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HomeMy WebLinkAbout2006-040 Council Resolution• CITY OF LINO LAKES, MINNESOTA • • RESOLUTION NO. 06-40 RESOLUTION APPROVING PROPERTY TAX ABATEMENT RELATED TO YMCA FACILITY BE IT RESOLVED by the City Council (the "Council ") of the City of Lino Lakes, Minnesota (the "City ") as follows: Section 1. Recitals. 1.01. 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 1.02. 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into an agreement titled YMCA/City of Lino Lakes Development Agreement, dated June 16, 2005, which will be amended and superseded by the Amended and Restated Development Agreement, to be dated on or after March 1, 2006 (the "Development Agreement ").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 in the City (the "Facility ") to be located on property (the "Site ", as legally described in the Development Agreement) within a larger development known as the "Legacy at Woods Edge;" and 1.03. Under the Development Agreement, the City has agreed, among other things, to contribute $2,350,000 toward construction of the Facility; and 1.04. 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 1.05. 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 1.06. 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. 1.07. The City has identified certain property located near the Site and within the Legacy at Woods Edge development, described in Exhibit a hereto (the "Abatement Parcels "), from which the City proposes to collect a portion of the City's share of taxes and pledge those revenues to pay principal and interest on bonds to be issued by the City in a maximum principal amount of $2,715,000 (the "Abatement Bonds "). 1.08. On March 13, 2006, the Council conducted a duly noticed public hearing on the Abatement at which the views of all interested persons were heard. Section 2. Findings. 2.01 On July 25, 2005, the Council approved a resolution (the "Prior Abatement Resolution ") approving an abatement of property taxes on certain identified parcels within the Legacy at Woods Edge development. No bonds or other obligations were issued under the Prior Abatement Resolution. The Prior Abatement Resolution is withdrawn and superseded by this Resolution. 2.02. 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 the Facility, which will help the City carry out its recreational programs under the Recreation Act and provide access to these important services by City residents, (b) if the City were required to finance the entire facility as a municipal recreation center, the costs to the City would far exceed the amount provided through the Abatement described in this resolution; (c) the Facility will help stimulate the development of the Abatement Parcels and the Legacy at Woods Edge development as a whole, and (d) the long term tax collections from the Abatement Parcels after the term of this resolution will far exceed the amount of Abatement collected hereunder. 2.03. It is hereby found and determined that the Abatement is in the public interest for the reasons described in Sections 2.02 and 2.04. 2.04. It is further specifically found and determined that the Abatement is expected to result in the following public benefits: (a) Help finance the Facility. (b) Provide access to a high quality recreational facility to City residents, which would not otherwise be financially feasible. (c) Stimulate significant increases in taxable market value of the Abatement Parcels. (d) Implement the City's long -term plans for the Legacy at Woods Edge development. (e) Stimulate increases in employment in the City. 2 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 Parcels for the term authorized under this resolution. 2.06. The Facility financed with proceeds of the Abatement Bonds will benefit the Abatement Parcels, as those parcels are in the immediate vicinity of the Facility and residents of expected housing development on the Abatement Parcels will have easy access to use of the Facility. Section 3. Actions Ratified; Abatement Approved. 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 subject to the following terms and conditions: (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 described 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 1, combined, will not exceed the amount produced by extending the City's total 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 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 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 2006. issued to refund the initial Abatement Bonds. The pledge of Abatement will be further reflected in the resolution awarding sale of the Abatement Bonds (and any refunding bonds). (c) In accordance with Section 469.1814, subd. 4 of the Act, the amount of Abatement is not subject to periodic review by the City; provided that the actual amounts of Abatement will be determined only upon issuance of the Abatement Bonds and any refunding bonds, which final determination will not constitute a modification of the Abatement amount. (d) In accordance with Section 469.1815 of the 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. Approved by the City Council of the City of Lino Lakes innesota thi 13th day of March, 4 nell, Acting Mayor • • EXHIBIT A Abatement Parcels Outlot E and Lot 2, Block 1, The Village No. 3, according to the recorded plat thereof, Anoka County, Minnesota