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HomeMy WebLinkAbout26-036 - Resolution - Property Tax Abatement - Public Infrastructure ImprovementsCITY OF LINO LAKES, MINNESOTA RESOLUTION NO.26-36 RESOLUTION APPROVING PROPERTY TAX ABATEMENT IN THE CITY OF LINO LAKES FOR CERTAIN PUBLIC INFRASTRUCTURE IMPROVEMENTS BE IT RESOLVED By the City Council of the City of Lino Lakes, Minnesota (the "City") as follows: Section 1. Recitals. 1.01. The City proposes to (a) finance certain public improvements including the extension and improvement of Otter Lake Road in the City including utility improvements (the "Project") with tax abatement bonds authorized by Minnesota Statutes, Sections 469.1812 through 469.1815, as amended (the "Abatement Act"); and (b) authorize a property tax abatement with respect to various parcels of land that benefit from such public improvements. 1.02. Pursuant to Section 469.1813, subdivision 1 of the Abatement Act, the City may grant an abatement of all or a portion of the taxes imposed by the City on one or more parcels of property to pay for all or part of the cost of financing or providing public infrastructure, increasing or preserving the tax base, providing employment opportunities, and helping provide access to services for residents of the City. 1.03. The City has identified 37 parcels located in the City, identified in EXHIBIT A attached hereto (the "Abatement Property"), which will be benefitted by the Project and from which the City proposes to abate all or a portion of the City's share of taxes to help finance the Project, subject to all the terms and conditions of this resolution. 1.04. The Abatement Property is not located in a tax increment financing district. 1.05. The City is authorized under the Abatement Act to issue bonds to (1) pay for public improvements that benefit the property, (2) to acquire and convey land or other property, (3) to reimburse the property owner for the cost of improvements made to the property, or (4) to pay the costs of issuance of the bonds. 1.06. The City is authorized under the Abatement Act and Minnesota Statutes, Chapter 475, as amended (together, the "Act"), to issue one or more series of general obligation bonds, a portion of which will be designated as tax abatement bonds in the aggregate principal amount not to exceed $5,000,000 (the "Abatement Bonds") to pay the costs of the Project pursuant to the Abatement Act and Minnesota Statutes, Chapter 475, and which are expected to be paid primarily through the collection of Abatement (hereinafter defined) revenues. 1.07. On the date hereof, the City Council conducted a duly noticed public hearing on the Abatement at which the views of all interested persons were heard. 4915-4188-1238.2 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 (c) This resolution maybe modified only with the prior written approval of the City, and any modification is subject to Section 469.1813, subdivision 7 of the Abatement Act. (d) In accordance with Section 469.1815 of the Abatement Act, the City will add to its levy in each year during the term of the Abatement the total estimated amount of current year Abatement granted under this resolution. Adopted by the City Council of the City of Lino Lakes this 23d day of March, 2026. Ro Raf erty, Mayor ATTEST: Roberta Colotti, CIVIC, City Clerk 4915-4188-1238.2 3 Parcel Identification Numbers: 24-31-22-11-0007 24-31-22-11-0009 24-31-22-11-0012 24-31-22-12-0005 24-31-22-12-0007 24-31-22-12-0008 24-31-22-13-0007 24-31-22-13-0008 24-31-22-14-0002 24-31-22-34-0003 EXHIBIT A ABATEMENT PROPERTY 24-31-22-42-0006 24-31-22-42-0009 24-31-22-42-0012 24-31-22-43-0006 24-31-22-43-0009 24-31-22-43-0011 24-31-22-43-0013 24-31-22-24-0005 24-31-22-24-0007 25-31-22-12-0002 25-31-22-12-0003 25-31-22-12-0004 25-31-22-12-0005 25-31-22-12-0006 25-31-22-12-0007 25-31-22-12-0008 25-31-22-12-0009 25-31-22-12-0010 25-31-22-12-0011 25-31-22-12-0012 25-31-22-12-0013 25-31-22-12-0019 25-31-22-12-0020 25-31-22-12-0021 25-31-22-12-0022 25-31-22-12-0023 25-31-22-12-0024 4915-4188-1238.2 A-1