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95-56 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DA TE: May 22, 1995 RESOLUTION NO: 95-56 MOTION BY: Mason SECONDED BY: Dockendorf A RESOLUTION ADOPTING A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 4 BE IT RESOLVED, by the City Council of the City of Chanhassen, Minnesota as follows: Section 1. Recitals 1.01 The Housing and Redevelopment Authority in and for the City of Chanhassen (the "Authority") and the City Council of the City of Chanhassen (the "City") approved a redevelopment project for the downtown Chanhassen area (the "Project") and adopted a redevelopment plan and tax increment financing plan (the "Project Plans") for same on November 29, 1977, and December 19, 1977, respectively. 1.02 Due to changes in the focus and alterations in the boundaries of the Project, the Project Plans have been the subject of numerous modifications since their adoption in 1977. 1.03 In light of recent development proposals and the limited duration of the downtown Chanhassen tax increment financing district, it has been proposed to remove selected properties from the downtown tax increment financing district (the "Deleted Properties'') and to include them in a new tax increment financing district to be called Tax Increment Financing District No. 4 ("TIF District No. 4"). 1.04 The Authority has investigated the facts and has caused to be prepared a tax increment financing plan (the "Plan") describing the specific acts to be taken to assist development within TIF District No.4, which tax increment district remains within the boundaries of the Project. The Plan is contained in a document entitled "Tax Increment Financing Plan, Tax Increment Financing District No. 4, Housing and Redevelopment Authority in and for the City of Chanhassen", dated May 22, 1995 and on file at City Haft. 1.05 The City has performed all actions required by law to be performed prior to the establishment of TIF District No. 4 and the adoption of the Plan relating thereto, including, but not limited to, notification of Carver County and Independent School District No. 112; a review by the City Section 2. 2.01 2.02 2.03 2.04 2.05 2.06 2.07 Planning Commission of the Plan for its consistency with the general plans for development of the City; approval of the Plan by the Authority; and holding a public hearing before the City Council regarding the Plan upon such notice as is required by law. Findinqs Related to the Establishment of Tax Increment Financing District No. 4. It is the opinion of the City Council that development of the properties included within TIF District No. 4 would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future due to the lack of an adequate public investment and that the use of tax increment financing is therefore necessary. The Council finds that the Plan for TIF District No. 4 conforms to the general plan for development of the City, based upon the recommendations of the Planning Commission. The Council finds that the Plan for TIF District No. 4 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for development of the Project by private enterprise. The Council further finds that the establishment of TIF District No. 4 is intended, and in the judgement of the City Council, its effect will be to promote the public purposes and accomplish the objectives specified in the Plan. The City has caused a study to be conducted by the building official of the area to be included within TIF District No. 4. The building official has verified that parcels containing at least 70 percent of the area of TIF District No. 4 are improved and that more than 50 percent of the buildings thereon are substandard. The report has been reviewed by the City Council and shaft be retained on file at City Hall for the duration of the TIF District No.4. 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 TIF District No. 4. The Council hereby finds that TIF District No. 4 is redevelopment tax increment financing district within the meaning of Minnesota Statutes § 469. 174, Subd. 10. Section 3. Deletion of Properties; Approval of Tax Increment Financing Plan; Establishment of Tax Increment Financing District No. 4. 3.01 The City hereby approves and endorses the actions by the Authority to remove the Deleted Properties from the downtown TIF District and to have the Carver County Auditor adjust the original tax capacity of said district accordingly. 3.02 The Plan for TIF District No. 4 is hereby approved and adopted. TIF District No. 4 is hereby established. 3.03 The boundaries of TIF District No. 4 are described in the Plan and are incorporated herein by reference. 3.04 The City elects to be governed by Minnesota Statutes § 469. 177, Subd. 3(a), with regard to fiscal disparities for TIF District No. 4. 3.05 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 TIF District No. 4 be certified to the Authority and the City pursuant to Section 469. 177, Subd. I of the Tax Increment Financing Act and to file a copy of the Plan with the Minnesota Commissioner of Review. 3.06 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 TIF District No. 4. 3.07 The City Manager is authorized to transmit a copy of this resolution to the Authority. Passed and adopted by the Chanhassen City Council this 22nd day of May, 1995. ATTEST: Don Ashworth, City~l~rk/Man~er Donald J. C~ayor -'- YES NO ABSENT Chmiel Berquist Dockendorf Mason Senn None