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HomeMy WebLinkAbout2002-145 CCRMember Ed Nelson introduced the following resolution and moved its adoption: RESOLUTION NO. 2002-145 RESOLUTION APPROVING AMENDMENT NO. 1 TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (SOILS CONDITION) DISTRICT NO.4 BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota (the "City") as follows: Section 1. Recitals. 1.01. On March 8, 1999, the Economic Development Authority of the City of Brooklyn Center (the "Authority") adopted, with the approval of the City Council, a resolution approving the Tax Increment Financing Plan for Tax Increment Financing (Soils Condition) District No. 4. The Authority has determined that it is necessary and desirable to amend the Tax Increment Financing Plan to, among other things, unfreeze the original local tax rate that applies to the Tax Increment District in accordance with Minnesota Statutes, Section 469.1792, and has prepared a document entitled Amendment No. 1 to the Tax Increment Financing Plan ("Amendment No. I"). The Authority has asked the City Council to approve Amendment No. 1 to the Tax Increment Financing Plan for Tax Increment Financing (Soils Condition) District No. 4 pursuant to and in accordance with Minnesota Statutes, Sections 469.090 to 469.123, both inclusive and Sections 469.174 to 469.1792, both inclusive, as amended. 1.02. The Authority has performed all actions required by law to be performed prior to the amendment of the Tax Increment Financing Plan for Tax Increment Financing (Soils Condition) District No. 4, including, but not limited to, notification of Hennepin County and Independent School District Number 281 which have taxing jurisdiction over the property included in Tax Increment Financing (Soils Condition) District No. 4, and has requested that the City approve Amendment No. 1 following the holding of a public hearing upon published and mailed notice as required by law. Section 2. Ratification of Findinas for the Establishment of Tax Increment FinancinQ_ (Soils Condition) District No. 4 and Annroval of Amendment No. 1. 2.01. The City Council hereby ratifies and confirms its earlier findings made in its resolution adopted on October 8, 1999, that the establishment of Tax Increment Financing (Soils Condition) District No. 4 and adoption of a Tax Increment Plan therefor, are intended and, in the judgment of the City Council, its effect will be, to provide an impetus for the removal and remediation of hazardous substances on certain land in the City, which will allow for development of new manufacturing facilities and will increase employment and otherwise promote certain public purposes and accomplish certain objectives as specified in the Tax Increment Financing Plan. 2.02. The City Council hereby ratifies and confirms its earlier findings made in its resolution adopted on October 8, 1999, that Tax Increment Financing (Soils Condition) District RESOLUTION NO. 2002-145 No. 4 qualifies as a "soils condition district" within the meaning of Minnesota Statutes, Section 469.174, Subdivision 19, for the following reasons: (a) The presence of hazardous substances, pollution, or contaminants requires removal or remedial action for use, and (b) The estimated cost of the proposed removal and remedial action exceeds the fair market value of the land before capitalization of the preparation. The reasons and supporting facts for the above findings are found in the Developer's Response Action Plan dated October 30, 1998. 2.03. The City Council hereby ratifies and confirms its earlier findings made in its resolution adopted on October 8, 1999, with respect to the following findings: (a) The City Council further finds that the proposed development, in the opinion of the City Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary. The specific basis for such finding being: The presence of hazardous substances on property in the Tax Increment District makes the use of tax increment financing necessary to assist in the removal and remediation efforts in order to allow new development from the private sector. (b) The City Council further finds that the Tax Increment Financing Plan conforms to the general plan for the development or redevelopment of the City as a whole. The specific basis for such finding being: The Tax Increment Financing Plan will generally compliment and serve to implement policies adopted in the City's comprehensive plan. The facilities to be contemplated are manufacturing developments which comply with the existing zoning for the property. (c) The City Council further finds that the Tax Increment Financing Plan will afford maximum opportunity consistent with the sound needs of the City as a whole for the development of Tax Increment Financing (Soils Condition) District No. 4 by private enterprise. The specific basis for such finding being: The removal and remediation of hazardous substances and to ensure development will add new jobs within the City and will increase the market valuation of the City. (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision 3(2), the City hereby finds that the increased market value of the property to be developed within the Tax Increment District that could reasonably be expected to occur without the use of tax increment financing is $-0-, which is less than the market RESOLUTION NO. 2002-145 value estimated to result from the proposed development (i.e., $15,994,400) after subtracting the present value of the projected tax increments for the maximum duration of the Tax Increment District (i.e., $5,149,718). In making these findings, the City has noted that, the property has been undeveloped for many years and would likely remain so if tax increment financing is not available. Thus, the use of tax increment financing will be a positive net gain to the City, the School District, and the County, and the tax increment assistance does not exceed the benefit which will be derived therefrom. Section 3. ADDroval of Amendment No. 1 to Tax Increment Financiniz Plan for Tax Increment Financine (Soils Condition) District No. 4. 3.01. Amendment No. 1 to the Tax Increment Financing Plan for Tax Increment Financing (Soils Condition) District No. 4 is hereby approved. 3.02. The staff of the City, the staff of the Authority and the City's and Authority's advisors and legal counsel are authorized and directed to proceed with the implementation of Amendment No. 1 to the Tax Increment Financing Plan. October 28, 2002 C/ Te Maydr ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Bob Peppe and upon vote being taken thereon, the following voted in favor thereof: Myrna Kragness, Kay Lasman, Ed Nelson, and Bob Peppe; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted.