September 10, 2007

Regular Meeting

 

Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Halstad was duly called and held at the Halstad Telephone Company Community Room in said City on September 10, 2007 at 5:00 p.m.

                Mayor Brookshire presided at the meeting.

The following members were absent:  None

 

Mayor Brookshire opened the Public Hearing discuss three resolutions in creating a TIF Redevelopment District 2.  David Drown was present to explain the TIF rules and regulations.  Comments were taken from the public.  It is the intent to limit the Increment to 15 years:

 

Member Tom Maroney introduced the following resolution and moved its adoption: 

RESOLUTION 09-10-2007-1

APPROVING THE CREATION OF TAX INCREMENT FINANCING DISTRICT NO. 2 AND

THE ADOPTION OF THE TAX INCREMENT FINANCING PLAN RELATING THERETO

WHEREAS: 

     A.       It has been proposed that the City of Halstad, Minnesota (the "City"), create Tax Increment Financing District No. 2 and adopt a tax increment financing plan with respect thereto, under the provisions of Minnesota Statutes, Sections 469.174 to 469.179 (the "Act"); and

     B.       The City of Halstad has investigated the facts and has caused to be prepared a tax increment financing plan for Tax Increment Financing District No. 2; and

     C.       The City has performed all actions required by law to be performed prior to the creation of Tax Increment Financing District No. 2 and the adoption of the tax increment financing plan relating thereto, including, but not limited to, notification of Norman County and Norman County West School District No. 2527, having taxing jurisdiction over the property to be included in Tax Increment Financing District No. 2, and the holding of a public hearing upon published and required notice as required by law.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Halstad as follows:

1.             Tax Increment Financing District No. 2. The City hereby approves the establishment of Tax Increment Financing District No. 2, the boundaries of which are fixed and determined as described in the Tax Increment Financing Plan.

2.             Tax Increment Financing Plan.  The Tax Increment Financing Plan is adopted as the tax increment financing plan for Tax Increment Financing District No. 2, and the City Council makes the following findings:

(a)       Tax Increment Financing District No. 2 is a redevelopment district as defined in Minnesota Statutes, Section 469.174, Subd. 12. The reasons and facts supporting this finding are that over 70% of the parcels included in the TIF District are improved parcels, and over 50% of the buildings in the TIF District have been inspected and found to be substandard.

(b)       The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future, and the increased market value of the site that could reasonably be expected to occur without the use of tax increment would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan; The reasons and facts supporting this finding are Dr. Hollinshead has indicated in writing that without TIF assistance as requested, she will not be able to secure financing for the project.  This information has been confirmed by the City’s financial consultant through discussions with her lender at the Red River State Bank in Halstad.

A comparative analysis of estimated market values both with and without establishment of the TIF District and the use of tax increments has been performed.  Such analysis is included in the Tax Increment Financing Plan.

 (c)      The Tax Increment Financing Plan for Tax Increment Financing District No. 2 conforms to the general plan for development or redevelopment of the City of Halstad as a whole. The reasons and facts supporting this finding are that the current zoning of the property provides for commercial as a permitted use, and rezoning will not be required.

(d)       The Tax Increment Financing Plan will afford maximum opportunity, consistent with the sound needs of the City of Halstad as a whole, for the development or redevelopment of Tax Increment Financing District No. 2 by private enterprise. The reasons and facts supporting this finding are that the development activities are necessary so that development and redevelopment by private enterprise can occur within the Development District.

3.             Public Purpose.  The adoption of the Tax Increment Financing Plan conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the City which is already built up to provide employment opportunities to improve the tax base, and to improve the general economy of the State and thereby serves a public purpose.

4.                   Authorization of Interfund Loan.  The City intends to finance up to $10,000 of land acquisition, street and utility improvements and administrative expenses associated with the redevelopment project utilizing internal funds of the City.  This funding shall be repaid by tax increment revenues generated within Tax Increment Financing District No. 2 over a term not exceeding the statutory life of the TIF District. 

5.                   Certification. The Auditor of Norman County is requested to certify the original net tax capacity of Tax Increment Financing District No. 2 as described in the Tax Increment Financing Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased in accordance with the Act; and the City Clerk-Treasurer is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within Tax Increment District No. 2 for which building permits have been issued during the 18 months immediately preceding the adoption of this Resolution.

6.                   Filing.  The City Clerk-Treasurer is further authorized and directed to file a copy of the Tax Increment Financing Plan with the Commissioner of Revenue and the Office of the State Auditor.

The motion for the adoption of the foregoing resolution was duly seconded by member Shane Carlson and upon vote being taken thereon, the following voted in favor thereof:   Glen Brookshire – Renae Horning – Tom Maroney – Shane Carlson – Ron Gotteberg and the following voted against the same: None 

Whereupon said resolution was declared duly passed and adopted.

 

Councilmember Ron Gotteberg introduced the following resolution and moved its adoption;

RESOULUTION APPROVING THE HALSTAD BUSINESS SUBSIDY CRITERIA

WHEREAS, the City of Halstad, Minnesota (the "City") acknowledges the need to provide financial assistance to businesses in the City to further the economic and development objectives of the City; and

WHEREAS, of Minnesota Statutes 116J.993 through 116J.995 requires the City to establish Business Subsidy Criteria before any new business subsidy can be provided; and

WHEREAS, the City has performed all actions required by law to be performed prior to the adoption of the Halstad Business Subsidy Criteria, including the holding of a public hearing upon published notice as required by law.

 

BE IT RESOLVED by the City Council (the "Council") of the City as follows:

                1. The City hereby adopts the Halstad Business Subsidy Criteria as defined in the attached Exhibit A.

                The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Tom Maroney and upon vote being taken thereon, the following voted in favor:  Tom Maroney – Ron Gotteberg – Glen Brookshire – Renae Horning – Shane Carlson  and the following voted against the same.  None  Whereupon said resolution was declared duly passed and adopted.

 

Councilmember Shane Carlson introduced the following resolution and moved its adoption;

Resolution Approving
Business Subsidy to Dr. Joyce Hollinshead

WHEREAS, the City of Halstad, Minnesota (the "City") acknowledges the need to provide financial assistance to businesses in the City to further the economic and development objectives of the City; and

WHEREAS, the City of Halstad has held a public hearing as required by Minnesota Statutes 116J.993 through 116J.995 prior to awarding a Business Subsidy in excess of $100,000; and

WHEREAS, the City has performed all actions required by law to be performed prior to the awarding of a Business Subsidy Criteria, therefore

BE IT RESOLVED by the City Council (the "Council") of the City as follows:

1.                   The Council hereby approves providing financial assistance to Dr. Joyce Hollinshead in accordance with the requirements of Minnesota Statutes 116J.993 through 116J.995; and

2.                   The Council hereby authorizes the Mayor and Clerk-Treasurer to execute the Development Agreement which will govern the assistance being provided to Dr. Joyce Hollinshead in accordance with the terms agreed upon and as outlined in attached Exhibit A.

                The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Tom Maroney and upon vote being taken thereon, the following voted in favor: Glen Brookshire – Renae Horning – Tom Maroney – Shane Carlson – Ron Gotteberg and the following voted against the same.  None  Whereupon said resolution was declared duly passed and adopted.

 

Renae Horning moved to approve the Agenda with the addition of discussing the 2008 Sheriff agreement after item 5 (5-a).  Tom Maroney seconded the motion.  Unanimous

 

Minutes of the August meeting were examined and approved.  Motion for approval was made by Ron Gotteberg and seconded by Shane Carlson Unanimous

 

                All claims for the month of August were examined.  Motion for approval was made by Tom Maroney and seconded by Shane Carlson.  Unanimous

 

                Ron Gotteberg moved to approve the 2003 Police Contracting Contract with the Norman County Sheriff Department with an increase of $732.00 over the 2007 contract.  Motion was seconded by Tom Maroney.  Unanimous

 

Tom Maroney moved to approve a 0 % increase for the 2008 City Budget.  Renae Horning seconded the motion.  Unanimous

 

                Tom Maroney moved to approve the following resolution:

Resolution of Jurisdiction Approval

Be it resolved that the City of Halstad is the unit of government in which the project titled renovation is to be locazted and Valley Hardware Supply will be applying for a loan from the Northwest Regional Enterprise Fund, Inc. of the Northwest Regional Development Commission for financing with the approval of the City of Halstad.

Renae Horning seconded the motion.  Unanimous

 

                Cleanup Date September 25th (Tuesday) 

Generators are fully functional

Sewer Plant upgrade project finished

 

Renae Horning moved to adjourn.  Shane Carlson seconded the motion.  The next regular meeting of the Council will be October 8, 2007 at 5:00 p.m.

 

 

                                                                                                                _______________________________________

                                                                                                Ronald Gotteberg, Clerk-Treasure