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HomeMy WebLinkAbout89-100 CITY OF LAKEVILLE RESOLUTION Date July 17, 1989 Resolution No. 89-100 Motion by Harvey Seconded by Sindt RESOLUTION ADOPTING A TAX INCREMENT FINANCING POLICY WHEREAS, Minnesota Statutes ss. 469.174 - 469.179 sets forth a uniform set of standards and procedures for establishing tax increment financing plans; and WHEREAS, the City Council has adopted plans for the purpose of directing, encouraging and sustaining a broad range of economic growth in the city; and WHEREAS, the City Council believes the tax base of the city should be guided toward a full and significant level of housing, commercial service and industrial developments; and WHEREAS, the City Council believes that the city should be a place where its citizens can find adequate numbers of jobs; and WHEREAS, the City Council believes that to encourage and sustain sound economic development, increased tax base and jobs, the use of tax increment financing is, at times, prudent. NOW, THEREFORE, BE IT RESOLVED: 1. The attached Tax Increment Financing Policy is adopted to guide the City Council in establishing and controlling the use of tax incre- went financing in Lakeville, Minnesota. rt. 2. All previous resolutions (84-43) and motions adopted by the City Council with provisions similar to the provisions in this Tax Increment Financing Policy as attached to this resolution are hereby repealed. 3. This Tax Increment Financing Policy is in effect as of this date. APPROVED AND ADOPTED by the City Council of the City of Lakeville this 17th day of July, 1989. CITY OF LAKEVILLE BY: D ane Zaun, or ATTEST: Charlene Friedges, Acting C y Clerk 2 CITY OF LAKEVILLE TAX INCREMENT FINANCING POLICY POLICY PURPOSE The purpose of this policy is to provide direction for developers seeking tax increment financing assistance from the City of Lakeville. POLICY GOALS AND OBJECTIVES 1. To acquire blighted areas and other real property for the purpose of removing, preventing or reducing blight, blighting factors or the causes of blight. 2. To acquire open or undeveloped land which is determined to be blighted by virtue of conditions which have prevented normal development of the land by private enterprise and have resulted in a stagnant and unproductive condition of the land. 3. To acquire land or .space which is vacant, unused, underused or .inappropriately used. 4. To clear any areas acquired and install,, construct or reconstruct streets, utilities, and site improvements. 5. To provide housing for persons of low and moderate income. 6. To provide housing for senior citizens. 7. To .provide assistance for projects that have no other financing alternatives available. 8. To provide assistance. for projects that substantially increase the tax base of the City. 9. To provide assistance for projects that provide full time equivalent employment opportunities. . 10. To provide assistance for projects which provide especially needed services or demonstrate other, long term benefits to~the City. 11. To promote development so as to maintain viable business districts. 12. The proposed development or redevelopment would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. 13. The proposed project must be consistent with the. City's Comprehensive Plan, and zoning and subdivision ordinances. POLICY STATEMENT. 1. Tax increment financing ..will be used for economic development, redevelopment or housing projects deemed by the City Council to be of special significance in achieving City goals and objectives. 2. Tax increment financing can be used for all purposes authorized by Minnesota Statutes, i.e. land acquisition, land write-down, site improvements, public improvements, demolition, soil correction, the removal of hazardous substances, commercial rehabilitation and interest reduction programs for low and moderate income housing. 3. The market value of all parcels of property in all tax increment districts within the Gity of Lakeville shall not exceed 15 percent of the market value of private property in the City as established by the Dakota County Assessor. The City Council reserves the right to .modify this percentage .guideline based upon a requested analysis of he total market value of property contained within all tax increment districts. 4. No tax increment financing request will be processed without a pro forma demonstration of need. City staff will not begin work on the evaluation of any requests for which direct subsidy to a developer exceeds 25% of the project's proposed .market value unless the City Council specifically authorizes preliminary approval of a project exceeding that level. 5. When bonding is required to complete a tax increment project, the City Council will be the final arbiter of security requirements which might include, but not be limited to, a development agreement, an assessment agreement, letters of credit, insurance, cash deposits, performance bonds and personal guarantees by project participants. 6. Tax increment financing will be used to promote development projects within the Metropolitan Urban Service Area (MUSA). 7. The initial processing of a tax increment financing ,request shall include a fiscal disparities evaluation so that a decision can be made early on by the. City Council as to whether the fiscal disparities portion must be paid from the district or the community at large. 8. Persons requesting tax increment financing for a project must submit an application. An initial deposit of $5,000 will be required to offset City processing costs,. such as review by legal counsel., bond counsel, fiscal agent, tax increment specialist and other necessary consultants, unless the City determines that a smaller cost will suffice for a particular project. This will provide for initial City review. Upon completion of the initial review, a determination will be made by .the City Council on whether processing costs will be paid .directly by the developer of the projector from the proceeds of the tax increment district. Applicable fees related to planning, engLneering and administration for review of a development project are the responsibility of .the developer as per City policy. 2 LAKEVILLE PROCEDURE If .this project deals with low and moderate. income housing and downtown redeye-lopment, it must be submitted to the Dakota County HRA. The following procedure will be utilized in reviewing tax increment financing proposals: 1. A written request with adequate support data shall be submitted to the City Administrator and Community Development Director by the person or firm requesting the Gity to utilize its tax increment financing capacity. 2. Upon submission to the City Administrator and Community Development Director, the request shall be reviewed by City staff on a preliminary basis, to determine whether the proposal appears. to be feasible. 3. The City will refer the developer's .estimate of market value and tax increment to the County Assessor for verification of projected values at completion of the project, and also require the developer to submit any detail of the proposed project as might be required by the County assessor to make that evaluation. 4. The request and accompanying supportive financial data shall be forwarded to the Economic Development Commission for a recommendation to the City Council. 5. The request will then be forwarded to the Planning Commission for recommendation to the City Council. 6. Based on the .City Council's .preliminary review, the applicant may proceed to file a formal application, accompanied by a deposit of $5,000. In addition, the applicant must agree to assume all direct costs to the City for its analysis and evaluation of the request. 7. Upon the filing of a formal application, staff shall proceed to complete a tax increment financing analysis which shall examine in detail the proposal's financial viability, benefit to the community,' etc. 8. Upon completion of the tax .increment financing analysis, a recommen- dation will be made to the City. Council. Based upon that recommen- dation, the Council may authorize the staff to commence negotiation of a development contract. 9. Negotiation of the development contract prepared by the City occurs. 10. Simultaneously with the negotiation of the development contract, a tax increment financing plan and project plan, if required, will be prepared by staff, with notification being provided to Dakota County and the affected school district(s). 3 11.-The City Council will be asked to approve a development contract, tax increment financing plan and project plan, after public hearings with published notice for the project have been held. 12. The adopted plans will be filed with Dakota County and the State of Minnesota. i3. Tax increment bonds are issued or pay-as-you-go contract is executed. • 4