98-25'4
CITY OF OTSEGO
WRIGHT COUNTY
STATE OF MINNESOTA
RESOLUTION AUTHORIZING THE CITY OF OTSEGO
TO MAKE AN ANNUAL TAX LEVY ON BEHALF OF ITS
ECONOMIC DEVELOPMENT AUTHORITY
Resolution No. 98-25
WHEREAS, Apex Business Center, LLC (hereafter "Developer") has undertaken
development of an office/warehouse building which will add taxable market value to the
City's tax base; and
WHEREAS, the Development property is legally described as follows:
Lot 2, Block 1, Otsego Industrial Park, as shown on the plat and survey thereof, on
file and of record in the Office of the Wright County Recorder, Wright County,
Minnesota.
WHEREAS, the development property is located in a subdivision, previously platted and
known as OTSEGO INDUSTRIAL PARK; and
WHEREAS, Developer has approached the City requesting economic development
assistance for the development project located on the Development Property within the
City of Otsego; and
WHEREAS, because of the absence of City sewer and water to the Development
property, Developer will incur expenses that it might not otherwise incur in another
location; and
WHEREAS, the City has resolved to provide, as more fully described herein, financial
assistance to the above -referenced project; and
WHEREAS, the City has previously created an Economic Development Authority
(EDA), the purpose of which is to encourage and promote economic development within
the City of Otsego; and
WHEREAS, Minnesota Statutes §469.90 through §469.1081, the Economic
Development Authority Act, allows the EDA to exercise all the powers granted to cities
under the Development District Act, Minnesota Statutes §469.124 through §469.134,
including adoption of Development Programs; and
WHEREAS, The EDA has adopted a Development Program for Development District
#1, the boundaries -of which include the above-described Development Property; and
WHEREAS, the City may levy taxes on behalf of the EDA as provided in Minnesota
Statutes §469.107.
NOWTHEREFORE BE IT RESOLVED by the Otsego City Council as follows:
1. City's Contribution. Beginning in 2000, the City will annually levy on behalf of the
EDA a sum of money not to exceed thirty percent (30%) of the City's estimated share of
property taxes to be collected from the Development Property above-described, subject to
the limitations contained in Minnesota Statutes §469.107 and other applicable law. Said
levies shall continue until a sum equal to 3.75% of the office/warehouse building's
assessment year 1999 market value has been levied on behalf of the EDA. Levy proceeds
shall be released to the EDA in November of each year, after all property taxes have been
and received by the City.
2. EDA to Provide Assistance to Developgr. Upon proof of payment of taxes, the EDA
will reimburse Developer for costs incurred incident to constructing the above-mentioned
office/warehouse building on the development property. The annual payment to
Developer shall be paid from, and shall not exceed, the City's levy contribution described
in section one (1) above and no interest shall be paid by the City or EDA in addition to
the financial assistance provided for in this resolution.
3. Assistance Conditioned Upon Development A egr ement. Receipt by Developer of the
financial assistance described above is conditioned upon, and shall be subject to, an
Agreement made between Developer, the City and the EDA. The terms of this resolution
shall be incorporated into the Agreement, as well as any provisions as may be
recommended by the City Attorney. The City Council shall review and approve the
Agreement referenced herein before any taxes will be levied by the City on behalf of the
EDA.
ATTEST:
=/
Beatty,
/6? 6/9
a
By
Larry ' er, Mayor