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Motion by Councilmember Brever, seconded by Councilmember Jenson, to approve the Consent 1 Agenda items as presented. 2 3 Motion carried 4-0. 4 5 IV. PUBLIC HEARING 6 7 A. Resolution 16-036 a Resolution Relating to Property Tax Abatement; Granting the 8 Abatement. 9 10 Mayor Faust opened the public hearing at 7:03 p.m. 11 12 Ms. Stacie Kvilvang from Ehlers & Associates summarized the bonds before the Council that 13 will be used to finance water quality and flood improvements to Mirror Pond, the City’s regional 14 storm water pond, and complete nearly 1.5 miles of new sidewalk construction and ADA 15 upgrades at eight intersections to improve pedestrian safety. 16 17 Ms. Kvilvang stated overall, the total project costs are approximately $2,975,000. It was noted 18 the City will receive a $1,142,000 grant from the Rice Creek Watershed District and the City will 19 contribute approximately $400,000 from other City funds towards the project. The bonds have 20 been sized in the anticipation the City will receive HSIP funds in a couple years. The annual tax 21 levy will be $100,000 with a bond size of $1,495,000. 22 23 Ms. Kvilvang referenced a map depicting the project area and explained as part of the public 24 hearing process and tax abatement bond is to identify the parcels benefiting from the 25 improvements. She described the parcels where the City’s portion of taxes will be abated and 26 explained the City has the authority under Minnesota Statute 469 to issue abatement bonds for 27 the projects. One requirement to do so, is to hold a public hearing on the amount of the 28 abatement to be granted, identify the properties from which they will abate the City’s portion of 29 the taxes, and describe the public purpose for granting the abatement. 30 31 Ms. Kvilvang reviewed the properties surrounding Mirror Lake that the City will be abating its 32 portion of the taxes as listed in her April 12, 2016, memorandum to City Manager Casey. The 33 public purpose in granting the abatement is that the City expects the benefits to the City of the 34 abatement to at least equal or exceed the costs to the City and that granting the abatement is in 35 the public interest. 36 37 Councilmember Stille stated the City did this once before for Emerald Park and this exercise is 38 due to the type of bonds being implemented and does not mean people will not have to pay more 39 or less taxes than if traditional bonds had been issued. Ms. Kvilvang confirmed that is correct 40 and explained tax abatement, which is similar to the typical 429 bond process, but in this case the 41 statute requires identification of the abated parcels. 42 43 Mayor Faust asked the audience if anyone would like to address this issue. 44 45 There being no public input, Mayor Faust closed the public hearing at 7:06 p.m. 46 10