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RES 17-57CITY OF OTSEGO WRIGHT COUNTY STATE OF MINNESOTA Council member Heidner introduced the following resolution and moved its adoption: RESOLUTION NO. 2017-57 RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. I 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 Tanner , and upon a vote being taken thereon, the following voted in favor thereof: Stockamp, Heidner, Darkenald, Tanner and the following voted against the same: None Dated: July 17, 2017 Qww` JAM Stockamp, Mayor ATTEST: Adamahe , City Admi strator EXHIBIT A RESOLUTION NO. 2017-57 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: Finding that Tax Increment Financing District No. 3 -Guardian Angels Riverview Landing is a housing district as defined in MS, 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. I by private enterprise. Through the implementation of the TIF Plan, the City will provide an impetus for residential E development, which is desirable or necessary for increased population and an increased need for life -cycle housing within the City.