2016-075 Council Resolution - Laserfiche WebLink

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The plan includes the City's findings that, in our opinion, due to extraordinary costs associated with the project including poor soils, street extension, creek crossing, and flood mitigation, the project would not be reasonably expected to occur solely through private investment. The estimated public costs eligible for reimbursement from tax increment total $2,603,627. Tax increment revenues generated from the development are expected to equal this amount. Approval of the plan and determination of eligible costs does not obligate the City/EDA to any specific district duration or amount of assistance. The determination of any specific assistance package will be part of a separate contract for development. The EDA will be holding a public hearing following the City Council meeting to consider a business subsidy in the amount of $1,200,000 for the proposed development. Modified Program for Development District No. 1 The City has previously determined there to be a need to offer assistance to encourage development of the area of the community established as Development District No. 1. The City established District No. 1 in 1987. The boundaries where last expanded in 1997 in connection with TIF District 1-8. The City/EDA have previously created 11 TIF Districts within the Development District. The purpose of the modification is to acknowledge the intent to create TIF District 1-12, create a TIF Plan to assist with the development of the warehousing facility and to modify the boundaries to match the corporate limits. Representatives from Springsted Inc., the City's financial consultant, and Kennedy & Graven, the City's Development Counsel will be present at the meeting to address any City Council questions. RECOMMENDATION Staff recommends approval of Resolution No. 16-75 ATTACHMENTS 1. Resolution No. 16-75 2. Springsted Summary Memo 3. Tax Increment Financing Plan for District 1-12 4. Development Program for Development District No. 1