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Memo <br /> <br />To: Bryan Bear and Anna Wobse, City of Hugo <br />Members of the City Council <br />From: Mikaela Huot, Director <br />Date: July 15, 2021 <br />Subject: Tax Abatement for Lions Park Improvement <br /> <br />At the Monday, July 19 meeting, the City Council is being asked to hold a public hearing regarding the <br />establishment of a tax abatement area for financing of public improvements to Lions Park and other related <br />public improvements. The City proposes to use the abatement for the purposes provided for in the Abatement <br />Law. The proposed term of the abatement will be for up to twenty (20) years in an amount not to exceed <br />$9,000,000. The abatement will apply to the City's share of the property taxes derived from the property <br />described by tax parcel identification number included in the adopting resolution (as attached). <br /> <br />Tax abatement is a tool that communities use for financing of improvements to private property, for financing or <br />providing public infrastructure, acquiring or constructing public facilities (including parks and recreation and <br />community centers) and for phasing in property tax increase/equalization of property. The City is proposing to <br />use the abatement for construction of public facilities, namely park and related improvements. The tax <br />abatement is adopted by resolution by the City Council following a public hearing that was noticed more than 10 <br />and less than 30 days prior. The properties included within the abatement have been identified as those that <br />may ‘benefit’ from the improvements and will continue to pay taxes like all other properties within the City. The <br />City will use its share of property taxes on the abatement properties for repayment of debt service on the bonds <br />issued to finance the park and related improvements. <br /> <br />Prior to approving a tax abatement, the City makes a finding that it expects benefits of the proposed abatement <br />to at least equal the costs to the political subdivision of the proposed abatement and doing so is in the public <br />interest because it will: <br />• increase or preserve tax base <br />• provide employment opportunities in the political subdivision <br />• provide or help acquire or construct public facilities <br />• help redevelop or renew blighted areas <br />• help provide access to services for residents of the political subdivision <br />• finance or provide public infrastructure <br /> <br />Thank you for the opportunity to be of assistance to the City of Hugo. Please contact me at 651-223-3036 or <br />Mikaela.Huot@bakertilly.com with any questions or to discuss.