Approving TIF District (Res)CITY OF OTSEGO
WRIGHT COUNTY
STATE OF MINNESOTA
Council member ______________________ introduced the following resolution and moved its adoption:
RESOLUTION NO. 2017-57
RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT
PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 TO ESTABLISH TAX
INCREMENT FINANCING DISTRICT NO. 3 - GUARDIAN ANGELS
RIVERVIEW LANDING THEREIN AND ADOPTING A TAX INCREMENT
FINANCING PLAN THEREFOR.
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 (the "City") has heretofore established
Development District No. 1 and adopted a Development Program therefor. It has been proposed by the
City that the City adopt a Modification to the Development Program (the "Development Program
Modification") for Development District No. 1 (the "Project Area") and establish Tax Increment
Financing District No. 3 - Guardian Angels Riverview Landing (the "District") therein and adopt a Tax
Increment Financing Plan (the "TIF Plan") therefor (the Development Program Modification and the TIF
Plan are referred to collectively herein as the "Program and Plan"); 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 Program and Plan, and presented
for the Council's consideration.
1.02. The City has investigated the facts relating to the Program and Plan and has caused the
Program and Plan to be prepared.
1.03. The City has performed all actions required by law to be performed prior to the
establishment of the District and the adoption and approval of the proposed Program and Plan, including,
but not limited to, notification of Wright County and Independent School District No. 728 having taxing
jurisdiction over the property to be included in the District and the holding of a public hearing upon
published notice as required by law.
1.04. Certain written reports (the ''Reports") relating to the Program and Plan and to the
activities contemplated therein have heretofore been prepared by staff and consultants and submitted to
the Council and/or made a part of the City files and proceedings on the Program and Plan. The Reports
include data, information and/or substantiation constituting or relating to the basis for the other findings
and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the Reports,
which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set
forth in full herein.
1.05. The City is not modifying the boundaries of Development District No. 1, but is however,
modifying the Development Program therefor.
Section 2. Findings for the Adoption and Approval of the Development Program Modification.
2.01. The Council approves the Development Program Modification, and specifically finds
that: (a) the land within the Project Area would not be available for redevelopment without the financial
aid to be sought under this Development Program; (b) the Development Program, as modified, will afford
maximum opportunity, consistent with the needs of the City as a whole, for the development of the
Project Area by private enterprise; and (c) that the Development Program, as modified, conforms to the
general plan for the development of the City as a whole.
Section 3. Findings for the Establishment of Tax Increment Financing District No. 3 - Guardian
Angels Riverview Landing.
3.01. The Council hereby finds that the District is in the public interest and is a "housing
district" under Minnesota Statutes, Section 469.174, Subd. 11 of the Act.
3.02. The Council further finds that the proposed development would not occur solely through
private investment within the reasonably foreseeable future, that the Program and Plan conform to the
general plan for the development or redevelopment of the City as a whole; and that the Program and Plan
will afford maximum opportunity consistent with the sound needs of the City as a whole, for the
development or redevelopment of the District by private enterprise.
3.03. The Council further finds, declares and determines that the City made the above findings
stated in this Section and has set forth the reasons and supporting facts for each determination in writing,
attached hereto as Exhibit A.
Section 4. Public Purpose.
4.01. The adoption of the Program and Plan conforms in all respects to the requirements of the
Act and will help fulfill a need to develop an area of the City which is already built up, to provide housing
opportunities, to improve the tax base and to improve the general economy of the State and thereby serves
a public purpose. For the reasons described in Exhibit A, 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 5. Approval and Adoption of the Program and Plan.
5.01. The Program and Plan, as presented to the Council on this date, including without
limitation the findings and statements of objectives contained therein, are hereby approved, ratified,
established, and adopted and shall be placed on file in the office of the City Administrator.
5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to
proceed with the implementation of the Program and Plan and to negotiate, draft, prepare and present to
this Council for its consideration all further plans, resolutions, documents and contracts necessary for this
purpose.
5.03 The Auditor of Wright County is requested to certify the original net tax capacity of the
District, as described in the Program and Plan, and to certify in each year thereafter the amount by which
the original net tax capacity has increased or decreased; and the City is authorized and directed to
forthwith transmit this request to the County Auditor in such form and content as the Auditor may
specify, together with a list of all properties within the District, for which building permits have been
issued during the 18 months immediately preceding the adoption of this resolution.
5.04. The City Administrator is further authorized and directed to file a copy of the Program
and Plan with the Commissioner of the Minnesota Department of Revenue and the Office of the State
Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a.
The motion for the adoption of the foregoing resolution was duly seconded by Council member
_________________, and upon a vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
Dated: July 17, 2017
ATTEST:
__________________________________ _____________________________________
Jessica Stockamp, Mayor Adam Flaherty, City Administrator
(Seal)
EXHIBIT A
RESOLUTION NO. ___________
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for
Tax Increment Financing District No. 3 - Guardian Angels Riverview Landing, as required pursuant to
Minnesota Statutes, Section 469.175, Subdivision 3 are as follows:
1. Finding that Tax Increment Financing District No. 3 - Guardian Angels Riverview Landing is a
housing district as defined in M.S., Section 469.174, Subd. 11.
TIF District No. 3 - Guardian Angels Riverview Landing consists of one parcel. The
development will consist of approximately 142 units of independent, assisted-living, and memory
care. All or a portion of which will receive tax increment assistance and will meet income
restrictions described in M.S. 469.1761. At least 20 percent of the units/homes receiving
assistance will have incomes at or below 50 percent of median income. Appendix E of the TIF
Plan contains background for the above finding.
2. Finding that the proposed development, in the opinion of the City Council, would not reasonably
be expected to occur solely through private investment within the reasonably foreseeable future.
The proposed development, in the opinion of the City, would not reasonably be expected to occur
solely through private investment within the reasonably foreseeable future: This finding is
supported by the fact that the development proposed in this plan is a housing district that meets
the City's objectives for development and redevelopment and is intended for occupancy in part by
low and moderate income persons. A portion of units will be income restricted and require
operating subsidy, which means that rental revenues are insufficient to make the project
economically feasibly without public assistance. The necessity of public assistance is true for
most affordable rental housing development in Minnesota.
Due to the high cost of building affordable new housing in the City, this project is feasible only
through assistance, in part, from tax increment financing. The affordable project also requires
public assistance in the form of tax-exempt conduit bonding. The developer has provided its
project budget and financial projections (on file at City Hall) that demonstrate the need for tax
increment assistance as described in the TIF Plan.
3. Finding that the TIF Plan for Tax Increment Financing District No. 3 - Guardian Angels
Riverview Landing conforms to the general plan for the development or redevelopment of the
municipality as a whole.
The City of Otsego Planning Commission has reviewed the developer’s proposal for the site and
approved preliminary zoning finding that the proposed land use conforms to the general
development plan of the City.
4. Finding that the TIF Plan for Tax Increment Financing District No. 3 - Guardian Angels
Riverview Landing will afford maximum opportunity, consistent with the sound needs of the City
as a whole, for the development or redevelopment of Development District No. 1 by private
enterprise.
Through the implementation of the TIF Plan, the City will provide an impetus for residential
development, which is desirable or necessary for increased population and an increased need for
life-cycle housing within the City.