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City Council Resolution 2023-13CITY OF MONTICELLO, MINNESOTA RESOLUTION 2023-13 Resolution supporting the authority to impose a local sales tax to fund specific capital improvements providing regional benefit, to establish the duration of the tax and the revenue to be raised by the tax, and to authorize the City to issue bonds supported by the sales tax revenue. WHEREAS, the City of Monticello, Minnesota (the "City") has engaged community residents and businesses and identified two community projects of regional benefit including: (i) the acquisition, construction and equipping of various improvements to the future Bertram Chain of Lakes Regional Athletic Park, including but not limited to an athletic park with various sports fields and related amenities to host game play, practices, and tournaments, recreational and pedestrian trails, playgrounds, tennis courts, skating rinks, a parking lot, lighting, concessions and restrooms, located within Monticello Township and jointly owned by Wright County, at an estimated cost of $22,000,000 (the "Bertram Chain of Lakes Regional Athletic Park") ; and (ii) the acquisition, construction and equipping of various improvements to the future Pointes at Cedar Recreation Area, including but not limited to a stormwater pond, which will serve as a significant recreational water feature, surrounded by a series of recreational pedestrian trails and interconnected public spaces for discovery, at an estimated cost of $63,000,000 (the "Pointes at Cedar Recreation Area" and together with the Bertram Project Chain of Lakes Regional Athletic Park, the "Projects"); WHEREAS, the Projects will result in benefits to both the residents and businesses of the City and to non-resident visitors and businesses; and, WHEREAS, funding a portion of the Projects with a local sales tax will more closely distribute the cost of the Projects to the users of the facilities; and, WHEREAS, the Projects are estimated to cost approximately $85,000,000 including $22,000,000 for the Betram Chain of Lakes Regional Athletic Park and $63,000,000 for the Pointes at Cedar Recreation Area plus an amount equal to interest on and the costs of issuance of any bonds; and, WHEREAS, the City estimates that a local sales tax of 0.50 percent would generate $30,000,000 over 20 years; and, WHEREAS, the City has provided documentation of the regional significance of each project, including the share of the economic benefit to or use of each project by persons residing, or businesses located, outside of the jurisdiction including but not limited to materials DOCSOPENNN l 90\177\851396.vl -1/19/23 attached hereto as Exhibit A; and, WHEREAS, the estimated local sales tax revenue and estimated time needed to raise that amount of revenue for a portion of each project is as follows: - For the Bertram Chain of Lakes Regional Athletic Park: The City will collect $15,000,000 over 10 years. - For the Pointes at Cedar Recreation Area: The City will collect $15,000,000 over 10 years. - Plus for the costs of collecting and administering the tax and the costs of issuing any bonds including interest on any bonds issued supported by sales tax revenue. WHEREAS, Minn. Stat. § 297A.99 authorizes the imposition of a general sales tax if permitted by special law of the Minnesota Legislature; and, WHEREAS, Minn. Stat. § 297A.99 requires the City to pass a resolution authorizing such a local tax and to obtain Legislative approval prior to approval by the local voters to enact the local tax; THEREFORE, BE IT RESOLVED the following: 1. The City Council supports the authority to impose a general local sales tax of 0.50 percent for a period of 20 years to fund a portion the aforementioned Projects; 2. Upon approval of this resolution, the City will submit the adopted resolution and documentation of regional significance to the chairs and ranking minority members of the House and Senate Taxes committees for approval and passage of a special law authorizing the tax, by January 31 of the year that it is seeking the special law. 3. Upon Legislative approval and passage of the special law authorizing the tax, the City will adopt a resolution accepting the new law, which will be filed with a local approval certificate to the Office of the Secretary of State before the following Legislative session. 4. The City will put detailed ballot questions, which include separate questions for each of the Projects and authority for issuance of bonds, on a general election ballot for local voter approval. This will be done within two years of receiving legislative authority. 5. If one or more ballot questions pass, the City will also pass an ordinance imposing the tax and notify the commissioner of Revenue at least 90 days before the first day of the calendar quarter that the tax will be imposed. 6. Upon completion of the aforementioned requirements, the local sales tax will commence and run for 20 years or until a sum sufficient to fund a portion of the voter approved Projects, including amounts sufficient to pay interest on the costs of issuing DOCSOPEN\M N 1 90\177\851396.v 1-1 /19/23 any bonds, is raised, whichever comes first. ADOPTED BYthe Monticello City Council this 23" day of January, 2023. CITY OF MONTICELLO Erglo"kW,:A� ' - a A L . r DOCSOPEN\MN 190\177\851396.vl -1 /19/23 EXHIBIT A DOCUMENTATION OF REGIONAL SIGNIFICANCE DOCSOPEN\MN 190\177\851396.v1-1 /19/23