2017-038 Approving Property Tax Abatement Related to Public Infrastructure Improvements in the City of Hopkinsfollows:
CITY OE HOPHINS, MINNESOTA
RGSOLUTION NO. 2017-038
RESOLUTION APPROVING PROPE2TY TAa ABATEMENT
KELATED 7'O PUBLIC INFRASTRUCTURE IMPROVENIENTS
IN 7'HC CITY OF HOPI{INS
BE IT Ri:SOLVED By the City Coimcil of the City of Hopkins, Minnesota (the "City"), as
Section l. Back��ound.
LOI. The City has contemplaled granting a property tax abatement in order to aid in financing
certain public infrashvcture improvements, induding but not limited to improvements to Bmnes Park in the
City (the "Project"), all pursuant to Minnesota SCatutes, Sections 469.1812 through 469.1815, as ainencied
(thc "AcY').
1.02. Pursuant to Section 469.1813, subdivision 1 of the Act, the City may grant an ab2tement of
all or a pmtion of thc taxes imposed by the Ciry on a parcel of property to pay for all or part of the cost of
acquisition or construction of public facilitics and to financc or pro��ide E�ublic infrastructurq whether or
not located on or adjacent to tlie parcel for which the tax is �bated.
1.03. The City has identified ninetcen (19) pnrcels located in the City, idcntified in
EXHIBIT A hereto (the "Abatement Property"), which will be benefitted by the Project and fmm which
the City }�roposes to abate a pm�tion of the City's share of taxes to help finance die Pr�ject, subjecC to all
die teims and em�ditions of this resolution (the "AbatemenP'). The Abatement Properry is not located in a
tax incrcmcnt financing district.
1.04. The City intends ro issue its general obligation tax abatement bonds in thc approximatc
aggregate principal amount uf $1,905,000 (the "Abatemcnt Bonds") to p�y thc costs of the Projcct puisuant
to the Act. The Abatement Bonds .ire expecte� to be paid primarily tlu�ough �he collection of Abatement
revenues.
].05. On the date hereof, [he Council conducted a duly noticed public hearing on the Abarement at
which the views of all interested persons were heard.
Section 2. Findin�s.
2.01. Ic is hereby found and detcrinined d�at the benefits to the City From the Abatement will 6e
at least eq�al ro 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 inl'rastructure in a way that will strengthen the local economy, preserve natural
resourccs, and cnsurc a high qualiCy oi life for residcnts of the City.
(b) Thc Project will help preserve and increase the valua of the Abatcment Property,
thercby hclping to gcncrate additional City tax rcvcnues ovcr thc long term aftcr the expiration of
the Abatemen[.
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2.02. It is hereby found and determined that the AbatemenC is in the public interest for tl�e
following reasons:
(a) The Abatement will increase or preserve tax base by stimulating development
and hclping to maintain valucs in thc arca, as sct forth above.
(b) The Abatement will finance or provide public infi�astructure, which will protect the
general health and welfare of the community and conh�ibute to tl�e quality of life in the City by
m�intainin� �ublic infrastructure and facilities in proper working order.
(c) The Abatcmcnt will provide acecss to bettcr-quality parks to residcnts of the
City.
Sec[ion 3. Actions Ratified; Abatement A�url oved.
3.01. The Council hereby ratifies all actions of the City's staff and consultants in airanging for
approval af this resolution in accordance with tl�e Act.
3.02. Subject to the provisions of the Act, the Abatement is hereby approved and adopted subject
to tha following tenns and conditions:
(a) The term "AbatemenP' means Che City's share of the real properry taxes generatcd
from the land and improvements on the Abatement Property, in the amounts described in this
Section:
(i) The aggregate Abateme�t 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 51,905,000.
(ii) Notwithstandin� anything to tlie contraiy herein, tl�e Abatement pay�ble on
any August I and subscqucnt Febniary I, combincd, will not excecd thc amoun[ produccd
by extending tl�e Ciry's total tax ratc for thc applicablc yc�ir against tlre tax capacity of the
AbatemenlProper[y, as oCJanuary 2 in the prior year.
(iii) in �ccordance with Section 469.1813, subdivision S of the Act, in no year
shall the Abatement, togetl�er with all other abatements approved by the City ander the Act
and paid in that year, axceed the greater of ten percent (10%) of the Cit'y's net tax capaciry
for lhat ycar or $200,000 (ll�e "Abatement Volume Cap"). The City may grant any other
abatcments permitted under The Act after the date of this resolution, provicled tl�at to the
extent tl�e totnl ¢batements in any year exceed the Abatement Cap, the allocation of
Abatement Cap to such other abatements is stibordinate to tl�e Abatements under this
resolution.
(b) The Abatement �vilf be for a terni of fifreen (15) years, and the City wilt pay the
Abatement in semiannual installments each August 1 and February l, commencing
August I, 2018, and con[inuing through Augitst I, 2032. The Ciry will pay the Abatcmen[ solcly
to tinance the cost of the Project, through application of Abatement amounts toward debt seivice
payments on tl�e Abaten�ent Bonds (includin� any bonds issued to refimci the initial Abatement
Bonds).
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(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 CiCy will add to its levy in
each year dw ing the tenn of the Abatement the Eotal estimated amount of current year Abatement
granted undcr this resolution.
3.03. The Mayor and Ciry Admi�istrator are autl�orized and directed to execute and deliver any
agrecments, certiflcates or other documents that the Ciry determines are necessary to implement tliis
resolution.
Adopted by the City Councif of the City of I-Iopkins, Minncsota this 16"' day of May, 2017.
���� ��% lJl�� L�LLi�(�
Molly Cw mings, Maypr
ATTEST:
�j�/� %�,% V V `�W `
Amy Domeier, City Clerl<
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