06-65 - 10-03 - Amend Valley Sqare TIF to Discontinue Collection Resolution 06-65 October 3, 2006
Member Pentel introduced the following resolution and moved its adoption:
RESOLUTION AMENDING THE VALLEY SQUARE TAX INCREMENT
FINANCING DISTRICT TO DISCONTINUE THE COLLECTION OF INCREMENT
GENERATED FROM CERTAIN PARCELS
WHEREAS, by adoption of a resolution on June 8, 1978, the City Council of the City
of Golden Valley Minnesota (the "City") has heretofore created the Valley Square Tax
Increment Financing District (the "District"), located within Valley Square Development
District No. 1500, and has approved a Tax Increment Financing Plan (the "TIF Plan"), [as
amended], for the District to provide assistance to the project area; and
WHEREAS, the County Auditor of Hennepin County (the "County") has certified the
original net tax capacity and the original local tax rate of the District pursuant to the
provisions of Minnesota Statutes, Section 469.177;
WHEREAS, by adoption of Resolution 98-51 on May 19, 1998, the City Council of
the City extended the term of the District for specified parcels (described as "Area B")
through the enactment of special legislation described in Section 14 of Chapter 389 in the
1998 Session Law (the "special legislation"); and
WHEREAS, the special legislation authorized the continued collection of tax
increment generated by the Area B parcels through tax payable year 2010 to pay or
defease bonds issued to fund public redevelopment costs within the redevelopment project
or bonds issued to refund the bonds; and
WHEREAS, the City issued two series of tax increment revenue bonds in 2003 to
refund the bonds issued to fund public redevelopment costs within the redevelopment
project (the "2003 bonds"); and
WHEREAS, the special legislation further acknowledged the City's ability to continue
to collect increment generated District-wide to pay district bonds issued before April 1,
1990;
WHEREAS, the City and the County have defined the Area B parcels as County
Project Number 1599 which has a preliminary frozen tax capacity of $56,592 and a
preliminary current tax capacity of $703,753 for taxes payable year 2007; and
WHEREAS, the City and the County have defined the Non-Area B parcels as
County Project Number 1500 which has a preliminary frozen tax capacity of$104,285 and
a preliminary current tax capacity of$740,173 for taxes payable year 2007;
WHEREAS, as of the date hereof, the City projects increment revenue received
through the end of the 2006 calendar year to be sufficient to pay in full all the principal and
interest due on the district bonds issued before April 1, 1990; and
Resolution 06-65 - Continued October 3, 2006
WHEREAS, in order to comply with the special legislation enacted in 1998, the City
desires to discontinue the collection of increment generated from County Project Number
1500 (Non-Area B);
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Golden
Valley, Minnesota, as follows (i) the City directs the County to discontinue sending
increment generated from County Project Number 1500 to the City after December 31,
2006; (ii) the City shall continue to collect increment generated by County Project Number
1599, in compliance with the special legislation through tax payable year 2010, or until the
2003 bonds are defeased, whichever is sooner; and (iii) the Clerk-Administrator shall
provide a certified copy of this resolution to the County Auditor of Hennepin County as
notification of the City's compliance with the special legislation.
r
Linda R. Loomis, Mayor
ATTEST:
*Susan
nig, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member Freiberg
and upon a vote being taken thereon, the following voted in favor thereof: Freiberg,
Loomis, Pentel, Scanlon and Shaffer; and the following voted against the same: none,
whereupon said resolution was declared duly passed and adopted, signed by the Mayor
and her signature attested by the City Clerk.