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Home My WebLink AboutItem 07 Date: Item No. RESOLUTION IMPOSING A SERVICE CHARGE FOR SPECIAL SERVICE DISTRICT NO. 1 FOR TAXES PAYABLE 2020 Proposed Action Conduct a public hearing for the proposed special service charge for Special Service District No. 1. Following the public hearing, Staff recommends adoption of the following motion: Move to approve the Resolution Imposing a Service Charge for Special Service District No. 1. Overview On July 6, 1998, the City Council approved Ordinance 631 establishing a Special Service District No. 1. The Special Service District is subject to Minnesota Statutes 428A. The Special Service District Advisory Board has requested City Council consideration of levying a special service charge payable in 2020 and approval of the budget for the period of July 1, 2020 to June 30, 2021. The allocation of the total service charge to the downtown properties is based on the net tax capacity of the commercial values of the properties in the district. The Special Service District Advisory Board is recommending that the service charge payable to remain at zero for 2020. The resolution states that a minimum charge of $100 and a maximum charge of $6,000 will be charged per property owner. Due to reducing the service charge to zero, the minimum charge is not applicable for year 2020. Minnesota Statute 428A.03 requires that a public hearing must be conducted each calendar year with notices mailed to each business organization subsequent to the service charge. After the public hearing is conducted, and the resolution is adopted, the amounts will be certified to the Dakota County Treasurer/Auditor for collection with taxes payable in 2020. Primary Issues to Consider  None Supporting Information  Resolution  Presentation to the City Council by the Downtown Lakeville Business Association Financial Impact: $ Budgeted: Y☐ N☐ Source: Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Jerilyn Erickson, Finance Director November 4, 2019 0 Special Service Charge Ordinance establishing a Special Service District 1 CITY OF LAKEVILLE RESOLUTION NO. 19- _____ RESOLUTION IMPOSING A SERVICE CHARGE FOR SPECIAL SERVICE DISTRICT NO. 1 FOR TAXES PAYABLE 2020 BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota, as follows: SECTION 1. Recitals: Findings 1.01. Pursuant to Ordinance No. 631, the City created a special service district for certain property located adjacent to Holyoke, Holt, and Howland Avenues from 202nd Street West on the north to 210th Street West on the south. The specific properties included within this land area (the “District”) are identified on Exhibit “A” attached hereto. 1.02. Notice of a public hearing has been given and a public hearing has been held. SECTION 2. Imposition of Service Charge 2.01. Amount of Service Charge. There is hereby imposed a service charge in the amount and against the properties specified on Exhibits “A” and “B”, attached hereto (the “Service Charge”). For taxes payable in 2020, the Service Charge will be $0.00. 2.02. Nature and character of Special Services – Budget. There is hereby approved a budget for Special Service District fiscal year beginning July 1, 2020 through June 30, 2021 as specified on Exhibit “C” a copy of which is attached hereto. 2.03. Calculation of Service Charge. The Service Charge shall be calculated as a percentage of the net tax capacity of the taxable property located in the Special Service District. If a service chard is imposed, the minimum charge levied against a property owner shall be $100.00 and the maximum charge shall be $6,000.00 per property owner. If the charge that would otherwise be imposed on a property owner is greater than the maximum allowable charge, the overage shall be redistributed against the other parcels in the District based upon net tax capacity. If the charge that would otherwise be imposed on a property owner is less than the $100.00 minimum charge, the charge against other parcels in the District shall be reduced based on net tax capacity. 2.04. Distribution of Total Service Charge. The distribution of the total Service Charge among properties within the District and subject to the Service Charge may vary and shall be recalculated pursuant to the formula specified in Section 2.03 if and to the extent that (i) commercial/industrial property tax classification rates increase or decrease based on action by the Minnesota legislature; or (ii) the net tax capacity of a 2 parcel increases or decreases based on changes in the assessed value of the parcel attributable to improvements or changes made to the property; or (iii) a parcel increases or decreases in size by acquisition or sale. 2.05. Effective Date. The effective date of the Service Charge will be January 1, 2020. SECTION 3. Collection of Service Charges 3.01. Collection. The Service Charges shall be payable and collected at the same time and in the same manner as provided for payment and collection of ad valorem taxes. For purposes of determining the appropriate tax rate, taxable property or net tax capacity shall be determined without regard to captured or original net tax capacity under Minnesota Statutes, Section 473F.08. 3.02. Penalty and Interest. Service Charges made payable in the same manner as provided for payment and collection of ad valorem taxes, if not paid on or before the applicable due date, shall be subject to the same penalty and interest as in the case of ad valorem tax amounts not paid by the respective date. 3.03. Due Date. The due date for the Service Charge payable in the same manner as ad valorem taxes is the due date given in law for the real or personal property tax for the property on which the service charge is imposed. Services Charges imposed on net tax capacity which are to become payable in the following year must be certified to the County Auditor by the date provided in Minnesota Statutes, Section 429.061, Subd. 3 for annual certification of special assessment installments. SECTION 4. Revenue Surplus To the extent that the total of Services Charges collected exceed the cost of services rendered within the District, at the election of the City, either: (i) such excess amount shall be held as a reserve to pay the cost of future services provided under this resolution; or (ii) the next ensuing year’s levy of taxes and service charges shall be decreased by a corresponding amount. SECTION 5. Recording The City may record this Resolution against parcels located within the District and subject to the Service Charge for the purpose of providing notice of the Service Charge to prospective purchasers of such parcels. 3 ADOPTED by the Lakeville City Council this 4th day of November 2019. ____________________________________ Douglas P. Anderson, Mayor _____________________________________ Charlene Friedges, City Clerk 4 5 Parcel ID Owner Market Value Tax Capacity Special Service Charge - 2020 224445010110 FAIRFIELD PLACE LLC 127,700 1,916 0 228510001041 HOLYOKE PROPERTIES LLC 246,400 4,178 0 228510001071 HOLYOKE PROPERTIES LLC 12,800 256 0 220290078051 HOLYOKE PROFESSIONAL LLC 963,800 18,526 0 221370002081 HOLYOKE CROSSING LLC 136,400 2,728 0 224760001010 HOLYOKE CROSSING LLC 1,789,900 35,798 0 224445012020 20777 LLC 291,100 3,881 0 224445012042 20779 LLC 173,800 2,726 0 224445012050 SEVEN SIXTY FIVE LLC 215,100 4,302 0 228510001051 SEVEN SIXTY FIVE LLC 213,400 3,518 0 224760001020 HOLYOKE PLAZA LLC 2,417,500 47,600 0 228510001050 20757 LLC 215,100 3,552 0 221370002010 KNS INVESTMENTS 295,200 5,154 0 228510001020 WELLS FARGO BANK MINNESOTA NA 115,000 2,300 0 228510001070 WELLS FARGO BANK MINNESOTA NA 45,400 681 0 228510001080 WELLS FARGO BANK MINNESOTA NA 51,800 777 0 228510001100 WELLS FARGO BANK MINNESOTA NA 859,200 16,434 0 224445010010 VETERANS PLAZA LLC 48,700 974 0 224445010020 VETERANS PLAZA LLC 48,700 974 0 224445010030 VETERANS PLAZA LLC 71,700 1,434 0 224445010040 VETERANS PLAZA LLC 17,200 344 0 224445010041 VETERANS PLAZA LLC 415,600 7,562 0 224445007120 PERMA COMPANIES INC 296,700 5,184 0 224441501011 DAKOTA COUNTY CDA 594,400 11,138 0 224445002121 DGSM LLC 599,300 11,236 0 224445012040 JT SQUARE LLC 115,200 2,304 0 224445012044 JT SQUARE LLC 441,300 6,680 0 224445006101 MARCOR PROPERTIES LLC 363,200 6,514 0 224445010070 FAIRFIELD CROSSING LLC 523,700 9,724 0 224445010090 FAIRFIELD CROSSING LLC 42,000 840 0 224760002010 H & V APARTMENTS LP 1,210,600 23,462 0 223219000011 HMWHC LLC 61,300 920 0 223219001010 HMWHC LLC 665,900 11,815 0 226370001020 LAKEVILLE REAL ESTATE MANAGEMENT LLC322,400 5,698 0 226370001030 LAKEVILLE REAL ESTATE MANAGEMENT LLC52,000 1,040 0 226370001040 LAKEVILLE REAL ESTATE MANAGEMENT LLC52,000 1,040 0 226370001080 LAKEVILLE REAL ESTATE MANAGEMENT LLC342,900 6,858 0 224445007183 LAKEVILLE FAMILY BOWL, INC. 279,500 4,840 0 14,733,900 274,908 0 EXHIBIT B SPECIAL SERVICE DISTRICT - DOWNTOWN PROPOSED SPECIAL SERVICE CHARGE ALLOCATION 6 Actual Budget Estimate Proposed Fiscal Year Fiscal Year Fiscal Year Fiscal Year Ended Ended Ended Ended June, 2019 June, 2020 June, 2020 June, 2021 Revenues - service charges Current Levy collected 13,661$ -$ -$ -$ Expenditures Contractual services 2,050 7,000 - - Lakeville Chamber dues 165 - 280 280 Postage/PO box rental - 155 - - Bank charges 50 60 8 - Website 189 870 870 900 Flower pots 2,750 2,700 2,700 2,700 Brochures/marketing/advertising 659 939 5,580 5,580 Events: Trick or Treat 134 200 200 200 Holiday on Main 2,868 5,000 5,000 5,000 Retail committee events 48 - - - County assessment fee 175 171 - - Total expenditures 9,088 17,095 14,638 14,660 Net change 4,573 (17,095) (14,638) (14,660) Balance - beginning 29,515 28,675 34,088 19,450 Balance - ending 34,088$ 11,580$ 19,450$ 4,790$ - EXHIBIT C