11-23-2005 Council Agenda - Laserfiche WebLink

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�,- 22a074 ceay 515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766 -4048 www. ci.little- canada. mn. us MEMORANDUM MAYOR Bill Blesener COUNCIL Jim LaValle Rick Montour Barbara Allan John Keis ADMINISTRATOR Joel R. Hanson TO: Mayor Blesener & Members of the City Council FROM: Joel Hanson, City Administrator DATE: November 18, 2005 RE: Resolution Approving Property Tax Abatement relative tl: Hidden Acres Project To complete the tax abatement process for the Hidden Acres project, a public hearing will be held at Wednesday's meeting. The Council will then need to adopt the attached resolution to effectuate the abatement program. As you may recall, we are advancing funds for the acquisition of right -of -way for Nadeau Road and Condit Street. Masterpiece Homes, Inc. completed the construction of Nadeau Road at no cost to the City, other than the additional right -of -way acquisition cost. The City will reconstruct Condit Street at some time in the future. There are two additional pieces of right -of -way need for construction to be considered. It is anticipated that approximately $70,000 in expenses will be incurred to acquire the needed right -of -way. (See spreadsheet attached.) The tax abatement program will allow the City to recapture the funds advanced. We will do so by applying the City's tax capacity rate against any increases in tax capacities from values established on January 2, 2005. This means we will not capture any dollars in 2006, but will starting in 2007. We will continue for nine additional years or until we have repaid the advances, whichever comes first. (Please note that only one home was completed as of January 2, 2005. Therefore, we are capturing the majority of the new home value as they become subject to taxation. For the homes completed in 2005, they will be assessed on January 2, 2006 for taxes payable in 2007.) We will have the option of modifying the abatement program should the need arise, subject to statutory guidelines. The maximum term we could enact this program is 15 years. Staff recommends approval of the attached resolution as presented.