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HomeMy WebLinkAboutCity Council Resolution 2002-227CITY OF PLYMOUTH, MINNESOTA RESOLUTION NO. 2002-227 RESOLUTION ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 7-7, AND APPROVING AND ADOPTING THE TAX INCREMENT FINANCING PLAN RELATED THERETO BE IT RESOLVED by the City Council (the "Council") of the City of Plymouth, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. It has been proposed that the City establish Tax Increment Financing District No. 7- 7 (herein sometimes referred as the "TIF District'), to be located within Development District No. 7, and approve and adopt the Tax Increment Financing Plan relating thereto, all pursuant to and in accordance with Minnesota Statutes, Sections 469.124 through 469.134, inclusive, and Minnesota Statutes, Sections 469.174 through 469.179, inclusive (collectively, the "Act'). 1.02. The Council has investigated the facts and has caused to be prepared the proposed Tax Increment Financing Plan for the TIF District (herein sometimes referred 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 TIF Plan relating thereto, including, but not limited to, notification of the County Commissioner in whose district the property proposed to included in the TIF District is located, notification of the County and School Districts having taxing jurisdiction over the property proposed to be included in the TIF District, a review by the City Planning Commission of the proposed TIF Plan and the holding of a public hearing upon published notice as required by law. Section 2. Findings for the Establishment of Tax Increment Financing District No. 7-7, and the Approval of the Tax Increment Financing Plan relating thereto. 2.01. The Council hereby finds that the TIF District is a housing district as defined in Minnesota Statutes, Section 469.174, subdivision 11. 2.02. The Council hereby finds that the establishment of the TIF District and the approval of the TIF Plan relating thereto are intended and, in the judgement of this Council, the effect of such actions will be, to provide an impetus for the development of affordable housing in the City, which will advance the objectives set forth in the Comprehensive Plan and the Development Program for Development District No. 7 and will serve the public purposes envisioned by the creation of housing districts in accordance with the Act. 2.03. The Council further finds that the proposed development, in the opinion of the Council, would not occur solely through private investment within the reasonably foreseeable future and the increased 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 result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district 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 Development District No. 7 and Tax Increment Financing District No. 7-7 by private enterprise. The reasons and supporting facts for each of the foregoing determinations are set forth in Exhibit A attached hereto. Section 3. Establishment of Tax Increment Financing District No. 7-7, Approval of the Tax Increment Financing Plan. 3.01. Tax Increment Financing District No. 7-7 is hereby established and the TIF Plan for the TIF District is hereby approved and adopted, and shall be placed on file in the office of the City Clerk. 3.02. City staff is authorized and directed to request the County Auditor to certify the original tax capacity value of the real property within the TIF District and the original tax capacity rate for the TIF District, and to file a copy of the TIF Plan with the Commissioner of Revenue, as required by the Act. 3.03. City staff, 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, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 3.04. This Resolution shall be in full force and effect from and after the date hereof. Adopted by the City Council on May 14, 2002. 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 May 14, 2002, 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 City Clerk 2 EXHIBIT A The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 7-7 as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that Tax Increment Financing District No. 7-7 is a housing district as defined inlylinnesotaVatlites, Section 469.174, Subdivision 11. The development proposed to occur within the TIF District is set forth in Section I of the TIF Plan, consisting primarily of approximately 130 rental units. The income requirements for the tenants of the rental housing are set forth in Section E of the TIF Plan, and the City believes those income requirements, which are set forth in the federal legislation referenced in Section E, are a reasonable definition of "low and moderate income" for the City of Plymouth. The requirements are also in compliance with Minnesota Statutes, Section 469.1761, subdivision 3. The City will enter into one or more agreements with the developer of the rental housing, which agreements will obligate the developer to comply with the applicable income requirements and will provide recourse to the City in the event of a default in compliance. 2. Finding that the proposed development, in the opinion of the Council, irould not occur solely through private investment irithin the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary. As noted in Section J of the TIF Plan, development of the property included in the TIF District involves special challenges because of poor soil, wetland mitigation and the necessity for road improvements. The developer has also informed the City that the proposed development is not feasible without assistance with such costs in order to make the property competitive with other property which does not face the foregoing special development costs. Exhibit V of the TIF Plan, which is incorporated herein by reference, shows that the increased 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 result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the TIF Plan. 3. Finding that the Tax Increment Financing Plan conforms to the general plan for the development or redevelopment of the municipality as a 1rhole. The site is appropriately zoned. The TIF Plan for the TIF District has been reviewed by the Planning Commission and found to conform to the general plan for the development or redevelopment of the City as a whole. 4. Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 7-7 will afford maximum opportunity, consistent with the sound needs of the City as a whole,for the development of Development District No. 7 and Tax Increment Financing District No. 7-7 by private enterprise. The assistance to be provided by the City pursuant to the TIF Plan will be limited to payment or reimbursement of site improvement expenses. The total amount of tax increment assistance by the City (including interest on any borrowing) will not exceed $2,219,300 whereas the total estimated market value of all improvements within the TIF District upon completion of all planned improvements is approximately $10,700,000. Hence the great majority of the development will be undertaken and funded by parties other than the City with the role of the City being primarily to assist in the payment of the special site development costs previously identified. N: Community Development ,HOUSING',HRA ,STAFFREP`,Res_CC`,2002 ,Reso App TIF Plan7-7-14-02.doc 4