HomeMy WebLinkAboutRESO 2004-0046RESOLUTION NO. 2004=46
RESOLUTION APPROVING PROPERTY TAX ABATEMENTS
BE TT RESOLVED by the City Council (the "Council") of the City of Hugo, Minnesota
(the "City"), as follows:
1. Recitals.
(a) The Council has determined to construct certain improvements related to
CSAH 8 within the City (the "Project"). The City proposes to use the abatement for the
purposes provided for in the Abatement Law (as hereinafter defined), including the
Project. The proposed term of the abatement will be for up to fifteen years in an amount
not to exceed $6,201,532. The abatement will apply to the City's share of the property
taxes (the "Abatement") derived from the increased market value resulting from
development on the properties with the following Parcel Identification Numbers
1803121110001, 1803121210002, 1803121220001, 1803121230001, 1803121240001,
1803121310002, 1803121410001, 1803121420001, 1803121440001, 1903121110002,
1903121120003, 1903121120004, 1903121130004, 1903121140009, 1903121210002,
1903121210005, 1903121220002, 1903121230007, 1903121230016-0044,
1903121230046-0049, 1903121230055-0064, 1903121230066-0078, 1903121230081-
0088, 1903121240003, 1903121310003, 1903121320006-0052, 1903121320057-0078,
1903121330007-0040 (the "Property").
(b) On the date hereof, the Council held a public hearing on the question of
the Abatement, and said hearing was preceded by at least 10 days but not more than 30
days prior published notice thereof.
(c) The Abatement is authorized under Minnesota Statutes, Sections 469.1812
through 469.1815 (the "Abatement Law").
2. Findings for the Abatement. The City Council hereby makes the following
findings:
(a) The Council expects the benefits to the City of the Abatement to at least
equal or exceed the costs to the City thereof.
(b) Granting the Abatement is in the public interest because it will finance
public infrastructure in the City.
(c) The Property is not located in a tax increment financing district.
(d) In any year, the total amount of property taxes abated by the City by this
and other resolutions, if any, does not exceed the greater of ten percent (10%) of the
current levy or $200,000.
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(e) The City requested in writing that Washington County grant an abatement
for the Project and the City anticipates that Washington County will decline the City's
request to grant an abatement for the Project and if such request is declined, the City will
exercise its authority to grant the Abatement for up to 15 years.
3. Terms of Abatement. The Abatement is hereby approved. The terms of the
Abatement are as follows:
(a) Subject to Washington County declining to grant an abatement for the
Project, the Abatement shall be for up to fifteen (15) years and shall apply to the taxes
payable in the years 2005 through 2019, inclusive.
(b) The City will abate an amount over the abatement term not to exceed
$6,201,532 of the City's share of the property tax amount which the City receives from
the increased market value resulting from development on the Property above the current
aggregate taxable market value of the Property of $14,576,400.
(c) The Abatement shall be subject to all the terms and limitations of the
Abatement Law.
(d) The City may issue abatement bonds pursuant to Minnesota Statutes,
Section 469.1814. If bonds are issued, the Abatement, pursuant to Minnesota Statutes,
Section 469.1814 Subd. 4, may not be modified or changed during its term; if bonds are
not issued, the Abatement may be modified every second year after the date hereof.
The motion for the adoption of the foregoing resolution was made by member
Miron and duly seconded by member Haas and, upon a vote being
taken thereon after full discussion thereof, the following voted in favor thereof:
Granger, Haas, Petryk, Puleo, Miron
and the following voted against the same: NONE
Whereupon said resolution was declared duly passed and adopted.
/AJC
F r , Mayor
ATTEST:
Mary 2�1 Creager, City C1
ey
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