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HomeMy WebLinkAbout19-031 - ADMIN Resolution - City Council - 2019/03/04 Resolution No. 19-031 Resolution approving property tax abatement for the construction of the new Westwood Hills Nature Center in the City of St. Louis Park Be it resolved By the City Council of the City of St. Louis Park, Hennepin County, Minnesota (the “City”) as follows: Section 1. Recitals. 1.01. The City has determined to grant a property tax abatement in connection with the construction of the new Westwood Hills Nature Center (the “Project”), which will help to acquire public facilities by financing the construction of the Project, to provide continued access to Project- related services for residents of the City, and to benefit certain properties in the City, all pursuant to Minnesota Statutes, Sections 469.1812 through 469.1815, as amended (the “Act”). 1.02. Pursuant to Section 469.1813, subdivision 1 of the Act, the City may grant an abatement of all or a portion of the taxes imposed by the City on one or more parcels of property to pay for all or part of the cost of the Project, whether or not located on or adjacent to the parcels for which the tax is abated. 1.03. The City has identified six parcels located in the City, identified in EXHIBIT A attached hereto (the “Abatement Property”), which will be benefitted by the Project and from which the City proposes to abate a portion of the City’s share of taxes to help finance the Project, subject to all the terms and conditions of this resolution. 1.04. The City intends to issue one or more series of general obligation tax abatement bonds in the approximate aggregate principal amount of $12,890,000 (the “Abatement Bonds”) to pay the costs of the Project pursuant to the Act, and which are expected to be paid primarily through the collection of Abatement revenues. 1.05. On the date hereof, the City Council of the City (the “City Council”) conducted a duly noticed public hearing on the Abatement 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, because (a) the Abatement will help finance the Project, which is necessary to help provide continued access to Project-related services for residents of the City in a way that will strengthen the local economy, preserve natural resources, and ensure a high quality of life for residents of the City ; and (b) the increased City taxes collected from the Abatement Property upon termination of the Abatement are expected to far exceed the amount of the Abatement collected from the Abatement Property during the term of this resolution. DocuSign Envelope ID: 7F915287-B687-45CA-8A84-BF210566F3C9 Resolution No. 19-031 2 2.02. It is hereby found and determined that the Abatement is in the public interest for the reasons described in Section 2.01 hereof. Section 3. Actions Ratified; Abatement Approved. 3.01. The City 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 City’s share of the real property taxes generated from the Abatement Property, in the amounts described in this Section: (i) The aggregate Abatement paid by the City during the term of this resolution will not exceed the amount necessary to pay the principal of and all or a portion of the interest on the Abatement Bonds, up to a maximum of $12,890,000. (ii) Notwithstanding anything to the contrary herein, the Abatement payable on any August 1 and subsequent February 1, combined, will not exceed the amount produced by extending the City’s total tax rate for the applicable year against the total net tax capacity of the Abatement Property, as of January 2 in the prior year. (iii) In accordance with Section 469.1813, subdivision 8 of the Act, in no year shall the Abatement, together with all other abatements approved by the City under the Act and paid in that year, exceed the greater of ten percent (10%) of the City’s net tax capacity for that year or $200,000 (the “Abatement Volume Cap”). The City may grant any other abatements permitted under the Act after the date of this resolution, provided that to the extent the total abatements in any year exceed the Abatement Volume Cap, the allocation of Abatement Volume Cap to such other abatements is subordinate to the Abatements under this resolution. (b) The Abatement will be for a term of nine years, and the City will pay the Abatement in semiannual installments each February 1 and August 1, commencing August 1, 2026, and continuing through February 1, 2035. The City will pay the Abatement solely to help finance the cost of the Project, through application of Abatement amounts toward debt service payments on the Abatement Bonds (including any bonds issued to refund the initial Abatement Bonds). (c) This resolution may be modified only with the prior written approval of the City, and any modification is subject to Section 469.1813, subdivision 7 of the Act. (d) 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. DocuSign Envelope ID: 7F915287-B687-45CA-8A84-BF210566F3C9 Resolution No. 19-031 3 3.03. The Mayor and City Manager are authorized and directed to execute and deliver any agreements, certificates or other documents that the City determines are necessary to implement this resolution. The motion for the adoption of the foregoing resolution was duly seconded by City Council Member Anne Mavity, and, after full discussion thereof and upon a vote being taken thereon, the following City Council Members voted in favor thereof: Jake Spano, Rachel Harris, and Tim Brausen. Reviewed for Administration: Adopted by the City Council March 4, 2019 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk DocuSign Envelope ID: 7F915287-B687-45CA-8A84-BF210566F3C9 Resolution No. 19-031 4 EXHIBIT A ABATEMENT PROPERTY Parcel Identification Numbers: DocuSign Envelope ID: 7F915287-B687-45CA-8A84-BF210566F3C9