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HomeMy WebLinkAboutHRA 03rr�rrrrirr December 1, 2014 Item No. RESOLUTION APPROVING A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO.3 Proposed Action Staff recommends adoption of the following motion: Move to approve RESOLUTION APPROVING A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING(REDEVELOPMENT) DISTRICT NO.3 Following the public hearing... approval of the motion will result in a modification in the TIF #3 financing plan. verview Tax Increment Financing District 3 in Downtown Lakeville will expire on December 31 of this year. If the HRA and City Council wish to appropriate the unencumbered funds (approximately $164,000) to a redevelopment purpose, it needs to approve the proposed plan changes. Primary Issues to Consider ➢ What are authorized uses? The funds can be expended within the Downtown Redevelopment Area on any purpose authorized by M.S. 469.001, which includes proving a sufficient supply of adequate, safe, and sanitary dwellings in order to protect the health, safety, morals, and welfare of the citizens of this state; to clear and redevelop blighted areas; to perform those duties according to comprehensive plans; to remedy the shortage of housing for low and moderate income residents, and to redevelop blighted areas, in situations in which private enterprise would not act without government participation or subsidies. Supporting Information ✓ Modification to the Tax Increment (Redevelopment) District no.3 FeIIe r,Finance Director Financing Plan for Tax Increment Financing Financial Impact: $ 164.000 Budgeted: N.A. Source: Tax Increment Financing Fund - #3 Related Documents (CIP, ERP, etc.): Notes: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF LAKEVILLE, MINNESOTA CITY OF LAKEVILLE DAKOTA COUNTY STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION APPROVING A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO.3 BE IT RESOLVED by the Board of Commissioners (the "Board") for the Housing and Redevelopment Authority in and for the City of Lakeville, Minnesota (the "Authority"), as follows: WHEREAS, it has been proposed that the Authority approve a modification to the Tax Increment Financing Plan (the "Modified Plan") for Tax Increment Financing District No. 3 (as modified, the "TIF District') to increase the budget provided in the Modified Plan and other conforming changes, all as reflected in the Modified Plan and presented for the Authority's consideration; WHEREAS, the Authority has investigated the facts relating to the Modified Plan and has caused the Modified Plan to be prepared; WHEREAS, the City Council of the City of Lakeville, Minnesota (the "City Council'), has scheduled a public hearing on the Modified Plan to be held on December 1, 2014, in accordance with Minnesota Statutes, Chapter 469 (tile "Public Hearing"); NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section 1. Adoption. The Modified Plan is hereby adopted based on the findings herein, subject to approval by the City Council following the Public Hearing. Section 2. Findings. The Authority hereby makes the following findings: (a) The TIF District is a "redevelopment district" within the meaning of Minnesota Statutes, Section 469.174, Subdivision 10. (b) The proposed development, in the opinion of the Authority, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and 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 the projected tax increments for the maximum duration of the TIF District permitted by the Modified Plan. Therefore, the use of tax increment financing is deemed necessary since private developers could not economically develop the project without the proposed subsidy. (c) The Modified Plan conforms to the general plan for the development or redevelopment of the City as a whole. (d) The TIF District affords maximum opportunity, consistent with the sounds needs of the City as a whole, for the development or redevelopment of the proposed project by private enterprise. Section 3. Transmittal. The Authority does hereby transmit the Modified Plan to the City Council for approval after the same have been considered by the City Council subsequent to the Public Hearing. Section 4. Filing. Following approval by the City Council, the Secretary is hereby authorized and directed to file the Modified Plan with the Commissioner of Revenue and the Office of the State Auditor as required by Minnesota Statutes, Section 469.175, Subdivision 4a. Approved this 1 It day of December, 2014. ATTEST: Secretary THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF LAKEVILLE, MINNESOTA By: _. Chair 2