HomeMy WebLinkAbout15-080 TIF District 1-5 RESOLUTION 15-080
A RESOLUTION MODIFYING MUNICIPAL DEVELOPMENT DISTRICT NO. 1 AND MODIFYING THE
DEVELOPMENT PROGRAM THEREFORE,AND ESTABLISHING TAX INCREMENT FINANCING
(HOUSING) DISTRICT NO. 1-5 THEREIN,AND APPROVING A TAX INCREMENT FINANCING PLAN
NOT TO EXCEED 18 YEARS AND CONTINGENT UPON THE DEVELOPMENT AGREEMEMT AND PUD
AGREEMENT THEREFORE FOR GATEWAY REDEVELOPMENT
Motion By: McGuire Second By: Hedberg
WHEREAS, It has been proposed that the City of Prior Lake, Minnesota (the "City") modify Municipal
Development District No. 1 (the "Development District") and approve a modification to the
Development Program therefor, establish Tax Increment Financing (Housing) District No. 1-5
(the"TIF District") therein and approve and accept the proposed Tax Increment Financing Plan
(the "TIF Plan") therefor, pursuant to Minnesota Statutes, Sections 469.124 through 469.134
and Minnesota Statutes Sections 469.174 through 469.1794, both inclusive, as amended (the
"Act"); and
WHEREAS, The City Council has investigated the facts and has caused to be prepared a proposed
modification to the Development Program for the Development District, and has caused to be
prepared a proposed TIF Plan for the TIF District; and
WHEREAS, The City has performed all actions required by law to be performed prior to the modification of
the Development District and TIF District, and the adoption of the proposed Development
Program and TIF Plan therefor, including, but not limited to, notification of Scott County and
Prior Lake-Savage Area Public Schools(ISD 719) having taxing jurisdiction over the property to
be included in the TIF District and the holding of a public hearing upon published and mailed
notice as required by law.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. Municipal Development District No. 1. The Development Program for the Development District
contained in Article II of the TIF Plan for the TIF District is hereby ratified and affirmed.
3. Tax Increment Financing (Economic Development) District No. 1-5. The TIF District is hereby
established in the City within the Development District, the initial boundaries of which are fixed and
determined as described in the TIF Plan for the TIF District.
4. Tax Increment Financing Plan. The TIF Plan is adopted as the tax increment financing plan for the TIF
District, and the City Council makes the following findings:
a. The TIF District is a housing district as defined in Minnesota Statutes, Section 469.174,
Subdivision 11, the specific basis for such determination being that the approximate 170 unit
multifamily senior rental housing project will provide safe, decent, affordable, sanitary housing
for residents of the city and it will result in the preservation and enhancement of the tax base of
the State.
b. The proposed development, in the opinion of the City Council, would not occur solely through
private investment. The reasons supporting these findings are that:
(i) The developer, Prior Lake Leased Housing Associates I, LLP, has represented to the
City that private investment will not finance these development activities because of
prohibitive construction costs relative to rental revenues for low and moderate income
housing units. It is necessary to finance these development activities through the use
of tax increment financing so that this and other development by private enterprise will
occur within the Development District.
(ii) A comparative analysis of estimated market values both with and without establishment
of the TIF District and the use of tax increments has been performed as described
above. Such analysis is found in Exhibit I of the TIF Plan,which is hereby incorporated,
herein by reference, and indicates that the increase in estimated market value of the
proposed development (less the indicated subtractions) exceeds the estimated market
value of the site absent the establishment of the TIF District and the use of tax
increments.
(iii) In the opinion of the City Council, 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 TIF District permitted by the TIF Plan. The reasons supporting
this finding can be found in Exhibit I of the TIF Plan.
c. The TIF Plan for the TIF District conforms to the general plan for the development of the City as
a whole. The reasons for supporting this finding are that:
(i) The TIF District is property zoned; and
(ii) The TIF Plan will generally complement and serve to implement policies adopted in the
City's comprehensive Plan.
d. The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a
whole, for the development or redevelopment of the Development District by private enterprise.
5. Public Purpose. The adoption of the Development Program for the Development District, and the
adoption of the TIF Plan for the TIF District therein conform in all respects to the requirements of the
Act and will help fulfill a need to provide affordable housing choices, to improve the tax base and to
improve the general economy of the State and thereby serves a public purpose.
6. Certification and Filing. The City Manager is authorized and directed to transmit a certified copy of this
resolution together with a certified copy of the TIF Plan to the Auditor of Scott County with a request
that the original tax capacity of the property within the TIF District be certified to the City pursuant to
Section 469.177, Subdivision 1,of the Act, and to file a copy of the Development Program and the TIF
Plan with the Minnesota Commissioner of Revenue and State Auditor as required by the Act.
7. Administration. The administration of the Development District and the TIF District is assigned to the
City Manager who shall from time to time be granted such powers and duties pursuant to the Act as
the City Council may deem appropriate.
PASSED AND ADOPTED THIS 11h DAY OF MAY, 2015.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ®
Nay ❑ ❑ ❑ ❑ ❑
Abstain 0 0 ❑ ❑ ❑
Absent 0 0 ❑ ❑ ❑
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Frank Boyles, ity Manager