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HomeMy WebLinkAbout2006-121 CCRMember Kay Lasman introduced the following resolution and moved its adoption: RESOLUTION NO. 2006-12 t RESOLUTION APPROVING PROPERTY TAX ABATEMENT AND AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT BE IT RESOLVED by the City Council (the "Council") of the City of Brooklyn Center, Minnesota (the "City"), as follows: Recitals. (a) Brooklyn Hotel Partners, LLC, a Minnesota limited liability company (the "Company") proposes to construct certain improvements (the "Improvements") on certain real property located in the City described below (the "Property") in connection with the construction of two full service hotels and related facilities (the "Project"). The Company has requested that the City abate the increased property taxes on the Property resulting from the construction of the Project. The City proposes to pay the abatement to the Company for the purposes provided for in the Abatement Law (as hereinafter defined). The proposed term of the abatement will be for 10 years and the total amount will not to exceed $2,600,000 The abatement will apply to the City's share of the increased property taxes resulting from the Project (the "Abatement") derived from the Property bearing parcel identification number 35-119-21-43-0016 (the "Property"). (b) The Company, the Economic Development Authority of Brooklyn Center (the "BDA") and the City have determined to enter into a Development Agreement to provide for, among other things, the terms of the City's abatement assistance (the "Development Agreement"). (c) On October 23, 2006, the Council held a public hearing on the proposed Abatement, and said hearing was preceded by at least 10 days but not more than 30 days prior published notice thereof. (d) The Abatement is authorized under Minnesota Statutes, Sections 469.1812 through 469.1815 (the "Abatement Law"). 2. Findin-as 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 and preserve the tax base of the City, provide employment opportunities in the City, provide access to hotel facilities for residents of the City, and will finance public infrastructure. (c) The Property will not be located in a tax increment financing district. (d) In any year, the total amount of property taxes abated by the City by this and other resolutions will not exceed the greater of ten percent (10%) of the City's current levy or $200,000. 3. Statement as to Nature and Extent of Public Benefits. The Abatement will be a public benefit since it will assist with the costs construction of the Project and will encourage the development of the Property. RESOLUTION NO. 2006-121 4. Terms of Abatement. The Abatement is hereby approved. The terms of the Abatement are as follows: (a) The Abatement shall be for ten (10) years for each of the Phase I Property and Phase II Property (as defined in the Development Agreement). The commencement of the abatement period for the Phase I Property shall be for taxes payable year 2010. The commencement of the abatement period for the Phase II Property shall be a date to be determined but shall tentatively not be later than the taxes payable year 2024. (b) The City will abate the City's share of increased property taxes which the City receives from the Property as set forth in the Development Agreement, but not to exceed in the aggregate $2,600,000. (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. (e) The City will pay the Abatement to the Company to pay for a portion of the costs of the Project. 5. Tax Abatement. (a) The City Council hereby approves the Development Agreement in substantially the form submitted, and the Mayor and Clerk are hereby authorized and directed to execute the Development Agreement, on behalf of the City. (b) The approval hereby given to the Development 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 Development Agreement. The execution of the Development Agreement by the appropriate officer or officers of the City shall be conclusive evidence of the approval of the Development Agreement in accordance with the terms hereof. October 23. 2006 Date , Mayor ATTEST: '~C City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Kathleen Carmody and upon vote being taken thereon, the following voted in favor thereof: Myrna Kragness, Kathleen Carmody, Kay Lasman, and Diane Niesen; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted.