2016-045 Approving Property Tax Abatement Related to Public Infrastructure Improvements in the City of Hopkins ITY OF HOPKINS,MINNESOTA
RESOLUTION NO. 2016-045
RESOLUTION APPROVING PROPERTY TAX ABATEMENT
RELATED TO PUBLIC INFRASTRUCTURE IMPROVEMENTS
IN THE CITY 0 ' HOPKINS
BE IT RESOLVED By the City Council (the "Council") of the City of Hopkins, Minnesota (the
"City"),as follows:
Section 1. Recitals.
1.01. The City has cont.mplated granting a property tax abatement in order to aid in financing
certain public infrastructure improv:ments, including but not limited to the 2016 road reconstruction projects
and various park improvements an,i improvements to City-owned parking facilities (the "Project"), which
will benefit certain property in th; City, all pursuant to Minnesota Statutes, Sections 469.1812 through
469.1815,as amended(the"Act").
1.02. Pursuant to Sectio 469.1813, subdivision 1 of the Act,the City may grant an abatement of
all or a portion of the taxes impose• by the City on a parcel of property to pay for all or part of the cost of
acquisition or construction of public facilities and to finance or provide public infrastructure, whether or
not located on or adjacent to the parcel for which the tax is abated.
1.03. The City has identified three parcels located in the City, identified in EXHIBIT A 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 sha e of taxes to help finance the Project, subject to all the terms and
conditions of this resolution(the"• batement"). The Abatement Property is not located in a tax increment
financing district.
1.04. The City intends • issue its general obligation tax abatement bonds in the approximate
aggregate principal amount of$1,6 0,000 (the"Abatement Bonds")to pay the costs of the Project pursuant
to the Act. The Abatement Bonds are expected to be paid primarily through the collection of Abatement
revenues.
1.05. On the date hereof,the Council conducted a duly noticed public hearing on the Abatement at
which the views of all interested pe ons were heard.
Section 2. Findings.
2.01. It is hereby found .nd determined that the benefits to the City from the Abatement will be
at least equal to the costs to the City of the Abatement for the following reasons:
(a) The Abatement will help finance the Project, which is necessary to finance or
provide public infrastructure in a way that will strengthen the local economy, preserve natural
resources,and ensure a high quality of life for residents of the City.
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(b) The Project will help preserve and increase the value of the Abatement Property,
thereby helping to generate additional City tax revenues over the long term after the expiration of
the Abatement.
2.02. It is hereby found and determined that the Abatement is in the public interest for the
following reasons:
(a) The Abatement will increase or preserve tax base by stimulating development
and helping to maintain values in the area,as set forth above.
(b) The Abatement will finance or provide public infrastructure,which will protect the
general health and welfare of the community and contribute to the quality of life in the City by
maintaining public infrastructure and facilities in proper working order.
(d) The Abatement will provide access to better-quality parks to residents of the
City.
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 City's share of the real property taxes generated
from the land and improvements on 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 all of the principal of and a portion of the
interest on the Abatement Bonds,up to a maximum of$1,630,000.
(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 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 Cap, the allocation of
Abatement Cap to such other abatements is subordinate to the Abatements under this
resolution.
(b) The Abatement will be for a term of fifteen (15) years, and the City will pay the
Abatement in semiannual installments each August 1 and February 1, commencing
August 1,2017, and continuing through August 1, 2032. The City will pay the Abatement solely
to finance the cost of the Project, through application of Abatement amounts toward debt service
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payments on the Abateme t Bonds (including any bonds issued to refund the initial Abatement
Bonds).
(c) This resol tion may be modified only with the prior written approval of the City,
and any modification is su 'ect to Section 469.1813,subdivision 7 of the Act.
(d) In accorda ce with Section 469.1815 of the Act, the City will add to its levy in
each year during the term f the Abatement the total estimated amount of current year Abatement
granted under this resoluti .
3.03. The Mayor and Ci Administrator are authorized and directed to execute and deliver any
agreements, certificates or other ocuments that the City determines are necessary to implement this
resolution.
Approved by the City Coun it of the City of Hopkins,Minnesota, this 7`1'day of June,2016.
Molly C ings,Mayor
Attest:
,1 SAX/
Amy Domeier,City Clerk
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EXHIBIT A
ABATEMENT PROPERTY
Parcel Identification Numbers:
1911721130005
2411722430237
2511722410001
480633v1 JAE HP110-93 A_1