RES 16-40CITY OF OTSEGO
WRIGHT COUNTY
STATE OF MINNESOTA
Council member Heidner introduced the following resolution and moved its adoption:
RESOLUTION NO. 2016-40
RESOLUTION ADOPTING A MODIFICATION TO THE TAX INCREMENT
FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1 —
GREAT RIVER CENTRE.
BE IT RESOLVED by the City Council (the "Council") of the City of Otsego, Minnesota (the
"City"), as follows:
Section 1. Recitals
1.01. The City Council of the City of Otsego has heretofore established Development District
No. 1 (the "Development District") and adopted the Development Program therefor, and has also
established within the Development District, Tax Increment Financing District No. 1— Great River Centre
(the "TIF District") and approved a tax increment financing plan ("TIF Plan") for the TIF District. It has
been proposed that the City adopt a Modification to the Tax Increment Financing Plan (the "TIF Plan
Modification") for the TIF District, all pursuant to and in conformity with applicable law, including
Minnesota Statutes, Sections 469.124 to 469.133 and Sections 469.174 to 469.1794, all inclusive, as
amended, (the "Act") all as reflected in the TIF Plan Modification, and presented for the Council's
consideration.
1.02. The City has investigated the facts relating to the TIF Plan Modification and has caused
the TIF Plan Modification to be prepared.
1.03. The City has performed all actions required by law to be performed prior to the adoption
and approval of the proposed TIF Plan Modification, including, but not limited to, notification of Wright
County, Independent School District No. 728, having taxing jurisdiction over the property included in the
TIF District, and the holding of a public hearing upon published notice as required by law.
1.04. The City is not modifying the boundaries of the Development District or the TIF District.
Section 2. Findings for the TIF Plan Modification
2.01 The Council hereby reaffmns the original findings for the TIF District, namely that when
the TIF District was established, the TIE District was established as an "economic development district"
under Minnesota Statutes, Section 469.174, Subd. 12 of the Act. In addition, the City makes the following
findings:
(i) The proposed redevelopment described in the TIF Plan Modification would not
reasonably be expected to occur solely through private investment within the reasonably
foreseeable future. The City reaffirms the original findings for the TIF District, namely
that the proposed redevelopment within the TIF District would not reasonably be
expected to occur solely through private investment within the reasonably foreseeable
future.
(ii) The increased market value of the site that could reasonable be expected to occur solely
through private investment without the use of tax increment financing would be less than
the increase in market value estimated to result from the proposed development after
subtracting the present value of the projected increments for the maximum duration of
the districts permitted by the TIF Plan. The City reaffirms the original findings of the TIF
Plan, namely that the development proposed is a manufacturing facility that meets the
City's objectives for economic development and no development of a similar scope is
anticipated on this site without substantially similar assistance being provided to the
development.
(iii) The Tax Increment Plan Modification conform to the general plan for the redevelopment
of the City as a whole. The Tax Increment Plan Modification was not reviewed by the
City's Planning Commission as no new development is proposed. The City reaffirms the
original findings that the development in the TIF District conforms to the general plans
for the redevelopment of the City as a whole.
(iv) The Tax Increment Plan Modification will afford maximum opportunity, consistent with
the sound needs of the City as a whole, for the redevelopment of the project by private
enterprise. The TIF Plan Modification will allow for an increase in the budget in light of
revised project costs. The City reaffirms the original findings that the TIE Plan has
afforded maximum opportunity, consistent with the sound needs of the City as a whole,
for the redevelopment of the project by private enterprise.
2.02. Overall, the projects to be assisted by the TIF District will result in increased
employment in the City and the State of Minnesota, increased tax base of the State and add a high quality
development to the City.
Section 3. Public Purpose
3.01. The adoption of the TIF Plan Modification conforms in all respects to the requirements of
the Act and will help discourage commerce, industry, or manufacturing from moving their operations to
another state or municipality, will result in increased employment in the state, and will result in
preservation and enhancement of the tax base of the State and thereby serves a public purpose. The City
believes these benefits directly derive from the tax increment assistance provided under the TIF Plan. A
private developer will receive only the assistance needed to make this development financially feasible.
As such, any private benefits received by a developer are. incidental and do not outweigh the primary
public benefits.
Section 4. Approval and Adoption of the TIF Plan Modification
4.01. The TIF Plan Modification is hereby approved, and shall be placed on file in the office of
the City Administrator. Approval of the TIE Plan Modification does not constitute approval of any project
or a development agreement with any developer.
4.02. City staff is authorized to file the TIF Plan Modification with the Commissioner of
Revenue, the Office of the State Auditor and the Wright County Auditor.
4.03. City staff, the City's advisors and legal counsel are authorized and directed to proceed
with the implementation of the TIF Plan Modification and for this purpose to negotiate, draft, prepare and
present to this Council for its consideration all further modifications, resolutions, documents and contracts
necessary for this purpose.
The motion for the adoption of the foregoing resolution was duly seconded by Council member
Warehime , and upon a vote being taken thereon, the following voted in favor thereof:
Stockamp, Heidner, Warehime, Darkenwald, Schroeder
and the following voted against the same:
None
Dated: April 11, 2016
ATTEST:
Jessiba Stockamp, Mayor Tami Loff, City Cleric