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).
1.02 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).
1.03 On March 15, 2004, pursuant to Resolution No. 04-0169, the City Council approved an amendment to the development program for Development District No. 17 and the establishment of Tax Increment Financing District No. 22 (the TIF district) within the development district to permit use of funds for the construction of a medical clinic/office facility and related parking facility within the district.
1.04 DEDA herewith proposes to further amend the development program for Development District 17 to include within the permitted uses of funds the construction of a hotel/condominium complex within the development district, which amended development program is part of Public Document No. __________, on file in the office of the city clerk.
1.05 DEDA proposes to amend the boundaries Tax Increment Financing District No. 22 and adopt an amended 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 financing further public improvements and encouraging additional investment in the development district. DEDA has prepared the TIF plan in accordance with the TIF, which amended TIF plan is also contained in the aforesaid public document.
1.06 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.
1.07 DEDA has transmitted a copy of the amended 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 public document.
1.08 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 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 amended TIF plan;
(d) The proposed amendment 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;
(e) The TIF district as amended, 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.
1.09The 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 employment opportunities, and to improve the general economy of the state.
2.02 Amendment of the existing plan for the TIF district will provide further, needed impetus for commercial development; increase employment; and help to enhance and preserve historic structures in 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) The proposed development and redevelopment within the TIF district by the amended TIF plan would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future;
(b) The increased market value of the site within the TIF district of the hotel/condominium project authorized by the amended TIF plan 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 proposed by the amended TIF plan after subtracting the present value of the projected tax increments for the maximum duration of the TIF district permitted by the amended TIF plan;
(c) The use of tax increment financing 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 development district plan and the amended TIF plan are approved.
3.02 The geographic boundaries of the development district and TIF district are modified as described in the development program and amended 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.
STATEMENT OF PURPOSE: Purpose of this resolution is to approved the amended 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). This amendment authorizes the use of TIF proceeds to defray a portion of the costs, eligible for public participation, of the new proposed hotel and condominium development at the southwest corner of Third Avenue East and Superior Street.