Agenda Packets - 2026/05/11 - Laserfiche WebLink

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NOTE 13—TAX ABATEMENT AGREEMENTS (CONTINUED) The City is authorized to create a tax increment financing plan under Minnesota Statutes Chapter 469.175. The criteria that must be met under the statute are that,in the opinion of the municipality: • The proposed development or redevelopment would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. • The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the plan. The requirements of this item do not apply if the district is a housing district. • The tax increment financing plan conforms to the general plan for the development or redevelopment of the municipality as a whole. • The tax increment financing plan will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the development or redevelopment of the project by private enterprise. The developer (Villas of Mounds View) agreed to a number of restrictive covenants related to income restrictions for residents of the rental building and is required to submit a report on compliance annually. The developer is in compliance. The City rebated $60,485 to retire the revenue note in 2025. The outstanding balance on the note at year-end was approximately$1,770,000. The developer(Boulevard Apartments, LP) agreed to a number of restrictive covenants related to income limitations for residents of the rental building and is required to submit a report on compliance annually by January 31. The developer is in compliance. The City rebated $25,273 to retire the revenue note in 2025. The outstanding balance on the note at year-end was approximately$392,539. The developer(Medtronic,Inc.)agreed to the material requirements to construct a minimum of 1.2 million square feet of office and laboratory space and employ a minimum of 1,500 employees at an average of $34 per hour within two years of completion of the corporate campus and cause the continuous operation of the facility for five years after issuance of a certificate of occupancy. The developer has complied with all the requirements. The City rebated $1,804,312 to retire the revenue note in 2025. The outstanding balance on the note at year-end was approximately$14,218,355. The amount outstanding on these abatement notes are not included in long-term debt because the nature of the note in that repayment is required only if sufficient tax increments are received. The City's position is that these are obligations to assign future and uncertain revenue sources and, as such, is not actual debt in substance. -64-