City Council Resolution 2017-29CITY OF MON'>TICIELLO, MINNESOTA
RESOLUTION NO. 2017-29
RESOLUTION APPROVING PROPERTY TAX ABATEMENT
RELATED TO INFRASTRUCTURE IMPROVEMENTS IN THE
CITY OF MONTICELLO
BE IT RESOLVED By the City Council (the "Council") of the City of Monticello, Wright
County, Minnesota (the "City"), as follows:
Section 1. Recitals.
1.01. The City has contemplated granting a property tax abatement in order to help finance
infrastructure improvements primarily consisting of the construction of the Fallon overpass and associated
street improvements (the "Project"), which will benefit certain property in the City, all pursuant to Minnesota
Statutes, Sections 469.1812 through 469.1815, as amended (the "Act").
1.02. Pursuant to Section 469.1813, subdivision 1 of the Act, the City may grant an abatement of
all or a portion of the taxes imposed by the City on a parcel of property to pay for all or part of the cost of
acquisition or improvement of public infrastructure, whether or not located on or adjacent to the parcel for
which the tax is abated.
1.03. The City has identified nine hundred sixty-eight (968) parcels located in the City,
identified in EXHIBIT A hereto (the "Abatement Property"), which will be benefitted by the Project and
from which the City proposes to abate a portion of the City's share of taxes to help finance the Project,
subject to all the terms and conditions of this resolution.
1.04. The City intends to issue one or more series of general obligation bonds, a portion of which
will be designated as tax abatement bonds in the approximate aggregate principal amount of $9,000,000 (the
"Abatement Bonds") and will be issued to pay the costs of the Project pursuant to the Act and are expected to
be paid primarily through the collection of Abatement revenues (as defined herein).
1.05. On the date hereof, the Council conducted a duly noticed public hearing on the Abatement at
which the views of all interested persons were heard.
Section 2. Findin!s.
2.01. It is hereby found and determined that the benefits to the City from the Abatement will be at
least equal to the costs to the City of the Abatement, because (a) the Abatement will help finance the Project,
which is necessary to provide improved transportation and safety and to prevent deterioration of road
infrastructure conditions in the City; and (b) the increased City taxes collected from the Abatement Property
upon termination of the Abatement are expected to far exceed the amount of the Abatement collected from
the Abatement Property during the term of this resolution.
2.02. It is hereby found and determined that the Abatement is in the public interest for the reasons
described in Section 2.01 hereof.
501817v2 MNI MN 190-154
Section 3. Actions Ratified; Abatement A>7 -Droved.
3.01. The Board hereby ratifies all actions of the City's staff and consultants in arranging for
approval of this resolution in accordance with the Act.
3.02. Subject to the provisions of the Act, the Abatement is hereby approved and adopted subject
to the following terms and conditions:
(a) The term "Abatement" means the City's share of the'real property taxes generated
from the improvements on the Abatement Property, in the amounts described in this Section:
(i) The aggregate Abatement paid by the City during the term of this resolution
will not exceed the amount necessary to pay the principal of the Abatement Bonds, up to a
maximum of $9,000,000.
(ii) Notwithstanding anything to the contrary herein, the Abatement payable on
any August 1 and subsequent February 1, combined, 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 Property, as of January 2 in the prior year.
(iii) In accordance with Section 469.1813, subdivision 8 of the Act, in no year
shall the Abatement, together with all other abatements approved by the City under the Act
and paid in that year, exceed the greater of 10% of the City's net tax capacity for that year or
$20000 (the "Abatement Volume Cap"). The City may grant any other abatements
permitted under the Act after the date of this resolution, provided that to the extent the
total abatements in any year exceed the Abatement Cap, the allocation of Abatement Cap
to such other abatements is subordinate to the Abatements under this Agreement.
(b) The City will pay the Abatement in semiannual installments each February 1 and
August 1, commencing June 1, 2018, and continuing through February 1, 2033. The City will pay
the Abatement solely to finance the cost of the Project, through application of Abatement amounts
toward debt service payments on the Abatement Bonds (including any bonds issued to refund the
initial Abatement Bonds).
(c) This resolution may be modified only with the prior written approval of the City,
and any modification is subject to Section 469.1813, subdivision 7 of the Act.
(d) In accordance with Section 469.1815 of the Act, 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. The Mayor and City Administrator are authorized and directed to execute and deliver any
agreements, certificates or other documents that the City determines are necessary to implement this
resolution.
501817v2 MN MN 190-154 2
Approved by the City Council of the City of Monticello, Minnesota, this 26'day of June, 2017.
Mayor
Attest:
C ty Cler
501817v2 MNI MN 190-154
EXHIIBIT A
ABATEMENT PROPERTY
Parcel Identification Numbers:
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501817v2 MNI MN190-154 A-1
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501817v2 MN1 MN 190-154 A-2
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155180004050,155241001020
501817v2 MNI MN 190-154 A-3