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88-047 RES . . . THE CITY COUNCIL FOR THE CITY OF ELK RIVER, MINNESOTA RESOLUTION NO. 88-47 A RESOLUTION APPROVING THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO.5, ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO.5, AND DIRECTING CITY STAFF TO IMPLEMENT TAX INCREMENT FINANCING DISTRICT NO.5. The City Council for the City of Elk River (the City) acting pursuant to its authority under the Minnesota Tax Increment Financing Act (Minnesota Statutes, Sections 469.174, ~~) 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 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, and November 30, 1987. 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 water service 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 assistance for new development, cannot be met, and additional business and industrial development is therefore not possible, without public intervention. . 7. That it is therefore necessary, desirable, and in the public interest to designate, establish, develop, and administer an additional economic development 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 development site in Phase II of the Elk River Industrial Park for the relocation of Alltool Company, thus enabling Alltool to remain in and to expand in the State of Minnesota and the City of Elk River, and to provide a means for financing additional public improvements if the City is to attract additional business and industrial development and increase employment opportunities in those areas of the City designated for these uses. 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 an economic development Tax Increment Financing District to be known as Tax Increment Financing District No. 5 (TIF District No . 5). 10. That TIF District No. 5 is an economic development Tax Increment District pursuant to Minnesota Statutes, Section 469.174, subdivision 12. . (a) TIF District No. 5 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 pursuant to the provisions of Minnesota Statutes. (c) The creation of Development District No. 1 and TIF District No. 5 is in the public interest because: (i) It will discourage commerce, industry, and manufacturing from moving their operations to another state; :c (ii) It will result in increased employment in the City; . It will result in preservation and enhancement of the tax base of the City. 11. That the proposed relocation of Alltool within the City of Elk River and TIF District No.5, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and therefore the use of tax increment financing is necessary. (iii) 2. . . ,. 12. That creation of TIF District No.5 and capture of the tax increment generated by the Alltool development in the district is the only available means of financing the land acquisition costs necessary to allow Alltool to relocate within the City and Development District No.1. 13. That the TIF Plan for TIF District No. 5 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 Planning Commission for the City of Elk River has been consulted with respect to the TIF Plan and that the TIF Plan conforms to the City's comprehensive and land use plans. 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.5. 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. 5 and has offered to meet with the Sherburne County Board of Commissioners and the School Board. 19. That notice of a public hearing on the TIF Plan and on establishment of TIF District No. 5 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. 5 was held before the City Council on June 20, 1988, 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 City Council of the City of Elk River hereby adopts each and every one of the findings set forth above. B. That the City Council of the City of Elk River hereby approves and adopts the Tax Increment Financing Plan for Tax Increment Financing District No.5. 3. i-'"_,;..~)>,~~;:'::ti'<"S~-"'-:;"'~#?'f~i~:'ltlJ},;]'~t..;.j.,;~';{,~::.~7i~'X~:S1t.~:;:.;;~\):i~.;.~~~\?t:~.,":~::-~i!t'i~;:&'~~~',~5""i~~~:J~S)FZ~a-.l.~~i't?~~:'t_eiH~t~:...,. ';'''c'':" ~" " "~.-"-""-.-"~'\~'~i' ""1i;F"~.t~i.~' ,.""': Jj, .'\":t_;"":~~'~1; -,:~,. ';--::.h:"'.-oJ'~;;C" -1cf..'~-~-;'-J7"~: . . . C. That the City Council of the City of Elk River hereby establishes that area of the City designated in the TIF Plan for TIF District No. 5 as TIF District No.5. D. That the City Council of the City of Elk River hereby directs its staff and consultants to proceed to take the steps necessary to implement TIF District No.5, including the filing of the TIF Plan and this Resolution with the Minnesota Commissioner of Energy, Planning, and 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.5. 4. PKB:DD5s .. , ' . The foregoing resolution was introduced by Councilmember Schuldt and duly seconded by Councilmember Dobel The following voted in favor of the resolution: Mayor Gunkel, Councilmembers Schuldt, Dobel, and Tralle The following voted against: None The following were absent: Councilmember Holmgren Whereupon the resolution was adopted June 20 Ci:tliI. ~~ Estelle Gunkel, Mayor , 1988. ATTEST: . 7#~ g~ Patrick Klaers, City Administrator .