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Home My WebLink About2005-087 Council Resolution• • • CITY OF LINO LAKES RESOLUTION NO. 05-87 RESOLUTION CALLING A PUBLIC HEARING REGARDING TAX ABATEMENT IN CONNECTION WITH YMCA PROJECT WHEREAS, under Minnesota Statutes, Sections 471.15 to 471.191 (the "Recreation Act "), the City of Lino Lakes (the "City ") is authorized to acquire, equip and maintain recreational facilities, and also to cooperate with a nonprofit organization in the operation of such a recreational program in any manner in which the parties mutually agree; and WHEREAS, in furtherance of a cooperative program under the Recreation Act, the City and the YMCA of Greater St. Paul ( "YMCA ") have entered into an agreement titled YMCA/City of Lino Lakes Development Agreement dated June 22, 2005 (the "Development Agreement "). The Development Agreement describes the parties' respective responsibilities in the construction and operation of an approximately 50,000 square foot recreational facility in the City (the "Facility ") to be located within a larger development known as the "Legacy at Woods Edge;" and WHEREAS, under the Development Agreement, the City has agreed, among other things, to contribute $1,500,000 toward construction of the Facility; and WHEREAS, under Minn. Stat. Sections 469.1812 through 469.1815 (the "Abatement Act "), the City is authorized to grant a property tax abatement on specified parcels in order to accomplish certain public purposes, including situations where the abatement will provide employment opportunities in the City, provide or help acquire or construct public facilities, help provide access to services for City residents, or finance or provide public infrastructure; and WHEREAS, the City is also authorized under the Abatement Act to issue bonds to pay for public improvements that benefit the property that is the source of the abatement; and WHEREAS, the City has determined that the Facility will help serve the City's recreational programs under the Recreation Act, and that it will provide access to recreational services for both future residents of the Legacy at Woods Edge development and residents in the City as a whole; and WHEREAS, the City proposes to approve an abatement of property taxes on certain identified parcels within the Legacy at Woods Edge development that will benefit from the Facility, and to pledge those abatements towards bonds (the "Abatement Bonds ") to be issued in order to finance assistance to the YMCA in accordance with the Development Agreement; and WHEREAS, the provision of such assistance also constitutes a "business subsidy" to the YMCA within the meaning of Minnesota Statutes, Sections 116J.993 to 116J.995 (the "Business Subsidy Act "); and WHEREAS, the City proposes to enter into a business subsidy agreement with the YMCA regarding the City's fmancial assistance through issuance of the Abatement Bonds, under which the YMCA must meet certain goals; and SJB- 264291v1 LN140 -90 -92- • • • WHEREAS, under the Abatement Act and the Business Subsidy Act, the City must hold a public hearing regarding approval of any abatement and any business subsidy; and WHEREAS, the City Council has determined to hold the required public hearings and consider the terms of the abatement and the business subsidy agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, that: 1. The Council directs staff and consultants to prepare or finalize an abatement resolution and related business subsidy agreement for the Facility and the Abatement Bonds. 2. The City Administrator is authorized and directed to publish a notice in the City's official newspaper announcing a public hearing before the City Council on July 25, 2005 at 6:30 p.m. in the council chambers on the abatement resolution and the business subsidy agreement. The notice shall be published in the newspaper at least 10 days but not more than 30 days prior to the public hearing, and shall be in substantially the form attached as Exhibit A to this resolution. Approved by the City Council of the City of Lino Lakes this 27th day of June, 2005. ATTEST: City Clerk SJB- 264291v1 LN 140 -90 OrL, Mayor -93- • • • EXHIBIT A NOTICE OF PUBLIC HEARING Notice is hereby given that the City Council of the City of Lino Lakes, Minnesota will meet at 6:30 p.m. on Monday, July 25, 2005 at City Hall, 600 Town Center Parkway, Lino Lakes, Minnesota, to conduct a hearing regarding: 1. Granting of a property tax abatement under Minnesota Statues, Section 469.1812 to 469.1815 for certain property in the City of Lino Lakes; and 2. A business subsidy agreement between the City and the YMCA of Greater St. Paul ( "YMCA "), regarding property tax abatement assistance to be provided by the City. The proposed abatement and subsidy involves assistance to construct a YMCA facility in the Legacy at Woods Edge development, which is located generally at the southeast corner of the Interstate 35W and Lake Drive interchange. The property subject to the abatement (the "Abatement Parcels ") consists of Outlot E and Lot 2, Block 1, The Village No. 3, which is the portion of the Legacy at Woods Edge plat excluding existing Tax Increment District No. 1 -11 and the YMCA site. A map of the Abatement Parcels is available at City Hall. At the hearing, the City Council will consider an abatement resolution under which the City will collect the City's share of property taxes from the Abatement Parcels and pledge those revenues to pay bonds to be issued by the City. Proceeds of the bonds will be used to help fmance construction of the YMCA facility adjacent to the Abatement Parcels. The estimated abatement amount is $155,000 annually over 15 years. The Council will also consider a business subsidy agreement between the City and YMCA, which will set certain goals and requirements in connection with the City's abatement assistance. A draft copy of the abatement resolution and the business subsidy agreement, will be on file at City Hall on and after the date of this notice. Any person wishing to express an opinion on the matters to be considered at the public hearing will be heard orally or in writing. Dated: [date of publication] SJB- 264291v1 LN 140 -90 - 9 4 - /s/ City Clerk T O VILLAGE NO. 3 I ! / / , / t+ / / 1 F• /1 // / 4 S S ,✓ / / p 'S ' / / // r 4 °. /v / : S yh / // Z' / 1 ..s. ' / _� / .z!r /3.4/ 1 / Gv. 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Land Buwyora ritvxOM4VJ10V ] paJW]OYNWTIOKrK- 1141.].09 00[713550 1W01 PN 5* HET 3 0111 3 WI • • • City of Lino Lakes, Minnesota Tax Abatement Process (YMCA Project) Time Schedule — Updated Wednesday, June 22, 2005 City Council Worksession • Discussion Item #1 Financing options available to City for YMCA Project • Discussion Item #2 Tax Abatement Overview • Discussion Item #3 The Process of Establishing a Tax Abatement for YMCA Project Monday, June 27, 2005 City Council Meeting • Action Item #1 • Action Item #2 Authorize Implementation of Time Schedule and Call for Public Hearing on Establishment of a Tax Abatement Authorize Staff to Draft Tax Abatement Resolution • Discussion Item #1 Discuss Abatement Participation from School District and County July 2005 City Council Worksession - optional • Discussion Item #1 Followup Overview of Tax Abatement Concept for YMCA project and Estimated Amount of Revenue • Discussion Item #2 Review Draft Tax Abatement Resolution — will be distributed Tuesday, July 5, 5 pm Tuesday, July 12 Deadline: July 5 Monday, July 25, 6:30 pm Deadline for Submitting Information for Publication of Notice of Public Hearing (arrangements made by SPRINGSTED) Publication of Notice of Public Hearing White Bear Lake Quad Community Press (arrangements made by SPRINGSTED) City Council Holds Public Hearing, and Adopts Necessary Resolution • Public Hearing #1 To Establish a Tax Abatement • Action Item #1 Approve Resolution Establishing a Tax Abatement Prepared by Springsted, Inc. 6/17/2005 -96- • AGENDA ITEM 6C • • STAFF ORIGINATOR: Mary Alice Divine DATE: June 27, 2005 TOPIC: Consideration of Resolution No. 05 -87 Calling for a Public Hearing Regarding Tax Abatement in Connection with YMCA Project VOTE REQUIRED: Simple majority BACKGROUND: In 1999 the Lino Lakes City Council endorsed city participation in the construction of a YMCA in Lino Lakes. This agreement included participation by the city of $1.5 million toward construction of the facility. Springsted, Inc., the city's financial consultants, and Kennedy & Graven, the city's bond attorney, have considered different options to meet this commitment, and have concluded the preferred option is through tax abatement. Legacy at Woods Edge, the city's new downtown development now beginning construction, has a portion of the project within a Tax Increment Financing District and a portion of the project outside that District (see map). Springsted and Kennedy & Graven are recommending that $1.5 million of abatement bonds be issued to meet the commitment to the YMCA. City taxes collected on new development within Woods Edge that is outside the TIF District would be used as the source of revenue to repay the bonds. Under the terms of Minnesota Statutes 226J.993 to 116J.995, ( "Business Subsidy Act ", the provision of tax abatement constitutes a business subsidy, which also requires a public hearing. This hearing will also consider the provision of a business subsidy through the use of tax abatement. OPTIONS: 1. Adopt Resolution No. 05 -87 Calling for a Public Hearing to be held on July 25, 2005 at 6:30 p.m. to consider the use of providing a business subsidy through tax abatement in connection with the YMCA project. 2. Do not adopt the resolution. 3. Return to staff for further consideration. • • RECOMMENDATION: Option 1