RES 12-06EXTRACT OF MINUTES OF MEETING
OF THE CITY COUNCIL OF THE
CITY OF OTSEGO, MINNESOTA
HELD: January 9, 2012
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 City Hall in said City on
Monday, the 9th day of January, 2012, at 7:00 o'clock p.m.
The following members were present: MAYOR STOCKANT; CM HEIDNER, CM SCHROEDER,
CM DARKENWALD AND CM SCHARBER
and the following were absent: NONE
Member
adoption:
HEIDNER
introduced the following resolution and moved its
RESOLUTION 2012-06
RESOLUTION AUTHORIZING EXECUTION OF
A TAX ABATEMENT AGREEMENT
BE IT RESOLVED by the City Council (the "Council") of the City of Otsego, Minnesota
(the "City"), as follows:
Recitals.
(a) The Bank of Elk River has requested that the City provide financial
assistance to the Project. The City proposes to use the abatement for the purposes
provided for in Minnesota Statues, Sections 469.1812 through 469.1815 (the "Abatement
Law"), including the Project. The proposed term of the abatement will be for up to three
years in an amount not to exceed $10,600. The abatement will apply to a portion of the
City's share of the property taxes (the "Abatement") derived from property currently
described as Lots 3 and 4, Block 1, Mississippi Shores 6th Addition which is owned by
the Developer (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 10 days but not more than 30 days
prior published notice thereof.
(c) The Abatement is authorized under the Abatement Law.
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 increase of
preserve the tax base of the City and provide 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 tax abated b y the City by this
and other resolutions, if any, does not exceed the greater of ten percent (10%) of the
current levy or $200,000.
3. Terms of Abatement. The terms of the Abatement are as follows:
(a) The Abatement shall be for up to three (3) years and shall apply to the
taxes payable in the years 2013 through 2015 inclusive.
(b) The City will abate and pay to the Developer $4,000 of the property tax
which the City receives from the Property in years one and two and $2,600 of the
property tax which the City receives in year three, not to exceed $10,600.
(c) The Abatement shall be subject to all the terms and limitations of the
Abatement Law.
(d) The Abatement may not be modified or changed during its term.
4. Approval of Tax Abatement and Business SubsidyAgreement.
(a) The City Council hereby approves a Tax Abatement 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 Administrator are hereby
authorized and directed to execute the Tax Abatement Agreement on behalf of the City.
(b) The approval hereby given to the Tax Abatement 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.
2
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 thereof, the following voted in favor thereof:
And the following voted against the same: NONE
Whereupon said resolution was declared duly passed and adopted.
CITY OF OTSEGO
ATTEST: �JYV\&A �
Tami Loff, City Clerk
3
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, inso far as such
minutes relate to property tax abatements for The Bank of Elk River Mississippi Shores 61'
Addition Project.
WITNESS my hand this cr`�' day of January 9, 2012.
jaiy\-� 64L
City Clerk