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HomeMy WebLinkAbout14-098CITY OF LAKEVILLE COUNTY OF DAKOTA STATE OF MINNESOTA RESOLUTION NO. 14-98 RESOLUTION APPROVING THE MODIFICATION OF THE REDEVELOPMENT PLAN FOR AIRLAKE REDEVELOPMENT PROJECT NO. 1 AND ESTABLISHING A TAX INCREMENT FINANCING DISTRICT AND APPROVING A TAX INCREMENT FINANCING PLAN THEREFOR BE IT RESOLVED by the City Council (the "Council") of the City of Lakeville, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. It has been proposed that the City modify the Redevelopment Plan (the "Plan Modification") for Airlake Redevelopment Project No. 1 (the "Redevelopment Project"), establish Tax Increment Financing District No. 19 within the Redevelopment Project (the "TIF District") and adopt the related Tax Increment Financing Plan therefor (the "TIF Plan") all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.124 through 469.133 and Sections 469.174 through 469.1794, as amended (the "TIF Act"), all as reflected in that certain document entitled "Tax Increment Financing Plan for Tax Increment Financing (Economic Development) District No. 19 within Airlake Redevelopment Project No. 1 (BTD Manufacturing Expansion Project)", and presented for the Council's consideration. 1.02. The City has performed all actions required by law to be performed prior to the modification and approval of the Plan Modification and the TIF Plan, delivery of the Plan Modification and the TIF Plan to the Board of Dakota County (the "County") and the Board of Independent School District No. 192 (the "School District"), and the holding of a public hearing by the City thereon following notice thereof published in the City's official newspaper at least 10 but not more than 30 days prior to the public hearing. 1.03. The Council has investigated the facts relating to the Plan Modification and the TIF Plan; at the public hearing the City Council heard testimony from all interested parties on the TIF Plan; the City Council has considered the documentation submitted in support of the TIF District and TIF Plan, including data, information and/or substantiation constituting or relating to why the TIF District meets the requirements to be an economic development tax increment financing district and why the assistance satisfies the "but for" test; and the City Council has taken into account the information and knowledge gained in hearings upon and during consideration of other matters relating to the proposed Development. Section 2. Findings for the Adoption and Approval of the Plan Modification and TIF Plan. 2.01. The City Council hereby finds that the TIF District is in the public interest and is an "economic development district" within the meaning of Minnesota Statutes, Section 469.174, Subd. 12, because it will result in increased employment in the state and it will result in preservation and enhancement of the tax base of the state. In addition, the TIF District will facilitate the increase in production in the City by the construction of an approximately 199,615 square foot industrial facility for the Company (the "Development"), and at least 85% of the facility will be used for manufacturing, warehousing, distribution, or research, with less than 15% available for office or other space not related to such functions. Based on representations by the Developer, the City finds that the Development is expected to commence construction in late 2014 and be fully constructed in 2015. The City finds that jobs will be created and maintained in this state, including construction jobs. 2.02. The City Council hereby makes the following additional findings in connection with the Tax Increment District: (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 property on which the Development will occur would not be developed in the reasonably foreseeable future due to the high costs related to construction of the facility, development of the site, including extraordinary site improvement costs associated with soil corrections and grading, and infrastructure improvements including street improvements of east/north to Hwy 50. The Developer has represented that it could not proceed with the development without tax increment assistance. (b) The City Council further finds that the TIF 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 TIF Plan will generally complement and serve to implement policies adopted in the City's comprehensive plan. Following subdivision and replatting, the Development contemplated will be in accordance with the existing zoning for the property and the City's Planning Commission has determined that the Development is consistent with the comprehensive plan. (c) The City Council further finds that the TIF Plan will afford maximum opportunity consistent with the sound needs of the City as a whole for the development of the TIF District by private enterprise. The specific basis for such finding being: The proposed assistance will help finance public costs related to the Development. The Development will increase the taxable market valuation of the City and increase industrial facilities in the City. (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision 3(d), the City Council hereby finds that the increased market value of the property to be developed within the TIF District that could reasonably be expected to occur without the use of tax increment financing is $0, which is less than $7,943,489 which is the increased market value estimated to result from the proposed development 0) (i.e., $9,025,215) less the present value of the projected tax increments for the maximum duration of the TIF District (i.e., approximately ($1,081,726). 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. The provisions of this Section 2.02 are hereby incorporated by reference into and made a part of the TIF Plan. 2.03. The Council further finds that the Plan Modification and the TIF Plan are intended and in the judgment of the Council their effect will be to promote the public purposes and accomplish the objectives specified in the TIF Plan for the TIF District and the Plan Modification for the Redevelopment Project. Adopted this 20th day of October, 2014 ATTEST: 3 Matt L' e, Mayo