HomeMy WebLinkAboutCity Council Resolution 1998-541CITY OF PLYMOUTH, MINNESOTA
Resolution No. 98-541
RESOLUTION ESTABLISHING TAX INCREMENT FINANCING
DISTRICT NO. 7-5A, 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. 7-5A (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 tc
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. 7-5A, 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, 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 purposes envisioned by the creation of housing districts
in accordance with the Act.
Res. 98-541
Page 2
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. 7-5A 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. 7-5A;
Approval of the Tax Increment Financing Plan.
3.01. Tax Increment Financing District No. 7-5A is hereby established and the
Tax Increment Financing Plan for Tax Increment Financing District No. 7-5A is hereby
approved and adopted, and shall be placed on file in the office of the City Manager.
3.02. The City Manager 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.
3.03. The City Manager is also authorized and directed to file a copy of the TIF
Plan with the Commissioner of Revenue, 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, prepare and present to this Council for its consideration all further
plans, resolutions, documents and contracts necessary for this purpose.
hereof.
3.05. This Resolution shall be in full force and effect from and after the date
Adopted by the City Council on September 2, 1998.
Res. 98-541
Page 3
EXHIBIT A
The reasons and facts supporting the findings for the adoption of the Tax
Increment Financing Plan for Tax Increment Financing District No. 7-5A as required
pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows:
1. Firiiiirig that Tax Increment Fifuaricirig District No. 7-5A is a lloiisirig district as defined
iii Miririesot« St«titites, Section 469.174, SiAlivisiori 11.
The development proposed to occur within the TIF District is set forth in Section I of
the TIF Plan, consisting primarily of for -sale townhomes and rental housing. The
income requirements for the purchasers of the townhomes and the residents of the
rental housing are set forth in Section E of the TIF Plan, and the City believes those
income requirements are a reasonable definition of "moderate income" for the City of
Plymouth. The City will enter into one or more contracts with the developers of the
townhouses and the rental 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 value of any
improvements constructed for uses other than low and moderate income housing does
not exceed 20% of the total fair market value of all planned improvements.
2. Firiiiirig that the proposed deoelopinent, iii the opiriiori of the Coitiricil, zwidd riot occur
solely tlirongli priozrte invesMierrt zvithirr the reirsorurbly foreseezrble fiitrrre zrrrd, therefore, the use
of tax irrcrcirierrt firunrcirrg is deemed accessary.
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 developer, The Rottlund
Company, Inc., has also informed the City that the proposed development 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
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.
Res. 98-541
Page 4
3. Fiiidiiig that the Tax Increment Fiiiaiiciiig Plan conforms to the general plan for the
deoelopinent or redeoelopinent of the ifriiiiicipality as « zoliole.
The site is appropriately zoned. The Tax Increment Financing Plan for Tax Increment
Financing District No. 7-5A has been reviewed by the Planning Commission and been
found by resolution adopted by the Planning Commission to conform to the general
plan for the development or redevelopment of the City as a whole.
4. Fiiiciiiig that the Tax hicrcmcnt Fiiiaiiciiig Plaii for Tax hicrcmcnt Fiiiaiiciiig District No.
7-5 zoill afford ifiaxiifiiiiii opportunity, corisisterit zoith the sound needs of the City GZs GZ whole,
for the deoelopinent of Deoelopinent District No. 7 acid Tax Increment Fiiiaiiciiig District No.
7-5 by prioate enterprise.
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
housing developments. The total amount of tax increment bonds to be issued by the
City will not exceed $3,000,000 whereas the total estimated market value of all
improvements within the TIF District upon completion of all planned improvements is
approximately $10,600,000. 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.