BY PRESIDENT NESS:
RESOLVED, by the city council of the city of Duluth, as follows:
Section 1. Recitals.
1.01 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), including the development of housing and especially housing for persons of low and moderate income.
1.02 In order to promote such development, DEDA has established its housing development district (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, Sections 469.001 through 469.049 and Sections 469.124 through 469.134 (collectively, the act).
1.03 On September 13, 2004, pursuant to its Resolution No. 04-0613, the city council approved the establishment of Tax Increment Financing District No. 23 (the TIF district) within the development district and adopted a tax increment financing 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.
1.04 DEDA proposes to amend the tax increment financing plan (the “amended TIF plan”) therefor pursuant to Minnesota Statutes, sections 469.174 through 469.179 (the TIF act) for the purpose of providing additional public financing for the public improvements to be constructed pursuant to the amended TIF plan and to provide additional, needed incentive to the private investment in the development district. DEDA has prepared the amended TIF plan in accordance with the TIF, which amended TIF plan is also contained in the aforesaid public document.
1.05 Pursuant to Section 469.175, subdivision 3 of the TIF act, the city held a public hearing on the amended TIF plan, which hearing was held on November 14, 2005, at which the views of all interested parties were heard.
1.06 DEDA has transmitted a copy of the amended TIF plan to the council in a document entitled “First Amendment to the Tax Increment Financing Plan for Tax Increment Financing District No. 23 (Fifth Street Redevelopment Project),” which is now on file in the office of the city clerk in the form of the aforesaid public document.
1.07 After investigation of the facts, the council is of the opinion that:
(a) 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;
(b) 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;
(c) 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 or polluted areas, (ii) to improve the general economy of the city and the state, (iii) to provide additional housing opportunities to residents of the area and of the city, especially housing for persons of low and moderate income, (iv) to improve the tax base of the city and the state, and (v) to provide other facilities identified in the development program and amended TIF plan;
(d) The proposed amended TIF plan is in the public interest and will result in increased housing opportunities in the city, especially for persons of low and moderate income and in the preservation and enhancement of the tax base of the city; and
(e) The TIF district and the amended TIF plan are 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.
1.08The council has fully reviewed the contents of the amended TIF plan.
Section 2. Statutory findings.
2.01 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 additional housing opportunities to residents of the area and of the city, especially housing for persons of low and moderate income, and to improve the general economy of the state.
2.02 The amended TIF plan is necessary to the project proposed by the plan in order to provide additional housing opportunities to persons living and working in the neighborhood, especially persons of low and moderate income, thereby strengthening the neighborhood and the economic base of the area and of the development district and the TIF district.
2.03 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.
2.04 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 amended TIF plan that:
(a) Development and redevelopment within the TIF district would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future without the amendment to the TIF plan;
(b) 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 as authorized by the amended TIF plan would be less than the increase in the market value estimated to result from development as authorized in the amended TIF plan 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 amended TIF plan; and
(c) The use of tax increment financing as authorized by the amended TIF plan is necessary.
(d) The primary purpose of the project to be financed pursuant to the amended TIF plan and the expenditure of funds thereunder is the benefits to the public flowing therefrom.
2.05 Based on information contained in the development program and the amended TIF plan, the amended TIF plan conforms to the general plan for the development and redevelopment of the city as a whole.
2.06 Based on information contained in the development program and the amended TIF plan, the amended 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.
Section 3. Approval.
3.01 The amended TIF plan, on file in the office of the city clerk as Public Document No. __________, is hereby approved.
STATEMENT OF PURPOSE: Purpose of this resolution is to approved the first amendment to the tax increment financing plan for Tax Increment Financing District No. 23 (Fifth Street redevelopment project) to allow any increased tax increment proceeds received by DEDA resulting from changes in the methodology in calculating the taxes payable from the Fifth Street redevelopment project, up to the amount of the costs eligible for reimbursement with public funds to be paid to the developer.