HomeMy WebLinkAbout1996.08.19 RESO 1996-0006EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY
OF HUGO, MINNESOTA
HELD: August 19, 1996
Pursuant to due call and notice thereof, a regular
meeting of the City Council of the City of Hugo, Washington
County, Minnesota, was duly held on the 19th day of August, 1996,
7:00 p.m.
The following members of the Council were present:
Debra Barnes, Andrew Goiffon, James Leroux, Fran Miron
and the following were. absent: Tim Agness
Member Debra Barnes introduced the following
resolution and moved its adoption:
RESOLUTION 96-6
RESOLUTION APPROVING THE ESTABLISHMENT
OF DEVELOPMENT DISTRICT NO. 1
AND THE ADOPTION OF THE DEVELOPMENT PROGRAM
RELATING THERETO, AND THE ESTABLISHMENT OF
TAX INCREMENT FINANCING DISTRICT NO. 1-1 THEREIN AND
APPROVING THE TAX INCREMENT
FINANCING PLAN RELATING THERETO
WHEREAS:
A. It has been proposed that the City of Hugo, Minnesota
(the "City"), establish Development District No. 1 and adopt a
development program with respect thereto, and establish Tax
Increment Financing District No. 1-1 therein and adopt a tax
increment financing plan with respect thereto, under the
provisions of Minnesota Statutes, Sections 469.124 to 469.134 and
469.174 to 469.179 (collectively, the "Act");
B. The Council has investigated the facts and has caused
to be prepared a proposed development program for Development
District No. 1, and has caused to be prepared a proposed tax
increment financing plan for Tax Increment Financing District No.
1-1; and
C. The City has performed all actions required by law to
be performed prior to the establishment of Development District
No. 1 and Tax Increment Financing District No. 1-1 and the
adoption of the proposed development program and tax increment
financing plan relating thereto, including, but not limited to,
notification of Washington County and Independent School District
No. 624 having taxing jurisdiction over the property to be
included in Tax Increment Financing District No. 1-1, a review by
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the City Planning Commission of the proposed Development Program
for Development District No. 1, and the holding of a public
hearing upon published and mailed notice as required by law.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of
the City of Hugo as follows:
1. Development District No. 1. There is hereby
established in the City of Hugo Development District No. 1, the
initial boundaries of which are fixed and determined as described
in the Development Program.
2. Development Program. The development program for
Development District No. 1, a copy of which is on file in the
office of the City Administrator, is adopted as the Development
Program for Development District No. 1.
3. Tax Increment Financing District No. 1-1. There
is established in the City of Hugo within Development District
No. 1 a tax increment financing district, the initial boundaries
of which are fixed and determined as described in the Tax
Increment Financing Plan.
4. Tax Increment Financing Plan. The Tax Increment
Financing Plan is adopted as the tax increment financing plan for
Tax Increment Financing District No. 1-1, and the City Council
makes the following findings:
(a) Tax Increment Financing District No. 1-1 is a
redevelopment district as defined in Minnesota Statutes, Section
469.174, Subd. 10(a)(1) and (2) and consists of thirty-four (34)
parcels. Four (4) parcels qualify under Minnesota Statutes,
Section 469.174, Subd. 10(a)(1), the specific basis for such
determination being that ... parcels consisting of 70t of the area
of the district are occupied by buildings, streets, utilities or
other improvements and more than 50t of the buildings, not
including outbuildings, are structurally substandard to a degree
requiring substantial renovation or clearance. Thirty (30)
parcels qualify under Minnesota Statutes, Section 469.174, Subd.
10(a)(2), the specific basis for such determination being
that ... the property consists of vacant, unused, underused,
inappropriately used, or infrequently used railyards, rail
storage facilities, or excessive or vacated railroad right-of-
way. The information used in making these findings is on file
with the City.
(b) The proposed redevelopment in the opinion of the
City Council, would not occur solely through private investment
within the reasonably foreseeable future and that the increased
market value of the site that could reasonably be expected to
occur without the use of tax increment financing would be less
than the increase in the market value estimated to result from
the proposed development after subtracting the present value of
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f
the projected tax increments for the maximum duration of Tax
Increment Financing District No. 1-1 permitted by the Tax
Increment Financing Plan.
The reasons supporting this finding are that:
(i) Private investment will not finance these
development activities because of prohibitive
costs. It is necessary to finance these
development activities through the use of tax
increment financing so that other development
by private enterprise will occur within
Development District No. 1.
(ii) A comparative analysis of estimated market
values both with and without establishment of
Tax Increment Financing District No. 1-1 and
the use of tax increments has been performed
as described above. Such analysis is
contained in Appendix C of the Tax Increment
Financing Plan, and indicates that the
increase in estimated market value of the
proposed development (less the indicated
subtractions) exceeds the estimated market
value of the site absent the establishment of
Tax Increment Financing District No. 1-1 and
the use of tax increments.
(c) The Tax Increment Financing Plan for Tax Increment
Financing District No. 1-1 conforms to the general plan for
development or redevelopment of the City of Hugo as a whole.
The reasons for supporting this finding are that:
(i) Tax Increment Financing District No. 1-1 was
reviewed by the Planning Commission on July
30, 1996 and was found to be in compliance
with the City's comprehensive plan; and
(ii) The tax increment financing plan will
generally compliment and serve to implement
policies adopted in the City's comprehensive
plan.
(d) The Tax Increment Financing Plan will afford
maximum opportunity, consistent with the sound needs of the City
of Hugo as a whole, for the development or redevelopment of Tax
Increment Financing District No. 1-1 by private enterprise.
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The reasons supporting this finding are that:
The development activities are necessary so
that development and redevelopment by private
3
t
enterprise can occur within Development District
No. 1.
S. Public Purpose. The adoption of the Development
Program for Development District No. 1, and the adoption of the
Tax Increment Financing Plan for Tax Increment Financing District
No. 1-1 conform in all respects to the requirements of the Act
and will help fulfill a need to provide employment opportunities
to improve the tax base, and to improve the general economy of
the State and thereby serves a public purpose.
6. Exemption from LGA/RAGA. Pursuant to Minnesota
Statutes, Section 273.1399, Subdivision 6, as amended by Laws of
Minnesota for 1996, Chapter 471, Article 7, Section 3, the City
elects to make a qualifying local contribution to the project
from unrestricted money of the City in an amount equal to St of
the annual tax increments from Tax Increment Financing District
No. 1-1. Such local contribution shall not exceed 2W of the net
tax capacity of the City.
7. Certification. The Auditor of Washington County
is requested to certify the original net tax capacity of Tax
Increment Financing District No. 1-1 as described in the Tax
Increment Financing Plan, and to certify in each year thereafter
the amount by which the original net tax capacity has increased
or decreased in accordance with the Act; and the City
Administrator 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 Tax Increment Financing District No. 1-1 for which
building permits have been issued during the 18 months
immediately preceding the adoption of this Resolution.
8. Filing. The City Administrator is further
authorized and directed to file a copy of the Development Program
and Tax Increment Financing Plan for Tax Increment Financing
District No. 1-1 with the Commissioner of Revenue.
9. Administration. The administration of Development
District No. 1 is assigned to the City Administrator who shall
from time to time be granted such powers and duties pursuant to
Minnesota Statutes, Sections 469.130 and 469.131 as the City
Council may deem appropriate.
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The motion for the adoption of the foregoing resolution
was duly seconded by member Fran Miron and upon vote being
taken thereon, the following voted in favor thereof:
Debra Barnes, Andrew Goiffon, James Leroux, Fran Miron
and the following voted against the same: NONE
Whereupon said resolution was declared duly passed and
adopted.
Fran Wiron,, Mayor
ATTEST:
Mary V
reager, City C
011-
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STATE OF MINNESOTA
COUNTY OF WASHINGTON
CITY OF HUGO
I, the undersigned, being the duly qualified and acting
Administrator of the City of Hugo, Minnesota, DO HEREBY CERTIFY
that, I have compared the attached and foregoing extract of
minutes with the original thereof on file in my office, and that
the same is a full, true and complete transcript of the minutes
of a meeting of the City Council of said City, duly called and
held on the date therein indicated, insofar as such minutes
relate to the establishment of Development District No. 1, and
Tax Increment Financing District No. 1-1 in the City.
WITNESS my hand this 19th day of August, 1996.
City Administrator
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