RES 14-16EXTRACT OF MINUTES OF MEETING
OF THE CITY COUNCIL OF THE
CITY OF OTSEGO, MINNESOTA
HELD: March 10, 2014
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 Otsego Prairie Center in said
City on Monday, the 10th day of March, 2014, at 7:00 o'clock p.m.
The following members were present: Stockamp, Heidner, Schroeder, Darkenwald,
Warehime
and the following were absent: None
Member Heidner introduced the following resolution and moved its adoption:
RESOLUTION 2014-16
RESOLUTION APPROVING PROPERTY TAX ABATEMENTS
AND AUTHORIZING EXECUTION OF
A TAX ABATEMENT AND BUSINESS SUBSIDY AGREEMENT
BE IT RESOLVED by the City Council (the "Council") of the City of Otsego, Minnesota
(the "City"), as follows:
1. Recitals.
(a) Duke Realty Limited Partnership (the "Developer") proposes to construct
an approximately 300,000 square foot warehouse building in the City (the "Project").
The Developer has requested that the City provide financial assistance to the Developer
for the Project. The City proposes to use the abatement for the purposes provided for in
the Abatement Law (as hereinafter defined), including the Project. The proposed term of
the abatement will be for up to 7 years in an amount not to exceed $340,000. The
abatement will apply to 50% of the City's share of the property taxes (the "Abatement")
derived from the property described as Lot 1, Block 1, Gateway North 6(the "Property").
(b) On the date hereof, the Council held a public hearing on the question of
the Abatement, and said hearing was preceded by at least once more than ten days but not
more than 30 days prior published notice thereof.
(c) The Abatement is authorized under Minnesota Statutes, Sections 469.1812
through 469.1816, as amended (the "Abatement Law").
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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 or exceed the costs to the City thereof.
(b) Granting the Abatement is in the public interest because it will
significantly increase the tax base of the City and provide quality employment
opportunities in the City.
(c) The Property is not 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 and agreements, if any, 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.
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 seven (7) years beginning with real
estate taxes payable in 2016 and continuing through 2022, inclusive.
(b) The City will abate and pay to the Developer 50% of the City's share of
the property tax amount which the City receives from the Property, not to exceed
$340,000.
(c) The Abatement shall be subject to all the terms and limitations of the
Abatement Law.
4. ADDroval of Tax Abatement and Business Subsidy Agreement.
(a) The City Council hereby approves a Tax Abatement and Business Subsidy
Agreement with the Developer providing for payment of the Abatement and the City's
assistance for the Project in substantially the form submitted, and the Mayor and Clerk
are hereby authorized and directed to execute the Tax Abatement and Business Subsidy
Agreement on behalf of the City.
(b) The approval hereby given to the Tax Abatement and Business Subsidy
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 Heidner and duly
seconded by member Schroeder and, upon a vote being taken thereon after full discussion
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thereof, the following voted in favor thereof: Heidner, Schroeder, Stockamp, Darkenwald,
Warehime
and the following voted against the same: None
Whereupon said resolution was declared duly passed and adopted.
Tami Loff, Clerk
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cxamAm6*(Iuq�
Je ica Stockamp, Mayor
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"), by reason of my office as Clerk, DO HEREBY CERTIFY that I have
compared the attached and foregoing extract of minutes with the original thereof on file in my
office, and that the same is a full, true and complete transcript of the minutes of a meeting of the
City Council of the City, duly called and held on the date therein indicated, insofar as such
minutes relate to property tax abatements for the Gateway North Project.
WITNESS my hand this 24th day of March, 2014.
aUt`M��iwn-
City Clerk
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