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HomeMy WebLinkAbout2016-013 ,It --A )EN�HILLS CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 2016-013 A RESOLUTION APPROVING PROPERTY TAX ABATEMENT FOR CERTAIN REAL PROPERTY IN THE CITY PURSUANT TO MINNESOTA STATUTES, SECTION 469.1812 TO 469.1815,APPROVING A MINNESOTA INVESTMENT FUND GRANT AND LOAN AND SPECIFYING THE TERMS THEREOF WHEREAS, the City of Arden Hills, Minnesota (the "City") is authorized by Minnesota Statutes, Sections 469.1812 to 469.1815 (the "Abatement Act") to grant a property tax Abatement (as defined in Section 3 of this resolution) in order to achieve one or more public purposes identified in the Abatement Act; WHEREAS, the City has reviewed a proposal by Land O'Lakes, Inc. (the "Developer") to construct an approximately 145,000 to 157,000 square foot office expansion to the Developer's corporate headquarters (the "Facility") to be located in the City currently identified as Parcel Identification Numbers 27-30-23-11-0001 and 27-30-23-11-0002(the"Development Property"); WHEREAS,the Development Property is not located in a tax increment financing district; WHEREAS, the City has also determined that it is reasonable and necessary to provide certain financial assistance to Developer in order to facilitate Developer's plans for the Facility and the Development Property, and to that end, the City will consider approving an Abatement Contract for Private Development between the City, Ramsey County, Minnesota (the "County") and the Developer (the "Abatement Agreement"), in accordance with the Abatement Act and Minnesota Statutes, Sections I I6J.993 to I I6J.995 (the"Business Subsidy Act"); WHEREAS, among other things, the proposed Abatement Agreement will provide that the City will assist the Developer in financing a portion of the cost of the Facility, subject to certain terms and conditions, including the adoption of this resolution (the "Abatement Assistance"); and the Developer will construct the Facility, subject to certain terms and conditions; WHEREAS, the City together with the Developer, has submitted to the Minnesota Department of Employment and Economic Development("DEED") an application for a Minnesota Investment Fund grant in the amount of up to $1,000,000 (the "MIF Grant") to finance a portion of the costs of certain equipment for the Facility, and in connection therewith the City will consider approving a Grant Agreement with DEED, (the "Grant Agreement") and an Agreement for Loan of Minnesota Investment Fund—Forgivable Loan between the City and the Developer(the"MIF Loan Agreement"); WHEREAS, on the date hereof, the City conducted a duly noticed public hearing on the Abatement and the MIF Grant and MIF Loan Agreement in accordance with the Abatement Act and the Business Subsidy Act at which the views of all interested persons were heard; WHEREAS, all capitalized terms in this resolution have the meanings provided in the Abatement Agreement unless context clearly requires otherwise; NOW, THEREFORE, BE IT RESOLVED BY the City Council (the "Council") of the City of Arden Hills, Minnesota as follows: 1. Benefits Equal Costs. It is hereby found and determined that the benefits to the City from the Abatement will be at least equal to the costs to the City of the Abatement for the following reasons: (a) The Abatement will stimulate development and therefore will increase the tax base; consequently, the Facility will generate significant City tax revenues after termination of the Abatement, which revenues will far exceed the amount of the Abatement itself. (b) The Abatement will stimulate the retention and creation of jobs resulting in employees contributing to the general economy of the City. 2. Public Purposes. It is further found and determined that the Abatement will incentivize the Developer to retain its corporate headquarters in the City and serve the following public purposes set forth in Section 469.1813, subdivision 1 of the Abatement Act: (a) The Abatement will increase the tax base. (b) The Abatement will provide employment opportunities in the City. 3. Abatement Approved. The Abatement is hereby approved and adopted subject to the following terms and conditions: (a) "Abatement" or "Abatements" means the City's share of the increased annual real estate taxes on the Development Property above the base value established January 2, 2016 less fiscal disparities taxes, State taxes, market value taxes and taxes paid to taxing jurisdictions other than the City and County (as more specifically defined in the Abatement Agreement as the "City Abatement") for a term of up to 15 years in a principal amount not to exceed $650,000. (b) The City will pay the Abatements in the amount, at the time, and in accordance with all the terms and conditions set forth in the Abatement Agreement, which are incorporated herein by reference. (c) The Abatement is subject to modification in accordance with the Abatement Act,but only to the extent so permitted under the terms of the Abatement Agreement. (d) In accordance with Section 469.1815 of the Abatement Act, the City will add to its levy in each year during the term of the Abatement the total estimated amount of current year Abatement granted under this resolution. (e) The City makes no warranties or representations regarding the amount or availability of the Abatements. (f) In accordance with Section 469.1813, subdivision 8 of the Abatement Act, in no case shall the Abatement, together with all other abatements approved by the City under the Abatement Act and paid in any one year exceed the greater of 10%of the City's net tax capacity for that year or$200,000. 4. Approval of MIF. The City Council hereby accepts the MIF Grant in the amount awarded by DEED and, subject to approval by DEED of the City's application for the MIF Grant, hereby approves (i) entering into the Grant Agreement with DEED, (ii) entering into the MIF Loan Agreement with the Developer, and (iii) loaning the proceeds of the MIF Grant pursuant to the MIF Loan Agreement and any related documents referred to therein or necessary in connection therewith. 5. Execution of Documents. The City Council hereby approves (i) the Abatement Agreement, (ii) subject to approval by DEED of the City's application for the MIF Grant, the MIF Loan Agreement and the Grant Agreement, and (iii) any related documents referred to therein or necessary in connection therewith (collectively, the "Documents"). The Mayor and City Administrator are hereby authorized and directed to execute the Documents to which the City is a party, on behalf of the City, and to carry out, on behalf of the City, the City's obligations thereunder. In the event of absence or disability of such officers, any of the Documents authorized by this Resolution to be executed may be executed without further act or authorization of the Council by any duly designated acting official, or by such other officer or officers of the City as, in the opinion of the City Attorney, may act in their behalf. 6. Finalizing Documents. The approval hereby given to the Documents 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 legal counsel to the City and by the officers authorized herein to execute said Documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the City. The execution of any instrument by the appropriate officers of the City herein authorized shall be conclusive evidence of the approval of such Document in accordance with the terms hereof. 7. Conflicting Provisions. In the event of a conflict between the content of this resolution and the Documents,the terms of the Documents shall prevail. 8. Effective Date. This resolution is effective upon execution in full of the Abatement Agreement. APPROVED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS ON THIS 11TH DAY OF APRIL,2016. David Grant, Mayor AT ST: Amy Dietl, Ci Clerk