HomeMy WebLinkAboutResolution No. 101-24 - Resolution - Approving Property Tax Abatements
RESOLUTION
Approving Property Tax Abatements.
BE IT RESOLVED By the Common Council of the City of Rochester, Minnesota (the “City”)
as follows:
Section 1. Recitals.
(a) The City proposes to authorize a property tax abatement with respect to the
property described by property identification numbers on the attached Exhibit A (the
“Abatement Parcels”) which benefit from the City’s Mayo Civic Center as a public facility
in the City to finance the acquisition, construction and installation of certain improvements
to the City’s Mayo Civic Center to, among other things, replace the steam heating and
cooling system with a district heating and cooling system (the “Project”), with tax
abatement bonds to be issued by the City pursuant to Minnesota Statutes, Sections
469.1812 through 469.1815, both inclusive (the “Abatement Law”).
(b) Under the Abatement Law, the City is authorized to retain abatements from
property 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 provide employment opportunities in the City, help provide access to
services for City residents, or finance or provide public infrastructure.
(c) The City is also authorized under the Abatement Law to issue bonds to (1)
pay for public improvements that benefit the property, (2) to acquire and convey land or
other property, (3) to reimburse the property owner for the cost of improvements made to
the property, or (4) to pay the costs of issuance of the bonds.
(d) The City plans to issue its General Obligation Abatement Bonds (the
“Bonds”) to finance the costs of the Project
(e) On the date hereof, the Council held a public hearing on the question of the
Abatement, and said hearing was preceded by published notice thereof in accordance
with the Abatement Law.
Section 2. Findings for the Abatement. The City Council hereby makes the
following findings:
(a) The Council expects the benefits to the City of the Abatement to at least
equal the costs to the City thereof because (1) the Project improves the City’s Mayo Civic
Center which provides an amenity needed to attract new business to the City and to retain
and expand existing businesses; and (2) the Abatement amount finances only a portion
of the cost of the Project and leverages the investment of federal funding sources and,
therefore, is less than the cost of the Project and benefit to be generated.
(b) Granting the Abatement is in the public interest because it will help finance
the acquisition and construction of public facilities in the City; preserve the tax base by
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providing an amenity which preserves or enhances the value of nearby properties; finance
public infrastructure; help provide access to services for residents of the political
subdivision; and protect the general health and welfare of the community by maintaining
public infrastructure and facilities.
(c) The Property is not, and will not be, located in a tax increment financing
district.
(d) In any year, the total amount of property taxes abated by the City by this
and other resolutions, if any, does not exceed the greater of 10% of the net tax capacity
of the City or $200,000.
Section 3. Terms of Abatement. The Abatement is hereby approved. The
terms of the Abatement are as follows:
(a) The Abatement shall be for a up to a 20-year period and shall apply to the
taxes payable in the years 2025 through 2044, inclusive.
(b) The City will abate the City’s share of the property tax amount which the
City receives from the Property, in an amount not to exceed $4,560,000.
(c) The maximum amount of Abatement authorized under this resolution is
$4,560,000. The maximum principal amount of bonds to be secured by Abatement under
this resolution will not exceed the estimated sum of Abatement from the Property for the
term authorized under this resolution.
(d) The Abatement shall be subject to all the terms and limitations of the
Abatement Law.
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PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS __________ DAY OF _______________, 2024.
___________________________________
PRESIDENT OF SAID COMMON COUNCIL
ATTEST: __________________________
CITY CLERK
APPROVED THIS _____ DAY OF ______________________, 2024.
___________________________________
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)
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Exhibit A
Parcel ID Numbers for the “Property”
A-1
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