Loading...
HomeMy WebLinkAboutCity Council Resolution 2020-139 C ITY OF P LYMOUTH R ESOLUTION N O. 2020-139 R ESOLUTION A PPROVING THE M ODIFICATION TO THE D EVELOPMENT P ROGRAM FOR D EVELOPMENT D ISTRICT N O. 7; E STABLISHING T AX I NCREMENT F INANCING D ISTRICT N O. 7-10; S ANDS WITHIN D EVELOPMENT D ISTRICT N O. 7; A PPROVING THE T AX I NCREMENT F INANCING P LAN T HEREFOR AND THE E LIMINATION OF A P ARCEL FROM T AX I NCREMENT F INANCING D ISTRICT N O. 1-3 WITHIN R EDEVELOPMENT P ROJECT A REA N O. 1 WHEREAS, it has been proposed that the City of Plymouth, Minnesota (the "City") (1) modify the Development Program for Development District No. 7 (the "Development District"); (2) establish Tax Increment Financing District No. 7-10: Sands therein (the "TIF District"); (3) approve and adopt the proposed Tax Increment Financing Plan therefor under the provisions of Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the "Act"); and (4) approve the elimination of a parcel from Tax Increment Financing District No. 1-3 ("District 1-3) which is proposed to be included in the TIF District; and WHEREAS, the City Council has investigated the facts and has caused to be prepared the Modification to the Development Program for the Development District (the "Development Program Modification"), and has caused to be prepared a proposed tax increment financing plan for the TIF District therein (the "TIF Plan"); and WHEREAS, the City has performed all actions required by law to be performed prior to the approval of the establishment of the TIF District and the adoption of the Development Program Modification and TIF Plan, including, but not limited to, notification of Hennepin County and Independent School District No. 284 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; and WHEREAS, on September 11, 2006, the City has heretofore created its District 1-3 within its Redevelopment Project Area No. 1 by approval of a tax increment financing plan (the "District 1-3 TIF Plan"); and WHEREAS, the City proposes to eliminate one parcel, identified as 35-118-22-14-0038 (the "Parcel"), from District 1-3; and WHEREAS, the City proposes by this resolution to amend the District 1-3 TIF Plan to remove the Parcel from District 1-3 thereby reducing the size thereof in order to include the Parcel in the TIF District; and WHEREAS, since the original net tax capacity of District 1-3 will be reduced by no more than the current net tax capacity of the Parcel to be eliminated from District 1-3, the holding of a public hearing is not required by Minnesota Statutes, Section 469.175, Subd. 4. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Plymouth, as follows: (1) The City is not modifying the boundaries of the Development District. (2) The Development Program Modification, a copy of which is on file in the office of the HRA Manager, is adopted. (3) There is hereby established in the City within the Development District, the TIF District, a housing tax increment financing district, the initial boundaries of which are fixed and determined as described in the TIF Plan. (4) 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, Subd. 11, the specific basis for such determination is set forth in Appendix C of the TIF Plan. (b) 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. The reasons for such determination are set forth in Appendix C of the TIF Plan. (c) The TIF Plan for the TIF District conforms to the general plan for development or redevelopment of the City as a whole. The reasons for supporting this finding are set forth in Appendix C of the TIF 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. The reasons supporting this finding are set forth in Appendix C of the TIF Plan. (e) Appendix C of the TIF Plan is incorporated herein by reference. (5) The adoption of the TIF Plan for the TIF District within the Development District conforms 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 safe, decent, sanitary housing for residents of the City, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. (6) The Auditor of Hennepin County is requested to certify the original net tax capacity of the TIF District as described in TIF 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 HRA 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 the TIF District for which building permits have been issued during the 18 months immediately preceding the adoption of this Resolution. (7) The HRA Manager is further authorized and directed to file a copy of the Modification and TIF Plan for the TIF District with the Commissioner of Revenue and the Office of the State Auditor. (8) The administration of the Development District is assigned to the HRA 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. (9) The District 1-3 TIF Plan for District 1-3 is hereby amended to remove the Parcel and the HRA Manager is authorized and directed to notify the Auditor of Hennepin County thereof pursuant to Minnesota Statutes 469.175, Subdivision 4, clause (e). (10) The City has determined that it may pay for certain costs (the "Qualified Costs") identified in the TIF Plan which costs may be financed on a temporary basis from the City's general fund or any other fund from which such advances may be legally made (the "Fund"). Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan money from the Fund in order to finance the Qualified Costs. The City intends to reimburse itself for the payment of the Qualified Costs, plus interest thereon, from tax increments derived from the TIF District in accordance with the following terms (which terms are referred to collectively as the "Interfund Loan"): (a) City shall repay to the Fund from which the Qualified Costs are initially paid, the principal amount of $475,000 (or, if less, the amount actually paid from such fund) together with interest at 5.00% per annum (which is not more than the greater of (i) the rate specified under Minnesota Statutes, Section 270C.40, or (ii) the rate specified under Minnesota Statutes, Section 549.09) from the date of the payment. (b) Principal and interest on the Interfund Loan ("Payments") shall be paid annually on each December 31 commencing with the date the tax increments from the TIF District are available and not otherwise pledged to and including the earlier of (a) the date the principal and accrued interest of the Interfund Loan is paid in full, or (b) the date of last receipt of tax increment from the TIF District ("Payment Dates") which Payments will be made in the amount and only to the extent of available tax increments. Payments shall be applied first to accrued interest, and then to unpaid principal. (c) Payments on the Interfund Loan are payable solely from the tax increment generated in the preceding twelve (12) months with respect to the TIF District and remitted to the City by Hennepin County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1794, as amended. Payments on this Interfund Loan may be subordinate to any outstanding or future bonds, notes or contracts secured in whole or in part with tax increment if approved by the City, and are on parity with any other outstanding or future interfund loans secured in whole or in part with tax increments. (d) The principal sum and all accrued interest payable under this Interfund Loan are pre-payable in whole or in part at any time by the City without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. (e) The Interfund Loan is evidence of an internal borrowing by the City in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from tax increment pledged to the payment hereof under this resolution. The Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of tax increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on the Interfund Loan or other costs incident hereto. The City shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the termination of the TIF District. (f) The City may amend the terms of the Interfund Loan at any time by resolution of the City Council, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. The motion for the adoption of the foregoing resolution was duly seconded by councilmember ___________________ and upon vote being taken thereon, the following voted in favor thereof: APPROVED by the City Council on this 14th day of April, 2020. STATE OF MINNESOTA) COUNTY OF HENNEPIN) SS. The undersigned, being the duly qualified and appointed City Clerk of the City of Plymouth, Minnesota, certifies that I compared the foregoing resolution adopted at a meeting of the Plymouth City Council on April 14, 2020 with the original thereof on file in my office, and the same is a correct transcription thereof. WITNESS my hand officially as such City Clerk and the Corporate seal of the City this ___________ day of March, 2020. ____________________________________ City Clerk