Title
RESOLUTION APPROVING THE ADOPTION OF A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 17; THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 29 THEREIN AND THE ADOPTION OF A TAX INCREMENT FINANCING PLAN THEREFOR.
Body
CITY PROPOSAL:
Section 1. Recitals
1.01. The Board of Commissioners of the Duluth Economic Development Authority ("DEDA") has heretofore established Development District No. 17 and adopted the Development Program therefor. It has been proposed by DEDA and the city of Duluth (“City”) that the City approve the adoption of a Modification to the Development Program for Development District No. 17 (the "Development Program Modification"), the establishment of Tax Increment Financing District No. 29 (the "District") therein and the adoption of a Tax Increment Financing Plan (the "TIF Plan") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Program and Plan"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090 to 469.1082 and Sections 469.174 to 469.1794, all inclusive, as amended, (the "Act") all as reflected in the Program and Plan, and presented for the consideration by the city council (the “Council”).
1.02. DEDA and the City have investigated the facts relating to the Program and Plan and have caused the Program and Plan to be prepared.
1.03. DEDA and the City have performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the Program and Plan, including, but not limited to, notification of St. Louis County and Independent School District No. 709 having taxing jurisdiction over the property to be included in the District, a review of and written comment on the Program and Plan by the City Planning Commission, approval of the Program and Plan by the DEDA on September 23, 2015, and the holding of a public hearing upon published notice as required by law.
1.04. Certain written reports (the ''Reports") relating to the Program and Plan and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and/or made a part of the City files and proceedings on the Program and Plan. The Reports, including the redevelopment qualification report and planning documents, include data, information and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein.
1.05 The City is not approving a modification to the boundaries of Development District No. 17, but is however, approving a modification to the Development Program therefor.
Section 2. Findings for the Approval of the Development Program Modification
2.01. The Council approves the Development Program Modification, and specifically finds that: (a) the land within the Project area would not be available for redevelopment without the financial aid to be sought under this Development Program; (b) the Development Program, as modified, will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project by private enterprise; and (c) that the Development Program, as modified, conforms to the general plan for the development of the City as a whole.
Section 3. Findings for the Approval of the Establishment of Tax Increment Financing District No. 29
3.01. The Council hereby finds that the District is in the public interest and is a "redevelopment district" under Minnesota Statutes, Section 469.174, Subd. 10 of the Act.
3.02. The Council further finds that the proposed redevelopment 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 the District permitted by the TIF Plan, that the Program and Plan conform to the general plan for the development or redevelopment of the City as a whole, and that the Program and Plan will afford maximum opportunity consistent with the sound needs of the City as a whole for the development or redevelopment of the District by private enterprise.
3.03. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A.
Section 4. Public Purpose
4.01. The adoption of the Program and Plan conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the City which is already built up, to provide employment opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. For the reasons described in Exhibit A, the City believes these benefits directly derive from the tax increment assistance provided under the TIF Plan. A private developer will receive only the assistance needed to make this development financially feasible. As such, any private benefits received by a developer are incidental and do not outweigh the primary public benefits.
Section 5. Approval of the Program and Plan
5.01. The Program and Plan as presented to the Council on this date, attached hereto as Exhibit B, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the Director of Business and Economic Development.
5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Program and Plan and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose.
5.03 The Auditor of St. Louis County is requested to certify the original net tax capacity of the District, as described in the Program and Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the City is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the County Auditor may specify, together with a list of all properties within the District for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution.
5.04. The Director of Business and Economic Development is further authorized and directed to file a copy of the Program and Plan with the Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to approve the Tax Increment Financing Plan for Tax Increment Financing District No. 29 and the related amendment to the Development Program for Development District No. 17 necessary to provide tax increment assistance to the Kenwood Village mixed use development at the southwest corner of Arrowhead Road and Kenwood Avenue.