City Council Meeting Date: July 23, 2019
To: Mayor and City Council
City Administrator
From: Brenda Angelstad, Finance Director
Title
Call for Public Hearing on Tax Abatement for 2019 Public Improvements, including Spring Creek Road and the City's Public Works Facility.
Body
Action Requested:
The Northfield City Council approves the attached Resolution calling for a Public Hearing on tax abatement related to the 2019 Public Improvements, including Spring Creek Road and the City's Public Works Facility.
Summary Report:
The Council is being asked to hold a public hearing on August 20, 2019, regarding tax abatement on the Spring Creek Portion of the 2019 Street Project and the Street Shop Roof Repair. The required notice will be published in the Northfield News. A resolution and potential map of abatement properties is attached. A memo from Ehlers, Inc providing background information on tax abatement is also included. As noted in that Ehlers memo, "Despite its name, tax abatement for public improvements is simply an allocation of property tax revenue rather than an exemption from paying taxes. The property included within the abatement area continues to pay its taxes in full just as any other property within the City." The owners of those properties will not see any difference in the amount they pay or in statements they receive. Ehlers will be explaining this further at the hearing.
The City will not assess for the Spring Creek portion and the Street Shop roof repair. Therefore, this portion of the project does not qualify for bonding under Minnesota Statute, Section 475.58 that is typically used to finance street projects. However, these types of expenditures for infrastructure are designated as an allowable improvement that qualifies under abatement financing.
Alternative Options:
The City has been planning this debt issuance so we are not recommending any other alternative.
Financial Impacts:
The estimated cost to finance these two impro...
Click here for full text