Untitled MEMORANDUM
TO: John Schultz, Ph.D., Superintendent, Hopkins Public Schools
FROM: Mike Mornson, City Manager, City of Hopkins
DATE: March 18,2015
RE: Resolution declining participation in proposed property tax abatement
The City of Hopkins (the "City") has proposed to construct certain public infrastructure improvements,
including the reconstruction of various municipal parking lots and renovation of Cottageville Park located
in the City. Pursuant to Minnesota Statutes, Sections 469.1812 through 469.1815, as amended (the
"Abatement Act"), the City or other political subdivision is authorized to grant property tax abatements
for the purpose of, among other things,providing financing for the construction of public infrastructure.
Section 469.1813, subdivision 6 of the Abatement Act provides that a political subdivision may not grant
an abatement for a period of more than 15 years unless one of the other political subdivisions(in this case,
Hennepin County or Independent School District No. 270 (Hopkins Public Schools) (the "School
District")) declines, in writing, to grant an abatement or does not respond to a request for abatement
within 90 days of the original request.
The City has proposed to grant a property tax abatement on affected parcels identified by the City (the
"Abatement Property") for a term of 20 years. In order to do so,the City requests that the School District
decline to participate in the proposed abatement. The City has been advised by its bond counsel,
Kennedy & Graven, Chartered, and by its municipal advisor, Ehlers & Associates, Inc., that the School
District will not suffer any economic loss or lose any potential benefit by not participating in the proposed
abatement.
Enclosed is a resolution that the City requests that the Board of Education adopt at its next meeting. If
adopted, this resolution will provide written confirmation that the School District will not participate in
the property tax abatement proposed by the City.
The City would be happy to provide further information if desired by the School District. Alternately,
you may contact Julie Eddington of Kennedy& Graven, Chartered (612-337-9213) or Stacie Kvilvang of
Ehlers&Associates, Inc. (651-697-8506)with questions.
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INDEPENDENT SCHOOL DISTRICT NO.270
(HOPKINS PUBLIC SCHOOLS)
RESOLUTION DECLINING PARTICIPATION IN A PROPERTY
TAX ABATEMENT FOR CERTAIN PROPERTY IN THE CITY
OF HOPKINS,MINNESOTA
BE IT RESOLVED by the Board of Education (the "Board") of Independent School District
No.270(Hopkins Public Schools)(the"School District")as follows:
Section 1. Recitals.
1.01. The City of Hopkins, Minnesota (the "City") has proposed a tax abatement pursuant to
Minnesota Statutes, Sections 469.1812 through 469.1815, as amended (the "Abatement Act"), on the
property located in the City(the"Abatement Property").
1.02. The revenues generated from the proposed tax abatement will provide financing for
public infrastructure improvements, including the reconstruction of various municipal parking lots and
renovation of Cottageville Park in the City.
1.03. The City has proposed to abate the City's portion of the taxes for the Abatement Property
for a period of up to twenty (20) years. To qualify for an abatement duration of more than fifteen (15)
years under Section 469.1813, subdivision 6(b) of the Abatement Act, the School District or Hennepin
County must decline to participate in the tax abatement.
1.04. This Board has reviewed information concerning the proposed tax abatement for the
Abatement Property provided by the City and its municipal advisor, Ehlers& Associates, Inc.
Section 2. Findings.
2.01. The recitals set forth above are incorporated into this resolution.
2.02. The District hereby declines to participate in the proposed tax abatement and therefore
will not abate the School District's portion of the taxes for the Abatement Property.
Approved by the Board of Education of Independent School District No. 270 (Hopkins Public
Schools)this 23`d day of April, 2015.
Chair
ATTEST:
District Clerk
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