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87-071 RES . . . 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. . (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. . (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. . 9. That a proposed modification of the TIF plan for TIF District No. 3 (the Modification) has been prepared by City 2 . . . . 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. 3 . . . . 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. 4 . . . . 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: ~J/~ ~ . .. . Patrlck Klaers, Clty Admlnlstrator CAP:AT3S r:~jjJ C~ A~.,-AJ Estelle Gunkel, Mayor 5 .