03/13/2006 Council Packet (2) - Laserfiche WebLink

Home Search

• • 2.05. The maximum principal amount of Abatement Bonds to be secured by Abatements under this resolution does not exceed the estimated sum of Abatement from the Abatement for the term authorized under this resolution. Parcels 2.06. The Facility financed with proceeds of the Abatement Bonds will benefit Abatement Parcels, as those parcels are in the the e housing development immediate vicinity of the Facility and residents of housing develo ment on the Abatement Parcels will have easy access to use of the expected xpeite Section 3. Actions Ratified. Abatement A roved. 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 to the following terms and conditions: pted (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 de amounts 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 will not exceed the amount produced by extending the City's l totall 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 Ca p " h any other abatements permitted under the Act after the l a eaof this grant 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 2009 through 2023, and will pledge those revenues to principal and interest on the Abatement Bonds and any bonds 3 -116-