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4.01. On November 8, 2000 the City Council conducted a duly noticed public hearing regarding abatement of the City's share of property taxes on the Property as described in this Section, at which the views of all interested persons were heard. 4.02. It is hereby found and determined that the benefits to the City from the Abatement (as hereafter defined) will be at least equal to the costs to the City of the Abatement, because it will induce Developer to add significant improvements to its existing facility and produce long-term property tax benefits that exceed the amount of the Abatement. 4.03. It is hereby found and determined that the Abatement is in the public interest because it will increase the tax base of the City and increase employment opportunities. 4.04. It is further specifically found and determined that the Abatement is expected to result in the following public benefits: (a) Create an estimated $900,000 increase in estimated market value for property tax purposes, which will be available to all taxing jurisdictions after expiration of the Abatement. (b) Improve the economic vitality of the community through creation of additional manufacturing-related jobs and a further beneficial economic impact in connection therewith. (c) Increase living wage jobs in the City. Section 5. Abatement Approved. 5.01. The Abatement is hereby approved and adopted subject to the following terms and conditions: (a) The term "Abatement" means the real property taxes generated by extending the City's total tax rate for that year against the tax capacity of the addition to the existing facility on the Property (the "Additional Improvements") as of that tax- payable year, including any portion of such tax capacity attributable to the areawide tax under Minnesota Statues, Chapter 473F. In no event will the Abatement be paid with respect to the land or to the value of the existing facility. (b) The Abatement will be paid for five years, beginning in the first tax-payable year after the Property is not included in the TIF District, as described in Section 3.04 hereof The aggregate Abatement over the five-year period will not exceed $123,000, subject to any additional limit described in clause (d) below. (c) The City will pay the Abatement to the Developer in semi-annual installments on each February 1 and August 1, commencing August 1 of the first year the Abatement is in effect, as described in clause (b). (d) In accordance with Section 469.1813, subdivision 8 of the Act, in no case SJB-184817v3 f"'R 1 4\ ,_., ~