HomeMy WebLinkAbout16-031CITY OF LAKEVILLE, MINNESOTA
RESOLUTION NO. 16-31
RESOLUTION APPROVING THE TERMS OF AN
INTERNAL FINANCING IN CONNECTION WITH
A TAX ABATEMENT FOR MOM BRANDS COMPANY, LLC
BE IT RESOLVED by the City Council (the "Council") of the City of Lakeville, Minnesota
(the "City"), as follows:
Section 1. Background.
(a) The City has heretofore approved the establishment of a tax abatement to
assist MOM Brands Company, LLC with the retention of a minimum of 250 existing jobs in its
current location within the City.
(b) The City has determined to assist with the business and job retention project
and will pay for certain costs associated with the project (the "Qualified Costs"), for which will
be internally financed from City funds available for such purposes.
(c) The City intends to reimburse itself for the payment of the Qualified Costs, plus
interest thereon, from the City's share of annual tax abatements that will be levied for and
collected annually in accordance with the terms of this resolution (which terms are referred to
as the "Internal Financing").
Section 2. Terms of Internal Financing.
(a) The City hereby authorizes the advance of up to $375,000 from the City's
General Fund that may be paid as Qualified Costs. The City shall reimburse itself for such
advances together with interest at the rate stated below. Interest accrues on the principal
amount from the date of each advance. The interest rate shall be 3.50%.
(b) The Abatement shall commence in the first taxes payable year after the
existing TIF District in which the property is currently located will be decertified.
(c) Principal and interest on the Internal Financing shall be paid semi-annually on
each February 1 and August 1 (each "Payment Date") following commencement of annual
levies by the City for collection of annual tax abatements through the term of the tax
abatement collections (up to 10 years).
(d) The principal sum and all accrued interest payable under the Internal Financing
are pre -payable in whole or in part at any time by the City.
(e) The City may amend the terms of the Internal Financing at any time by
resolution of the City Council, including a determination to forgive the outstanding principal
amount and accrued interest to the extent permissible under law.
Section 3. Effective Date. This resolution is effective upon the date of its approval.
Adopted this 7t1 day of March, 2016
BY:
Matt Li e, Mayor
ATTEST:
y
Charlene Friedges, City Clerk