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HomeMy WebLinkAboutRES 2007-23 APPROVING MODIFICATION NO. 4 TO THE DEVELOPMENT DISTRICT PROGRAM FOR MUNICIPAL DEVELOPMENT DISTRICT NO.1 AND MODIFICATION NO. 4 TO THE TAX INCREMENT FINANCING PLAN FOR THE TAX INCREMENT FINANCING DISTRICT NO.1 f'1^'y r `' , i � . ..;v�;;';,�:���� h,"�,S BE�N S,AN,"�JED CITY OF CORCORAN RESOLUTION NO. 2007-23 Motion By: G r a b o w s k i Seconded By: T h o m a s RESOLUTION APPROVING MODIFICATION NO. 4 TO'THE DEVELOPMENT DISTRICT PROGRAM FOR MUNICIPAL DEVELOPMENT DISTRICT NO. 1 AND MODIFICATION NO. 4 TO TI�TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1. BE IT RESOLVED by the City Council ("Council") of the City of Corcoran, Minnesota(the"City") as follows: Section 1. Recitals. 1.01. The City of Corcoran(the"City") previously created its Development District No. 1 ("Development District") and a Development Program (the "Program") therefor, pursuant to Minnesota Statutes, Sections 469.124 through 469.134(the"Development District Act"). 1.02. Within the Development District, the City has created T� Increment Financing District No. 1 (the"TIF District"), and a Taac Increment Financing Plan(the"TIF Plan")therefor; a11 pursuant to Minnesota Statutes, Sections 469.174 through 469.1799, as amended(the"TIF Act"). 1.03. The City has determined a need to expand the boundaries of the Development District in order to help facilitate additional development financed with tax increments from the TIF District, which expansion also constitutes a modification of the TIF Plan for the TIF District. 1.04. Accordingly, the City has determined a need to modify the Development Progam and the TIF Plan, and has caused to be prepared a document entitled "City of Corcoran, Minnesota, Modification No. 4 to the Development Program for Municipal Development District No. 1, and Modification No. 4 to the Taa� Increment Financing Plan For Taac Increment Financing District No l." 1.05. Estimates of the fiscal and economic implications of the modified TIF Plans were presented to Hennepin County at least 30 days before the public hearing on the TIF Plans on March 22, 2007. The County Commissioner who represents the site also received timely notice of the Tax Increment Financing Plan. Further, the City delivered a copy of the modified TIF Plan and Development Program to Independent School District Nos. 833 and 877, and received written comments form the boards of those school districts waiving the 30-day notice period. 1.06. This Council has fully reviewed the contents of the modified Program and TIF Plan, and date conducted a public hearing thereon on March 22, 2007 and continued on April 12, 2007, at which the views of all interested persons were heard. 1.07. The City has submitted the modified Program and TIF Plan to the City Planning Commission, which has found that they conform to the comprehensive City Plan. Section 2. Finding,s; Development District. 2.01. It is hereby found and determined that within the Development District there is a need to encourage development within areas which are already built up, to provide employment opportunities, to improve the tax base, and to provide an impetus for commercial development. 2.02. It is further found and determined that, since initial establishment of the Development District, development and redevelopment needs have expanded to include the additional area shown in the modified Development Progam. 2.03. It is further specifically found and determined that the development described in the Development Program as modified would not be feasible without the public intervention and financial assistance described in the modified Program and TIF Plan. Section 3. Findings: TIF District No. 1. 3.01. It is found and determined that it is necessary and desirable for the sound and orderly development of the Development District, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF Act be exercised by the City to provide public financial assistance to the TIF and Development Districts. 3.02. It is further found and determined, and it is the reasoned opinion of the City, that the development proposed in the modified Program and TIF Plan could not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that therefore the use of tax increment financing is necessary. 3.03. The proposed public improvements to be financed in part through ta.�� increment financing are necessary to permit the City to realize the full potential of the TIF and Development Districts in terms of development intensity, employment opportunities and tax base. 3.04. The modified TIF Plan conforms to the general plan of development of the City as a whole. 3.05. The modified TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the TIF and Development Districts by private enterprise. 3.06. This modification does not change the classification or boundaries of the TIF District. The TIF District remains classified as a redevelopment district under Section 469.174, subd. 10 of the TIF Act(as of the date of request for certification). 3.07. Reasons and facts suppo�ting the above findings are set forth in E�ibit A hereto. The Council has also relied upon the reports and recommendations of its staff and consultants as well as the personal knowledge of inembers of the Council in reaching its conclusions regarding the modified Program and TIF Plan. 307745v1 MNI CR100-ll 7 Section 4. Modified Prog�'am and TIF Plan Adopted; Filin� . 4.01. The modified Progam and TIF Plans are hereby approved and adopted. 4.02. The geogaphic boundaries of the Development District are expanded to include the area specified in the modified Development Program. The geographic boundaries of the TIF District are not changed by this action. 4.03. The City Clerk is authorized and directed to file a copy of this resolution together with a copy of the modified Progam and TIF Plan to the Auditor of Hennepin County, and to file a copy of those documents with the Minnesota Commissioner of Revenue and the State Auditor as required by the TIF Act; provided that nothing herein shall be deemed to constitute a request for certification of any parcel or TIF District. Approved by the City Council of the City of Corcoran this 12�'day of April, 2007. Voting Aye : Grabowski , Gunehtner , Hudok , Jacobs and Thomas . CITY OF CORCORAN �C� �--- Mayor ATTEST: � , w� City Clerk (A c t i n g) 307745v1 MNI CR100-11 � EXHIBIT A Statement of Facts Supporting Findings The reason for the TIF Plan modification is solely to recognize the expansion of the Development District, and to authorize expenditures for additional infrastructure costs in the expanded area. The specific development to be assisted is a business park to be established by United Properties or a related entity. The City has determined that the interchange improvements at Highway 55 and Pioneer Trail are required in order to proceed with Phase II, the retail portion of the business park. The cost of such interchange improvements, if added to special assessments for the other the improvements needed for the business park, would impair the ability to develop the business park in full. Therefore, the City believes that, absent the tax increment assistance for the interchange improvements, full development of the business park would be unlikely to occur in the reasonably foreseeable future. The proposed business park will create approximately 500,000 square feet of industrial and commercial space, adding significant jobs and t� base. The City Planning Commission has found that the business park development is consistent with the City comprehensive plan. 307745v1 MNI CR100-11 4