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
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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
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