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• <br /> • EHLERS&ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113 651.697.8500 <br /> O Abatements are authorized to finance public infrastructure,whether or not the benefitted infrastructure is on or adjacent <br /> to the parcel for which the tax is abated. The owner of a parcel for which taxes are abated need not consent. Thus,a <br /> political subdivision may approve an abatement for certain parcels and use the retained taxes to finance public <br /> improvement projects. <br /> O -The notification requirements include a public hearing with a 10 to 30 day publication notice. <br /> O The findings required by a council or board include general statements of tax base,preservation,employment,public <br /> facilities, blight, or access to services. <br /> O G.O.Abatement Bonds can be issued without affecting net debt and can be issued without a referendum under certain <br /> conditions. Authorities may increase their abatement levies to make up for shortfalls resulting from class rate <br /> compression. Effective for bonds issued or sold after July 1,2001,abatement bonds used for buildings primarily used <br /> to conduct the business of a unit of government must require approval by the voters in a referendum,under legislation <br /> passed in 2001. <br /> O Abatement does not require a property owners consent. <br /> O Abatements cannot be used in concert with tax increment financing,but can be utilized after a TIF district is decertified. <br /> iii Effective for abatement levies payable beginning in 2002, the 2001 Legislature authorizes political subdivisions to <br /> increase their abatement levies to make up for shortfalls from class rate compression. <br /> Another issue which complicates the abatement program is the specific authority of a governmental body to pledge its <br /> abatements to the debt of another governmental entity, if the debt is not a G.O. Abatement Bond. Many attorneys differ on <br /> the interpretations of the pledges allowed and what exactly constitutes a G.O. Abatement Bond. <br /> We recommend that abatement always be utilized in conjunction with a development agreement that clearly spells out the <br /> developer's responsibilities with respect to improvements and job and wage goals. <br /> Abatement is a"business subsidy" and as such is subject to Minnesota Statutes § 116J.993 —§ 116J.995. <br /> • <br /> Ehlers&Associates-Abatement <br />