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Home My WebLink About2015-02-18 PACKET 04.F. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 2/18/15 . . ( PREPARED BY Finance Robin Roland ORIGINATING DEPARTMENT DEPARTMENT HEAD ***�*�**********�*��****�**��****�**�*�*��*** COUNCIL ACTION REQUEST Consider resolution calling for a Public Hearing on establishment of Tax Increment Financing District 1-15 STAFF RECOMMENDATION Adopt resolution calling a Public Hearing on April 15, 2015 to establish TIF District 1-15. BUDGET IMPLICATION BUDGETED AMOUNT ACTUAL AMOUNT ADVISORY COMMISSION ACTION DATE REVIEWED APPROVED DENIED ❑ PLANNING ❑ ❑ ❑ ❑ PUBLIC SAFETY ❑ ❑ ❑ ❑ PUBLIC WORKS ❑ ❑ ❑ ❑ PARKS AND RECREATION ❑ ❑ ❑ ❑ HUMAN SERVICES/RIGHTS ❑ ❑ ❑ ❑ ECONOMIC DEV. AUTHORITY ❑ ❑ ❑ ❑ ❑ ❑ ❑ SUPPORTING DOCUMENTS � MEMO/LETTER: � RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: � OTHER: schedule ADMINISTRATORS COMMENTS � �� l � � �` City Administrator Date �*****�****************�******�*****�*�*�******* H:1Council items\council-action template.docx Cottage ,/ Grove � Pride and P�OSPerity Meeg i To: Mayor and City Council Members Ryan Schroeder, City Administrator From: Robin Roland, Finance Director Date: February 11, 2015 Subject: Consider calling a Public Hearing on the proposed creation of TIF District 1-15 Introduction The EDA adopted a resolution at their February 10, 2015 meeting requesting that the City Council call a public hearing to consider establishment of a TIF district for the expansion of a facility in the Business Park Discussion City staff has been working with American Logistics on a proposed 80,000 square foot expansion of their building at 7800 97t" Street. The proposed project also includes a 20,000 square foot accessory truck maintenance and wash facility. American Logistics owns two facilities within the Cottage Grove Business Park; 7800 and 7900 g7tn Street South. They constructed the 7900 building on 5.961 acres in 2001; the 7800 building on 5.664 acres in 2005. These two properties have a taxable market value of $3,300,000 and $2,616,300 respectively for pay 2015. We estimate that the increase in taxable market value from the expansion would be $3.1 million. Assistance in the form of Tax Increment Financing for the site requires creation of a TIF district. The TIF District, should it be created, would expire by 2026. Tax increment and land sale proceeds would be allocated toward land purchase, infrastructure and development costs and charges related to the development project. In order to establish TIF district 1-15 for this economic development project, a public hearing must be held. A potential time line for TIF district creation is included with this memo. Action Requested Adopt the attached resolution calling the Public Hearing for April 15, 2015. SCHEDULE OF EVENTS COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY AND 'I'�IE CITY OF COT'I'AGE GIZOVE WASHINGTON COUNTY, MINNESOTA FOR TI�E MODIFICATIOlV TO THE DE�ELOPMEN� PROGRAM �OR DEVELOPMENT DISTRICT NO.1 AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 1-15 (an economic development district) February 10, 2015 EDA requests that the city Council call for a public hearing on the proposed Modification to the Development Program for Development District No. 1 and the proposed Establishment of Tax Increment Financing District No. 1-15. February 16, 2015 Project information (property identification numbers/parcel list, maps and list of sources and uses of funds) for drafting necessary documentation sent to Ehlers. February 18, 2015 City Council calls for public hearing on the proposed Modification to the Development Program for Development District No. 1 and the proposed Establishment of Tax Increment Financing District No. 1-15. N/A* Project information submitted to the County Board for review of county road impacts if necessary (at least 45 days prior to public hearing). * The County Board by law has 45 days to review the TIF' Plan to determine if any county roads will be impacted by the development. Because the City staff believes that the proposed tax increment financing district will not require unplanned county road improvements, the TIF Plau will not be forwarded to the County Board 45 days prior to the public hearing. Please be aware that the County Board could claim that tax increment should be used for county roads, even after the public hearing. March 16, 2015 FiscaUeconomic implications received by School Board Clerk and County Auditor (at least 30 days prior to public hearing). [Ehlers will fax & mail on oN before March 16, 2015.J March 23, 2015 Ehlers & Associates conducts internal review of the Program Modi�cation and TIF Plan. March 23, 2015 Planning Commission reviews Program Modification and TIF Plan. March 25, 2015 Date of publication of TIF hearing notice and map (at least 10 days but not more than 30 days prior to hearing). [South Washington county Bulletin publication deadline, 4: 00 P.M. MaNCh 19, 2015. Ehlers will submit notice, map and instructions to newspaper via e-mail on or before March 19, 2015.J SCHEDULE OF EVENTS - PAGE 2 COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY OF COTTAGE GROVE WASHINGTON COUNTY,IVIINNESOTA FOR THE MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.1 AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 1-15 (an economic development district) April 14, 2015 EDA considers the Program Modification and the TIF Plan and approves a resolution. April 15, 2015 City Council holds a public hearing at 7:30 PM on a Modification to the Development Program for Development District No. 1 and the Establishment of Tax Increment Financing District No. 1-15. [Ehlers will send Council packet information to City via e-mail on or before ApNil 8, 201 S.J , 2015 Ehlers & Associates files the Program Modification and the TIF Plan with the MN Department of Revenue and the Office of the State Auditor and with Washington County. An action under subdivision 1, paragraph (a), contesting the validity of a determination by an authoriTy under section 469.175, subdivision 3, must be commenced within the later o£ (1) 180 days after the municipality's approval under section 469.175, subdivision 3; or (2) 90 days after the request for certification of the district is filed with the county auditor under section 469177, subdivision 1. CITY OF COTTAGE GROVE � COUNTY OF WASHINGTON STATE OF MIl�]NESOTA RESOLUTION NO. RESOLUTION CALLING FOR A PUBLIC HEARING BY THE CITY COUNCIL ON THE PROPOSED MODIF'ICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT I)ISTitIC� NO. 1 AND THE PROPOSEI2 ESTABLISI�VIENT OF TAX INCREMENT FINANCING DISTRICT NO. 1-15. BE IT RESOLVED by the City Council (the "Council") for the City of Cottage Grove, Minnesota (the "City"), as follows: Section 1. Public Hearin�. This Council shall meet on April 15, 2015, at approximately 7:30 P.M., to hold a public hearing on the proposed Modification to the Development Program for Development District No. 1(the "Development Program Modification") and the proposed adoption of the Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District No. 1-15 ("TIF District No. 1-15"), an economic development district, (the Development Program Modi�cation and the TIF Plan are referred to collectively herein as the " Program and Plan"), all pursuant to and in accordance with Minnesota Statutes, Sections 469.090 to 469.1082, and Sections 469.174 to 469.1799, inclusive, as amended, in an effort to encourage the development and redevelopment of certain designated areas within the City; and Section 2. Notice of Public Hearin ,� og f Program Modification and TIF Plan. City staff is authorized and directed to work with Ehlers & Associates, Inc., to prepare the Program and Plan and to forward documents to the appropriate taxing jurisdictions including Washington County and Independent School District No. 833. The City Administrator is authorized and directed to cause notice of the hearing, together with an appropriate map as required by law, to be published at least once in the official newspaper of the City not later than 10, nor more than 30, days prior to April 15, 2015 and to place a copy of the Program and Plan on file in the City Administrator's office at City Hall and to make such copy available for inspection by the public. Dated: February 18, 2015 Adopted: Mayor ATTEST: City Administrator