RES 19-77EXTRACT OF MINUTES OF A MEETING
OF THE CITY COUNCIL OF THE
CITY OF OTSEGO, MINNESOTA
HELD: November 25, 2019
Pursuant to due call and notice thereof, a meeting of the City Council of the City of
Otsego, Wright County, Minnesota, was duly called and held at the Prairie Center (8899 Nashua
Avenue NE) in said City on November 25, 2019, at 7:00 o'clock p.m.
The following members were present: Stockamp, Darkenwald, Goede, Tanner
and the following were absent: None
Member Darkenwald introduced the following resolution and moved its adoption:
RESOLUTION 2019-77
APPROVING PROPERTY TAX ABATEMENTS AND AUTHORIZING
EXECUTION OF AN AGREEMENT WITH WRIGHT COUNTY,
MINNESOTA
BE IT RESOLVED by the City Council (the "Council") of the City of Otsego, Minnesota
(the "City"), as follows:
1. Recitals.
(a) In connection with the construction of a 44,000 square -foot grocery store
with accessory motor fuel facility and an approximately 70 unit multi -family housing
facility (the "Project") to be constructed Rice Companies, Inc. (the "Developer"), it is
necessary that certain public improvements ("Public Improvements") be constructed by
the City.
(b) In order to finance the cost of the Public Improvements the City and
Wright County, Minnesota (the "County"), have determined to utilize tax abatement
financing as authorized by the Abatement Law (as hereinafter defined).
(c) The City proposes to abate property taxes, pursuant to Minnesota Statutes,
Sections 469.1812 through 469.1815 (the "Abatement Law"), in order to assist in the
financing of the Public Improvements.
(d) It is proposed that the City and the County enter into a Tax Abatement
Agreement (the "Agreement"), which provides for the use of tax abatements to assist in
the financing of the Public Improvements.
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(e) On October 28, 2019, the Council held a public hearing on the question of
granting its tax abatements, and said hearing was preceded by at least 10 days but not
more than 30 days prior published notice thereof at which all interested persons appeared
and were heard.
(f) The City proposes to approve tax abatements on the City's portion of
property taxes on the property, described in Exhibit A, attached hereto (the "Tax
Abatement Property"), in an amount not to exceed $950,000 for a term of up to twenty
(20) years to assist in the financing of a portion of the costs of the Public Improvements
(the "Abatement").
(g) The Abatement is authorized under the Abatement Law.
2. Findings for the Abatement. The City Council hereby makes the following
findings:
(a) The Abatement is the City's share of taxes on the Tax Abatement Property.
(b) The Council expects the benefits to the City of the Abatement to at least
equal or exceed the costs to the City thereof.
(c) Granting the Abatement is in the public interest because it will:
(i) increase the tax base;
(ii) provide employment opportunities in the City; and
(iii) finance and provide for public infrastructure.
(d) The Tax Abatement Property is not located in a tax increment financing
district.
(e) In any year, the total amount of property taxes abated by the City by this
and other resolutions and agreements, does not exceed the greater of ten percent (10%) of
the net tax capacity of the City for the taxes payable year to which the abatement applies
or $200,000, whichever is greater. The City may grant other abatements permitted under
the Abatement Law after the date of this resolution, provided that to the extent the total
abatements in any year exceed the Abatement Limit the allocation of the Abatement limit
to such other abatements is subordinate to the Abatement granted by this resolution.
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3. Terms of Abatement. The Abatement is hereby approved. The terms of the
Abatement are as follows:
(a) The Abatement shall be for up to twenty (20) years beginning with real
estate taxes payable in 2022 and continuing through 2041, inclusive and shall not exceed
$950,000.
(b) The City shall abate the Abatement as provided in this resolution.
(c) The Abatement shall be subject to all the terms and limitations of the
Abatement Law.
4. Approval of Agreement.
(a) The City Council hereby approves the Agreement with the County
providing for the reimbursement by the County from the County's tax abatements for a
portion of the costs of the Public Improvements incurred by the City, in substantially the
form submitted, and the Mayor and Administrator are hereby authorized and directed to
execute the Agreement on behalf of the City.
(b) The approval hereby given to the Agreement includes approval of such
additional details therein as may be necessary and appropriate and such modifications
thereof, deletions therefrom and additions thereto as may be necessary and appropriate
and approved by the City officials authorized by this resolution to execute the
Agreement. The execution of the Agreement by the appropriate officer or officers of the
City shall be conclusive evidence of the approval of the Agreement in accordance with
the terms hereof.
The motion for the adoption of the foregoing resolution was made by member Darkenwald and
duly seconded by member Goede and, upon a vote being taken thereon after full discussion
thereof, the following voted in favor thereof. Stockamp, Darkenwald, Goede, Tanner
and the following voted against the same: None
Whereupon said resolution was declared duly passed and adopted.
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STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
I, the undersigned, being the duly qualified and acting Clerk of the City of Otsego,
Minnesota (the "City"), do hereby certify that attached hereto is a compared, true and correct
copy of a resolution approving the abatement of property taxes by the City on behalf of Rice
Companies, Inc., duly adopted by the City Council of the City on November 25, 2019, at a
regular meeting thereof duly called and held, as on file and of record in my office, which
resolution has not been amended, modified or rescinded since the date thereof, and is in full force
and effect as of the date hereof, and that the attached Extract of Minutes as to the adoption of
such resolution is a true and accurate account of the proceedings taken in passage thereof.
WITNESS My hand this 25th day of November, 2019.
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t
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City Clerk
EXHIBIT A
TAX ABATEMENT PROPERTY DESCRIPTION
118-500-221203; 118-257-000010, 118-257-000020; 118-257-001010; 118-257-001020;
118-500-221205; 118-500-221206
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