HomeMy WebLinkAbout20-064CITY OF LAKEVILLE
RESOLUTION NO. 20-64
RESOLUTION RELATING TO A TAX ABATEMENT, TEFRA
HEARING AND GENERAL OBLIGATION TAX
ABATEMENT BONDS; GRANTING THE ABATEMENT
AND APPROVING ISSUANCE OF THE BONDS
BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota (the "City"), as follows:
Section 1. Authorization and Recitals.
1.01. The City, pursuant to Minnesota Statutes, Sections 469.1812 to 469.1815, as amended
(the "Abatement Act"), is authorized to grant an abatement of the property taxes imposed by the
City on a parcel of property, if certain conditions are met, through the adoption of a resolution
specifying the terms of the abatement.
1.02. The City proposes to assist in financing certain parking lot improvements (the
"Improvements") to the Ames ice arena (the "Project").
1.03. On the date hereof, this Council conducted a public hearing:
1) pursuant to the Abatement Act, on the desirability of granting an abatement of
property taxes on certain properties expected to be benefited by the proposed Project,
which properties include the following tax parcel identification numbers (the "Property"):
223202701010
223202601010
223202801010
220290032031
228195001031
2) for purposes of complying with the requirements under the Tax Equity and Fiscal
Responsibility Act of 1982 ("TEFRA"), pursuant to Section 147(f) of the Internal Revenue
Code of 1986, as amended (the "Code"), on the proposal that the City issue its general
obligation tax abatement bonds in an aggregate principal amount not to exceed $800,000
(the "Bonds"), under Sections 469.1813 and Chapter 475, as amended, for the purpose of
financing the Improvements.
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Notice of the public hearing was duly published as required by law in the Sun Thisweek, the
official newspaper of the City, on May 29, 2020, which date is no fewer than fourteen and no more
than 30 days prior to the date hereof.
Section 2. Findings. On the basis of the information compiled by the City and elicited at
the public hearing referred to in Section 1.03, it is hereby found, determined and declared:
2.01. The City expects that the benefits of the proposed abatement are not less than the
costs of the proposed abatement. The public benefits that the City expects to result from the
abatement are the provision of recreational facilities for the benefit of residents of the City.
2.02. The Property is not located in a tax increment financing district.
2.03. The granting of the proposed abatement will not cause the aggregate amount of
abatements granted by the City under the Abatement Act in any year to exceed the greater of (i)
ten percent (10.00%) of the City's net tax capacity for the taxes payable year to which the abatement
applies, or (ii) $200,000.
2.04. It is in the best interests of the City to grant the tax abatement authorized in this
Resolution.
2.05. Under Section 469.1813, Subdivision 9 of the Abatement Act, it is not necessary for
the City to obtain the consent of any owner of the Property to grant an abatement.
Section 3. Granting of Tax Abatement.
3.01. A property tax abatement (the "Abatement") is hereby granted in respect of property
taxes levied by the City on the Property for ten (10) years, subject to satisfaction of the conditions
for such duration described in Section 469.1813, subdivision 6(b). The Abatement will reduce all
of the taxes for the Property, and the total amount of the Abatement is estimated to be
approximately $800,000.
3.02. The City shall retain the Abatement and apply it to payment of all or a portion of the
costs of acquiring or constructing the Project or to the payment of bonds of the City issued to
finance costs of acquiring or constructing the Project.
3.03. The Abatement may be modified or terminated at any time by the City Council in
accordance with the Abatement Act.
Section 4. Issuance of the Bonds. The issuance of the Bonds, not exceeding the amount
above described, for the purpose above described, is hereby approved.
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ADOPTED by the Lakeville City Council this 15th day of June 2020
CITY OF LAKEVILLE
By:
Douglas P. Anderson, Mayor
ATTEST:
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Charlene Friedges, C'
Jerk
VOTE
Anderson Hellier Lee
Volk
Wheeler
Aye
R-
PY
5�—
Nay
O O
O
O
Abstain
O 0 D
O
O
Absent
D 0 D
O
O
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The Mayor stated that this was the time and place fixed by administrative action for a public
hearing to be held pursuant to Minnesota Statutes, Sections 469.1812 to 469.1815 and the Tax
Equity and Fiscal Responsibility Act of 1982 ("TEFRA") pursuant to Section 147(f) of the Internal
Revenue Code of 1986, as amended to consider the property tax abatement (the "Abatement") in
connection with financing certain parking lot improvements (the "Improvements") to the Ames
ice arena (the "Facility") and a proposal that the City issue its general obligation tax abatement
bonds in an aggregate principal amount not to exceed $800,000 (the "Bonds"), under Sections
469.1813 and Chapter 475, as amended, for the purpose of financing the Improvements.
The City Clerk presented an affidavit showing publication of the notice of public hearing
on May 29, 2020, in the Sun Thisweek, the official newspaper of the City. The affidavit was
examined, found to be satisfactory and ordered placed on file with the City Clerk.
The Mayor then opened the meeting for the public hearing. The purpose of the hearing
was explained, the nature of the proposed Abatement and Bonds was discussed, and all persons
present who desired to do so were afforded an opportunity to express their views with respect to
the proposal to undertake the financing, in response to which the following persons either
appeared, were recognized and made statements, or filed written comments with the City Clerk
before the date set for the hearing, summaries of which appear opposite their respective names:
Name of Speaker
U-11 PSYNNIE, MUM
Summary of Views
The City Clerk [reported that no written comments had been] [read a summary of the
written comments] * filed in her office before the date of the hearing.
After all persons who wished to do so had stated or filed their views on proposal, the Mayor
declared the public hearing to be closed.
*Strike inappropriate language
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