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HomeMy WebLinkAbout06-105 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF PRIOR LAKE, MINNESOTA HELD: June 26, 2006 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Prior Lake, Scott County, Minnesota, was duly called and held on the 26th day of June, 2006, at 7:00 p.m. The following members of the Council were present: Mayor Haugen, Council members Dornbush, Erickson, LeMair and Millar. and the following were absent: Member Millar introduced the following resolution and moved its adoption: RESOLUTION 06-105 APPROVING THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.6 AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT 6-1 AND APPROVING THE TAX INCREMENT FINANCING PLAN THEREFOR WITHIN DEVELOPMENT DISTRICT NO.6 WHEREAS: A. It has been proposed that the City of Prior Lake, Minnesota (the "City") establish Development District No.6 and establish Tax Increment Financing District 6-1 therein and approve and accept the proposed Tax Increment Financing Plan therefor under the provisions of Minnesota Statutes, Sections 469.174 to 469 .1799 (the "Act"); and B. The City Council has investigated the facts and has caused to be prepared a proposed development program for Development District No.6 (the "Development Program"), and has caused to be prepared a proposed tax increment fmancing plan for Tax Increment District 6-1 therein (the "Tax Increment Financing Plan"); and C. The City has consulted with its Planning Commission regarding the development and the Planning Commission approved the plat for the develvp.lUent on June 12,2006; and D. The City has performed all actions required by law to be performed prior to the establishment of Development District No.6 and Tax Increment Financing District 6-1 therein, and the adoption of a proposed Development Program and Tax Increment Financing Plan therefor, including, but not limited to, notification of Scott County and Independent School District No. 719 having taxing jurisdiction over the property to be included in Tax Increment Financing District 6-1 and the holding of a public hearing upon published and mailed notice as required by law; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Prior Lake as follows: 1896145vl 1. Develooment District No.6. There is hereby established in the City a municipal Development District No.6 (the "Development District"), the initial boundaries of which are fixed and determined as described in the Development Program. 2. Develooment Prol!ram. The Development Program for the Development District, a copy of which is on file in the office of the City Manager, is adopted as the development program for the Development District. 3. Tax Increment Financing: Plan. The Tax Increment Financing Plan is adopted as the tax increment financing plan for Tax Increment Financing District 6-1, and the City Council makes the following findings: (a) Tax Increment Financing District 6-1 is a housing district as defined in Minnesota Statutes, Section 469.174, Subd. 11, the specific basis for such determination being that the construction of the approximately 154 unit rental housing facility (82 independent living units, 54 assisted living units and 18 memory care units) in the City will provide safe, decent, sanitary housing for residents of the City, help prevent the emergence of blight and 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 within the reasonably foreseeable future. The reasons supporting this fmding are that: (i) Private investment will not finance these development activities because of prohibitive costs relative to rental revenues for low and moderate income senior housing units. It is necessary to finance these development activities through the use of tax increment financing so that development of affordable senior housing and other development by private entc.J. pJ.~se will occur within Development District No.6. (ii) A comparative analysis of estimated market values both with and without establishment of Tax IncJ.c,.lUent Financing District 6-1 and the use of tax increments has been performed as described above. Such analysis is found in Exhibit V of the Tax Increment Financing Plan, 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 Tax Increment Financing District 6-1 and the use of tax increments. (c) 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 Tax Increment Financing District 6-1 permitted by the Tax Increment Financing Plan. The reasons supporting this finding are that: 1:ICOUNCILIRESOLUTIIADMINRESI2006106-105 Establish TIF District 6-1.DOC 2 (i) The estimated amount by which the market value of the site will increase without the use of tax increment financing is $0, and a small amount attributable to appreciation in land value; (ii) The estimated increase in the market value that will result from the development to be assisted with tax increment financing is $31,184,800 (from $315,200 to $31,500,000); and (iii) The present value of the projected tax increments for the maximum duration of the district permitted by the tax increment fmancing plan is $4,209,482. (d) The Tax Increment Financing Plan for Tax Increment Financing District 6-1 conforms to the general plan for development or redevelopment of the City of Prior Lake as a whole. The reasons for supporting this finding are that: (i) Tax Increment Financing District 6-1 is properly zoned; and (ii) The Tax Increment Financing Plan will generally compliment and serve to implement policies adopted by the City. (e) The Tax Increment Financing Plan will afford maximum opportunity, consistent with the sound needs of the City of Prior Lake as a whole, for the development or redevelopment of Development District No.6 by private enterprise. The reasons supporting this finding are that: The development activities are necessary so that development and redevelopment by private entc.J.pJ.~se can occur within Development District No.6. 4. Public Pumose. The adoption of the Develv}.I.lUent Program for Develv}lment District No.6, and the adoption of the Tax Increment Financing Plan for Tax Increment Financing District 6-1 therein conform in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State which is already built up to provide employment opportunities and provide safe, decent, sanitary housing for all residents of the City, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. 5. Certification. The Auditor of Scott County is requested to certify the original net tax capacity of Tax Increment Financing District 6-1 as described in Tax Increment Financing Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased in accordance with the Act; and the City Manager 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 Tax Increment Financing District 6-1 for which building permits have been issued during the 18 months immediately preceding the adoption of this Resolution. 1:ICOUNCILIRESOLUTIlADMINRESI2006106-105 Establish TIF District 6-1.DOC 3 6. FilinlZ. The City Manager is further authorized and directed to file a copy of the Development Program and Tax Increment Financing Plan for Tax Increment Financing District 6-1 with the Commissioner of Revenue. 7. Administration. The administration of Development District No.6 is assigned to the City Manager who shall from time to time be granted such powers and duties pursuant to Minnesota Statutes, Sections 469.130 and 469.131 as the City Council may deem appropriate. The motion for the adoption of the foregoing resolution was duly seconded by member LeMair and upon vote being taken thereon, the following voted in favor thereof: Haugen, Dornbush, Erickson, LeMair and Millar. and the following voted against the same: None. Adopted by the City council of the City of Prior Lake, Minnesota, this 26th day of June, 2006. 95i: ~~ Mayor ~ - ATTEST: J:1-Mh!Y,) 1:ICOUNCILIRESOLUTI\ADMINRESI2006106-105 Establish TIF District 6-1.DOC 4 STATE OF MINNESOTA COUNTY OF SCOTT CITY OF PRIOR LAKE I, the undersigned, being the duly qualified and acting Manager of the City of Prior Lake, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to the establishment of Development District No.6 and Tax Increment Financing District 6-1 therein in the City. WITNESS my hand this 26th day of June, 2006. fJJ' City Manager H- 1:ICOUNCILIRESOLUTI\ADMINRESI2006106-105 Establish TIF District 6-1.DOC 5