Resolution 2013-011 Authorizing Limited P-Tax Abatement for 8665 Hudson Blvd

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RESOLUTION y - WHEREAS, the City of Lake Elmo, Minnesota, under Minnesota State Statutes Chapter 272, 273 and Chapter 489, has the authority to value and assess all real property within its jurisdictional boundaries and, WHEREAS, Minnesota law authorizes political subdivisions to grant property tax abatements for economic development to encourage businesses to locate or expand to an area (Minn. Stat. §§ 469.1819-459.1816) and, WHEREAS, abatements are available for up to 15-20 years and the total abatement cannot exceed the larger of ten percent (10%) of the net tax capacity or $200,000.00 and, WHEREAS, Valley Cartage of Hudson, WI wishes to purchase and relocate to 8665 Hudson Boulevard in the City of Lake Elmo, Minnesota creating approximately fifty (50) or more jobs providing significant compensation in the area of logistics transportation that will stimulate the local" economy and, WHEREAS, the fifty (50) or more jobs include positions in. the transportation logistics industry that pay between $35,000-$90,000 per year created by 2015 and that are subject to Minnesota state income tax and, WHEREAS, the current assessed market value of 8665 Hudson Boulevard has been placed at $2,125,500 for the last two years and the building is currently built out at approximately the 80% level and, WHEREAS, the purchase price will include non -real property assets and thus will not solely reflect the value of the improvements and land and, WHEREAS, Valley Cartage has requested a limited property tax abatement for the years 2014- 2017 as well as consideration of limited property tax abatement for 2018, and WHEREAS, the City Council finds that the public benefits involved would include, but will not be limited to, general economic development, ultimately increasing the tax base, increasing, the number of jobs in the area, and spurring economic activity along the 1-94 corridor and these benefits would exceed the cost of abating the City portion of property taxes for the years 2014- 2017 arising from any increase in the property value above the current assessed valuation ($2,125,200.00)_ Resolution No. 2013-11