Resolution Number 19-16 TIF District
RESOLUTION NUMBER 18-16
MODIFYING THE DEVELOPMENT PROGRAM RELATING TO DEVELOPMENT DISTRICT NO. 1, THE PROPOSED ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 15 WITHIN THE DEVELOPMENT DISTRICT NO. 1 AND THE PROPOSED ADOPTION OF A TAX INCREMENT FINANCING PLAN RELATING THERETO
WHEREAS, It has been proposed that the City of Mountain Iron, Minnesota (the “City”) modify the Development Program for Municipal Development District No. 1 (“the Development District”), establish Tax Increment Financing (Economic Development) District No. 1-15 (the “TIF District”) therein and approve and accept the proposed Tax Increment Financing Plan (the “TIF Plan”) therefor, pursuant to Minnesota Statutes, Sections 469.124 through 469.134 and Minnesota Statutes, Sections 469.174 through 469.1794, both inclusive, as amended (the “Act”); and
WHEREAS, The City Council has investigated the facts and has caused to be prepared a proposed modification to the Development Program for the Development District, and has caused to be prepared a proposed TIF Plan for the TIF District; and
WHEREAS, The City has performed all actions required by law to be performed prior to the establishment of the TIF District and the TIF Plan therefor, and the adoption of the modified Development Program for the Development District, including, but not limited to, notification of St. Louis County and Mountain Iron and Buhl Independent School District (ISD #712) having taxing jurisdiction over the property to be included in the TIF District and the holding of a public hearing upon published and mailed notice as required by law.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MOUNTAIN IRON, MINNESOTA, as follows:
- Municipal Development District No. 1. The modified Development Program for the Development District contained in Article II of the TIF Plan for the TIF District is hereby ratified and affirmed.
- Tax Increment Financing (Economic Development) District No. 1-15. The TIF District is hereby established in the City within the Development District, the initial boundaries of which are fixed and determined as described in the TIF Plan for the TIF District.
- Tax Increment Financing Plan. The TIF Plan is adopted as the tax increment financing plan for the TIF District and the findings made within are hereby incorporated by reference. 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 and Minnesota Statutes, Section 469.176, Subd. 4c.
- Development in the TIF District will result in preservation and enhancement of the tax base of the state.
- The proposed development, in the opinion of the City Council, would not occur solely through private investment. The reasons supporting this finding are that:
- The need for the use of tax increment financing has been determined in negotiations with the developer of the project. The developer has attested to inability to undertake the project without the assistance provided by the City. The extraordinary cost of the land acquisition costs, site improvements and preparation costs have proven to be prohibitive. Tax increments are needed to assist with these development costs for the property.
The proposed project will allow a business to attract new development and retain neighboring businesses and new development in the area in and around the commercial-retail area of the City. The proposed development consists of the construction of an approximately 11,500 square feet commercial-retail facility. Tax increments may be used to provide assistance for up to 15,000 square feet of any separately owned commercial facility located within a “small city” pursuant to Minnesota Statutes Section 469.176, Subd. 4c. Tax increments from the TIF District will be used to provide financial assistance to the proposed development for which it would qualify for inclusion within an economic development district pursuant to the “small cities” exception. The planned development will result in an increase in tax base for the City and new commercial-retail jobs. Retaining this business and related jobs is important to the economic future of the community.
- Private investment will not finance these development activities because of the prohibitive costs of the underlying infrastructure and site improvements. It is necessary to finance a portion of these costs through the use of tax increment financing.
- 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.
- In the opinion of the City Council, 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. The reasons supporting this finding can be found in Exhibit I of the TIF Plan.
(d) The TIF Plan for the TIF District conforms to the general plan for development of the City as a whole. The reasons for supporting this finding are that:
(i) The TIF District is properly zoned; and
(ii) The TIF Plan will generally complement and serve to implement policies adopted in the City’s comprehensive plan.
- The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Development District by private enterprise.
The reasons supporting this finding are that the development activities are necessary so that development and redevelopment by private enterprise can occur within the Development District.
- Public Purpose. The adoption of the modifications to the Development Program for the Development District, and the adoption of the TIF Plan for the TIF District therein conform in all respects to the requirements of the Act and will help fulfill a need to provide employment opportunities, to improve the tax base and to improve the general economy of the State and thereby serve a public purpose.
- Certification and Filing. The City Clerk is authorized and directed to transmit a certified copy of this resolution together with a certified copy of the TIF Plan 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 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 Act.
- 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.
DULY ADOPTED BY THE CITY COUNCIL THIS 21st DAY OF MARCH, 2016.
Mayor Gary Skalko