Resolution 08-08 TIF Approval

RESOLUTION NUMBER 08-08

APPROVING A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 14 AS PROPOSED BY THE MT IRON ECONOMIC DEVELOPMENT AUTHORITY

BE IT RESOLVED by the City Council (the “Council”) of the City of Mountain Iron, Minnesota (the “City”) as follows:

Section 1. Recitals; Findings.

1.01 The Council has been informed that the Mt. Iron Economic Development Authority (the “Authority”) desires to promote development of property located in the City.

1.02 In order to promote such development, the Authority has established Project Area No. 1 (the “Project”) in the City and adopted a Redevelopment Plan/Development Program (the “Redevelopment Plan”) therefor pursuant to Minnesota Statutes, Sections 469.001 through 469.047, 460.090 through 469.1081 and 469.124 through 469.134 (the “Act”). 

1.03 The Authority is additionally considering establishment of Tax Increment Financing District No. 14 (the “District”) within the Project and adoption of a Tax Increment Financing Plan (the “TIF Plan”) therefor pursuant to Minnesota Statutes, Sections 469.174 through 469.179 (the “TIF Act”) for the purpose of financing public improvements and encouraging investment in the Project. The Authority has prepared the TIF Plan in accordance with the TIF Act.

1.04 Pursuant to Section 469.175, Subdivision 3 of the TIF Act, the Authority has requested the City hold a public hearing on the TIF Plan and approve the TIF Plan, which hearing was held February 19, 2008, at which the views of all interested parties were heard. 

1.05 The Authority has transmitted a copy of the TIF Plan to the City in a document entitled “Tax Increment Financing Plan for Tax Increment Financing District No. 14,” which is now on file in the office of the City Administrator.

1.06 The Council has been provided with a copy of the TIF Plan.

Section 2. Statutory Findings.

2.01 The land in the Project would not be made available for redevelopment without the financial aid to be sought by establishing the District.

2.02 It is the opinion of the Council, based on discussions with representatives of the Authority regarding projects proposed to be constructed in the District and information contained in the Redevelopment Plan and the TIF Plan: that development and redevelopment within the District would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future; that the increased market value of the site to be included in the District 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 development in the District after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan; and that the use of tax increment financing is necessary. Appendix G to the TIF Plan sets out the following:

(a) an estimate of the amount by which the market value of the District will increase without the use of tax increment financing;

(b) an estimate of the increase in the market value that will result from the development or redevelopment to be assisted with the tax increment financing described herein; and

(c) the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan.

2.03 Based on information contained in the Redevelopment Plan and the TIF Plan, the TIF Plan conforms to the general plan for the development and redevelopment of the City as a whole.

2.04 Based on information contained in the Redevelopment Plan and the TIF Plan, the TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development and redevelopment of the Project by private enterprise. 

Section 3. Approval.

3.01 The TIF Plan is approved.

3.02 The geographic boundaries of the Project and District are described in the Redevelopment Plan and the TIF Plan respectively, which documents are incorporated herein by reference and which, together with this Resolution, contain the requirements set forth in Section 469.028, Subdivision 2 and Section 469.126 of the Act and Section 469.175, Subdivision 3 of the TIF Act.

Section 4. Designation of District. The proposed District is an “economic development district” as defined in Section 469.174, Subdivision 12 of the TIF Act because it consists of a portion of the Project, which the Authority has found to be in the public interest because: (1) it will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; (2) it will result in increased employment in the state; or (3) it will result in preservation and enhancement of the tax base of the state. Tax increment generated from the District will be used solely in accordance with Section 469.176, Subdivision 4c of the TIF Act.

DULY ADOPTED BY THE CITY COUNCIL THIS 20th DAY OF FEBRUARY, 2008.

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Mayor Gary Skalko
ATTEST:

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City Administrator