Resolution Number 07-24

EXTRACT OF MINUTES OF A MEETING OF THE

CITY COUNCIL OF THE CITY OF

MOUNTAIN IRON, MINNESOTA

HELD: May 6, 2024

Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Mountain Iron, St. Louis County, Minnesota, was duly held on the 6^th day of May, 2024 at 6:30 p.m.

The following members of the Council were present:

and the following were absent:

Member ________________ introduced the following resolution and moved its adoption.

RESOLUTION NUMBER 07-24

RESOLUTION APPROVING THE MEDICATION OF DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1, ESTABLISHING TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 1-17 (VIKING COCA-COLA) AND APPROVING THE TAX INCREMENT FINANCING PLAN THEREFOR WITHIN DEVELOPMENT DISTRICT NO. 1

WHEREAS:

469. The City of Mountain Iron, Minnesota (the “City”) has proposed to modify the Development Program (the “Development Program”) for Development District No. 1 (the “Development District”) and has proposed to establish Tax Increment Financing (Economic Development) District No. 1-17 (Viking Coca-Cola) (the “TIF District”) therein and approve and accept the proposed Tax Increment Financing Plan therefor (the “TIF Plan”) under the provisions of Minnesota Statutes, Sections 469.124 through 469.133, both inclusive, as amended and Minnesota Statutes, Sections 469.174 through 469.1794, both inclusive, as amended (collectively, the “Act”); and
470. The City has performed all actions required by law to be performed prior to the modification of the Development Program and the establishment of the TIF District therein and the adoption of the proposed TIF Plan relating thereto, including, but not limited to, notification of St. Louis County and Mountain Iron-Buhl School District (ISD No. 712) having taxing jurisdiction over the property to be included in the TIF District; and
471. The City Council of the City (the “Council”) has fully reviewed the contents of the Development Program and the TIF Plan, and on this date conducted a public hearing thereon at which the views of all interested persons were heard.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mountain Iron as follows:

1. Development Program for Development District No. 1. The modification of the Development Program for Development District No. 1, including a restatement of the Development Program, is approved and adopted.
2. Tax Increment Financing (Economic Development) District No 1-17 (Viking Coca-Cola). Tax Increment Financing (Economic Development) District No. 1-17 (Viking Coca-Cola) is hereby established within the Development District.  The initial boundaries of the TIF District are fixed and determined as described in the TIF Plan.
3. Tax Increment Financing Plan. The TIF Plan is adopted as the tax increment financing plan for the TIF District.
4. Findings. In taking these actions, the City Council makes the following findings:
   • The TIF District is an economic development district as defined in Minnesota Statutes, Section 469.174, Subd. 12. The basis for these findings is described in Section 3.03.3 of the TIF Plan.
   • The proposed development, in the opinion of the City Council, would not occur solely through private investment within the reasonably foreseeable future. The Developer has represented to the City that it would not undertake the project as proposed without the City’s use of tax increment financing.  Previous City planning attests to the difficulty of redeveloping this site solely through private financing.  Due to the necessity of removing structurally substandard buildings, preparing property for development, and constructing public improvements, the City Council finds that public financing assistance for the development activities proposed in the TIF Plan is necessary so that other development by private enterprise will occur within the Development District and the TIF District.
   • The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan.  A comparative analysis of estimated market values both with and without establishment of the TIF District and the use of tax increments has been performed as described above.  Such analysis is found in Exhibit I of the TIF Plan, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the TIF District and the use of tax increments.
   • The TIF Plan for the TIF District conforms to the general plan for development or redevelopment of the City as a whole. Section 3.02.4 of the TIF Plan contains information used in making this finding.
5. Public Purpose. The adoption of the Development Program for the Development District and the TIF Plan for the TIF District conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State which is already built up to provide employment opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose and will afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development or redevelopment of the project area by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible.
6. Certification and Filing. The City Administrator is authorized and directed to transmit a certified copy of this resolution together with a certified copy of the TIF Plan for TIF District No. 1-17 (Viking Coca-Cola) to the Auditor of St. Louis County with a request that the original tax capacity of the property within the TIF District be certified to the City pursuant to Section 469.177, Subd. 1 of the TIF Act, and to file a copy of the Development Program and the TIF Plan with the Minnesota Commissioner of Revenue and State Auditor as required by the TIF Act.
7. Administration. The administration of the Development District and the TIF District is assigned to the City Administrator who shall from time to time be granted such powers and duties pursuant to the Act as the City Council may deem appropriate.

The motion for the adoption of the foregoing resolution was duly seconded by member _________________ and upon vote being taken thereon, the following voted in favor thereof:

and the following voted against the same:

Whereupon said resolution was declared duly passed and adopted.

STATE OF MINNESOTA

COUNTY OF ST. LOUIS

CITY OF MOUNTAIN IRON

I, the undersigned, being the duly qualified and acting Administrator of the City of Mountain Iron, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to tax increment financing in the City.

WITNESS my hand this 6^th day of May, 2024.

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City Administrator