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.