87-071 RES
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CITY COUNCIL
FOR THE
CITY OF ELK RIVER, MINNESOTA
RESOLUTION NO. 87- 71
A RESOLUTION APPROVING THE MODIFICATION OF THE TAX
INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT
NO.3, AND DIRECTING CITY STAFF TO IMPLEMENT THE MODIFICATION
OF TAX INCREMENT FINANCING DISTRICT NO.3.
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. ~~ 469.174-469.179
(formerly ~~ 273.71-273.78)) 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 development of the industrial park
within the City (the Industrial Park) is not possible absent
the installation of certain public facilities, including
streets, sewers, water service and storm drainage facilities
(the Improvements).
3. That the high cost of constructing the Improvements
cannot be met, and additional business and industrial
development is therefore not possible, without public
intervention.
4. That the City has already created and established
Economic Development Tax Increment Financing District No. 3
(the TIF District No.3) in the City pursuant to the Minnesota
Tax Increment Financing Act.
5. That the purpose of the TIF District No.3 is to
provide a means for financing water service improvements and
facilities necessary for the City to attract additional
business and industrial development and increase employment
opportunities in those areas of the City designated for these
uses.
6. That TIF District No.3 is an Economic Development
Tax Increment Financing District pursuant to Minnesota Statutes
~ 273.73, subd. 12.
(a) TIF District No. 3 is located wholly within the
city's Development District No.1.
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(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 District No. 1 and
TIF District No. 3 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 ln
the City;
(iii) It will result in preservation and
enhancement of the tax base of the City.
7. That the proposed development within TIF District No.
3, 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.
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(a) Economic and industrial development in the City
has been stagnant for a number of years.
(b) High special assessments for earlier improvements
in the Industrial Park has resulted in very slow
development.
(c) It is impossible for the Industrial Park to
expand without the extension of streets, sewer,
water service and storm drainage facilities.
(d) The City has available approximately two-thirds
of the funds necessary to pay for the additional
improvements required in the Industrial Park.
(e) Use generated by TIF District No. 3 is necessary
to finance the street, water and sewer system
improvements necessary to allow further business
and industrial development to occur within TIF
District No.3.
8. That significant water service improvements including
the construction of a water tower have been made pursuant to
the TIF Plan and payment of bonds issued to pay for those
improvements is being generated by the TIF District No.3.
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9. That a proposed modification of the TIF plan for TIF
District No. 3 (the Modification) has been prepared by City
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staff and consultants reflecting the city's intention to use a
portion of the tax increment captured in the TIF District No. 3
to provide a portion of the funds necessary to make
improvements in the Industrial Park.
10. That the Modification 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 Modification of the Plan is consistent with
and conforms to the City's Land Use Plan by:
(i) Providing financing for street, water and
sewer system improvements 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 Modification 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 Modification has been submitted to and
reviewed by the City's Planning commission which
has found that the Modification conforms to the
City's Comprehensive and Land Use Plans.
(d) The Modification does not conflict with any other
known private proposals or other public projects.
11. That the Modification will afford maximum
opportunity, consistent with the sound needs of the City as a
whole, for development by private enterprise.
(a) The Modification identifies development by
private enterprise as a specific objective of TIF
District No.3.
(b) The Modification will promote development within
TIF District No. 3 by private enterprise.
(c) The City has no intent to develop any portion of
TIF District No. 3 and anticipates that all
development will be by private enterprise.
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12. That the Modification prepared by City staff and
consultants adequately serves the goals and objectives of the
TIF District No.3.
13. That the Modification 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. 3 and the Modification.
15. That the Sherburne County Board of Commissioners has
presented its written comment on the Modification to the city.
16. That notice of a Public Hearing on the Modification
has been published in the official newspaper of the City, as
required by Minnesota Statutes ~ 469.175, subds. 3 and 4.
17. That a Public Hearing on the Modification was held
before the City Council on November 30, 1987, and that an
opportunity to be heard was granted at that time to all
residents of the City and all other interested person.
RESOLVED
A. That the City Council of the City of Elk River hereby
approves the Modification of the Tax Increment Financing Plan
for Tax Increment Financing District No.3.
B. That the City Council of the City of Elk River hereby
determines to proceed with the additional Tax Increment
Financing proposed in the Modification of the TIF Plan for Tax
Increment Financing District No.3.
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 the Modification, including filing
of the Modification and this Resolution with the Minnesota
Commissioner of Energy, Planning and Development and the
Sherburne County Auditor.
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The foregoing resolution was introduced by councilmember
Schuldt and duly seconded by Councilmember
Tralle
The following voted in favor of the resolution:
Mayor Gunkel, Councilmp.mbers Schuldt, Tralle and Holmgren
The following voted against:
None
The following were absent:
Councilmember Dobel
Whereupon the resolution was adopted November 30, 1987.
ATTEST:
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Patrlck Klaers, Clty Admlnlstrator
CAP:AT3S
r:~jjJ C~ A~.,-AJ
Estelle Gunkel, Mayor
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