09-37 - 06-16 - amend valley square tax increment financing district - discontinue increment
Resolution 09-37
June 16, 2009
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 ALL PARCELS
WHEREAS, by adoption of a resolution on August, 1979, 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 payor
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; and Resolution 06-65 amended the Valley Square Tax Increment Financing District
and discontinued Parcels contained in Non-Area B Project 1500.
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 total tax capacity of $762,830 for taxes payable year 2009; and
WHEREAS, as of the date hereof, the City projects increment revenue received
through the end of the 2009 calendar year to be sufficient to pay in full all the principal and
interest due on the district bonds issued in 2003; which last payment will be February,
2010; and
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
1599 (Area B);
Resolution 09-37 - Continued
June 16, 2009
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 1599 to the City after December 31,
2009; or with last tax payments made in January, 2010 for taxes payable in 2009 (ii) 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.
Xtftuttu ~.~
Linda R. Loomis, Mayor
ATTEST:
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The motion for the adoption of the foregoing resolution was seconded by Member Shaffer
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.