APPROVING AMENDMENTS TO DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT
NO. 17 AND TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING
DISTRICT NO. 22 IN DEVELOPMENT DISTRICT NO. 17 AS PROPOSED
BY THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY.
the city council of the city of Duluth, as follows:
The council has established the Duluth economic development authority
(DEDA) to promote development and redevelopment of property located in
the city of Duluth (the city).
In order to promote such development, DEDA has established Development
District No. 17 (the development district) in the city and adopted
a development program (the development program) therefor pursuant to Minnesota
Statutes, Sections 469.090 through 469.1082 and Sections 469.124 through
469.134 (collectively, the act).
DEDA herewith proposes to amend the development program for Development
District 17 to include within the permitted uses of funds the construction
of medical clinic/office facilities within the development district, which
amended development program is part of Public Document No. __________,
on file in the office of the city clerk.
DEDA proposes to establish Tax Increment Financing District No. 22 (the
TIF district) within the development district and adopt a tax increment
financing plan (the TIF plan) therefor pursuant to Minnesota Statutes,
Sections 469.174 through 469.179 (the TIF act) for the purpose of financing
public improvements and encouraging investment in the development district.
DEDA has prepared the TIF plan in accordance with the TIF act, which TIF
plan is also contained in the aforesaid public document.
Pursuant to Section 469.175, Subdivision 3 of the TIF act, the city held
a public hearing on the TIF plan, which hearing was held this day, at
which the views of all interested parties were heard.
DEDA has transmitted a copy of the TIF plan to the council in a document
entitled "Sixth Amendment to Development Program for Development District
No. 17 and Tax Increment Financing Plan for Tax Increment Financing District
No. 22 (First Street Medical Facilities Development District)", which
is now on file in the office of the city clerk in the form of the aforesaid
After investigation of the facts, the council is of the opinion that:
It is necessary for the sound and orderly development of the development
district and of the city as a whole and for the protection and preservation
of the public health, safety and general welfare, that the powers authorized
by the act and the TIF act be exercised by the city to provide public
financial assistance to the development district;
Proper development of the development district and implementation of the
development program in accordance with the city's long range plans is
essential to (i) the economic viability of the development district, (ii)
the economic well being of the city and its residents, (iii) the orderly
development of the city, and (iv) the orderly and beneficial development
of the Development District to ensure the construction of and provide
moneys for the payment of the cost of certain public improvements within
the development district, including site improvements, in order to provide
and finance development of suitable and necessary sites for development;
There is a need for new development within the development district (i)
to enhance the quality of life of the city's residents by redeveloping
blighted and underdeveloped areas, (ii) to improve the general economy
of the city and the state, (iii) to provide employment opportunities for
residents of the city, (iv) to improve the tax base of the city and the
state, and (v) to provide other facilities identified in the development
program and TIF plan;
Creation of the development district and TIF district is in the public
interest and will result in increased employment in the city and in the
preservation and enhancement of the tax base of the city; and
The TIF district is intended and, in the judgment of city, its effect
will be to promote the public purposes and accomplish the objectives specified
in the development program, which are all consistent with the efforts
already made for the development of the development district.
has fully reviewed the contents of the TIF plan.
There is a need for new development in the development district in order
to enhance the quality of life of the city's residents by
redeveloping blighted and underdeveloped areas, to improve the
tax base, to provide employment opportunities, and to improve the general
economy of the state.
Establishment of the TIF district will provide impetus for commercial
development; increase employment; and provide off-street parking to serve
employees of the development district and the TIF district.
The actions required to assist the implementation of the development program
are a public purpose and the execution and financing of the development
program are a public purpose.
It is the opinion of the council, based on discussions with developers
of projects proposed to be constructed in the TIF district and information
contained in the development program and the TIF plan that:
Development and redevelopment within the TIF district would not reasonably
be expected to occur solely through private investment within the reasonably
The increased market value of the site to be included in the TIF district
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 development in the TIF district after subtracting the present
value of the projected tax increments for the maximum duration of the
TIF district permitted by the TIF plan;
The use of tax increment financing is necessary; and
The primary purpose of the project to be financed pursuant to the TIF
plan and the expenditure of funds thereunder is the benefits to the public
Based on information contained in the development program and the TIF
plan, the TIF plan conforms to the general plan for the development and
redevelopment of the city as a whole.
Based on information contained in the development program and the TIF
plan, the TIF plan will afford maximum opportunity, consistent with the
sound needs of the city as a whole, for the development and redevelopment
of the development district by private enterprise.
development district plan and the TIF plan are approved.
boundaries of the development district and TIF district are as described
in the development program and TIF plan, which documents are incorporated
herein by reference and which, together with this resolution contain the
requirements set forth in Section 469.175 of the TIF act.
Designation of TIF district.
TIF district is a redevelopment district as defined in Section 469.174,
Subdivision 10(a)(2) of the TIF act because it consists of a portion of
the development district within which the following conditions, reasonably
distributed throughout the TIF district, exist: parcels
consisting of 70 percent of the area of the TIF district are occupied
by buildings, streets, utilities or other improvements and more than 50
percent of the buildings, not including outbuildings, are structurally
substandard to a degree requiring substantial renovation or clearance.
The reasons and supporting facts for the determination that the TIF district
meets the criteria set forth in Section 4.01 hereof will be retained and
made available to the public by DEDA until the TIF district has been terminated.
At least 90 percent of the revenues derived from tax increments from the
TIF district will be used to finance the cost of correcting conditions
that allowed designation of the TIF district under Section 469.174 of
the TIF act.
OF PURPOSE: This resolution approves the sixth amendment to
development program for Development District No. 17 and tax increment
financing plan for Tax Increment Financing District No. 22 (First Street
Medical Facilities Development District) which will allow tax increment
financing to be used as part of the financing package for the SMDC First
Street medical facilities project. This project was previously "approved"
by the city council when it approved DEDA Resolution No. 03D-77 approving
the development agreement between SMDC and DEDA (Council Resolution No.