HomeMy WebLinkAboutCity Council Resolution 1995-746An
( CITY OF PLYMOUTH, MINNESOTA
ABSOLUTION NO, 9S -.Z , A
RESOLUTION AUTHORIZING A QUALIFYING LOCAL CONTRIBUTION
FOR TAX INCREMENT FINANCING DIVIRICT NO, 7,7
WHEREAS, the City of Plymouth (the "City") is authorised under munnots
Statutes, § § 469.174 to 459.179 (the "Act') to esUbliob and create tax increment
fic dni districts in order to prry all or a portion of certain public redevelopment costs;
NVUREAS, in accordance with the Act, the aty has approved a Tax Increment
Financing Plan for Tax Increment Financing District No. 7.3 (the MF District"), which
Tax Increment Financing District Is a sods condition district as defined in § 459.174,
rubd. 19 of the Act; and
WHINUM, at the time of establishment of the TIF District, Minnesota Statutes
§ 273.1399 (tke "Aid Reduction Act") provided that, upon the establishment of a tax
increment Snuldng district under the Act, the local government aids otherwise payable
to the City would be reduced ae a result of the creation of the district; and
WHEREAS, subsequent to the establishment of the 71F District the Aid
Reduction Act was amended by Laws of Minnesota 1995, Chapter 264, Article 5, to
provide certain additional exemptions to the provisions of the Aid Reduction Act; and
WHEREAS, uder aubd. 6(d) of the Aid Reduction Act the provisions do not
apply to certain exempt tax increment districts, which include a tax increment district in
which the municipality ksleets to make a "qualifying local contribution" as defined therein;
and
WHEREAS, under ,rubd. 6(d)(2) of the Aid Reduction Act the qualm local
contribution which must bt made by the City of Plymouth for the TIF District is 7,5% of
the increment generated firm i :e TIF District; and
WHEREAS, rubd. 6(d) of the Aid Reduction Act further requires that the amount
of the locA contribution must be paid out of unrestricted money of the City, such as the
general fund, a property tax fund, or it federal or state grant-in-aid which may be spent
for general governmental purptnes, and that the local contribution must be used to pay
project costs and cannot be used for general governmental purposes or for improvements
or cosh that the City planned to incur absent the creation of the TIF District; and
( WHEREAS, the City has determined that it would be in the best interests of the
City to make a qualifying local contribution to Tax Increment Financing District No.
7.3,
s
mow, 7mmFOR& BE 1T RESoLYED, by the City Council of the City of
Plymouth, Mlnnaota as follows:
1. That the City of MMouth hereby authorial and directs the making of a
qua4ing local contribution to Tax Increment Financing District No. 7-3 in an amount
equal to 7.5% of the gross tax increment generated by the TIF District each year until
such 71F District is terminated Iu accordance with the Act.
2. The City hereby finds and declares that the amount of the local
contribution shall be made out of the City's general fund in one or mora installments
and shall not be made, dl %,W or Indirectly, with tax incrmnents or developer payments
as defined under Minnesota Statutes $ 469.1766.
3. The qualWag 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 costs in
accordance with that certain Development Agreement dated as of January 23, 1995
between the City and Wayne W. Sharp. Such use of the local contribution shall bo in
addition to the application of any other tax increment from the District.
4. This resolution shall be In ful! force and et%ct from and after the date
hereof.
Adopted this 5th day of December, 1995.
Attest:
City Clerk
anNOMMITUM .,
•2-
Mayor