VII.4. Call for Public Hearing on Proposed Property Tax Abatement; Bishop (CR2017-083)June 20, 2017 City Council Report 2017-083
CALL FOR PUBLIC HEARING ON PROPOSED PROPERTY TAX ABATEMENT
Proposed Action
Staff recommends approval of the following motion: Approve Resolution 2017-047 Calling for a Public
Hearing on a Proposed Tax Abatement
Adoption of this motion will result in setting the public hearing on July 31, 2017 at 7:00 pm.
Overview
The City Council reviewed the scope and budget for the 2018 Hopkins Pavilion Upgrade project at its April
work session. Hopkins Public Schools and Hopkins Youth Hockey Association (HYHA) have each agreed
to provide $1,000,000 for the project. In May, HYHA paid the City $50,000 for the project. Anchor Bank,
N.A. has agreed to loan the remaining $950,000 to the HYHA, with the condition that the City guarantees
$550,000 of the loan. The City is proposing issuing tax abatement bonds as guaranty on the HYHA loan
and to finance a portion of the Pavilion Upgrades. This call for public hearing is being completed early due
to the unique circumstances and timing necessary for HYHA to secure the loan. Staff proposed that the
hearing be set for July 31st at 7:00 pm.
Certain portions of the Hopkins Pavilion Upgrade project are set forth in the 2017-2021 CIP which was
approved December 2016. The scope and budget of the project have been expanded based on the
additional funding being provided from outside sources and was discussed at the City Council’s April work
session.
Primary Issues
None
Staff Recommendation
Staff recommends approval of the resolution.
Supporting Information
Resolution No. 2017-047
Map of Abated Properties
______________________________
Nick Bishop, CPA
Finance Director
Financial Impact: $ N/A
Budgeted: Y/N N/A
Source: N/A
Related Documents: CIP
Notes:
501161v1 JAE HP110-98
CITY OF HOPKINS, MINNESOTA
RESOLUTION NO. 2017-047
RESOLUTION CALLING PUBLIC HEARING ON A PROPOSED
PROPERTY TAX ABATEMENT
BE IT RESOLVED By the City Council of the City of Hopkins, Minnesota (the “City”), as
follows:
1. Pursuant to Minnesota Statutes, Sections 469.1812 through 469.1815, as amended (the
“Act”), the City may grant an abatement of all or a part of the taxes levied by the City on real property
within its boundaries (the “Abatement”) and issue general obligation bonds to finance public
infrastructure improvements; provided, however, that the City Council first holds a public hearing
regarding the proposed Abatement.
2. The City owns an ice hockey and multipurpose facility known as the Hopkins Pavilion,
located at 11000 Excelsior Boulevard in the City (the “Facility”), and the Hopkins Youth Hockey
Association, a Minnesota nonprofit corporation (the “Association”), currently uses the ice arena within
the Facility (the “Ice Arena”) and rents space in the Ice Arena on an annual basis for its youth hockey
activities. The City and the Association have determined to finance the construction of certain
improvements to the Facility (the “Improvements”).
3. Anchor Bank, N.A., a national banking association (the “Bank”), has agreed to loan
$950,000 to the Association (the “Loan”) for the Association’s contribution to the Improvements. As a
condition of providing the Loan, the Bank will require the City to guaranty $550,000 of the Loan, which
would be utilized only upon a default by the Association, and the City intends to provide such guaranty
through a general obligation abatement note.
4. The City proposes to issue its general obligation abatement bonds in the proposed
aggregate principal amount of $3,580,000 as a guaranty for the financing of a portion of the Loan and to
finance a portion of the Improvements, which consist of infrastructure improvements as authorized by the
Act.
5. In accordance with the Act, the City Council hereby calls for a public hearing on
Monday, July 31, 2017, at 7:00 P.M., to consider the proposed Abatement for the purposes described
herein.
6. The City Clerk is authorized and directed to publish a notice of public hearing in
substantially the form set forth in EXHIBIT A attached hereto in the official newspaper of the City more
than 10 days but less than 30 days before the date of the public hearing.
2
501161v1 JAE HP110-98
Adopted by the City Council of the City of Hopkins, Minnesota, this 20th day of June, 2017.
Molly Cummings, Mayor
ATTEST:
Amy Domeier, City Clerk
A-1
501161v1 JAE HP110-98
EXHIBIT A
FORM OF NOTICE OF PUBLIC HEARING
CITY OF HOPKINS
COUNTY OF HENNEPIN
STATE OF MINNESOTA
NOTICE OF PUBLIC HEARING REGARDING A PROPOSED PROPERTY TAX
ABATEMENT
NOTICE IS HEREBY GIVEN that the City Council of the City of Hopkins, Minnesota (the
“City”) will hold a public hearing on Monday, July 31, 2017, at or after 7:00 P.M. in the City Council
Chambers at City Hall, 1010 First Street South in the City, concerning a proposal that the City abate all or
a portion of property taxes levied by the City on the properties located in the City and with the following
parcel identification numbers (the “Property”):
24-117-22-32-0138 24-117-22-34-0092 24-117-22-34-0249
25-117-22-22-0021 24-117-22-34-0093 23-117-22-44-0021
24-117-22-33-0011 24-117-22-34-0100 24-117-22-31-0059
24-117-22-31-0055 24-117-22-34-0104 24-117-22-32-0097
24-117-22-33-0003 24-117-22-34-0105
The total amount of the taxes proposed to be abated by the City on the Property is estimated to be
approximately $3,580,000. The City Council will consider the property tax abatement in connection with
financing certain public infrastructure improvements, including improvements to the ice hockey and
multipurpose facility known as the Hopkins Pavilion, which is located at 11000 Excelsior Boulevard in
the City.
At the time and place fixed for the public hearing, the City Council will give all persons who
appear at the hearing an opportunity to express their views with respect to the proposal. In addition,
interested persons may direct any questions or file written comments respecting the proposal with the City
Clerk, at or prior to said public hearing.
Dated: [Date of Publication]
BY ORDER OF THE CITY COUNCIL OF
THE CITY OF HOPKINS, MINNESOTA
/s/ Amy Domeier
City Clerk
City of Hopkins, Minnesota
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Legend
Ice_Arena
2018_Abatement_Parcels
Created: 6/9/2017 RVH