HomeMy WebLinkAboutResolution - 2014-49 - Approving Property Tax Abatements to Aquatics Center - 05/06/2014 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2014-49
RESOLUTION APPROVING PROPERTY TAX ABATEMENT
RELATED TO UPGRADES TO THE EDEN PRAIRIE AQUATICS CENTER
BE IT RESOLVED by the City Council (the "Council") of the City of Eden Prairie, Minnesota
(the "City") as follows:
Section 1. Recitals.
1.01. Under Minnesota Statues, Sections 469.1812 through 469.1815 (the "Abatement
Act"), the City is authorized to grant a property tax abatement on specified parcels in order to
accomplish certain public purposes, including situations where the abatement will increase or
preserve tax base, provide or help acquire or construct public facilities, help redevelop or renew
blighted areas, help provide access to services for City residents, or finance or provide public
infrastructure.
1.02. The City is also authorized under the Abatement Act to issue bonds to pay for
public improvements that benefit the property that is the source of the abatement.
1.03. The City proposes to undertake public improvements consisting of the expansion
of the Eden Prairie Aquatics Center (the "Project").
1.04. The City has identified certain parcels located within the City (the "Project Area")
for which abatements will be granted and are hereafter referred to as the "Abatement Parcels".
The Abatement Parcels are described in Exhibit A attached hereto. The City's share of taxes
collected from those parcels are hereafter referred to as the "Abatement" or "Abatements," as
further defined in Section 3.02 hereof.
1.05. Pursuant to the Abatement Act, on May 6, 2014, this Council conducted a public
hearing on the granting of the Abatements. Notice of the public hearing was duly published by
law on April 24, 2014 in accordance with the provisions of the Abatement Act.
1.06. The City has requested the Eden Prairie School District and Hennepin County to
indicate willingness to participate in the Abatements.
Section 2. Findings. On the basis of information compiled by the City and elicited at the public
hearing referred to in Section 1.05, is hereby found, determined and declared:
2.01. The City has determined that the benefits to the City from the Abatement will be
at least equal to the costs to the City of the Abatement. The City expects to receive the benefits
described in Section 2.02. These benefits are expected to equal or exceed the costs associated
with the Abatement.
2.02. The Project is in the public interest because it will help to acquire and construct
public facilities and will result in attracting and retaining residents and businesses that increase
the tax base and provide jobs as well as expanding access to recreational services for residents.
2.03. The Abatement Parcels are not located in a tax increment financing district.
2.04. Granting the Abatement will not cause the aggregate amount of Abatements
granted by the City under the Abatement Act in any year to exceed 10% of the City's net tax
capacity for the taxes payable year to which the Abatement applies.
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 any of the Abatement Parcels to grant an
abatement.
2.06. The Project benefits the properties in the Project Area through the public benefits
described in Section 2.02 and through immediate access to these recreational facilities.
Section 3. Actions Ratified; Abatement Approved.
3.01. Ratification. The Council hereby ratifies all actions of the City's staff and
consultants in arranging for approval of this resolution in accordance with the Abatement Act.
3.02. Abatement Defined. The term "Abatement" means all or a portion of the City's
share of the real property taxes generated from the Abatement Parcels. The annual Abatement
collected by the City in any calendar year 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 Parcels, as
of January 2 in the prior year. The total amount of the Abatement collected during its duration
will not exceed $26,900,000. 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. Duration. Pursuant to Section 469.1813, subdivision 6, the Abatement is hereby
granted for 20 years subject to one of the other political subdivisions in which the Abatement
Parcels are located declining to grant an abatement or if 90 days passes after the receipt of the
request to grant an abatement. Should another political subdivision agree to grant an abatement,
then the Abatement will be granted for a period of fifteen (15) years. Abatements will be
collected from the Abatement Parcels commencing with taxes payable in 2015.
3.04. In accordance with Section 469.1813, subdivision 8 of the Abatement Act, in no
year shall the Abatement, together with all other abatements approved by the City under the
Abatement Act and paid in that year exceed 10% of the City's net tax capacity for that year.
Section 4. Abatement Bonds.
4.01. The City will issue the Abatement Bonds at the time and in the manner it deems
appropriate, and in accordance with Section 469.1814, subdivision 5 of the Abatement Act, will
use the proceeds to pay for costs of the Project and to pay costs of the issuance of the Abatement
Bonds.
4.02. The City will pledge the Abatements to principal and interest on the Abatement
Bonds and any bonds issued to refund the initial Abatement Bonds. The pledge of Abatement
will be further reflected in the resolution awarding sale of the Abatement Bonds (and any
refunding bonds).
4.03. The maximum principal amount of Abatement Bonds to be secured by
Abatements under this resolution ($18,000,000) does not exceed the estimated sum of Abatement
from the Abatement Parcels for the term authorized under this resolution. The projections of
Abatement are based on reasonable assumptions regarding the Abatement Parcels.
4.04. In accordance with Section 469.1814, subdivision 4 of the Abatement Act, the
amount of Abatement is not subject to periodic review by the City;provided that the actual
maximum amounts of Abatement in each year and in total will be determined only upon issuance
of the Abatement Bonds and any refunding bonds, which final determination will not constitute a
modification of the Abatement amount.
Section 5. Further Proceedings.
5.01. City staff and consultants are authorized and directed to take all actions necessary
to implement the Abatement approved under this Resolution, including without limitation the
execution of documents and certificates necessary to carry out the Abatement.
ADOPTED by the City Council of the City of Eden Prairie, Minnesota, this 6t" day of May,
2014.
N cy ra-L ns, ayor
ATTEST: SEAL
Ole
�Ithleen Porta, City Clerk
EXHIBIT A
Abatement Parcels
The Abatement Parcels consist of the following parcels, also illustrated on map following.
Parcels Completely Within .75 Mile Radius of Eden Prairie Community Center
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DISCLAIMER:Information
The City inEden this m does not warrant the accuracy nor the correctness
rFf#f of the Information contained In this map.It Is your responsibility to verify the accuracy
of this Information.In no event will The City of Eden Prairie be Gable for any damages,
Parcels — ti including loss of business,lost profits,business Interruption,loss of business information
— y or other pecuniary loss that might arise from the use of this map or the information It
contains.Map Information is believed to be accurate but accuracy Is not guaranteed.
Any errors or ornissions should be reported to The City of Eden Praide.
Parks 5 1 1110 ; Map was Updated/Created: Thursday,April 17,2014
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