26-36 - Resolution - Property Tax Abatement - Public Infrastructure Improvements

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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 public infrastructure in a waythatwill strengthen the local economy and attract and retain citizens due to improved roads and utilities, help increase or preserve tax base by stimulating development and maintaining values in the area, help provide construction jobs, and protect the general health and welfare of the community by maintaining public infrastructure and facilities; 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 City Council hereby ratifies all actions of the City's staff and consultants in arranging for approval of this resolution in accordance with the Abatement Act. 3.02. Subject to the provisions of the Abatement 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 $5,000,000. The maximum principal amount of bonds to be secured by the Abatement under this resolution will not exceed the estimated sum of the Abatement from the Abatement Property for the term authorized under this resolution. (ii) 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 Volume Cap, the allocation of Abatement Volume Cap to such other abatements is subordinate to the Abatements under this resolution. (b) The City will pay the Abatement in installments over a period of 10 years, commencing in taxes payable year 2027, and continuing through taxes payable in 2036 or such other dates that correspond to the payment of debt service on the Abatement Bonds over a period not to exceed 10 years. 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). 4915-4188-1238.2 2