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Home My WebLink About2021.07.19 RESO 2021-52 Approving Property Tax Abatement EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF HUGO, MINNESOTA HELD: JULY 19, 2021 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Hugo, Washington County, Minnesota, was duly called and held at the City Hall in Hugo, Minnesota, on July 19, 2021, at 7:00 p.m., for the purpose, in part, of approving tax abatements in connection with improvements to the Lions Park and related public improvements in the City. The following members were present: Klein, Miron, Petryk, Strub, Weidt and the following were absent: None Member Miron introduced the following resolution and moved its adoption: RESOLUTION NO. 2021-52 RESOLUTION APPROVING PROPERTY TAX ABATEMENTS BE IT RESOLVED by the City Council of the City of Hugo, Minnesota (the "City"), as follows: WHEREAS, the City proposes to approve tax abatements in connection with public improvements to the Lions Park and related public improvements in 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 twenty (20) years in an amount not to exceed $9,000,000. The abatement will apply to the City's share of the property taxes (the "Abatement") derived from the property described by tax parcel identification numbers on the attached “Exhibit A” (the “Property”) located in the City and in Washington County; and WHEREAS, the City has requested, in writing, that Independent School District No. 624 (the “White Bear Lake Area School District”) grant an abatement for the Project. The White Bear Lake Area School District has declined, in writing, to grant an abatement and therefore the City has the authority to grant an abatement for up to 20 years; and WHEREAS, 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; and WHEREAS, the City Council proposes to issue its General Obligation Tax Abatement Bonds, Series 2021A (the "Bonds") in an amount not to exceed $9,000,000 to finance the Project; and the Abatement will be pledged to the payments of the Bonds; and WHEREAS, the Abatement is authorized under Minnesota Statutes, Sections 469.1812 through 469.1815, as amended (the "Abatement Law"). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hugo, Minnesota, as follows: 1. 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: (i) provide or help acquire or construct public facilities; (ii) help provide access to services for residents of the political subdivision; and (iii) finance or provide public infrastructure. (c) The Property is not and will not be located in a tax increment financing district during the Abatement period. (d) In any year, the total amount of property taxes abated by the City by this and other existing abatement resolutions, shall not exceed ten percent (10%) of net tax capacity of the City for the taxes payable year to which the abatement applies or $200,000, whichever is greater (the "Abatement Limit"). The City may grant other abatements permitted under the Abatement Law after the date of this resolution, provided that to the extent the total abatements in any year exceed the Abatement Limit the allocation of the Abatement limit to such other abatements is subordinate to the Abatement granted by this resolution. 2. Terms of Abatement. The Abatement is hereby approved. The terms of the Abatement are as follows: (a) The Abatement shall be for up to a twenty (20) year anticipated to commence for the taxes payable in the year 2022. The City reserves the right to modify the commencement date, but the abatement period shall not exceed twenty (20) years. (b) In accordance with Section 469.1815 of the Act, the City will add to its levy in each year during the term of the Abatement the total estimated amount of current year Abatement granted under this resolution. (c) The City will abate the City's share of property tax amount which the City receives from the Property, cumulatively not to exceed $9,000,000. (d) The Abatement shall be subject to all the terms and limitations of the Abatement Law. 2 (e) Because the City anticipates issuing General Obligation Tax Abatement Bonds, the Abatement may not be modified or changed. This resolution shall become effective immediately u on its passage and without publication. Passed this 19th day of July, 2021 /s/ Tom Weidt Mayor ATTEST: /s/ Michele Lindau City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Member Klein and, after a full discussion thereof and upon vote being taken thereon, the following voted in favor thereof. Klein, Miron, Petryk, Strub, Weidt and the following voted against the same: None 3 STATE OF MINNESOTA COUNTY OF WASHINGTON CITY OF HUGO I, the undersigned, being the duly qualified and acting City Clerk of the City of Hugo, Washington County, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to the approval of property tax abatements. WITNESS my hand this I gh day of July, 2021. City Clerk 4 EXHIBIT A Abatement Parcels 1703121240064 1703121240034 1703121210054 1703121240047 1703121240026 1703121210028 1703121220048 1703121240063 1703121240014 1703121210020 1703121240060 1703121240025 1703121220041 1703121220035 1703121240061 1703121230002 1703121210053 1703121240050 1703121240024 1703121220051 1703121210016 1703121240051 1703121240035 1703121210021 1703121240049 1703121230010 1703121210035 1703121210056 1703121240054 1703121230008 1703121210052 1703121240059 1703121230005 1703121210047 1703121220027 1703121240053 1703121240015 1703121210022 1703121230023 1703121230041 1703121210036 1703121210010 1703121240031 1703121240036 1703121210023 1703121240030 1703121230042 1703121220006 1703121220009 1703121240052 1703121240037 1703121210051 1703121230011 1703121230040 1703121210046 1703121220023 1703121240011 1703121130013 1703121210024 1703121240058 1703121230043 1703121210037 1703121210013 1703121240039 1703121240038 1703121210050 1703121240057 1703121220053 1703121220050 1703121220028 1703121240040 1703121220045 1703121210049 1703121230012 1703121210031 1703121210038 1703121210011 1703121240065 1703121130014 1703121210025 1703121240056 1703121220054 1703121220040 1703121210012 1703121240007 1703121210002 1703121240048 1703121230013 1703121210032 1703121120010 1703121220022 1703121230035 1703121220044 1703121230025 1703121240029 1703121220043 1703121220039 1703121220046 1703121240008 1703121220059 1703121230024 1703121230038 1703121210030 1703121220038 1703121220029 1703121230036 1703121120007 1703121230032 1703121230021 1703121210043 1703121210006 1703121220032 1703121240009 1703121210003 1703121240041 1703121230014 1703121210042 1703121210008 1703121220012 1703121230037 1703121120008 1703121230031 1703121240028 1703121210033 1703121220049 1703121220031 1703121240010 1703121210004 1703121240042 1703121230020 1703121220052 1703121220037 1703121220030 1703121230022 1703121120009 1703121230030 1703121240021 1703121220058 1703121210007 1703121220013 1703121240055 1703121210040 1703121240043 1703121230019 1703121220055 1703121210015 1703121220014 1703121230009 1703121210027 1703121230029 1703121240027 1703121210044 1703121220036 1703121220015 1703121130012 1703121210048 1703121240044 1703121230015 1703121220042 1703121210009 1703121220016 1703121240032 1703121220005 1703121240066 1703121240019 1703121210029 1703121220025 1703121220021 1703121240012 1703121210059 1703121240062 1703121240020 1703121210041 1703121210057 1703121220020 1703121230018 1703121210018 1703121230033 1703121240022 1703121220057 1703121210058 2003121230056 1703121240033 1703121220034 1703121230027 1703121230006 1703121210034 1703121220007 2003121220006 1703121240018 1703121210055 1703121240045 1703121230004 1703121210005 1703121220026 1703121220019 1703121240013 1703121210019 1703121230028 1703121230003 1703121210045 1703121210017 1703121220018 1703121230017 1703121220011 1703121230034 1703121230016 1703121220056 1703121220024 1703121220017 1703121240017 1703121220033 1703121240046 1703121230007 1703121210026 1703121210014 1703121240016 1703121220047 1703121230026 1703121240023 1703121210039 1703121220008 13510929v1