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~ Abatements are authorized to finance public infrastructure, whether ornot the benefitted infrastructure is on or adj acent <br />to the parcel for which the tax is abated. The owner of a parcel for which taxes are abated need not consent. Thus, a <br />political subdivision may approve an abatement for certain parcels and use the retained taxes to finance public <br />improvement projects. <br />^ The notification requirements include a public hearing with a 10 to 30 day publication notice. <br />^ The findings required by a council or board include general statements of tax base, preservation, employment, public <br />facilities, blight, or access to services. <br />^ G.O. Abatement Bonds can be issued without affecting net debt and can be issued without a referendum under certain <br />conditions. Authorities may increase their abatement levies to make up for shortfalls resulting from class rate <br />compression. Effective for bonds issued or sold after July 1, 2001, abatement bonds used for buildings primarily used <br />to conduct the business of a unit of government must require approval by the voters in a referendum, under legislation <br />passed in 2001. <br />^ Abatement does not require a property owners consent. <br />^ Abatements cannot be used in concert with tax increment financing, but can be utilized after a TIP district is decertified. <br />^ Effective for abatement levies payable beginning in 2002, the 2001 Legislature authorizes political subdivisions to <br />increase their abatement levies to make up for shortfalls from class rate compression. <br />"nother issue which complicates the abatement program is the specific authority of a governmental body to pledge its <br />,atements to the debt of another governmental entity, if the debt is not a G.O. Abatement Bond. Many attorneys differ on <br />the interpretations of the pledges allowed and what exactly constitutes a G.O. Abatement Bond. <br />We recommend that abatement always be utilized in conjunction with a development agreement that clearly spells out the <br />developer's responsibilities with respect to improvements andjob and wage goals. <br />Abatement is a "business subsidy" and as such is subject to Minnesota Statutes, Sections 1167.993 through 1167.995. <br />Ehlers & Associates, Inc. -Abatement <br />