HomeMy WebLinkAbout2001-106 Council ResolutionCouncilmember 0 Donnell introduced the following resolution
and moved its adoption:
LINO LAKES CITY COUNCIL
RESOLUTION NO. 01-106
RESOLUTION APPROVING PROPERTY TAX ABATEMENT
FOR THE TARGET/KOHL'S PROJECT
BE IT RESOLVED by the City Council (the "Council") of the City of Lino Lakes,
Minnesota (the "City"), as follows:
1. Target Corporation and Kohl's Department Store, Inc. (the "Companies") have
requested the City to abate a portion of the City's share of all property taxes to be
generated for five (5) years (specifically, with respect to the payable 2004-2008
property taxes) at the northeast comer of I -35W and County Road 23 (Lake
Drive) (the "Property") for the 182,760 SF Target Superstore and the 106,584 SF
Kohl's Department Store (the "Project") to be constructed and located therein.
Springsted, Inc. has requested on behalf of the City that Independent School
District 831 (the "School District") and Anoka County (the "County") grant an
abatement for the Property. The School District at a meeting of its Board on June
18, 2001 has declined to grant an abatement for the Property. The County at its
Intergovernmental Committee of July 11, 2001 declined to grant an abatement for
the Property. The abatement (the "Abatement") is currently estimated to be
$103,860 per year for a total of not to exceed $519,300 or a maximum term of
five years, whichever comes first.
2. On the date hereof, the Council held a public hearing on the question of
Abatement, and said hearing was preceded by at least 10 days but not more than
30 days prior to published notice hereof.
3. The Abatement is authorized under Minnesota Statutes, Section 469.1812 through
469.1815 (the "Abatement Statutes").
4. The Council hereby makes the following findings:
a) The Council expects the benefits to the City of the Abatement to at
least equal the costs thereof.
b) Granting the Abatement is in the public interest because it will
enhance and diversify the tax base of the City, encourage
additional "spin-off' development, and increase the number and
diversity of jobs in the City.
c) The Council expects the public benefits described in (b) above to
be derived from the Abatement.
d) The Property is not located in a tax increment financing district.
e) In any year, the total amount of property taxes abated by the City
by this and other resolutions does not exceed the greater of five
percent (5%) of the current levy or $100,000.
5. The Abatement is hereby approved. The terms of the Abatement are as follows:
a) The Abatement shall be in the amount of $519,300 payable
beginning January 1, 2004.
b) The Abatement shall be divided so that (1) Target Corporation
receives the incremental taxes generated and paid on its parcel plus
61.84 percent of the Abatement for the remaining parcels, except
the Kohl's parcel and (2) Kohl's Department Stores, Inc. receives
the incremental taxes generated and paid on its parcel plus 38.16
percent of the Abatement for the remaining parcels, except the
Target parcel.
c) The Abatement to the Companies shall be for a maximum of five
(5) years and shall apply to the taxes payable in the years 2004
through 2008, inclusive.
d) The Abatement shall include only taxes on the incremental value
of the Property and the Project.
e) The Abatement shall not include an area -wide Fiscal Disparities
contribution.
f) The Abatement shall not include taxes generated by future City
referenda.
g) The Abatement may not be modified or changed during the term
set forth in (a) and (b) above, except with the prior written consent
of the Companies and the City.
h) The Abatement shall be subject to all the terms and limitation of
the Abatement Statutes.
i) In order to be entitled to the Abatement, the Companies shall not
be in default within the City of any of its payment obligations
respecting any taxes, assessments, utility charges or other
governmental impositions.
j) Companies shall pay any administrative fees with respect to the
Abatement or waiver of the Fee not to exceed $5,000.
6. The Abatement to the Companies as described above is hereby approved.
7. The Mayor and City Administrator are hereby authorized and directed to execute
Abatement Agreements and other appropriate documents to facilitate the
finalization of Abatement to the Companies.
8. Staff and consultants are hereby authorized and directed to take any and all other
actions necessary or convenient to effect the intent of this resolution.
Adopted by the Lino Lakes City Council of the City of Lino Lakes this 10`h day of
September, 2001.
John Berg on, M or
ATTEST:
The motion for the adoption of the foregoing resolution was duly seconded by member
Reinert and upon vote being taken thereon, the following voted
in favor thereof: Bergeson, Carlson, Reinert and O'Donnell
And the following voted against same: Dahl
Whereupon said resolution was declared duly passed and adopted.
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AGENDA ITEM 3A -i
STAFF ORIGINATOR: Al Rolek
DATE: 9/10/01
TOPIC: Consideration of Resolution No. 01-106 approving a
Tax Abatement for the Target/Kohl's project
VOTE REQUIRED: 3/5
BACKGROUND:
This resolution recognizes that the Marketplace development meets the goals
and objectives outlined by the city in its tax abatement criteria and sets forth the
terms of the abatement. It is recommended that approval of the abatement be
contingent upon final approval of the project by the City Council.
OPTIONS:
1. Adopt Resolution No. 01-106
2. Do not approve the Tax Abatement
2. Return to staff for further consideration
RECOMMENDATION:
Option 1