HomeMy WebLinkAbout2000.04.17 RESO 2000-0009u 0
CITY OF HUGO
WASHINGTON COUNTY
STATE OF MINNESOTA
Council member Debra Barnes introduced the following resolution and moved its adoption:
RESOLUTION NO. 2000-9
RESOLUTION MODIFYING THE TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 1-1 WITHIN DEVELOPMENT
DISTRICT NO. 1.
BE IT RESOLVED by the City Council (the "Council") of the City of Hugo, Minnesota (the "City"),
as follows:
Section 1. Recitals.
1.01. The City of Hugo (the "City") has heretofore established Tax Increment Financing District
No. 1-1 within Development District No. 1 and adopted a Tax Increment Financing Plan (the "Plan")
therefor. It has been proposed that the City modify the Tax Increment Financing Plan (the "Plan
Modification") for Tax Increment Financing District No. 1-1 ("District No. 1-1"); all pursuant to and in
conformity with applicable law, including Minnesota Statutes, Sections469.174through469.179(the"Act"),
all inclusive, as amended, all as reflected herein, and presented for the Council's consideration. Generally,
the substantive changes to the Tax Increment Financing Plan include an administrative modification to the
Plan's budget line items. This modification will not increase the Plan's total budget. The purpose of this
Plan Modification is to ensure the DistrictNo. l -1's budget accurately reflects project expenditures. The City
is not modifying the boundaries of District No. 1-1 or term of TIF District No. 1-1.
1.02. The Council has investigated the facts relating hereto.
1.03. The City has performed all actions required by law to be performed prior to the adoption and
approval of the proposed Modified Plan. Because of the nature of this modification, and because this
Modification does not entail an enlargement of geographic area, an increase in the amount of bonded
indebtedness, an increase to the amount of interest on debt, an increase in the portion of the captured net tax
capacity, or an increase in the total estimated tax increment expenditures, this modification is not subject to
a public hearing requirement.
Section 2. Findings:
2.01. The existing budget as adopted on February 7, 2000 for District No. 1-1 is attached hereto
in Exhibit A. The City is not increasing the total amount of the budget or total project costs to be financed
from tax increment in District No. 1-1. The City hereby modifies the budget for District No. 1-1 as
illustrated in Exhibit A attached hereto.
2.02. The Council hereby reaffirms the original findings previously made for District No. 1-1,
as a "redevelopment district" under Minnesota Statutes, Section 469.174, subd. 10 (a)(1).
2.03. The Council reaffirms that the Modified Plan conforms to the general plan for the
development or redevelopment of the City as a whole.
2.04 The City Council reaffirms the Modified Plan will afford maximum opportunity consistent
with the sound needs of the City as a whole, for the development of District No. 1-1 by private enterprise,
in that the intent is to provide only that public assistance necessary to make the private development financial
feasible.
Section 3. Public Purpose.
3.01. The Council hereby finds that the Plan Modification conforms in all respects to the
requirements of the Act and will help fulfill the need to develop an area of the State which is ah-eady built
up to provide employment opportunities, to increase the tax base, and to improve the general economy of
the state and thereby serves a public purpose.
Section 4. AAvroval of the Modified Plan: Filing.
4.01. The Plan Modification is hereby approved, and shall be placed on file in the office of the
City Clerk/Treasurer. Approval of the Plan Modification does not constitute approval of any project or a
development agreement with any developer.
4.02. The staff of the City are authorized to file the Plan Modification with the State Department
of Revenue and the Crow Wing County Auditor.
4.03. The staff of the City, the City's advisors and legal counsel are authorized and directed to
proceed with the implementation of the Plan Modification and for this purpose to negotiate, draft, prepare
and present to this Council for its consideration all further plans, resolutions, documents and contracts
necessary for this purpose.
The motion for the adoption of the foregoing resolution was duly seconded by Council member
Walter Stoltzman, and upon a vote being taken thereon, the following voted in favor thereof:
and the following voted against the same: None
Dated: April 17, 2000
rPIF �
TIO
(Seal)
ATTEST:
City Cle. easurer
EXHEBrr A
Subsection 2-10 Uses of Funds
Uses of Funds
Original TIF Plan
As approved
8/18/1996
Most Recent
Modification
As of 2/7/2000
Line Item Budget
Modification
As of 4/17/2000
Land/building acquisition
2,000,000
2,000,000
2,200,000
Site improvements/preparation
400,000
400,000
400,000
Installation of public utilities
500,000
1,100,000
1,100,000
Parking facilities
0
0
0
Streets and sidewalks
1,500,000
2,500,000
2,300,000
Public park facilities
0
0
0
Social, recreational, conference
0
0
0
Interest reduction payments
0
0
0
Bond principal payments
0
5,000,000
5,000,000
Bond interest payments
0
5,180,000
5,180,000
Loan principal payments
0
0
0
Loan/note interest payments
0
0
0
Administrative costs
400,000
400,000
400,000
Other (public improvements
1,600,000
0
0
State Auditor Fee
0
0
0
Total Uses of Funds 6,400,000 16,580,000 16,580,000