2003-94
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES
STATE OF MINNESOTA
October 27. 2003
RESOLUTION NO:
2003-94
DATE:
MOTIONED BY: LundQuist
SECONDED BY:
Labatt
RESOLUTION ADOPTING A MODIFICATION TO THE TAX
INCREMENT FINANCING PLAN FOR THE DOWNTOWN
CHANHASSEN TAX INCREMENT FINANCING DISTRICT
WHEREAS, it has been proposed by the Chanhassen Economic Development Authority
(the "EDA") and the city of Chanhassen (the "City") that the EDA and the City adopt a
modification to the tax increment financing plan for the Downtown Chanhassen Tax Increment
Financing District (the "District"), a pre-1979 tax increment financing district, (referred to herein as
the "TIP Plan Modification") and located within the Downtown Chanhassen Redevelopment Project
. Area, all pursuant to, and in accordance with, Minnesota Statues, sections 469.090 to 469.1082 and
sections 469.174 to 469.1799, inclusive, as amended (collectively, the "AcC); and
WHEREAS, the EDA investigated the facts regarding the TIP Plan Modification, including
all calculations required under section 469.1794 of the Act relating to the extension of the duration
of the District, and caused the TIP Plan Modification to be prepared; and
WHEREAS, on October 13, 2003 the EDA adopted the TIP Plan Modification; and
WHEREAS, by resolution adopted on September 8, 2003, the City called for a public
hearing on adoption of the TIP Plan Modification to be held on this date; and
WHEREAS notice of the public hearing on the TIP Plan Modification was published and
the estimate of the fiscal and economic implications of the TIP Plan Modification was sent to
Carver County and to Independent School District No. 112, all as required by law.
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NOW, THEREFORE, BE IT RESOLVED by the city council of the city of Chanhassen
as follows:
Findings
1.01 The City hereby reaffirms the original findings for the Downtown Chanhassen Tax
Increment Financing District, established and maintained as a pre-1979 tax increment financing
district.
1.02. The TIF Plan Modification extends the duration of the District by one calendar year.
Increment received as a result of the extension of the duration of the District will be used to cover
expected deficits resulting from class rate compression, as permitted pursuant to section 469.1794 of
the Act. The TIF Plan Modification does not include any enlargement of the boundaries of the
District.
1.03. In determining to extend the District by one calendar year, the City makes the
following specific findings as required by section 469.1794 of the Act:
a) the original local tax rate under section 469.177, subd. la of the Act does not apply
because the District is a pre-1979 district;
b)
the fiscal disparities contribution of the District is calculated under section 469.177,
subd. 3, paragraph (a) ofthe Act because the District is a pre-1979 district;
c) the City has attempted to avail itself of the opportunity under section 469.1763, subd.
6 of the Act to transfer available increment from other districts within the City but no
increment is available for transfer due to obligation in those districts; and
d) taking into account all increment available to pay qualifying obligations of the
District, increment from the District will be insufficient to pay the amount of
qualifying obligations, as defined in section 469.1794, subd. 2 (e) ofthe Act, and the
insufficiency is the result of changes in tax class rates since 1997, as detailed in
Appendix B to the TIF Plan Modification
1.04. The City further finds that the TIF Plan Modification conforms in all respects to the
requirements of the Act and will afford maximum opportunity, consistent with the sound needs of
the City as a whole, for the development or redevelopment of the project area by private investment.
Adoption of TIF Plan Modification
2.01. The TIP Plan Modification, as presented to the City on this date, is hereby approved,
established and adopted and shall be placed on file in the office of the City Manger.
2.02. The City's staff, advisors and legal counsel are authorized and directed to proceed
with the implementation of the TIF Plan Modification and to negotiate, draft, prepare and present to
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the City for its consideration all additional TIP Plan Modification resolutions, documents and
contracts necessary for this purpose. Approval of the TIP Plan Modification does not constitute
approval of any project or development agreement with any developer.
2.03. The City Manager is authorized and directed to forward a copy of the TIP Plan
Modification to the Minnesota Department of Revenue pursuant to section 469.175, subd. 4a of the
Act.
2.04. The City Manager is authorized and directed to forward a copy of the TIP Plan
Modification to the Carver County Auditor and to take any and all additional actions necessary or
convenient to carry out the purpose of the TIP Plan Modification.
Approved by the city council of the city of Chanhassen this 27th day of October, 2003.
~A
Mayor
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.Jft(
Yes
No
Absent
Furlong
Ayotte
Peterson
Labatt
Lundquist
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