HomeMy WebLinkAboutResolution 2018-24 Approving Property Tax AbatementCity of Corcoran April 12th, 2018
County of Hennepin
State of Minnesota
RESOLUTION NO. 2018-24
Motion by: Dejewski
Seconded by: Keefe
RESOLUTION APPROVING PROPERTY TAX ABATEMENT RELATED TO THE
ACQUISITION AND DEVELOPMENT OF PUBLIC FACILITIES WITHIN THE CITY
BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORCORAN,
MINNESOTA, AS FOLLOWS:
Section 1. Recitals.
1.01. The City has determined to grant a property tax abatement in order to help finance
the acquisition of land for a new park serving City residents (the "Project"), which will benefit certain
properties in the City, all pursuant to Minnesota Statutes, Sections 469.1812 through 469.1815, as
amended (the "Act").
1.02. Pursuant to Section 469.1813, subdivision 1 of the 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 acquisition or improvement of public facilities, whether or not
located on or adjacent to the parcels for which the tax is abated.
1.03. The City has identified two hundred thirty-four (234) parcels located in the City,
identified in EXHIBIT A attached hereto (the "Abatement Property"), which will be benefitted by
the Project and from which the City proposes to abate 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 City intends to issue one or more series of general obligation bonds, all or a
portion of which will be designated -as tax abatement bonds in the maximum aggregate principal
amount of $1,555,000 (the "Abatement Bonds"), which will be issued to pay the costs of the Project
pursuant to the Act, and which are expected to be paid primarily through the collection of
Abatement revenues (as defined herein).
1.05. On the date hereof, the 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 the Project, which is necessary to provide improved public facilities to City residents in the
form of a public park; and (b) the increased City taxes collected from the Abatement Property upon
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 Council hereby ratifies all actions of the City's staff and consultants in arranging
for approval of this resolution in accordance with the Act.
3.02. Subject to the provisions of the 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 $1,555,000.
(ii) 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.
(iii) 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 Cap, the allocation of Abatement Cap to such other
abatements is subordinate to the Abatements under this Agreement.
(b) The City will pay the Abatement in semiannual installments each February 1
and August 1, commencing August 1, 2019, and continuing through February 1, 2034. 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 Act.
(d) In accordance with Section 469.1815 of the 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.
3.03. The Chair and City Clerk are authorized and directed to execute and deliver any
agreements, certificates or other documents that the City determines are necessary to
implement this resolution.
\ /t'1TIA1t'% AVE!
® Thomas, Ron
® Bottema, Jon
® Dejewski, Brian
® Keefe, M i ke
® LaFave, Tonya
\ /�1TIAIr' Al AV
❑Thomas, Ron
❑ Bottema, Jon
[:] Dejewski, Brian
El Keefe, Mike
❑ LaFave, Tonya
Whereupon, said Resolution is hereby declared adopted on this 12th day of April, 2018.
Ron Thomas - Mayor
ATTEST:
Brad Martens- City Administrator
City Seal