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Home My WebLink AboutIII - Tax Increment Dist.#2-5 \I . DA TE: BACKGROUND: ISSUES: ALTERNATIVES: RECOMMENDATION: ACTION REQUIRED: BC:aw STAFF AGENDA REPORT III BONITA J. CARLSON, ASSISTANT CITY MANAGER CONDUCT PUBLIC HEARING ON TAX INCREMENT DISTRICT NO. 2-5. CONSIDER ADOPTION OF RESOLUTION 95-44 APPROVING TAX INCREMENT FINANCING DISTRICT NO. 2-5 AND THE USE OF TAX INCREMENT FINANCING. MAY 22,1995 The City of Prior Lake purchased and developed the Waterfront Passage Business Park in order to attract businesses and light industries to Prior Lake. Further the city designated the park as a development district in order to use Tax Increment Financing. To date the city has either sold or committed to sell four of the total twenty acres available in the park. Late last fall city staff began discussing the sale of a fourth parcel to Ed Malone of E.M. Products. Those negotiations are substantially completed with the result that Mr. Malone desires to purchase approximately 3.6 acres in Waterfront Passage Business Park in order to locate his business, E.M. Products in Prior Lake. Development costs are expensive and historically most cities have offered financial incentive to attract new business to their community. Tax Increment Financing is one of the major tools available to cities to encourage development. The Development Agreement (the next agenda item) negotiated with Mr. Malone includes using Tax Increment Financing on a "pay as you go" basis. It is staffs opinion that this project could not occur without the tax increment financing package. (Roger Guenette will attend the public hearing to answer any additional questions on this matter.) 1. Conduct hearing and approve Resolution 95-44 2.Conduct hearing, do not approve Resolution 95-44. I:y..Pl~MC01JNC\L\A9(TMS2~.DOC IOLUU cagle CreeK Ave.. Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER / ,"'~~,,",.~"._...,..,...~ RESOLUTION 95-44 MOTION BY: SECONDED BY: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PRIOR LAKE APPROVING TAX INCREMENT FINANCING DISTRICT NO. 2-5 AND THE USE OF TAX INCREMENT FINANCING 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 WHEREAS, 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. 2-5 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 WHEREAS, the City Council has reviewed "Tax Increment Financing District No. 2-5, dated May 22, 1995" (the "Plan Booklet"), which sets forth a tax increment financing plan for the District; and WHEREAS, 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 WHEREAS, the Board of Commissioners of Scott County, Minnesota, has been notified of the public hearing for the review of the Plan Booklet; and WHEREAS, the School Board of Independent School District No. 719 has been notified of the public hearing for the review of the Plan Booklet; and WHEREAS, 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 WHEREAS, the City on May 22, 1995, 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. 15872RESTIF25.DOC 16200 Eagle Creek Ave., Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Prior Lake, Minnesota, as follows: 1. 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. 2. 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. 3. 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. 4. 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 pursuant to Minnesota Statutes, Sections 469.174, Subd. 12. 5. 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. 6. 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 . 7. 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. 8. 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. 9. 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. 10. The City elects to retain tax increment revenues generated in District No. 2-5 pursuant to clause (a) of Minnesota Statutes, Section 469.177 Subdivision 3, Paragraphs 1 and 2. By making this election tax increment revenues generated within District No. 2-5 will not be made available for calculation or sharing with the fiscal disparity provisions of Chapter 473F. 15872RESTIF25.DOC ..__._._-_._--_.._~-------_...._-_..._........._....._... 11. The City Clerk 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 Clerk 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 22nd day of May, 1995. YES NO Andren Greenfield Kedrowski Scott Schenck Andren Greenfield Kedrowski Scott Schenck Frank Boyles City Manager City of Prior Lake (Seal) 15872RESTIF25.DOC EXHIBIT A TO CITY COUNCIL RESOLUTION APPROVING TAX INCREMENT FINANCING DISTRICT NO. 2-5 Tax Increment Financing District No. 2-5 includes the following property: All of the Southeast Quarter of Section 1, Township 114, Range 22, Scott County, Minnesota. And that part of the East 1/4 of the Southwest Quarter, Section 1, Township 114, Range 22, Scott County, Minnesota, lying northerly of the northerly right-of-way of Eagle Creek Avenue (County Road 21). The west line of said East 1/4 shall be parallel with the east line of said Southwest Quarter. And that part of the Southwest Quarter, Section 1, Township 114, Range 22, Scott County, Minnesota, lying southerly of the Northerly right-of-way of Eagle Creek Avenue (County Road 21) and southeasterly of the southeasterly right-of-way line of Franklin Trail (County Road 39) except for that part of BORGERDING SECOND ADDITION, according to the recorded plat thereof, lying within said Southwest Quarter. 15872RESTIF25.DOC