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HomeMy WebLinkAbout6A - TIF for Waterfront Business/Office Park AGENDA ITEM: SUBJECT: 6A PUBLIC HEARING TO CONSIDER TAX INCREl\fENT FINANCING DISTRICT NO. 2-1 AND THE USE OF TAX INCREMENT FINANCING KAY KUHLMANN, ASSISTANT CITY MANAGER SEPTEMBER 20, 1993 PREPARED BY: DATE: INTRODUCTION: On September 7, 1993, the City Council established a Public Hearing date of September 20, 1993, at 8:00 p.m. to consider Tax Increment Financing for a project in the Waterfront Passage Business Office Park. Council will be considering Resolution 93-80 approving the Tax Increment Financing District No.2-I. BACKGROUND: The City of Prior Lake has worked for many years to create the Waterfront Passage Business Office Park and has recently focused their efforts on completing the purchase, the extension of infrastructure, and the marketing. The marketing attempts have been successful in bringing in A & H Enterprises, LLC doing business as Key-Land Homes as a tenant in our Business Office Park. The city has negotiated with Key-Land Homes and has offered to provide funding for this project through Tax Increment Financing. DISCUSSION: Prior Lake City Council through the EDA approved a purchase agreement on September 20, outlining the agreement with A & H Enterprises, LLC. and the City of Prior Lake. The purchase agreement was prepared based on the sale of 1.7 acres to the developer for the construction of an 18,000 square foot facility. The facility will be used primarily for manufacturing, warehousing and office. Resolution 93-80 is attached for Council review. This Resolution provides for the approval of Tax Increment Financing District 2-1 and the use. of Tax Increment Financing. A Tax Increment Financing plan was distributed at the September 7 meeting. Please review that document prior to the City Council meeting. Roger Guenette will be in attendance to review that document with the City Council. Also attached to this write up is a copy of the development agreement by and between the City of Prior Lake and A & H 4629 Dakota St. SE, Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY E."1PLOYER ALTERNATIVES: RECOMMENDATION: ACTION REQUIRED: Enterprises. The development agreement is a draft that is being reviewed by our attorney and by the developer's attorney. There may be minor modifications that will be discussed at the City Council meeting on September 20 by Roger Guenette. Staff has notified the School District and the County of the Public Hearing dates and as a fonnality the City has already received from the School District and the County notification of approval of the use of Tax Increment Financing for the Waterfront Passage Business Office Park. The City Council has the following alternatives: 1. Approve Resolution 93-80 creating Tax Increment Financing District 2-1 and approving the use of Tax Increment Financing. 2. Approve the Development Agreement by and between the City of Prior Lake and A & H Enterprises, LLC. 3. Table the item for a specific reason. 4. Modify the agreement for a specific reason. To proceed with this project, it is necessary for the City Council to approve Resolution 93-80, and approve the Development Agreement between the City and A & H Enterprises, LLC. This acquisition has been structured to recover city costs. The Development Agreement also provides that the developer guarantees the increment so there is no city financial exposure. During the period in which increments are generated which would otherwise have paid for city services, we have agreed that the developer will pay a per incident fee similar to that which we negotiated with the Dakota Community. Motion and second to adopt Resolution 93-80 and motion and second to approve the Development Agreement. RESOLUTION 93-80 A RESOLUTION OF TIIE CITY COUNCIL OF TIIE CITY OF PRIOR LAKE APPROVING TAX INCREMENT FINANCING DISTRICT NO. 2-1 AND TIIE USE OF TAX INCREMENT FINANCING MOTION BY: SECONDED BY: 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 fmance plan for Tax Increment Financing District No. 2-1 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-I, dated September 21, 1993" (the "Plan Booklet"), which sets forth a tax increment fmancing 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 September 21, 1993, 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, TIIEREFORE, BE IT RESOLVED BY TIIE CITY COUNCIL OF TIIE CITY OF PRIOR LAKE, MINNESOTA, as follows: 1. The City finds and detennines 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 detennines 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 detennines 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 fmancing plan as set forth in the Plan Booklet having been duly reviewed and considered is hereby approved and adopted, and the area 4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER described in Exhibit A hereto is hereby designated as an Economic Development District pursuant to Minnesota Statutes, Section 469.174, Subd. 12. 5. The City fmds 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 laX base of the City. 6. The City fmds and detennines 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 fmancing is deemed necessary. 7. The City fmds and determines that the tax increment fmancing 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 fmancing plan set forth in the Plan Booklet conforms to the general plan for the development of the City as a whole. 9. The rcasons and supporting facts for fmdings 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. 2-1 pursuant to clause (a) of Minnesota Statutes, Section 469.177 Subdivision 3, Paragraph 1 and 2. By making this election tax increment revenues generated within District No. 2-1 will not be made available for calculation or sharing with the fiscal disparity provisions of Chapter 473F. 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.....th day of September, 1993. Yes No Andren Fitzgerald Kedrowski Scott White Andren Fitzgerald Kedrowski Scott White Frank Boyles City Manager City of Prior Lake {Scal}