85-011 RES
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City Council for the City of Elk River, Minnesota
Resolution No. 85-11
A RESOLUTION APPROVING THE TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO.1, ESTABLISHING TAX INCREMENT
FINANCING DISTRICT NO.1, AND DIRECTING CITY STAFF TO IMPLEMENT
TAX INCREMENT FINANCING DISTRICT NO.1.
The City Council for the City of Elk River (the City), acting
pursuant to its authority under the Minnesota Tax Increment Financing
Act (Minn. Stat. ~~ 273.71 - 273.77) hereby finds, determines, and
resolves as follows:
FINDINGS
1. That there is a demand within the City for increased business and
industrial development.
2. That extensive business and industrial development of many areas
within the City designated for business and industrial use is not
possible absent the installation of certain public facilities,
including improved water service.
3. That the high cost of constructing the required water service
facilities cannot be met, and additional business and industrial
development is therefore not possible, without public intervention.
4. That it is therefore necessary, desirable, and in the public
interest to designate, establish, develop and administer an
Economic Development Tax Increment Financing District in the
City pursuant to the Minnesota Tax Increment Financing Act.
5. That the purpose of the Tax Increment Financing District will be
to provide a means for financing water service improvements and
facilities necessary 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.
6. That a proposed Tax Increment Financing Plan (TIF Plan) has been
prepared by City staff and consultants in response to private
proposals for the development of an area of the City known as the
Elk River Plaza PUD.
7. That the TIF Plan proposes designating a portion of the Elk River
Plaza PUD as an economic development tax increment financing
district to be known as Tax Increment Financing District No. 1
(TIF District No.1)
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8. That TIF District No. 1 is an Economic Development Tax Increment
Financing District pursuant to Minnesota Statutes ~ 273.73,
Subd. 12.
A. TIF District No.1 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 Chapter 472A.
C. The creation of Development Di.strict No. 1 and TIF
District No. 1 is in the public interest because:
(i) It will discourage commerce, industry or manufacturing
from moving their operations to another state;
(ii) It will result in increased employment in the City;
(iii) It will result in preservation and enhancement of
the tax base of the City.
9. That the proposed development within TIF District No.1, 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.
A. The Comprehensive Water Plan for the City of Elk River,
dated September 1982, identifies a severe deficiency in the
storage capacity of the existing city water system and
recommends construction of a one million gallon reservoir
to eliminate this storage capacity deficiency.
B. The lack of storage capacity in the existing water system
makes it impossible for the area of the City which includes
TIF District No. 1 to be developed for business and industrial
use s .
C. The water system improvements required to allow business
and industrial uses in these areas cannot, in the opinion of
the City Council, be financed solely through private
investment or public funds currently available.
D. Creation of TIF District No. 1 and capture of the tax increment
generated by development in the district is the only available
means of financing the water system improvements and
facilities necessary to allow business and industrial
development to occur within TIF District No.1.
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10. That the TIF Plan for TIF District No. 1 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.
A. The TIF Plan is consistent with and conforms to the City's
Land Use Plan by:
(i) Providing financing for water system improvements
and facilities necessary to allow development for
business and industrial uses of areas of the City
specifically designated by the Land Use Plan for
business and industrial uses.
B. The TIF Plan is consistent with and conforms to the City's
Comprehensive Plan by:
(i) Encouraging desirable development of land within the
City;
(ii) Increasing employment opportunities in the City;
(iii) Increasing the tax base of the City;
(iv) Encouraging orderly planning and commercial expansion.
C. The TIF Plan has been submitted to and reviewed by the City's
Planning Commission which has found that the TIF Plan
conforms to the City's Comprehensive and Land Use Plans.
D. The TIF Plan does not conflict with any other known private
proposals or other public projects.
11. That the TIF Plan for TIF District No. 1 will afford maximum
opportunity, consistent with the sound needs of the City as a
whole, for development by private enterprise.
A. The TIF Plan identifies development by private enterprise
as a specific objective of TIF District No.1.
B. The City has received proposals for development of all
parcels within TIF District No. 1 by private enterprise
and has entered into contracts with private parties for
development of the largest parcels in the TIFDistrict.
C. The City has no intent to develop any portion of TIF District
No. 1 and anticipates that all development will be by
private enterprise.
12. That the TIF Plan for TIF District No.1 prepared by City staff
and consultants adequately and accurately sets forth the goals,
objectives, and other details regarding theTIF District No.1.
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13. 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.
14. That the City has met with the Sherburne County Board of
Commissioners and the School Board and has presented to the County
Board and the School Board the City's estimate of the fiscal and
economic implications of Tax Increment Financing District
No. 1.
15. That the Sherburne County Board of Commissioners has presented
its written comment on the TIF Plan for TIF District No. 1
to the City.
16. That notice of a Public Hearing on the TIF Plan and on establishment
of TIF District No. 1 has been published in the official newspaper
of the City, as required by Minnesota Statutes ~ 273.74, Subd. 3.
17. That a Public Hearing on the TIF Plan and on establishment of the
TIF District was held before the City Council on April 1, 1985
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 approves
the Tax Increment Financing Plan for Tax Increment Financing
District No. 1.
B. That the City Council of the City of Elk River hereby determines
to proceed with Tax Increment Financing and establishes that
area of the City designated in the TIF Plan for Tax Increment
Financing District No. 1 as Tax Increment Financing District
No. 1.
C. That the City Council of the City of Elk River hereby directs
its staff and consultants to proceed to take those steps necessary
to implement Tax Increment Financing District No.1, including
filing of the Tax Increment Financing 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 Tax Increment Financing District No.1.
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The following Resolution was introduced by Councilmember
Gunkel
and duly seconded
by Councilmember
Williams
The following voted in favor of the Resolution:
Gunkel
Williams
Schuldt
Hinkle
The following voted against:
o
The following were absent:
Engstrom
Whereupon the Resolution was adopted.
ADOPTED: April 1, 1985.
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Richard Hinkle, Mayor
ATTEST:
Administrator
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