HomeMy WebLinkAboutCity Council Resolution 1995-745L
( CTTY OF PLYMOUTH, MINNESOTA
RESOLUTION NO.95-.gh,
RESOLUTION AUTHORIZING A QUALIFYING LOCAL CONTR:3VnON
FOR TAX INCLU MENT FINANCING DISTRICT' NO. 74
WHEKKAS, the City of Plymouth (the "Co is autborind under Minnesota
Statutes, i 1469.174 to 469.179 (the "Act) to establish and create tax increment
�d cing districts in order to pay all or a portion of certain public redevelopment costs;
WHEREAS, in accordance with the Act, the City has approved a Tax Increment
Financing Plan for Tax Increment Financing District No. 7.2 (the 'TIF District"), which
Tax Increment Financing District is an economic development district as defined in
6 469,174, subd. 12 of the Act; and
WHERL45, at the time of establishment of the TIP District, Miaaeams Statutes
l 273,1399 (the "Aid Reduction Act") provided the% upon the establishment of a tax
increment financing district under the Act, the local government aids otherwise payable
to the City would be reduced as a result of the creation of the district; and
( WHEREAS, subsequent to the establishment of the TIF District the Aid
Reduction Act was amended by Laws of Minnesota 1995, Chapter 254, Article 5, to
provide oertain additional exemptions to the provisions of the Aid Reduction Act; and
WRI SREAS, under subd. 6(d) of the Aid Reduction Act the provisions do not
apply to certain exempt tax increment district, which include a tax increment district in
which the municipality elects to make a "quallh* local contribution" as defined Cher-'-
and
VMREAS, under subd. t+(d)(2) of the Aid Reduction Act the qualifying local
contribution which must be made by the City of Plymouth for the TIF District is 10% -1
the increment generated from the TIFF District; and
WHEREAS, subd. 6(d) of the Aid Reduction Act further requires that the amt
of the local coatribution must be paid out of unrestricted money of the City, such as 6 -
general fund, s property tax fund, or a federal or state grant-in-aid which may to spent
for g►-ne:al governmental purposes, and that the local contribution must be used to pay
project eootn and cannot be Wised for general gomramenW purposes -3r for improv_ -
or eoet% that the City planned to incur absent the creation of the TIF lAxtrlct; and
WHEREAS, the Coity has determined that ;t would be in the beat interests of the
City to make a qualifying Ioca1 contribution to Tax Increment F'inaxicing District No.
7.2.
•
NOW, THF,REFOM HE 1T R11:5CiLIVED, by the Qty Council of the City of
Plymouth, Minnesota u follows:
1. That the City of Plymouth herel-y authorizes and directs the maldng of a
qualifying local contribution to Tax Increment Financing District No. 7-2 in an amount
equal to 10% of the gross tar increment generated by the TIF District each year until
such TIF District is terminated in accordance with the Act.
2. 7be City hereby find: and declares that the amount of the local
contribution shall be made out of the City's general fund in one or more instalimentr
and shall not be made, directly or indirectly, with tax increments or daveioper payments
as defined under Minnesota Statutes 1469.17664
3. The qualifying local contribution shall be contributed by the City as
additional tax increment and shall be applied to the purposes for which the TIF District
was created, including payment or -reimbursement of public redevelopment ousts in
accordance with that certain Development Agreement dated as of September 13, 1994
between the City and Olympic Steel, Inc. Such use of the local contribution shall be in
addition to the application of any other tax increment from the District.
4. This resolution shall be in Pull force and effect horn and after the date
hereof.
Adopted this Sth day of December, 1995.
Attest:
Qty Clerk
-2-
Mayor