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Home My WebLink AboutResolution 2023-09 Approving Property Tax AbatementCITY OF CORCORA.N, MINNESOTA RESOLUTION N0.2023-09 APPROVING PROPERTY TAX ABATEMENT IN THE CITY OF CORCORAN FOR CERTAIN PUBLIC INFRASTRUCTURE IMPROVEMENTS BE IT RESOLVED by the City Council of the City of Corcoran, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. The City proposes to (i) undertake various public improvements, including but not limited to street, stormwater, utility and road improvements to Hackamore Drive, City Center Drive and 79th Place, Horseshoe Road and Horseshoe Bend (the "Project") with tax abatement bonds authorized by Minnesota Statutes, Sections 469.1812 through 469.1815 (the "Abatement Act") and (11) authorize a property tax abatement with respect to various parcels of land that benefit from such public improvements. 1.02. Pursuant to Section 469.1813, subdivision 1 of the Abatement Act, the City may grant an abatement of all or a portion of the taxes imposed by the City on one or more parcels of property to pay for all or part of the cost of financing or providing public infrastructure, increasing or preserving the tax base, providing employment opportunities, and help provide access to services for residents of the City. 1.03. The City has identified 339 parcels located in the City, identified in EXHIBIT A attached hereto (the "Abatement Property"), which will be benefltted by the Project and from which the City proposes to abate all or a portion of the City's share of taxes to help finance the Project, subject to all the terms and conditions of this resolution. 1.04. The Abatement Property is not located in a tax increment financing district. 1.05. The City is authorized under the Abatement Act and Minnesota Statutes, Chapter 475, as amended (together, the "Act"), to issue one or more series of general obligation tax abatement bonds in the aggregate principal amount not to exceed $5,108,000 (the "Abatement Bonds") to pay the costs of the Project pursuant to the Abatement Act, and which are expected to be paid primarily through the collection of Abatement (hereinafter defined) revenues. 1.06. On the date hereof, the City Council conducted a duly noticed public hearing on the Abatement at which the views of all interested persons were heard. Section 2. Findings. 2.01. It is hereby found and determined that the benefits to the City from the Abatement will be at least equal to the costs to the City of the Abatement, because (a) the Abatement will help finance public infrastructure in a way that will strengthen the local economy and attract and retain citizens due to improved roads and utilities, help mitigate the identified streets that are in various stages of disrepair and help increase or preserve tax base by stimulating development and maintaining values in the area, help provide construction jobs, and protect the general health and welfare of the community by maintaining public infrastructure and facilities.; and (b) the increased City taxes collected from the Abatement Property upon CR100-25-848720.v1 termination of the Abatement are expected to far exceed the amount of the Abatement collected from the Abatement Property during the term of this resolution. 2.02. It is hereby found and determined that the Abatement is in the public interest for the reasons described in Section 2.01 hereof. Section 3 . Actions Ratified; Abatement Approved. 3.01. The City Council hereby ratifies all actions of the City's staff and consultants in arranging for approval of this resolution in accordance with the Abatement Act. 3.02. Subject to the provisions of the Abatement Act, the Abatement is hereby approved and adopted subject to the following terms and conditions: (a) The term "Abatement" means the City's share of the real property taxes generated from the Abatement Property, in the amounts described in this Section: (i) The aggregate Abatement paid by the City during the term of this resolution will not exceed the amount necessary to pay the principal of and all or a portion of the interest on the Abatement Bonds, up to a maximum of $5,108,000. (11) Notwithstanding anything to the contrary herein, the Abatement payable on any August 1 and subsequent February 1, combined, will not exceed the amount produced by extending the City's total tax rate for the applicable year against the tax capacity of the Abatement Property, as of January 2 in the prior year. (111) In accordance with Section 469.1813, subdivision 8 of the Act, in no year shall the Abatement, together with all other abatements approved by the City under the Act and paid in that year, exceed the greater of ten percent (10%) of the City's net tax capacity for that year or $200,000 the "Abatement Volume Cap"). The City may grant any other abatements permitted under the Act after the date of this resolution, provided that to the extent the total abatements in any year exceed the Abatement Volume Cap, the allocation of Abatement Volume Cap to such other abatements is subordinate to the Abatements under this resolution. (b) The City will pay the Abatement in semiannual installments over a period of 15 years each February 1 and August 1, commencing in takes payable year 2024, and continuing through tomes payable in 2039 or such other dates that correspond to the payment of debt service on the Abatement Bonds over a period not to exceed 15 years. The City will pay the Abatement solely to finance the cost of the Project, through application of Abatement amounts toward debt service payments on the Abatement Bonds (including any bonds issued to refund the initial Abatement Bonds). (c) This resolution may be modified only with the prior written approval of the City, and any modification is subject to Section 469.1813, subdivision 7 of the Abatement Act. (d) In accordance with Section 469.1815 of the Abatement Act, the City will add to its levy in each year during the term of the Abatement the total estimated amount of current year Abatement granted under this resolution. Approved this January 26, 2023 by the City Council of the City of Corcoran, Minnesota. CR100-25-848720.v1 2 EXHIBIT A ABATEMENT PROPERTY Parcel Identification Numbers: 0111923340004 0111923340061 0111923420035 0111923430052 0111923440010 1211923110028 0111923340005 0111923340062 0111923420036 0111923430053 0111923440017 1211923110029 0111923340006 0111923340063 0111923420037 0111923430054 0111923440018 1211923110030 0111923340007 0111923340064 0111923420038 0111923430055 0111923440019 1211923110031 0111923340008 0111923340065 0111923420039 0111923430056 0111923440020 1211923110032 0111923340009 0111923410004 0111923420040 0111923430057 0111923440021 1211923110033 0111923340010 0111923410005 0111923420041 0111923430058 0111923440022 1211923110034 0111923340011 0111923410006 0111923420042 0111923430059 0111923440023 1211923110035 0111923340012 0111923410007 0111923420043 0111923430060 0111923440024 1211923110036 0111923340013 0111923410008 0111923420044 0111923430061 0111923440025 1211923110037 0111923340014 0111923410009 0111923420045 0111923430062 0111923440026 1211923110038 0111923340015 0111923410010 0111923420046 0111923430063 0111923440027 1211923110039 0111923340016 0111923410011 0111923420047 0111923430064 0111923440028 1211923110040 0111923340017 0111923410012 0111923430003 0111923430065 0111923440029 1211923110041 0111923340018 0111923410013 0111923430004 0111923430066 0111923440030 1211923110042 0111923340019 0111923410014 0111923430005 0111923430067 0111923440031 1211923110043 0111923340020 0111923410015 0111923430006 0111923430068 0111923440032 1211923110044 0111923340021 0111923410016 0111923430007 0111923430069 0111923440033 1211923110045 0111923340022 0111923410017 0111923430008 0111923430070 0111923440034 1211923110046 0111923340023 0111923410018 0111923430010 0111923430071 0111923440035 1211923110047 0111923340024 0111923410019 0111923430014 0111923430072 0111923440036 1211923110048 0111923340025 0111923410020 0111923430015 0111923430073 0111923440037 1211923110049 0111923340026 0111923410021 0111923430016 0111923430074 0111923440038 1211923110050 0111923340027 0111923410022 0111923430017 0111923430075 0111923440039 1211923110051 0111923340028 0111923410023 0111923430018 0111923430076 0111923440040 1211923110052 0111923340029 0111923410024 0111923430019 0111923430077 0111923440041 1211923110053 0111923340030 0111923410025 0111923430020 0111923430078 0111923440042 1211923110054 0111923340031 0111923420004 0111923430021 0111923430079 0111923440043 1211923110055 0111923340032 0111923420005 0111923430022 0111923430080 0111923440044 1211923110056 0111923340033 0111923420006 0111923430023 0111923430081 0111923440050 1211923110057 0111923340034 0111923420008 0111923430024 0111923430082 0111923440051 1211923110058 0111923340035 0111923420009 '0111923430025 0111923430083 0111923440052 1211923110059 0111923340036 0111923420010 0111923430026 0111923430084 0111923440053 1211923110060 0111923340037 0111923420011 0111923430027 0111923430085 1211923110003 1211923110061 0111923340038 0111923420012 0111923430028 0111923430086 1211923110004 1211923110062 0111923340039 0111923420013 0111923430029 0111923430087 1211923110005 1211923110063 CR100-25-848720.v1 A-1 0111923340040 0111923420014 0111923430030 0111923430088 1211923110006 1211923110064 0111923340041 0111923420015 0111923430031 0111923430089 1211923110007 1211923110065 0111923340042 0111923420016 0111923430032 0111923430090 1211923110008 1211923110066 0111923340043 0111923420017 0111923430033 0111923430091 1211923110009 1211923110067 0111923340044 0111923420018 0111923430034 0111923430092 1211923110010 1211923110068 0111923340045 0111923420019 0111923430035 0111923430093 1211923110011 1211923110069 0111923340046 0111923420020 0111923430036 0111923430094 1211923110012 1211923120002 0111923340047 0111923420021 0111923430037 0111923440002 1211923110013 1211923120003 0111923340048 0111923420022 0111923430038 0111923440003 1211923110014 1211923120004 0111923340049 0111923420023 0111923430039 0111923440004 1211923110015 1211923120005 0111923340050 0111923420024 0111923430040 0111923440005 1211923110016 1211923120006 0111923340051 0111923420025 0111923430041 0111923440006 1211923110017 1211923120007 0111923340052 0111923420026 0111923430042 0111923440007 1211923110018 1211923120008 0111923340053 0111923420027 0111923430043 0111923440008 1211923110020 1211923120009 0111923340054 0111923420028 0111923430044 0111923440009 1211923110021 1211923120010 0111923340055 0111923420029 0111923430045 0111923440010 1211923110022 1211923120011 0111923340056 0111923420030 0111923430046 0111923440011 1211923110023 1211923120012 0111923340057 0111923420031 0111923430047 0111923440012 1211923110024 1211923120013 0111923340058 0111923420032 0111923430049 0111923440013 1211923110025 0111923340059 0111923420033 0111923430050 0111923440014 1211923110026 0111923340060 0111923420034 0111923430051 0111923440015 1211923110027 CR100-25-848720.v 1 A_2 Ma�vor ATTEST: CR100-25-848720.v1 3