HomeMy WebLinkAbout98-172 - ADMIN Resolution - City Council - 1998/12/21RESOLUTION NO. 98 m 72
RESOLUTION APPROVING
PROPERTY TAX ABATEMENT FOR CERTAIN PROPERTY
IN THE CITY OF ST. LOUIS PARK
BE IT RESOLVED By the City Council ("Council") of the City of St. Louis Park, Minnesota
("City") as follows:
Section 1. Recitals
1.01. The City has determined a need to grant a property tax abatement regarding certain
property in the City described in Exhibit A hereto (the "Property"), pursuant to Minnesota Statutes,
Sections 469 1812 to 469.1815 (the "Act").
1.02. This Council has fully reviewed the proposed Abatement (as hereinafter defined) and on
December 21, 1998 conducted a public hearing thereon, at which the views of all interested persons
were heard.
Section 2. Findings.
2.01. It is hereby found and determined that the benefits to the City from the Abatement will
be at least equal to the costs to the City of the Abatement
2.02. It is hereby found and determined that the Abatement is in the public interest because it
will increase the tax base of the City, provide employment opportunities within the City and help
redevelop or renew blighted areas
2.03. It is further specifically found and determined that the Abatement is expected to result in
the following public benefits
(a) Create an estimated $7,500,000 increase in estimated market value for properly tax
purposes
(b)
Permit development of an underutilized site that is difficult to develop because of
nearby pollution and extremely poor soil conditions.
(c) Attract and retain medical practices, offering easier access to care and increased
number of health plans to residents of the City.
(d) Facilitate the first step in revitalizing an underutilized major intersection in the City,
which will help stimulate further development that creates additional tax base for the
City
(e) Increase employment and living wage jobs in the City
(f) Utilize and support existing and transportation systems.
Section 3. Actions Ratified, Abatement Approved
3.01. The Council hereby ratifies all actions of the City's staff and consultants in arranging for
approval of this resolution in accordance with the Act.
3.02 Subject to the provisions of the Act, the Abatement is hereby approved and adopted
subject to the following terms and conditions -
(a) The term "Abatement" means the real property taxes generated in any tax -payable year
by extending (i) the City's total tax rate for that year, against (ii) the tax capacity of any
commercial improvements constructed on the Property in accordance with the
Development Agreement (defined hereafter), excluding the tax capacity of the land and
excluding any portion of the tax capacity attributable to the area -wide tax under
Minnesota Statues, Chapter 473F, all as of January 2 in the prior year.
(b)
The Abatements will be paid for a period of ten years, commencing in the first tax -
payable year after substantial completion of the commercial improvements on the
Property in accordance with a development agreement (the "Development
Agreement") between the City, Independent School District No 283 (the "School
District"), Hennepin County (the "County") and Frauenshuh Companies or another
entity agreeable to the City ("Developer"), or such other date as is specified in the
Development Agreement
(c) The Abatements will be paid by the City to the Developer at least semi-annually,
promptly upon receipt by the City of property tax settlements from Hennepin County,
subject to all the terms of the Development Agreement.
(d) In no case shall the City pay to the Developer Abatements that exceed in any one year
the greater of 5% of the City's levy for that year or $100,000
(e) In accordance with Section 469 1813, Subd 6 of the Act. the City elects that the
Abatement authorized under this resolution may not be modified during its term.
(0 The City makes no warranties or representations regarding the amount or availability of
the Abatements
(g)
Payment of any Abatements is conditioned upon the following
(i) approval by the board of commissioners of the County of an abatement of
the County's share of property taxes attributable to improvements to the
Property under substantially the same terms and conditions set forth in this
resolution,
(ii) approval by the School Board of the School District of an abatement of the
School District's share of property taxes attributable to improvements to the
Property (to the extent permitted under the Act) under substantially the same
terms and conditions set forth in this resolution;
(iii) execution of a Development Agreement regarding Development of the
Property, which at a minimum incorporates the terms of this Abatement and
the abatement of County and School District taxes under the Act.
(iv) approval of the project related planning and zoning approvals, permits,
licenses and/or agreements required by any federal, state or city codes and
regulations.
(v) availability of additional source(s) of financing for the remaining "gap"
in project costs that are or may be unable to be financed through tax
abatement (estimated at $689,000).
3 03. If a Development Agreement is not executed by December 31, 1999, this resolution will
be deemed null and void as of that date.
Reviewed for Administration.
City Manager -Deputy
Attest.
Ci
Clerk
Adopted by City Counci 1 on December 21, 1998
Mayor ,
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