RES 90-2 THE ECONOMIC DEVELOPMENT AUTHORITY
FOR THE
CITY OF ELK RIVER, MINNESOTA
RESOLUTION NO. 90 - 2
A RESOLUTION APPROVING THE TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 7, ESTABLISHING TAX
INCREMENT FINANCING DISTRICT NO. 7, AND DIRECTING STAFF TO
IMPLEMENT TAX INCREMENT FINANCING DISTRICT NO. 7 .
The Economic Development Authority for the City of Elk
River (the Authority) acting pursuant to its authority under
the Minnesota Tax Increment Financing Act (Minnesota Statutes,
Sections 469 . 174, at seq. ) hereby finds, determines, and
resolves as follows:
FINDINGS
1. That City of Elk River Development District No. 1 was
designated as a municipal development district pursuant to
Minnesota Statutes, Chapter 472A and Section 469 . 124 et seq. ,
and that the Development Program for Development District No. 1
was approved by resolution of the City Council for the City of
Elk River dated April 1, 1985, and amended by resolutions of
the City Council of the City of Elk River dated January 27,
1986, November 30, 1987, and by Resolution of the Economic
0 Development Authority for the City of Elk River dated
February 12, 1990 ..
2 . That the Development Program for Development District
No. 1 anticipates and provides for the adoption of Tax
Increment Financing Plans and the establishment of Tax
Increment Financing Districts to assist in the financing of the
public improvements and other public costs necessary to attract
and retain new development in the Development District.
3 . That implementation of Development District No. 1 and
construction of required facilities and other public
improvements through tax increment financing has attracted new
commercial and industrial development to the Development
District.
4 . That there is a demand within the city for further
business and industrial development.
5 . That additional business and industrial development
in many areas of the City designated for business and
industrial use is not possible absent city assistance in
addition to the installation of certain public improvements .
6 . That the high cost of constructing required public
improvements and facilities, and providing other forms of
410. assistance for new development, cannot be met, and additional
business and industrial development is therefore not possible,
0 without public intervention.
7 . That it is therefore necessary, desirable, and in the
public interest to designate, establish, develop, and
administer an additional redevelopment Tax Increment Financing
District in the City pursuant to the Minnesota Tax Increment
Financing Act.
8. That the purpose of the Tax Increment Financing
District will be to acquire a redevelopment site for Elk River
Motel Properties, Inc. (ERM Properties) , thus enabling ERM
Properties to construct a 42-unit motel in the State of
Minnesota and the City of Elk River.
9 . That a proposed Tax Increment Financing Plan (TIF
Plan) has been prepared by City staff and consultants which
proposes designating a portion of Development District No. 1 as
a redevelopment Tax Increment Financing District to be known as
Tax Increment Financing District No. 7 (TIF District No. 7) .
10. That TIFDistrict No. 7 is a redevelopment Tax
Increment Financing District pursuant to Minnesota Statutes,
Section 469 . 174, subdivision 10 .
(a) TIF District No. 7 is located wholly within the
City's Development District No. 1.
• (b) Development District No. 1 has been duly created and
the Development Program for Development District
No. 1 duly adopted by the City Council and the
Economic Development Authority pursuant to the
provisions of Minnesota Statutes .
(c) TIF District No. 7 is a redevelopment district
because:
parcels consisting of more than 70 percent of the
area of the district are occupied by buildings,
streets, utilities, or other improvements; and more
than 50 percent of the buildings, not including
outbuildings, are structurally substandard to a
degree requiring substantial renovation or clearance
as determined by the City Building Inspector;
for purposes of these findings more than 15 percent
of the area of each parcel is occupied by buildings,
streets, utilities, or other improvements .
11. That the proposed development by ERM Properties
within the City of Elk River and TIF District No. 7, in the
opinion of the Authority, would not reasonably be expected to
occur solely through private investment within the reasonably
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foreseeable future and therefore the use of tax increment
• financing is necessary.
12 . That creation of TIF District No. 7 and capture of
the tax increment generated by the ERM Properties in the
district is the only available means of financing the land
acquisition costs necessary to allow ERM Properties to locate
within the City and Development District No. 1.
13 . That the TIF Plan for TIF District No. 7 is
consistent with and conforms to the comprehensive plan for the
development of the City as a whole and to the City's adopted
land use plan.
14 . That the TIF Plan does not conflict with any other
known private proposals or other public projects.
15. That the TIF Plan will afford maximum opportunity,
consistent with the sound needs of the City as a whole, for
development by private enterprise.
16 . That the TIF Plan adequately and accurately sets
forth the goals, objectives, and other details regarding TIF
District No. 7 .
17 . That the TIF Plan has been transmitted by the City to
the Sherburne County Board of Commissioners and to the School
• Board for Independent School District No. 728 .
18. That the City has presented to the County Board and
the School Board the City's estimate of the fiscal and economic
implications of TIF District No. 7 .
19 . That notice of a public hearing on the TIF Plan and
on establishment of TIF District No. 7 has been published in
the official newspaper of the City, as required by the
Minnesota Tax Increment Financing Act.
20 . That a public hearing on the TIF Plan and on
establishment of TIF District No. 7 was held before the
Authority, and that an opportunity to be heard was granted at
that time to all residents of the City and all other interested
persons.
RESOLVED
A. That the Economic Development Authority of the City
of Elk River hereby adopts each and every one of the findings
set forth above.
B. That the Economic Development Authority of the City
of Elk River hereby approves and adopts the Tax Increment
• Financing Plan for Tax Increment Financing District No. 7 .
3.
C. That the Economic Development Authority of the City
of Elk River hereby establishes that area of the City
designated in the TIF Plan for TIF District No. 7 as TIF
District No. 7 .
D. That the Economic Development Authority of the City
of Elk River hereby directs its staff and consultants to
proceed to take the steps necessary to implement TIF District
No. 7, including the filing of the TIF Plan and this Resolution
with the Minnesota Commissioner of Energy, Planning, and
Economic Development and the Sherburne County Auditor, and
requesting the Sherburne County Auditor to certify the original
assessed value of the property within TIF District No. 7 .
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TJK:DL3s
The foregoing resolution was introduced by Commissioner
411 Dobel .and duly seconded by Commissioner
Kropuenske
The following voted in favor of the resolution:
Members Dobel, Kropuenske, Schuldt, Holmgren, and Tralle
The following voted against: None
The following were absent: None
Whereupon the resolution was adopted February 12 990 .
i/
James Tralle, President
ATTES
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Patrick Klaers, Executive Director
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