HomeMy WebLinkAbout2018-11-26 PACKET 06.3B.
STAFF REPORT CASE: CP2018-070
ITEM: 6.3B
PUBLIC MEETING DATE: 11/26/18 TENTATIVE COUNCIL REVIEW DATE: 12/19/18
APPLICATION
APPLICANT: Up North Plastics, Inc.
REQUEST: Find that a modification to the Development Program for Development
District No. 1 and the establishment of Tax Increment Financing (TIF)
District No. 1-19 for construction of the addition to Up North Plastics
conforms to the Comprehensive Plan.
SITE DATA
LOCATION: 9480 Jamaica Avenue South
ZONING: I-2, General Industry
GUIDED LAND USE: Industrial
LAND USE OF ADJACENT PROPERTIES: CURRENT GUIDED
NORTH: Commercial Commercial
EAST: Industrial Industrial
SOUTH: Industrial Industrial
WEST: Industrial Industrial
SIZE: Addition of 428,353 square feet
DENSITY: N/A
RECOMMENDATION
Adopt Resolution PC2018-002.
COTTAGE GROVE PLANNING DIVISION
Planning Staff Contact: Christine Costello, Acting Community Economic Development Director
651-458-2824, ccostello@cottagegrovemn.gov
Application Accepted: 60-Day Review Deadline:
City of Cottage Grove Planning Division 12800 Ravine Parkway South Cottage Grove, MN 55016
Planning Staff Report
TIF Development District No. 1 Modification
Planning Case CP2018-070
November 26, 2018
Proposal
The City and the Economic Development Authority (EDA) are considering modifying Tax Incre-
ment Financing (TIF) District No. 1. The EDA considered creating a new TIF District (No. 1-19) at
their meeting on November 13. The City Council will hold the public hearing on December 5.
Minnesota Statutes require that the Planning Commission review the new district for conformance
to the City’s Comprehensive Plan. If the Commission finds that the changes to the TIF district are
consistent with the plan, the attached resolution should be adopted and forwarded to the City
Council.
TIF District No. 1-19 is proposed for the construction of a new manufacturing facility consisting of
428,353 square feet on Up North Plastic’s existing 88-acre site that is within the Cottage Grove
Business Park. A map of the proposed district and the TIF Plan are included with this report.
This proposed district would capture tax capacity resulting from the development of the property
for a period of nine years. The proceeds (tax increment) would be used to fund supporting infra-
structure and land costs related to the project.
Analysis
Cottage Grove Future Vision 2030 (Comprehensive Plan) includes the following elements which
impact the creation of TIF districts:
Community Vision
Guiding Principle: Increase Employment. Adding jobs in the City allows more residents to
work in Cottage Grove and spurs overall economic activity. Areas of new industrial and com-
mercial development are proposed which will generate new employment in the city.
Land Use
The proposed TIF District No. 1-19 is located in the area designated and zoned for industrial
uses consistent with the Comprehensive Plan.
Goal: Existing residential, commercial and industrial areas will continue to be main-
tained and revitalized. Policy 2.9 “The City and Economic Development Authority will use
available resources to meet redevelopment needs.”
Planning Staff Report
TIF Development District No. 1 Modification
November 26, 2018
Page 2 of 2
Recommendation
Given the information provided above, TIF District No. 1-19 (Up North Plastics) would conform to
the Comprehensive Plan by adding jobs and continuing to maintain and revitalize an existing
industrial area. Staff therefore recommends the Planning Commission approve the attached res-
olution finding that TIF District No. 1-19 within Development District No. 1 is in conformance with
the City’s Comprehensive Plan.
Prepared by:
Christine Costello
Acting Community Economic Development Director
Attachments:
– TIF No. 1-19 Plan
– Planning Commission Resolution
PLANNING COMMISSION
CITY OF COTTAGE GROVE, MINNESOTA
RESOLUTION NO. PC2018-002
RESOLUTION OF THE CITY OF COTTAGE GROVE PLANNING COMMISSION
FINDING THAT A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR
DEVELOPMENT DISTRICT NO. 1 AND A TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 1-19 (UP NORTH PLASTICS)
CONFORM TO THE GENERAL PLANS FOR THE DEVELOPMENT AND
REDEVELOPMENT OF THE CITY
WHEREAS, the Cottage Grove Economic Development Authority (the "EDA") and
the City of Cottage Grove (the "City") have proposed to adopt a Modification to the
Development Program for Development District No. 1 (the "Development Program
Modification") and a Tax Increment Financing Plan for Tax Increment Financing District
No. 1-19 (Up North Plastics) (the "TIF Plan") therefor (the Development Program
Modification and the TIF Plan are referred to collectively herein as the "Program and
Plan") and have submitted the Program and Plan to the City Planning Commission (the
"Commission") pursuant to Minnesota Statutes, Section 469.175, Subd. 3, and
WHEREAS, the Commission has reviewed the Program and Plan to determine
their conformity with the general plans for the development and redevelopment of the City
as described in the comprehensive plan for the City.
NOW, THEREFORE, BE IT RESOLVED by the Commission that the Program and
Plan conform to the general plans for the development and redevelopment of the City as
a whole.
Passed this 26th day of November, 2018.
Chair
ATTEST:
Secretary
As of November 7, 2018
Draft for EDA consideration
Section 1 - Modification to the Development Program
for Development District No. 1
Section 2 - Tax Increment Financing Plan
for Tax Increment Financing District No. 1-19
Minnesota
Statutes ("M.S."), Sections 469.090 to 469.1082M.S., Sections 469.174 to
469.1794
M.S., Chapter 117
M.S., Sections 469.174 to 469.1794
M.S., Section 469.174, Subd. 12
"Economic development district" means a type of tax increment financing district which consists of any
project, or portions of a project, which the authority finds to be in the public interest because:
(1)it will discourage commerce, industry, or manufacturing from moving their operations
to another state or municipality; or
(2)it will result in increased employment in the state; or
(3)it will result in preservation and enhancement of the tax base of the state; or
(4)it satisfies the requirements of a workforce housing project under Section 469.176, Subdivision
4c, paragraph (d).
M.S., Section 469.176, Subd. 4c,
M.S., Section 469.176, Subd. 7
M.S., Sections 273.111273.112, or 273.114Chapter 473H
M.S., Section 469.175, Subd. 1, and M.S., Section 469.176, Subd. 1
M.S., Section 469.176, Subd. 1b.
M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1
M.S., Section 469.177, Subds. 1 and 2
M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4
M.S., Section 469.177, Subd. 4
M.S.,
Section 469.175, Subd. 4
M.S., Section 469.175, Subd. 3.
M.S., Section 469.177, Subd. 3
M.S., Section 469.177, Subd. 3, clause a
(1)The original net tax capacity and the current net tax capacity shall be determined before the
application of the fiscal disparity provisions of Chapter 276A or 473F. Where the original net
tax capacity is equal to or greater than the current net tax capacity, there is no captured net tax
capacity and no tax increment determination. Where the original net tax capacity is less than
the current net tax capacity, the difference between the original net tax capacity and the current
net tax capacity is the captured net tax capacity. This amount less any portion thereof which the
authority has designated, in its tax increment financing plan, to share with the local taxing
districts is the retained captured net tax capacity of the authority.
(2)The county auditor shall exclude the retained captured net tax capacity of the authority from the
net tax capacity of the local taxing districts in determining local taxing district tax rates. The
local tax rates so determined are to be extended against the retained captured net tax capacity
of the authority as well as the net tax capacity of the local taxing districts. The tax generated by
the extension of the lesser of (A) the local taxing district tax rates or (B) the original local tax
rate to the retained captured net tax capacity of the authority is the tax increment of the
authority.
M.S., Section 469.177, Subd. 3:
(c)The method of computation of tax increment applied to a district pursuant to paragraph (a) or
(b) shall remain the same for the duration of the district, except that the governing body may
elect to change its election from the method of computation in paragraph (a) to the method in
paragraph (b).
M.S., Section 116J.993, Subd. 3
M.S., Section 116J.552, Subd. 3;
M.S., Section 469.174, Subd. 23
M.S., Section
469.174, Subd. 19
M.S., Section469.1813
M.S., Sections 116J.993 to 116J.995
M.S., Section 469.175, Subd. 1a
M.S. Section 469.175 Subd. 2(b)
M.S. Section 469.175 Subd. 2(b)
M.S. Section 469.175, Subd. 1 (a), clause 7
M.S. Section 469.175, Subd.
3, clause (b)(2)
M.S., Section 469.174, Subd. 25
M.S.,
Section 469.177
M.S., Section 273.1384
M.S., Section 469.175, Subd. 4
M.S., Section 469.175, Subd. 4(e)
M.S., Section 469.175 Subd. 4(f)
M.S., Section 469.174, Subd. 12
M.S., Section 469.177, Subd. 1
M.S., Section 469.174, Subd. 14,
other than
M.S., Section 469.178
M.S., Section 469.174, Subd.
25, clause (1)
M.S., Section 469.176, Subd. 4h
M.S., Section 469.176, Subd. 3
M.S., Section 469. 177, Subd. 11
M.S., Section 469.176, Subd. 6
if, after four years from the date of certification of the original net tax capacity of the tax
increment financing district pursuant to M.S., Section 469.177, no demolition, rehabilitation
or renovation of property or other site preparation, including qualified improvement of a
street adjacent to a parcel but not installation of utility service including sewer or water
systems, has been commenced on a parcel located within a tax increment financing district
by the authority or by the owner of the parcel in accordance with the tax increment financing
plan, no additional tax increment may be taken from that parcel, and the original net tax
capacity of that parcel shall be excluded from the original net tax capacity of the tax
increment financing district. If the authority or the owner of the parcel subsequently
commences demolition, rehabilitation or renovation or other site preparation on that parcel
including qualified improvement of a street adjacent to that parcel, in accordance with the
tax increment financing plan, the authority shall certify to the county auditor that the activity
has commenced and the county auditor shall certify the net tax capacity thereof as most
recently certified by the commissioner of revenue and add it to the original net tax capacity
of the tax increment financing district. The county auditor must enforce the provisions of this
subdivision. The authority must submit to the county auditor evidence that the required
activity has taken place for each parcel in the district. The evidence for a parcel must be
submitted by February 1 of the fifth year following the year in which the parcel was certified
as included in the district. For purposes of this subdivision, qualified improvements of a
street are limited to (1) construction or opening of a new street, (2) relocation of a street,
and (3) substantial reconstruction or rebuilding of an existing street.
M.S., Sections 469.090 to 469.1082
M.S., Section 469.176, Subd. 4
M.S., Chapter 462C. M.S., Sections 469.152 through 469.165M.S., Sections 469.178
M.S., Chapter 462C, M.S., Sections 469.152
through 469.165M.S., Sections 469.178
M.S., Section 469.176, Subd. 4.
M.S., Section 469.176, Subd. 2
M.S., Section 469.176, Subd. 5
M.S., Section 469.178
M.S., Section 469.177, Subd. 8
M.S., Section 469.175, Subds. 5, 6, and 6b
M.S., Section 469.175, Subd. 5
M.S., Section
469.175 Subd. 5 and Subd. 6,
M.S., Sections 469.090 to 469.1082
M.S., Section 469.1763, Subd. 3
M.S., Section 469.1763, Subd.
5
Additional information to be added prior to the public hearing