HomeMy WebLinkAboutResolution 6005
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RESOLUTION NO. 6005
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION APPROVING A SETTLEMENT AGREEMENT BETWEEN THE
MINNESOTA ATTORNEY GENERAL'S OFFICE AND THE CITY OF MOUNDS VIEW
RELATING TO THE OFFICE OF THE STATE AUDITORS NOTICE OF
NONCOMPLIANCE
WHEREAS, on July 18, 2001, the City of Mounds View (City) received a Notice of
Noncompliance from the Office of the State Auditor (OSA) in response to a Tax
Increment Financing (TIF) Legal Compliance Audit the OSA had performed earlier that
year; and,
WHEREAS, the City responded to the OSA's Notice of Noncompliance on
September 17, 2001, in which the City disagreed with the OSA's findings regarding the
identified issues of noncompliance; and,
WHEREAS, on November 27,2001, the OSA sent the City a final Notice of
Noncompliance and indicated that it had forwarded the matter to the Ramsey County
Attorney's Office; and,
WHEREAS, on December 3, 2002, the OSA forwarded the matter to the
Minnesota Office of the Attorney General (OAG) pursuant to Minnesota Statutes after
the County Attorney failed to act on the matter; and,
WHEREAS, on April 17, 2003, the City received the attached Settlement
Agreement from the OAG; and,
WHEREAS, in executing the attached agreement, the City agrees to the
conditions articulated therein to fully resolve and settle all noncompliant issues
identified by the OSA in the Notice of Noncompliance dated November 27,2001.
NOW, THEREFORE, BE IT RESOLVED that the Mounds View City Council
authorizes the execution of the Settlement Agreement, attached hereto as Exhibit 1.
Adopted this 28th day of April, 2003. _'_-~ ../
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J e!-!Y"'~IR\(e~-rvIayor
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ATTEST:
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James Ericson
Interim City Administrator
(SEAL)
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EXHIBIT 1.
SETTLEMENT AGREEMENT
This Settlement Agreement is effective . 2003, and is entered into by and
among the Minnesota Attomey General and the City of Mounds View.
\VHEREAS, on July 18.2001. the Office of the State Auditor (hereinafter .'OSA ") sent
an initial notice of noncompliance pursuant to Minn. Stat. S 469.1771, subd. 1 (c) to the Mounds
Vievv' City Council. making two findings of noncompliance \",ith respect to the City of Mounds
View Tax Increment Financing (hereinaHer "TIF") District No.1. one finding of noncompliance
with respect to TIF District No.2 and one finding of noncompliance vv'ith respect to notices to the
school board and county board of fiscal and economic impact estimates for TIF Districts Nos. 1.
2 and 3 and making an additional comment noting concems regarding reporting of certain
engineering costs in connection with TJF District Nos. 1 and 3:
\VHEREAS, on September 17. 2001. the City of Mounds View submitted a response to
the OSA disputing the OSA' s findings and comments;
\VHEREAS, on 1\ovember 27.2001. the OSA sent its final notice of noncompliance to
the City of Mounds View reiterating its findings;
\VHEREAS, on l\'ovember 27.2001, the OSA referred that finding to the Ramsey
County Attomey. pursuant to Minn. Stat. S 469.1771. subd. 1 (b):
\VHEREAS, the Ramsey County Attorney's Office did not commence an action
regarding this matter w'ithin one year of the date ofreferra1:
\VHEREAS, on December 3.2002. the OSA rderred this matter to the Oflice of the
Attorney Gencral (hereinafter "OAGU). pursuant to Minn. Stat. S 469.1771. subd. l(d):
\VHEREAS, pursuant to Minn. Stat. * 469.1771. subd. 2b(a). the OAG is required to
revie\\' the materials submitted by the OSA and may initiate a petition in tax court to take action
against the authority of the municipality to exercise tax incremcnt financing powers:
\VHEREAS, pursuant to Minn. Stat. 9469.1771, subd. 2b(b). before 1iling a petition to
suspend TIF authority. the Attomey General is required to attempt to resolve the matter using
appropriate alternative dispute resolution procedures: and
WHEREAS, the OAG has conferred \vith rcpresentatives ofthe City of Mounds View
and thc OSA in order to resolve the matter w'ithout legal action.
NOW THEREFORE, based upon a review of the matter and discussions among the
partics. it is agreed as follows;
I. The City of Mounds View agrees it will follow the requirements set forth in
Minncsota statutes relating to Tax Incrcmcnt Financing and \vill include in all future TIF plans a
statemcnt as to the development program and including with reasonable specificity a description
of the property within the District. if any. which the City intends to acquire.
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2. The City further agrees that where the original TIF plan contains a listing of
specific properties for acquisition. and the City dctermines additional propcrty or properties are
to be acquired then thc City of Mounds View \\'ill follO\\' the procedures set forth in Minn. Stat.
*469.175. subd. 4 for formal plan moditication with public hearings for a "designation of
additional property to be acquired by the City."
3. Nothing in paragraphs I or 2 above is intcnded or shall bc interpreted to impose
on the City any obligations which excecd those requirements of the tax increment la\'v' which are
at the time applicable.
4. The City of Mounds Vie\\! will not approve. or request certilication of. a new tax
increment financing district or the addition of an area to an existing tax increment financc for a
period of three months from the date of this Settlement Agreement.
5. Nothing in this Settlement Agreemcnt shall be construed as an admission or
acknowledgement on the part of the City of Mounds Vie\\! that it has not substantially complied
\\'ith the applicable requirements of the tax increment linancing or any other law.
IN WITNESS WHEREOF, the parties have caused this Settlement Agreement to be
signed on the date(s) set forth below.
Dated:
Dated:
CITY OF MOUNDS VIEW
CITY OF MOUNDS VIEW
By:
By
Its:
Mayor
Its: Interim City Clerk/Administrator
Dated:
MIKE HATCH
Attorney Gcneral
State of Minnesota
CHRISTIE B. ELLER
Assistant Attorney General
Atty. Reg. No. 6658
525 Park Street. Suite 200
St. Paul. Minnesota 55103-2106
(65] ) 296-9421 (Voice)
(651) 282-2525 (TTY)
A TTORNEYS FOR STATE OF MINNESOTA
AG: #824798-v1