Laserfiche WebLink
ARDEN HILLS CITY COUNCIL WORK SESSION – MARCH 21, 2016 3 <br /> <br />Councilmember Holden asked when the abatement begins. <br /> <br />Community Development Director Hutmacher stated the first abatement payment was <br />scheduled for August 1, 2020. Payment does not begin until that date as the full tax value as <br />determined in 2019 would not be reflected until release of the 2020 payable tax information. <br /> <br />Councilmember Holden asked if there would be an issue regarding the City exercising its option <br />to request reimbursement should Land O’ Lakes relocate or sell the property. <br /> <br />Stacie Kvilvang stated the City Council could ask to be reimbursed for monies spent but that <br />other options included extending the abatement if the Council felt that value has been received. <br />The City Council could also choose to convey the abatement to the next owner. <br /> <br />Councilmember Holden requested clarification regarding the land use plan and the abatement <br />agreement. She asked what would happen if a variance was requested by Land O’ Lakes that did <br />not receive the City’s approval. <br /> <br />Community Development Director Hutmacher stated that approval of the abatement agreement <br />would have no effect on the land approval process for other work. <br /> <br />Councilmember Holden asked if additional employees over and above 200 as referenced earlier <br />would be added due to the increased square footage. <br /> <br />Marcia Droege indicated that over the course of the next 10 years, Land O’ Lakes expected their <br />growth to average between 3% and 5% each year. She said 200 employees was the baseline <br />required to apply for the job creation fund. She also said that through the year 2024, Land O’ <br />Lakes expected their workforce to increase from approximately 1,700 to 2,400 employees. She <br />stated under the job creation fund, Land O’ Lakes had 2 years to add 200 positions. If they did not <br />meet this requirement, they would receive a prorated share of the funds. <br /> <br />Mayor Grant asked if the City Attorney had reviewed the agreement and had any comments from <br />a legal aspect that the Council should be aware of. <br /> <br />City Attorney Joel Jamnik stated that while it is far from being a standard agreement, there was <br />nothing controversial or unusual in the agreement. <br /> <br />Councilmember Holden asked if the abatement would be affected if there were to be a crash in <br />the market. <br /> <br />Stacie Kvilvang stated the 15-year and $650,000 maximum abatement would still apply. <br /> <br />Councilmember McClung commented that while he was generally opposed to tax abatements in <br />any form, he supported this action due to Land O’ Lakes’ longevity in the community. <br /> <br />Councilmember Holmes stated that while it was a somewhat difficult decision for her, she <br />supported the abatement as Land O’ Lakes was a good civic partner and she was happy they <br />would remain in Arden Hills.