HomeMy WebLinkAbout2006-027 Council ResolutionCITY OF LINO LAKES
RESOLUTION NO. 06-27
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 16, 2005, which is proposed to be amended on or
after March 1, 2006 (the "Development Agreement "). The Development Agreement describes the
parties' respective responsibilities in the construction and operation of an approximately 45,000
square foot recreational facility located at 7690 Village Drive in the City (the "Facility ") and located
within a larger development known as the "Legacy at Woods Edge;" and
WHEREAS, under the Development Agreement, as amended, the City has agreed, among
other things, to contribute up to $2,350,000 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 fmance 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 previously adopted a resolution, dated July 25, 2005 (the "Prior
Abatement Resolution "), approving an abatement of property taxes on certain identified parcels
within the Legacy at Woods Edge development that will benefit from the Facility; and
WHEREAS, pursuant to the Prior Abatement Resolution, the City and the YMCA entered
into a Business Subsidy Agreement, dated July 28, 2005; and
WHEREAS, no bonds have been issued under the Prior Abatement Resolution and the City
proposes to supersede the Prior Abatement Resolution and consider a new resolution which includes
increased fmancing to facilitate inclusion of a swimming pool in the Facility; and
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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 an amended business subsidy agreement with
the YMCA regarding the City's financial assistance through issuance of the Abatement Bonds,
under which the YMCA must meet certain goals; and
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 amended 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 amended 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 February 27, 2006 at
6:30 p.m. in the council chambers on the abatement resolution and the amended 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 13th day of February, 2006.
ATTEST:
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Mayor
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AGENDA ITEM 61
STAFF ORIGINATOR: Mary Alice Divine
DATE: February 13, 2006
TOPIC: Consideration of Resolution No. 06 -27 Calling for a
Public Hearing Regarding Tax Abatement in
Connection with the YMCA Project
Vote Required: Simple Majority
BACKGROUND:
The City Council entered into a development agreement with the YMCA of
Greater St. Paul in June 2005 to provide $1.5 million toward construction of the
Rice Creek Chain of Lakes YMCA in Lino Lakes. In July 2005 the city council
approved an abatement of property taxes on certain parcels within the Legacy at
Woods Edge development as the tool for financing the city's contribution.
Because the provision of financial assistance to the YMCA constitutes a
business subsidy, the city also entered into a Business Subsidy Agreement with
the YMCA in July 2005.
Since that time the city, considering a leisure pool as a benefit to the recreational
services the YMCA could provide to residents, reviewed options with the YMCA
for construction of the pool within the first phase of construction. Included in
those options is consideration of providing additional tax abatement in an
amount up to $850,000.
State Statutes require a public hearing regarding an amendment to an
abatement agreement and business subsidy agreement. This resolution calls for
the public hearing to be set at 6:30 p.m. on Monday, February 27, 2006.
OPTIONS:
1. Approve Resolution No. 06 -27 Calling for a Public Hearing Regarding Tax
Abatement in Connection with the YMCA Project.
2. Deny Resolution No. 06 -27
3. Return to staff for further consideration.
RECOMMENDATION:
Option 1