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HomeMy WebLinkAboutCity Council Resolution 1997-520[7 CRY OF PLYM01T IL A'11N = TA RESOLtMON NO. 97 -SO RESOLUTION LgrABI,L9MG TAX INCRF.M&' f FINANCING DISTRICT N0.7-5. AND TAX @ICREMF•I'I'I' FINANCING PLAN RELATED THERETO BE IT RESOLVED by the City Council (the "Councir) of the City of Plymouth. Minim (do "awl Is follows. section I. @IRIRl& 1.01. It has been proposed that the City establish Tax increment FinancingDpi o. 7-5 7. and (herein sometimes refe Ted as the "TIF District"), to be located within0evel rat to and in accordance approve and adopt the Tax Increment Financing Plan relating all Pawn with Minnesota Statutes+ Secrions 469.124 through 469.134. inclusive, and Minnesota Statues. Sections 469.174 through 469.179. inclusive (collectively. the "Act'). 1.02. Tne Council has investigated the fact and has caused to be prepared the proper Tax Increment Financing Plan for the TIF District (herein sometimes refereed to as the "TIF Plan") 1.03. The City has performed all actions required by law to be performed prior to the establishment of the TIF District and the adoption of the County Commissioner in w'Itose district the property proposed to included in the TIF District is tooted. notificationbe incof the in the County mid Distra School Districts having taxing jurisdiction over the property proposed review by the City Planning Commission of the proposed TIF Plan and the holding of a public hearing upon published notice as required by taw. - - Section 2. 2.01. The Council hereby finds that the TIF District is a housing district as defined in Minnesota Statutes, Section 464.174, subdivision 11. 2.02. The Council hereby finds that the establishment of the TIF District and the approval of the TIF Phu► relating taereto are intended and. in the judgment of this Couesil, the effect of such actions will be, to provide an impetus for the dovelupment of arfordable housing in the City, with related commercial development, which will advance the objectives set forth in the Development Program for Development District No. 7 and will serve the public purposed envisioned by the creation of housing districts in accordance with the Act. 2.03. The Council fimrther finds that the proposed development. in the opinion of the Counci4 would not occur solely through private investment within the reasonably foreseeable f lture and the increased market value of the site that could reasonably be expected to occur without die use of tax increment financing waald be less ttwn 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 the d?sti iut permitted by the TIF Plan; that the TIF Plan conforms to the general plan for the development or redevelopment of the City as a whole; and that the TIF Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development of 0 - PAGE 2 Devchpnw District No. 7 and Tax Incrani mt Financing District No. 7-5 by private entoP. I. TM reasons and suppor ft facts for each of the foregoing deoaminatiau are set forth in Exhibit A attached berM •1 .`:LIl:hll �1 1.1tiWitl Il. 11. It �1: 111.'1 �1�. 1'.tVl L• � .ut.7il 3.01. Tac Increment Finaaoing District No. 7-S is hereby established and the Tax Increment Financing Plan for Tax Is hereby approved and adopted. and shall be placed on file In the uffice of the Cita, Manager. Howevaq the astablwwww of the TIF District and approval of the TIF Plan shall not be deemed to establish a Igo obligation an the pat of the City or its Council to issua bonds pgrable In whole or in part Qom tax Increments derived from the TIF District or to provide tax Increment assistanea to all or any poWw of the development described in the TIF Plan. All details of any bonds and the provisions for pay thereof. and all details of any development agreement or similar contract setting forth the terms and conditions for the provision of tax increment assistance to the devebpaent described in the TIF Plan, shall be subject to final approval of this Council. in its discretion. prior to issuance of any bonds or the execution of any development agreement or similar contract. 3.02. The City Manager is authorized and directed to request an County Auditor to certify the original tax capacity rate for the TIF District. 3.03. The City Manager is also authorized and directed to file a copy of the TIF Plan with the Commissioner of Revcnm as required by Minnesota Statutes, Section 469.175, subdivision 2. 3.04. The staff of the City. the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the TIF Plan and for this purpose to negotiate, draft, prepsro and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 30S. This Resolution shall be in fall force and effect from and after the date hereof, Dated: September 3, 1997. CITY OF PLYMOUTH, MINNESOTA BY its Mayor Attest: City Cleric 0 • G - PAGE 3 EXHIBIT A The reasons std fiefs supporting the findings for the adoption of the Tax Increment Financing Pien for Tax Increment Financing District No. 7.4 as required pursuant to M i nesota StawjSection 469.174, Subdivision 3 are as follows: I. FWhW that Trey Immnret Fits wbq District Mo. 7-5 is a howing district as defined in Seetlau 469.174. Subdivision Il. Tba d♦velopmeal propoaed too= within the TIF District is se forth in Section 1 of the TIF Plan, consisting primarily of for -sale townhomes said rental housing. The income requirements for the purchasers of the tawdtomes and the residents of the rental housing are set forth in Section E of the TIF Plan, and the City believe those income requirements aro a reasonable definition of "moderate income" for the City of Plymouth. The City will ante: into one or more contracts with the developers of the towobouses and the real housing, which contracts will obligate the developers to comply with the applicable income requirements and will provide recourse to the City in the event of a default in compliance. The City will also take all necessary action to insure that the fair market %due of ary improvements constructed for uses other than low and moderate incutne huusing duce not exceed 2W.6 of he total fair market value of all planned improvements. The presently estimated market v alues of Me townhouse, rental housing and commercial improvements are set forth in Exhibit 11 to the TIF Plea and the estimated market value of the commercial improvement% as shown on Exhibit 11, does not exceed the foregoing threshold. 2. Finding that the proposed development. in the opinion of the ('ouncrl. would not occur solely tlirongh private hnestmrnt within the reasonably foreseeable future au/, then fore. the use of tax incren wnt financing is deemed necessary. Given the general high cost of land in the City, and the housing market for the City, the City has determined that the production of moderate income housing requires assistance with site improvement expenses. The prime deve!oper, the Rottlund Company. Inc., has also informed the City that the proposed flevelopment is not feasible, at the proposed housing prices and rentals, without assistance with such costs, particularly since much of the land upon which the development will be constructed requires substantial soil correction, thereby increasing the cost of development of the particular parcels to be included within the TIF District. Exhibit V of the TIF Plan, which is incorporated herein by reference, shows that the increase 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 resltlt from the proposed development after subtracting the present value o! the projected tax increments for the maximum duration of the district permitted by the TIF Plan. 3. Finding that the Tor Increment Financing Plan con(urnis to tile general plan jar the development or redevelopment of the municipality as a whole The site is appropriately zoned. The Tax Increment Financing Plan for Tax Increment Financing District No. 7-5 has been reviewed by the Planning Commission and been found by motion adopted by the 0 G - PAGE 4 Planning Commission to conform to the general plan for the development or redevelopment ofthe Chy as a whole. 4. Finding that the Tac hrcnenrent Armwing Plmr jbr Tax Imnment Financing Diurkt Na 7-5 will g8ord mmcinrwn oppontmo. eonatstent with the sonord needs of the Ctry err a whole. for the development of Development Dtttrict Na 7 and Tax hwrement Financing Dtatrkt Na 7-5 by private enterprlu. The assistance to be provided by the City pursuant to the Tax Increment Financing Plan will be limited to payment or reimbursement of soil correction and public improvement expenses in connection with the property to be used for the townhouse and rental hoaxing developmt nts. The tool amount of tax WA-ement bonds to be issued by the City will not exceed $3.622.000 whereas the total estimated market value of all improvementh within the TIF District upon completion of all planned improvements is approximately $25.000.000. Hence the great majority of the development will be undertaken and funded by private enterprise with the role of the City being primarily to facilitate the development.