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HomeMy WebLinkAbout7.a. Authorizing the TIF Spending Plan EXECUTIVE SUMMARY City Council Regular Meeting Date: November 1, 2022 AGENDA ITEM: Authorizing the TIF Spending Plan AGENDA SECTION: Public Hearing PREPARED BY: Eric Van Oss, Economic Development Coordinator AGENDA NO. 7.a. ATTACHMENTS: Resolution, TIF Spending Plan APPROVED BY: LJM RECOMMENDED ACTION: 1. Hold a Public Hearing 2. Motion to Adopt a resolution approving the TIF Spending Plan BACKGROUND In 2021, the Legislature enacted expanded, temporary authority to transfer unobligated tax increments for purposes of assisting private development consisting of the construction or substantial rehabilitation of buildings and ancillary facilities, if doing so will create or retain jobs in the state. The new law temporarily permits a development authority (Rosemount Port Authority) to elect, by resolution, to transfer unobligated increment for certain specified purposes provided the following criteria are met: 1. It consists of the construction or substantial rehabilitation of buildings and ancillary facilities; 2. It creates or retains jobs in the state, including construction jobs; and 3. Construction commences before December 31, 2025 and would not have commenced before that date without the assistance. The authority to transfer increments under this provision expires on December 31, 2022. Amounts being transferred under this provision must be transferred from the fund or account in which tax increments are segregated and into a separate fund or account by December 31, 2022. All transfers must be spent by December 31, 2025. Increment not spent by December 31, 2025, must be returned to the fund(s) of the contributing TIF district(s) and will need to be used per applicable TIF laws. For example, from the Downtown Brockway District, the funds would need to be used to assist with redevelopment projects within that district. Funds spent under the Spending Plan are currently not obligated, therefore using these funds will not impact payments to any bonds or pay-as-you-go notes. Currently, the Downtown Brockway District has $2.857 million available to assist private development. Staff is proposing a spending plan that broadly targets development and redevelopment opportunities within Rosemount. Per staff’s recommendation each project would require a minimum of $25,000 and no more than $500,000 in financing assistance. Several sites have long been discussed for redevelopment, and those sites will be eligible for funding as proposals materialize in addition to other sites that meet the Spending Plan criteria. The City Council approves the spending plan, while the Port Authority is the body that will approve (by resolution) the transfer of funds for specific projects. Staff will draft implementation criteria for the Port upon the approval of the Spending Plan. RECOMMENDATION Staff recommends the City Council approve the attached Resolution and Spending Plan. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2022-XX RESOLUTION APPROVING A SPENDING PLAN FOR TAX INCREMENT FINANCING DOWNTOWN BROCKWAY DISTRICT IN THE CITY BE IT RESOLVED by the City Council (the "City Council") of the City of Rosemount (the "City"), Dakota County, Minnesota as follows: Section 1. Background; Findings. (a) The City and the Rosemount Port Authority (the "Authority") have previously established Tax Increment Financing Downtown Brockway District (the "TIF Districts") and adopted tax increment financing plans therefor (the "TIF Plans"). (b) Subject to the approval of the City Council following a public hearing, the Authority proposes to adopt a spending plan for the TIF Districts in accordance with the temporary authority granted under Minnesota Statutes, Section 469.176, Subd. 4n (the “Act”), in the form submitted to the City Council by the Authority (the "Spending Plan"), authorizing the use of unobligated tax increment revenues from the TIF Districts in order to stimulate the construction or substantial rehabilitation of private development in a way that will also create or retain jobs. (c) The City has performed all actions required by law to be performed prior to the approval of the Spending Plan, including, but not limited to, causing notice of a public hearing to be published and holding a public hearing on the date hereof on the adoption of the Spending Plan. (d) All findings regarding the compliance of the Spending Plan with the Act are recited within the Spending Plan and are incorporated within this resolution by reference. Section 2. Approval of the Spending Plan. (a) The Spending Plan for the TIF District is hereby approved. (b) The Authority is hereby authorized to carry out the terms of the Spending Plan in such manner as it determines to be consistent with the Spending Plan. ADOPTED this 1st day of November, 2022. William H. Droste, Mayor ATTEST: Erin Fasbender, City Clerk Adopted: November 1, 2022 Rosemount City Council City of Rosemount, Dakota County, Minnesota Spending Plan Tax Increment Financing Downtown Brockway District City of Rosemount Spending Plan for Downtown Brockway TIF District 1 Spending Plan for Tax Increment Financing District PURPOSE The Rosemont Port Authority (the “Authority”) administers Tax Increment Financing Downtown Brockway District (the “TIF Districts”) in the City of Rosemount, Minnesota (the “City”), and proposes to adopt a Spending Plan for the TIF Districts in accordance with Minnesota Statutes, Section 469.176 Subd. 4n (the “Act”). The Act grants the Authority temporary authorization to transfer unobligated tax increment to provide improvements, loans, interest rate subsidies or assistance in any form to private development consisting of the construction or substantial rehabilitation of buildings and ancillary facilities, which will create or retain jobs in the State, including construction jobs, so long as such private development commences no later than December 31, 2025, and would not have commenced before that date without such assistance. Such transfers must be made by resolution, pursuant to the terms of a spending plan approved by the Authority and by the City, following a public hearing of the City Council. PLAN The Authority is authorized as follows: (a) To use available tax increments from the TIF Districts to provide assistance in connection with a private development consisting of the construction or substantial rehabilitation of commercial, industrial, residential and/or mixed-use buildings and ancillary facilities requiring a minimum of $25,000 and no more than $500,000 in financing assistance. Preference will be given to projects on parcels targeted for redevelopment that further the goals set forth in the City’s Comprehensive Plan and the City’s other strategic planning documents, and which will result in the creation and retention of jobs in the State, including construction jobs. (b) To amend the budget set forth in the Tax Increment Financing Plans for the Tax Increment Financing Districts as necessary to provide for the assistance authorized by this Spending Plan. (c) To take any other action necessary and authorized under the Act in connection with the construction or substantial rehabilitation of facilities of the type described in clause (a) above. The assistance provided pursuant to this Plan shall be subject to Minnesota Statutes, Sections 116J.993 to 116J.995 (the “Business Subsidy Law”), if applicable, and shall be subject to the City’s Business Subsidy Policy.