07/25/2005 Council Packet - Laserfiche WebLink

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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 a portion of the City's share of the real property taxes generated from the improvements on the Abatement Parcels, in the amounts described in this Section: (i) The annual Abatement collected by the City in any calendar year will not exceed 105 % of the of debt service on the Abatement Bonds (as defined in Section 1.07 hereof) due and payable on August 1 of the year in which the Abatement is collected and on the next following February 1. (ii) Notwithstanding anything to the contrary herein, the Abatement collected by the City 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 improvements on the Abatement Parcels, excluding the tax capacity of the land and the tax capacity attributable to the areawide tax under Minnesota Statutes, Chapter 473F, 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 10% of the City's levy for that year or $200,000 (the "Abatement 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 collect the Abatement in tax collection years 2008 through 2022, and will pledge those revenues to principal and interest on the Abatement Bonds and any bonds issued to refund the initial Abatement Bonds. The pledge of Abatement will be further reflected in the resolution awarding sale of the Abatement Bonds (and any refunding bonds). (c) In accordance with Section 469.1814, subd. 4 of the Act, the amount of Abatement is not subject to periodic review by the City; provided that the actual amounts of Abatement will be determined only upon issuance of the Abatement Bonds and any refunding bonds, which final determination will not constitute a modification of the Abatement amount. - 2 7 -