10-29-2018 Council Packet - Laserfiche WebLink

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4626500v1 PAYMENT IN LIEU OF TAXES AGREEMENT THIS AGREEMENT, made as of the _____ day of July, 2018, among the City of Little Canada, Minnesota (the "City"), a municipal corporation organized and existing under the laws of the State of Minnesota, and AFSA Building Company, a Minnesota Nonprofit Corporation (the "Property Owner"). WITNESSETH: WHEREAS, the Property Owner is purchasing the property at 2925 Country Drive from RAB, LLC (the Development Property) legally described on Exhibit A attached hereto; and WHEREAS, the Development Property is located in former Tax Increment Financing District #2-2 which was created based upon the City’s desire to enhance its tax base; and WHEREAS, the Property Owner’s proposed use of the Development Property would qualify for tax exempt status for property taxes pursuant to Minnesota Statutes 272.02; and WHEREAS, the Development Property is zoned Planned Unit Development (PUD) and the planned use of the property as a “school” is not currently permitted in this zoning district; and WHEREAS, as a condition of rezoning, the City is requiring the Property Owner to enter in to a Payment In Lieu of Taxes (PILOT) agreement to reimburse the City for its loss in property taxes, including its contribution to the Fiscal Disparities pool, associated with the Development Property gaining exempt status; and WHEREAS, the City would not have initially provided assistance to Development Property if it would have been eligible for tax exempt status given the City’s limited economic base; and WHEREAS, Property Owner is entering in to this Payment in Lieu of Taxes payment as recognition of the financial impact tax exempt status would have on the City’s ability to provide needed services to the community. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: