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85-011 RES . . . 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) . . . 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. 2. . . . 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. 3. . . . . . 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. 4. .. ~ .. . . , . . . .' 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. -- ,...."// ,//) /'._-_/ """------ --- ;- /' / -.".-- . ;iV' // '., / ./ ." :~:7(.-.c.....?4~:-r.t.~>.::;://""';::f',,<l'.(,,'C Richard Hinkle, Mayor ATTEST: Administrator 5.