Resolution Number 14-20

RESOLUTION NUMBER 14-20

APPROVING PROPERTY TAX ABATEMENT AND APPROVING AND AUTHORIZING EXECUTION OF RELATED DOCUMENTS

BE IT RESOLVED by the City Council of the City of Mountain Iron, St. Louis County, Minnesota as follows:

Section 1.        Definitions.  For purposes of this resolution capitalized terms have the meanings assigned below, unless the context requires otherwise:

“Abatement” means the City’s payment to the Developer of the City’s share of ad valorem property taxes levied against the Abatement Property and paid by the Developer for property taxes payable in calendar years 2021 through 2030, in a total amount not to exceed $5,000, as further described in the Agreement.

“Abatement Property” means the real property substantially as described in Exhibit A to this Resolution.

“Agreement” means the Tax Abatement and Vacant Land Purchase Agreement to be entered into by and between the City, the EDA and the Developer.

“Authorized Officers” means the Mayor and City Administrator of the City.

“City” means the City of Mountain Iron, Minnesota.

“City Code” means the City’s Code of Ordinances.

“Council” means the City Council as the governing body of the City.

“Developer” means Lakeland Investors, Inc., a Minnesota corporation, an affiliate of Pan-O-Gold Baking Co., a Minnesota corporation currently based in St. Cloud, Minnesota.

“Development Counsel” means the law firm of Fryberger, Buchanan, Smith & Frederick, P.A.

“Development Property” means the Abatement Property.

“EDA” means the Mt. Iron Economic Development Authority, St. Louis County, Minnesota.

“Project” means the construction of an approximately 2,400 square foot distribution warehouse for bread and bakery products and related site improvements to be located on the Abatement Property.

“Tax Abatement Act” means Minnesota Statutes, Sections 469.1812 through 469.1815, as amended.

“Tax Abatement Program” means the use by the City of its powers under the Tax Abatement Act to encourage economic and other development within the City.

Section 2.        Recitals.  The Council makes the following recitals of fact:

1. The City Council has received a request from the Developer to provide financial assistance for the purposes of the Developer’s acquisition of the Development Property from the EDA on which the Developer proposes to construct and equip the Project.
2. The terms and conditions of the financial assistance proposed to be provided to the Developer are included in the Agreement, including the agreement of the City to abate ad valorem taxes on the Development Property for a period of 10 years. The proceeds of the abatement will be paid by the City to the Developer to offset the purchase price of the Development Property.
3. A copy of the Agreement has been made available to the City Council.
4. The City Council held a public hearing on the proposed Abatement on August 3, 2020, after no less than 10 days nor more than 30 days published notice in the Hometown Focus. The views of all interested persons were heard at the public hearing.

Section 3.        Findings. This Council finds and determines that:

1. the benefits to the City from the Abatement as proposed will be at least equal to the costs to the City of the Agreement;
2. the Abatement is in the public interest because it will increase the tax base, help retain and expand commercial and industrial enterprise in the City, and provide employment opportunities in the City;
3. the Abatement Property is not located in a tax increment financing district; and
4. the development of the Project in the City and the Abatement are vital and are in the best interests of the City and the health, safety, morals and welfare of its residents: (i) to help provide access to services for residents of the City; (ii) promote and carry out the objectives for which development in the City has been undertaken; and (iii) in accordance with the public purpose and provisions of the applicable state and local laws, including requirements of the City Code, under which the Project will be undertaken and is being assisted.

Section 4.        Approvals.

4.01.    The Agreement is approved in substantially the form on file with the City Administrator and is incorporated by reference and made a part hereof.

4.02.    The Abatement is approved, subject to the terms and conditions of the Agreement and this Resolution, including but not limited to the following:

• The Abatement shall be for a period of 10 years commencing with real estate taxes payable in 2021 and continuing through 2030.
• The aggregate total Abatement paid by the City shall not exceed $5,000.
• The Abatement shall at all times be subject to the requirements of the Tax Abatement Act and will be paid or credited to the Developer as provided in the Agreement.
• In order to be entitled to the benefits of Abatement, the Developer must not be in default under the Agreement, which requires the Developer to meet all its payment obligations to the City respecting taxes, assessments, utility charges or other governmental impositions.
• The City will add to its levy in each year during the term of the Abatement the total estimated amount of current year portion of the Abatement.
• In no year shall the Abatement, together with all other abatements approved by the City under the Tax Abatement Act and paid in that year, exceed the greater of (i) ten percent of the City’s net tax capacity for the taxes payable year to which the Abatement applies or (ii) $200,000; provided that the foregoing limit does not apply to uncollected abatement from a prior year that is added to the abatement levy.

Section 5.        Execution of Documents.

1. The Authorized Officers are authorized and directed to execute and deliver the Agreement on behalf of the City, with changes, insertions and omissions approved by the Executive Director in consultation with Development Counsel.
2. The Authorized Officers and other officers and members of the City Council (individually or with one or more other officers and members of the City Council) are authorized and directed to (i) execute and deliver all other documents which may be required under the terms of the Agreement or by Development Counsel; (ii) take any other action required or deemed appropriate on the advice of Development Counsel for the performance of the City’s duties necessary to carry out the purposes of the Agreement; and (iii) furnish certified copies of this Resolution, all proceedings and records of the City relating to the Agreement and the Abatement, and any other affidavits and certificates required, in the opinion of Development Counsel, to show the facts relating to the City respecting the Agreement and the Abatement, as the facts appear from the books and records in the City’s custody and control or as otherwise known to them.
3. The execution by the Authorized Officers of the Agreement is conclusive evidence of their approval in accordance with the terms of this Resolution.
4. If any of the Authorized Officers or any other officer, employee or agent of the City authorized to execute certificates, instruments or other written documents on behalf of the City:
5. ceases to be an officer, employee or agent of the City after he or she has executed any certificate, instrument or other written document, the validity or enforceability of the certificate, instrument or other written document signed by them is not affected; and
6. is unavailable to execute certificates, instruments or other written documents, the certificates, instruments or other written documents may be executed by a deputy or assistant to the unavailable officer, or any other officer of the City who is, in the opinion of Development Counsel, authorized to sign the certificates, instruments or other written documents, with full force and effect.

Section 6.        Ratification.  The actions of the Executive Director and Development Counsel with respect to preparation of and publishing the notice of public hearing on the sale of the Development Property are ratified and approved.

Adopted by the City Council of the City of Mountain Iron, Minnesota, this 3^rd day of August, 2020.

 

 

 

                                                                                                                                                                                                                                   

                                                                                    Mayor

ATTEST:

 

 

                                                           

City Administrator

M:\DOCS\17065\000007\ROL\18V040502.DOC

 

EXHIBIT A

 

Part of the Northeast Quarter of the Southeast Quarter, Section 10, Township 58 North, Range 18 West of the Fourth Principal Meridian, St. Louis County, Minnesota described as follows:

 

Commencing at the northeast corner of said Northeast Quarter of the Southeast Quarter; thence North 88 degrees 11 minutes 07 seconds West, assumed bearing, along the north line of said Northeast Quarter of the Southeast Quarter 399.88 feet; thence South 00 degrees 00 minutes 00 seconds East 179.20 feet to the southerly right of way of County Road 102 as presently constructed and existing; thence North 88 degrees 21 minutes 55 seconds West, along said southerly right of way, 265.00 feet to the intersection with the easterly right of way of Silicon Way, as presently constructed and existing; thence South 00 degrees 00 minutes 00 seconds East, along said easterly right of way 240.00 feet; thence South 88 degrees 21 minutes 55 seconds East, parallel with said southerly right of way of County Road 102, a distance of 265.00 feet; thence North 00 degrees 00 minutes 00 seconds East, parallel with said easterly right of way of Silicon Way 240.00 feet, to the point of beginning.

 

Subject to easement, restrictions, or reservations of record, if any.