99-66 CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: July 26, 1999
RESOLUTION NO: 99-66
MOTION BY: Senn SECONDED BY: Jansen
A RESOLUTION ADOPTING A DEVELOPMENT DISTRICT PROGRAM
FOR DEVELOPMENT DISTRICT NO. 4 AND A TAX INCREMENT FINANCING
PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 4-1
BE IT RESOLVED By the City Council (the "Council") of the City of Chanhassen,
Minnesota (the "City") as follows:
Section 1. Recitals.
1.01. It has been proposed that the City establish Development District No. 4 pursuant
to Minnesota Statutes, Sections 469.124 through 469.134 and create Tax Increment Financing
District No. 4-1 pursuant to Minnesota Statutes, Sections 469.174 through 469.179 within
Development District No. 4.
1.02. The Council has investigated the facts and has caused to be prepared a
development district program (the "Program") describing the public assistance needed within
Development District No. 4 and tax increment financing (the "Plan") describing the specific acts
to be taken to assist development within the boundaries of Tax Increment Financing District No.
4-1.
1.03. The City has performed all actions required by law to be performed prior to the
establishment of Development District No. 4 and Tax Increment Financing District No. 4-1 and
the adoption of a Program and Plan relating thereto, including, but not limited to, notification of
Carver County and Independent School District No. 112; a review of the Program and Plan by
the Planning Commission for their consistency with the general plans for development of the
City; and holding a public hearing regarding the Program and Plan upon such notice as is
required by law.
1.04. The Program and Plan are contained in a document entitled "Development
District Program, Development District No. 4 and Tax Increment Financing Plan, Tax Increment
Financing District No. 4-1, City of Chanhassen, Minnesota," dated July 26, 1999, and on file in
the office of the City Manager.
1.05. The Council has fully reviewed the contents of the Program and the Plan and has
on this date conducted a public hearing thereon at which the views of all interested persons were
heard.
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Section 2. Findings Related to Establishment of Development District No. 4.
2.01. The Council hereby finds that the establishment of the Development District No.
4 is intended, and in the judgment of the Council, its effect will be to provide an impetus for
industrial development, increase employment, and otherwise promote the public purposes and
objectives specified in the Program.
2.02. It is further found and determined that:
a)
The land in the Development District No. 4 would not be made available for
industrial development without the public intervention and financial assistance
described in the Program and Plan;
b)
The Program will afford maximum opportunity, consistent with the sound needs
of the city as a whole, for the development of the District by private enterprise;
and
c)
In accordance with the findings made by the planning commission, the Program
conforms to the general plan for development of the community as set forth in the
city's comprehensive plan.
Section 3.
No. 4-1.
Findings Related to Establishment of Tax Increment Financing District
3.01. The Council finds that Tax Increment Financing District No. 4-1 is an economic
development tax increment financing district within the meaning of Minnesota Statutes, Section
469.174, Subd. 12.
3.02. It is the opinion of the Council that development of the properties included within
Tax Increment Financing District No. 4-1 would not reasonably be expected to occur solely
through private investment within the reasonably foreseeable future due to the lack of adequate
public investment and that the increased market value of property within the TIF District would
be less than the increase in 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 and that the use of tax increment financing is therefore necessary.
3.03. The Council finds that the Plan for Tax Increment Financing District No. 4-1
conforms to the general plan for development of the City, based upon the recommendations of
the planning commission.
3.04. The Council finds that the Plan for Tax Increment Financing District No. 4-1 will
afford maximum opportunity, consistent with the sound needs of the City as a whole, for
development of the District by private enterprise.
3.05. The Council further finds that the establishment of Tax Increment Financing
District No. 4-1 is intended, and in the judgment of the Council, its effect will be to promote the
public purposes and accomplish the objectives specified in the Program and Plan.
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3.06. The Council has relied upon the opinions and recommendations of its staff and
planning commission and the personal knowledge of the members of the Council in reaching its
conclusions regarding the creation of Tax Increment Financing District No. 4-1. Additional
reasons and supporting facts are included on Exhibit A to this resolution.
Section 4. Approval of Development District Program and Tax Increment Financing
Plan; Establishment of Development District and Tax Increment Financing District.
4.01. The Program for Development District No. 4 and the Plan for Tax Increment
Financing District No. 4-1 are hereby approved and adopted. Development District No. 4 is
hereby established. Tax Increment Financing District No. 4-1 is hereby established.
4.02. The boundaries of Development District No. 4 and Tax Increment Financing
District No. 4-1 are described in the Program and Plan therefor, and are incorporated herein by
reference.
4.03. The City elects to make a qualifying local contribution each year with respect to
Tax Increment Financing District No. 4-1 in an amount necessary to satisfy the requirements of
Minnesota Statutes, Section 273.1399, subd. 6.
4.04. The City recognizes that Tax Increment Financing District 4-1 is an economic
development district for which certification will be requested after June 30, 1997 and that it will
be treated as described in Minnesota Statutes, Section 469.177, subd. 3 with regard to fiscal
disparities.
4.05. The City Manager is authorized and directed to transmit a certified copy of this
resolution together with a certified copy of the Plan to the auditor of Carver County with a
request that the original tax capacity of the property within Tax Increment Financing District No.
4-1 be certified to the City pursuant to Section 469.177, Subd. 1 of the Tax Increment Financing
Act and to file a copy of the Program and the Plan with the Minnesota State Auditor. Prior to
certifying the original tax capacity of the property within Tax Increment Financing District No.
4-1, it will be necessary for the auditor to remove said parcels from the City's downtown
redevelopment tax increment financing district.
4.06. The City may, at the appropriate time, take action to issue and sell its general
obligation bonds pursuant to the Tax Increment Financing Act to finance the costs identified in
the Plan for Tax Increment Financing District No. 4-1.
Section 5. Termination of District: The city anticipates decertifying Development
District No. 4 and Tax Increment District 4-1 by December 31, 2004.
Passed and adopted by the Chanhassen City Council this 26th day of July, 1999.
ATTEST:
Scott A. Botcher, City Manager
Nancy K. Mancino, Mayor
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YES
Mancino
Engel
Jansen
Senn
NO
None
ABSENT
Labatt
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EXHIBIT A TO
RESOLUTION NO. 99-66
The additional reasons and facts supporting the findings for the adoption of the Tax
Increment Financing Plan for District No. 4-1 as required pursuant to Minnesota Statutes,
Section 469.175, subd. 3 are as follows:
1. Finding that TIF District No. 4-1 is an economic development district as defined in
Minnesota Statutes, Section 469.174, subd. 12.
Tax Increment Financing District No. 4-1 is a contiguous geographic area within
Chanhassen's Development District No. 4, as delineated in the Plan, and is established
for the purpose of financing economic development in the City through the use of tax
increment. District No. 4-1 consists of a portion of Development District No. 4 not
meeting requirements for other types of tax increment financing districts. Its creation is
in the public interest because it will facilitate construction of industrial and
manufacturing facilities which will discourage commerce, industry, or manufacturing
from moving their operations to another state or municipality, will increase employment
in the state, and will preserve and enhance the tax base of the state.
Finding that the proposed development, in the opinion of the City Council, would not
reasonably be expected to 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 the projected tax increments for the maximum duration of
District No. 4-1 permitted by the Plan.
The proposed development, in the opinion of the City Council, would not reasonably be
expected to occur solely through private investment within the reasonably foreseeable
future. This finding is supported by the fact that the industrial and manufacturing
developments proposed in the Plan meet the City's objectives for economic development.
The cost of public improvements and utilities, when added to the cost of land acquisition
and site preparations, makes development of the facilities infeasible without City
assistance. The developer has provided a letter and a pro forma financial statement as
justification for the assertion that the developer would not have gone forward without tax
increment assistance.
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 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 Plan. The City supported this finding on the grounds that the cost of public
improvements and utilities add significantly to the total development cost. Historically,
site development costs in this area have made development infeasible without tax
increment assistance. Therefore, the City reasonably determines that no other
development of any kind is anticipated on this site without substantially similar assistance
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being provided to the development. Accordingly, the increased market value anticipated
without tax increment assistance is $0.
A comparative analysis of estimated market values both with and without establishment
of Tax Increment Financing District No. 4-1 and the use of tax increments has been
performed as described above. If all development which is proposed to be assisted with
tax increment were to occur in District No. 4-1, total market value would be up to
$6,965,000. The present value of land within District No. 4-1 is estimated to be
$285,000. It is the City Council's finding that no development with a market value of
greater than $6,680,000 would occur without tax increment assistance in this district
within 9 years. This finding is based upon evidence from general past experience with
the high cost of acquisition, site and public improvements and utilities in the general area
of District No. 4-1.
Finding that the Tax Increment Financing Plan for District No. 4-1 conforms to the
general plan for the development or redevelopment of the municipality as a whole.
The Plan was reviewed by the Planning Commission on July 21, 1999. The Planning
Commission found that the Plan conforms to the general development plan of the City.
Finding that the Tax Increment Financing Plan for District No. 4-1 will afford maximum
opportunity, consistent with the sound needs of the City as a whole, for the development
of Development District No. 4 by private enterprise.
The industrial and manufacturing projects to be assisted by District No. 4-1 will result in
increased employment in the City and the State of Minnesota, increased tax base of the
State, and add high quality developments to the City.
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