City Council Meeting Date:
To: Mayor and City Council
City Administrator
From: Brenda Angelstad, Finance Director
Title
Call for Public Hearing on Tax Abatement for 2018 Public Improvements.
Body
Action Requested:
The Northfield City Council approves the attached Resolution calling for a Public Hearing on tax abatement related to the 2018 Street Projects.
Summary Report:
The Council is being asked to hold a public hearing on August 21st, 2018, regarding tax abatement on the parking lot portions of the 2018 Washington Street Mill and Overlay project. A required 14-day notice will be published in the Northfield News. A draft resolution and potential map of abatement properties is attached. A memo from Ehlers, Inc providing background information on tax abatement is also included. The memo was drafted regarding Spring Creek Road financing, but the same principles apply. We expect to utilize tax abatement for a portion of the Spring Creek Road project in 2019 as well.
The parking lot portion of the 2018 project is not considered "street reconstruction" and the City does not intend to assess for the parking improvements. 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, parking infrastructure is designated as an allowable improvement that qualifies under abatement financing.
Alternative Options:
The City could pay for the parking lot portion of the project with cash from reserves. Other bonding alternatives would exist if the City assessed 20% for the improvements to the parking lots or began to charge for parking. The debt issuance has been the planned alternative with other anticipated needs and uses of the reserve funds.
Financial Impacts:
The estimated cost to finance the improvements is estimated at $300,000.
Tentative Timelines:
August 21, 2018 Public Hearing regarding tax abatement
September 18, 2018 Bond Sale for 201...
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