booklet with the Minnesota Department of
Revenue.
RS9440.CC
Page 3
Passed and adopted this 1 st day of August, 1994.
YES
Andren Andren
Greenfield Greenfield
Kedrowski Kedrowski
Scott Scott
Schenck Schenck
NO
Frank Boyles
City Manager
City of Prior Lake
{Seal}
RESOLUTION 94-41
RESOLUTION APPROVING TAX INCREMENT FINANCING
DISTRICT NO. 2-3 AND THE
USE OF TAX INCREMENT FINANCING
MOTION BY:
SECONDED BY:
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
the City Council of the City of Prior Lake, Minnesota (the "City") has
previously approved Development District No. 2 (the "Development District")
and in connection therewith adopted a development program; and
it is desirable and in the public interest that the City undertake and carry out
a tax increment finance plan for TAx Increment Financing District No. 2-3
pursuant to Chapter 469 of Minnesota Statutes, encompassing the area
which is more particularly described on Exhibit A attached hereto and made
a part hereof, (which area is herein called the "District"); and
the City Council has reviewed "Tax Increment Financing District No 2-3 dated
August 1, 1994 (the "Plan Booklet"),which sets forth a tax increment
financing plan for the District; and
the Plan Booklet sets forth the City's estimate of the fiscal and economic
impact of the District on the tax capacities of all taxing jurisdictions in which
the District is located; and
the Board of Commissioners of Scott County, Minnesota, has been notified
of the public hearing for the review of the Plan Booklet; and
the School Board of Independent School District No. 719 has been notified of
the public hearing of the Plan Booklet; and
the City has received and considered the comments of the Board of
Commissioners of Scott County and the School Board of the Independent
School District No. 719 respecting the contents of the Plan Booklet; and
the City on August 1, 1994, after having published a notice of public hearing
in the official newspaper of the City, conducted a public hearing on the Plan
Booklet and received public comments on the same.
4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
R$9441
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
PRIOR LAKE, MINNESOTA, as follows:
The City finds and determines that there is a need for the activities
of Development District No. 2 to be financed in part by the tax
increments from the District.
The City finds and determines that the activities to be financed by
the tax increments from the District will carry out the objectives of
Development District No. 2 by encouraging industrial
development, providing job opportunities and enhancing the tax
base.
The City finds and determines that the provision for job
opportunities and the preservation and enhancement of the tax
base are in the public interest of the City and the expenditures of
the District are a public purpose.
The City finds and determines that the tax increment financing
plan as set forth in the Plan Booklet having been duly reviewed
and considered is hereby approved and adopted, and the area
described in Exhibit A hereto is hereby designated as an
Economic Development District and Qualified Manufacturing
District pursuant to Minnesota Statutes, Sections 469.174, Subd.
12, and 273.1399, Subd. 1, respectively.
The City finds and determines that the District is an Economic
Development District because it will result in increased
employment in the City, and that it will result in preservation and
enhancement of the tax base of the City.
The City finds and determines that 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 and therefore the use of tax increment
financing is deemed necessary.
The City finds and determines that the tax increment financing
plan will afford maximum opportunity, consistent with the sound
needs of the City as a whole, for the development of the District by
private enterprise.
The City finds and determines that the tax increment financing
plan set forth in the Plan Booklet conforms to the general plan for
the development of the City as a whole.
The reasons and supporting facts for findings, 5, 6, 7 and 8 as set
forth on pages 2, 3 and 4 of the Plan Booklet are by this reference
confirmed, approved and adopted.
RS9441
10.
The City elects to retain tax increment revenues generated in
District No. 2-3 pursuant to clause (a) of Minnesota Statutes,
Section 469.177 Subdivision 3, Paragraphs I and 2. By making
this election, tax increment revenues generated within District 2-3
will not be made available for calculation or sharing with the fiscal
disparity provisions of Chapter 473F.
11.
The City Manager shall request the auditor of Scott County to
certify the original tax capacity and original local tax rate of the
District approved by this resolution.
12.
The City Manager is hereby directed to file a copy of this
resolution with a copy of the Plan Booklet to the Minnesota
Department of Revenue.
13.
The City hereby states its intention to use all of the captured tax
capacity for purposes of tax increment financing as per the
conditions set forth in the Plan Booklet.
Passed and adopted this 1st day of August, 1994.
YES NO
Andren Andren
Greenfield Greenfield
Kedrowski Kedrowski
Scott Scott
Schenck Schenck
Frank Boyles
City Manager
City of Prior Lake
{Seal}
RESOLUTION 94-42
APPROVING TAX INCREMENT FINANCING
DISTRICT NO. 2-4 AND THE USE
OF TAX INCREMENT FINANCING
MOTION BY:
SECONDED BY:
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
the City Council of the City of Prior Lake, Minnesota (the "City"), has
previously approved Development District No. 2 (the "Development District")
and in connection therewith adopted a development program; and
it is desirable and in the public interest that the City undertake and carry out
a tax increment finance plan for Tax Increment Financing District No. 2-4
pursuant to Chapter 469 of Minnesota Statutes, encompassing the area
which is more particularly described on Exhibit A attached hereto and made
a part hereof, (which area is herein called the "District"); and
the City Council has reviewed "Tax Increment Financing District No. 2-4,
dated August 1, 1994" (the "Plan Booklet"), which sets forth a tax increment
financing plan for the District; and
the Plan Booklet sets forth the City's estimate of the fiscal and economic
impact of the District on the tax capacities of all taxing jurisdictions in which
the District is located; and
the Board of Commissioners of Scott County, Minnesota, has been notified
of the public hearing for the review of the Plan Booklet; and
the School Board of Independent School District No. 719 has been notified of
the public hearing for the review of the Plan Booklet; and
the City has received and considered the comments of the Board of
Commissioners of Scott County and the School Board of the Independent
School District No. 719 respecting the contents of the Plan Booklet; and
the City on August 1, 1994, after having published a notice of public hearing
in the official newspaper of the City,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
PRIOR LAKE, MINNESOTA, as follows:
The City finds and determines that there is a need for the activities of
Development District No. 2 to be financed in part by the tax
increments from the District.
4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
RS9442.CC
Page 2
o
10.
11.
The City finds and determines that the activities to be financed by the
tax increments from the District will carry out the objectives of
Development District No. 2 by encouraging redevelopment, providing
job opportunities and enhancing the tax base.
The City finds and determines that the prevention/elimination of blight,
provision for job opportunities and the preservation and enhancement
of the tax base are in the public interest of the City and the
expenditures of the District are a public purpose.
The City finds and determines that the tax increment financing plan as
set forth in the Plan Booklet having been duly reviewed and
considered is hereby approved and adopted, and the area described in
Exhibit A hereto is hereby designated as a Redevelopment District
pursuant to Minnesota Statues, Sections 469.174, Subd. 10.
The City finds and determines that the District is a Redevelopment
District because it will result in redevelopment of seven parcels of land,
100% of which are occupied by buildings, streets, utilities or other
improvements and four of the five buildings (80%) are structurally
substandard to a degree requiring substantial renovation or clearance.
These conditions are found to exist at both noncontiguous sites as
required under Minnesota Statutes, section 469.174 Subd. 10(b) 4(d).
The City finds and determines that 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
and therefore the use of tax increment financing is deemed necessary.
The City finds and determines that the tax increment financing plan will
afford maximum opportunity, consistent with the sound needs of the
City as a whole, for the development of the District by private
enterprise.
The City finds and determines that the tax increment financing plan set
forth in the Plan Booklet conforms to the general plan for the
development of the City as a whole.
The reasons and supporting facts for findings 5, 6, 7 and 8 as set forth
on pages 2, 3 and 4 of the Plan Booklet are by this reference
confirmed, approved and adopted.
The City elects to retain tax increment revenues generated in District
No. 2-4 pursuant to clause (a) of Minnesota Statutes, Section 469.177
Subdivision 3, Paragraphs I and 2. By making this election tax
increment revenues generated within District No. 2-4 will not be made
available for calculation or sharing with the fiscal disparity provisions of
Chapter 473F.
The City Manager shall request the auditor of Scott County to certify
the original tax capacity and original local tax rate of the District
approved by this resolution.
RS9442,CC
Page 2
12.
The City Manager is hereby directed to file a copy of this resolution
with a copy of the Plan Booklet to the Minnesota Department of
Revenue.
13.
The City hereby states its intention to use all of the captured tax
capacity for purposes of tax increment financing as per the conditions
set forth in the Plan Booklet.
Passed and adopted this 1st day of August, 1994.
YES NO
Andren Andren
Greenfield Greenfield
Kedrowski Kedrowski
Scott Scott
Schenck Schenck
Frank Boyles
City Manager
City of Prior Lake
{Seal}