98-28OTSEGO ECONOMIC DEVELOPMENT AUTHORITY
WRIGHT COUNTY
STATE OF MINNESOTA
RESOLUTION AUTHORIZING THE OTSEGO EDA
TO PROVIDE ECONOMIC DEVELOPMENT
ASSISTANCE AND TO ENTER AN AGREEMENT
REGARDING THE SAME
Resolution No. 98-28
WHEREAS, Long Haul Trucking (hereafter "Developer") has undertaken development
which has added approximately $850,000 in taxable market value to the City's tax base;
and
WHEREAS, the Development Property is legally described as follows:
Lot 2, Block 2, Otsego Industrial Park, as shown on the plat and survey thereo& 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 by
Developer, known as OTSEGO INDUSTRIAL PARK and, further, Developer has
constructed within the above -referenced plat street and drainage facilities at a cost of
approximately $45,500.00; and
WHEREAS, Developer has previously approached the City requesting economic
development assistance for the development project located within the City of Otsego;
and
WHEREAS, prior to its completion, the City 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
#1,1 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 EDA as follows:
1. City's Contribution. Beginning in 1999 and for a period of seven (7) years, the City
has agreed to levy on behalf of the EDA a sum of money not to exceed a total of
$45,500.00, subject to the limitations contained in Minnesota Statutes §469.107 and other
applicable law. Said annual levies will be equal to the lesser of $6,500.00 or the City's
portion of property taxes collected in the preceding year from the development property
described above. Levy proceeds shall be turned over to the EDA in November of each
year, after all property taxes have been and received by the City.
2. EDA to Rebate Contributions to Developer. Upon proof of expenditures made, the
EDA will reimburse Developer for costs incurred incident to constructing roads, drainage
facilities and other improvements on, or for the benefit of, the development property.
Reimbursements shall be made annually for a period of seven (7) years and shall not
exceed a total of $45,500.00. The annual reimbursement to Developer shall be paid from,
and shall not exceed, the City's annual levy 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 the resolution.
3. Incentive for Additional Development. The City may levy additional taxes on behalf of
the the EDA to encourage additional development on the Lots owned by Developer
within Otsego Industrial Park. For each additional Lot, Developer shall be eligible for an
additional five hundred dollar ($500) reimbursement per lot, per year, subject to the
following terms and conditions:
a. No lot shall be eligible for the $500 reimbursement until it is developed for a
commercial or industrial use consistent with the applicable zoning and other land
use regulations, provided that the lot is developed by a party other than Developer.
b. No lot shall be eligible for the $500 reimbursement until it is actually generating
property taxes collected for the benefit of the City.
c. Payments made, as provided in this section, shall come solely property taxes
levied by the City on behalf of the EDA and contributed by the City to the EDA as
provided in Section 2 above. Neither the EDA or the City shall be liable to make
payments, as provided in this section, to Developer if the City's portion of
property taxes received from Lot 2 are less than the amount to be levied or such
payments would be in violation of any applicable law.
d. Payments, as herein provided, shall be made to Developer in November
following the first full year receipt of property taxes from any additional
development as contemplated in this section, except that in no case whatsoever
shall any payments be made after November of 2005.
e. No payment shall be made on any lot in which the Developer retains any legal
interest whatsoever. Moreover, no payment shall be made under this section if
Developer is a partner, shareholder or in any way a party to the business
undertaking the development on the remaining lots in Otsego Industrial Park.
4. Assistance Conditioned Upon Development Agreement. 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 President and
Secretary are authorized and directed to enter said agreement, subject to approval of the
agreement by the City Attorney as to its form and content.
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ATTEST:
- creta,y