Resolution 42-98 TIF 10
APPROVING A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 10 IN REDEVELOPMENT PROJECT NO. 1 AS PROPOSED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MOUNTAIN IRON
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 Housing and Redevelopment Authority in and for the City of Mountain Iron, Minnesota (the “Authority”), desires to promote development of property located in the City.
1.02 In order to promote such development, the Authority has established Redevelopment Project No. 1 in the City (the “Project”) in the City and has adopted a Modified and Restated Redevelopment Plan (the “Redevelopment Plan”) therefor pursuant to Minnesota Statutes, Sections 469.027, 469.028 and 469.029, subdivision 5 (collectively, the “Act”).
1.03 The Authority is considering establishment of Tax Increment Financing District No. 10 (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 to hold a public hearing on the TIF Plan and approve the TIF Plan, which hearing was held this day, at which the views of all interested parties were heard.
1.05 The Authority has previously transmitted a copy of the Redevelopment Plan to the planning agency of the City.
1.06 The Authority has previously transmitted a copy of the written opinion of the planning agency to the Council along with a copy of the Redevelopment Plan in a document entitled “Redevelopment Plan for Redevelopment Project No. 1,” which is now on file in the office of the City Administrator.
1.07 The Authority has currently transmitted a copy of the TIF Plan to the Council in a document entitled “Tax Increment Financing Plan for Tax Increment Financing District No. 10,” which is now on file in the office of the City Administrator.
1.08 Pursuant to Minnesota Statutes, Section 273.1399 (the “Section”), upon creation of the District, the City will experience a reduction in state aids to be paid to the City (the “Reduction”) unless an exemption provided in the Section applies.
1.09 Pursuant to the Section, the District is exempt from the Reduction if the City elects at the time of approving the tax increment financing plan for the District to make a qualifying local contribution (the “Contribution”).
1.10 After investigation of the facts, the Council is of the opinion that: is necessary for the sound and orderly development of the Project and of the City as a whole and for the protection and preservation of the public health, safety and general welfare, that the powers authorized by the Act and the TIF Act be exercised by the Authority to provide public financial assistance to the Project; proper development of the Project and implementation of the Redevelopment Plan in accordance with the City’s long range plans is essential to the economic viability of the Project, the economic well-being of the City and its residents and the orderly development of the City; it is necessary for the orderly and beneficial development of the Project to ensure the construction of and provide moneys for the payment of the cost of certain public improvements within the Project, including site improvements, in order to provide and finance development of suitable and necessary sites for development; there is a need for new development within the Project to provide employment opportunities for residents of the City, the surrounding communities and the State of Minnesota (the “State”), to improve the tax base of the City and the State, to improve the general economy of the City and the State, and to provide other facilities identified in the Redevelopment Plan and TIF Plan; creation of the Project and District is in the public interest and will result in increased employment in the City and in the preservation and enhancement of the tax base of the City; that the District is intended and, in the judgment of the City, its effect will be to promote the public purposes and accomplish the objectives specified in the Redevelopment Plan, which are all consistent with the efforts already made for the development of the Project.
1.11 The Council has fully reviewed the contents of the Redevelopment Plan and 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 Project and the District.
2.02 It is the opinion of the Council, based on discussions with developers of 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.
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.
2.05 The City is a “small city” within the meaning of Section 469.174, subdivision 27, being a city organized under Minnesota Statutes, Chapter 412 and located 10 miles or more from a Minnesota city with a population 10,000 or more.
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 which documents are incorporated herein by reference and which together with this Resolution contain the requirements set forth in Section 469.028, subdivision 2 of the Act and Section 469.175, subdivision 3 of the TIF Act.
Section 4. Designation of District.
4.01 The proposed District is an “economic development district” as defined by Section 469.174, subdivision 12 of the TIF Act because: it consists of a portion of the Project not meeting the requirements found in the definition of redevelopment district, renewal and renovation district, soils condition district, mine underground space development district, or housing district, but which the City hereby finds to be in the public interest because:
(a) it will discourage commerce, industry or manufacturing from moving operations to another state or municipality;
(b) it will result in increased employment in the state; and
(c) it will result in preservation and enhancement of the tax base of the state.
4.02 As permitted and required by Section 469.176, subdivision 4c(c) of the TIF Act:
(a) revenues derived from tax increment from the District will be used to assist less than 15,000 square feet of separately owned commercial facility and for administrative expenses;
(b) Range Regional Health Services, d/b/a University Medical Center – Mesabi, a Minnesota nonprofit corporation (the “Developer”), has represented to the Authority that tax increment assistance is necessary to the develop an approximately 7,500 square foot building for use as office and/or clinic space within the District (the “Project”); and
(c) all tax increment from the District will be spent only for activities within the District.
Section 5. Qualifying Local Contribution.
5.01 Since the District is an economic development district, the City hereby elects to make a Contribution equal to 10% of the increment from the District.
5.02 The Contribution for all tax increment financing districts in the City is limited to 2% of the City net tax capacity, except as otherwise provided by the Section.
5.03 The City Administrator is hereby directed to submit to the Commissioner of Revenue by March 15 of each year a report on the Contributions made for the District in the preceding year.
5.04 The Contribution will be paid out of unrestricted money of the City or the Authority, including but not limited to moneys from the general fund, a property tax levy or a federal or state grant in aid which may be spent for general government purposes, and will not be made directly or indirectly with tax increments or developer payments.
5.05 The Contribution will be used solely to pay project costs set forth in the TIF Plan and will not be used for general governmental purposes or for improvements or costs that the City or Authority plans to incur absent the project described in the TIF Plan.
DULY PASSED AND ADOPTED THIS 21ST DAY OF SEPTEMBER, 1998