2021.07.13 CC Minutes - Laserfiche WebLink

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July 13,2021 Page 3 of 5 Abatement Bonds authorized by Minnesota Statutes, Sections 469.1812 through 469.1815 to finance the construction and improvements for Creekview, Hansen East and West, Lions, Silver Oaks, Sunny Square, and Totem Pole Parks as identified in the Parks Comprehensive Plan. The proposed abatement will only apply to the City's share of the property taxes, starting in 2025 with a term lasting up to 20 years, in an estimated not to exceed amount of $12,000,000. Ms. Heaton explained granting the Abatement is in the public's interest because it will help finance the acquisition and construction of public facilities in the City that will assist in preserving the tax base; finance public infrastructure;provide access to services for residents of the City; benefit the Property by providing amenities to those who live and work in the City thus improving City-based employers' ability to attract workers; and protect the general health and welfare of the community by maintaining public infrastructure. The parcels identified for abatement are currently in TIF #26, Brighton Corporate Business Park III, which will decertify on December 31, 2024. After approval and the period of abatement has expired, the City may not grant another abatement for eight years after the expiration of the first abatement. City Council can choose to cancel the abatement after 17 years once the principal amount of the bonds have been paid. Tax abatement bonds have been selected as a means of financing these public improvements as they have the lowest yield than all other types of bonds with the same term. Councilmember Axberg stated parcel ID's have been identified and asked if this included properties around City parks.Ms.Heaton commented there were several parks throughout the City and these are the ID's that have been identified.Jenny Bolton explained public amenities are an enhancement to the community as they help to attract businesses and residents. Mayor Niedfeldt-Thomas asked if the property owners of the property ID's that have been identified were notified by the City of the proposed abatement. Ms. Bolton reported everyone in the City received notice through publication in the newspaper,but noted the individual property owners were not given individual notice. She explained this was not required per statute. Further discussion ensued regarding the differences between the TIF district and a tax abatement processes. Councilmember Abdulle questioned if properties that have been identified within the TIF district would still be able to apply for variances or other types of actions with the city. Ms. Bolton reported the designation would not impact what property owners can do with their property, but rather was just a designation. Mayor Niedfeldt-Thomas asked for additional comments, there were none. Motion by Councilmember Dunsworth, seconded by Councilmember Abdulle to close the Public Hearing. 5 Ayes,0 Nays-Motion Carried The Public Hearing was closed at 6:54 p.m. Motion by Councihnember Allen,seconded by Councilmember Dunsworth to adopt a Resolution approving the Property Tax Abatements. Councilmember Axberg questioned what the difference was between the$10 and$12 million abatement. Brenda Davitt discussed the difference with the Council noting this would provide the Council with a little wiggle room over the 20 years. 5 Ayes,0 Nays-Motion Carried