2020-018 Resolution Approving Property Tax Abatement Related to Public Infrastructure Improvements in the City of Hopkins CITY OF HOPKINS, MINNESOTA
RESOLUTION NO. 2020-018
RESOLUTION APPROVING PROPERTY TAX ABATEMENT
RELATED TO PUBLIC INFRASTRUCTURE IMPROVEMENTS
IN THE CITY OF HOPKINS
BE 1T RESOLVED By the City Council (the "Council") of the City of Hopkins, Minnesota (the
"City"), as follows:
Section l. Background.
1.01. The City has contemplated granting a property tax abatement in order to aid in financing
certain public infrastructure improvements, including mill and overlay on 1" Street North, North Central
Business District Avenues, Maetzold Field Lot, and the Knollwood Neighborhood, construction of trails
within the City, and other similar projects (collectively, the "Project"), all pursuant to Minnesota Statutes,
Sections 469.1812 through 469.1815,as amended(the"Act").
1.02. Pursuant to Section 469.1813, subdivision ] of the Act,the City inay grant an abatement of
all or a portion of the taxes imposed by the City on a parcel of properiy to pay for all or part of the cost of
acquisition or improvement of public infrastructure, whether or not located on or adjacent to the parcel for
which the tax is abated.
1.03. The City has identified one parcel 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 all or a portion of the City's share of taxes to help finance the Project, subject to all the
terms and conditions of this resolution (the"Abatement"). The Abatement Property is not located in a tax
increment financing district.
l.04. The City intends to issue one or more series of general obligation tax abatement bonds (the
"Abatement Bonds") in the estimated maximum principal amount of$1,500,000 pursuant to the Act to pay
the costs of the Project. 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 persons were heard.
Section 2. Findin s.
2.01. It is hereby found and determined that the benefits to the City from the Abatement will bc
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.
(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 detennined that the Abatement is in the public interest for the
following reasons:
(a) The Abateinent will increase or preserve tax base by stimulating development
and helping to maintain values in the area.
(b) The Abatement will finance and 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.
(c) The Abatement will provide residents of the City with access to improved
roadways and trails.
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 tenns 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 all or a portion of the
interest on the Abatement Bonds,up to a maximum amount of$1,500,000.
(ii) Notwithstanding anything to the contrary herein,the Abatement payable on
any August 1 and the 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 accardance 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 (]0%) 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 collect
the Abatement in semiannual installments each August 1 and February 1, commencing
August l,2022 and continuing through February 1, 2036. The City will pay the Abatement
solely to finance the cost of the Project, through application of Abatemcnt amounts toward debt
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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. Once the
Abatement Bonds are issued,this resolution may not be amended.
(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.
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.
Adopted by the City Council of the City of Hopkins, Minnesota this 21"day of April, 2020.
ason Gadd, Mayor
ATTEST:
1:��
Amy Doineier, City Clerk
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EXHIBIT A
ABATEMENT PROPERTY
Parcel Identifcation Number:
19-117-21-21-0006
HPI10-]Ol (JAE)
647090v2
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