Resolution Number 29-15 Tax Abatement
RESOLUTION NUMBER 29-15
APPROVING PROPERTY TAX ABATEMENT FOR CERTAIN PROPERTY LOCATED IN THE CITY OF MOUNTAIN IRON
BE IT RESOLVED By the City Council (the “Council”) of the City of Mountain Iron, St. Louis County, Minnesota (the “City”) as follows:
Section 1. Recitals.
1.01. The City proposes to provide assistance to Iron Range Investment LLC with development costs located within the City (the “Project”). The City proposes to use abatement for the purposes provided for in Minnesota Statutes, Sections 469.1812 through 469.1815, as amended (the “Act”). The proposed term of the abatement will be for up to 10 years in an aggregate total amount not to exceed $75,000 (the “Abatement”) and will be derived from the City’s share of property taxes derived from the parcels identified on the attached Exhibit A (the “Abatement Property”).
1.02. On the date hereof, this Council conducted a duly noticed public hearing on the Abatement at which the views of all interested persons were heard, and said hearing was preceded by at least 10 days but not more than 30 days prior published notice.
1.03 The Abatement is authorized under the Act.
Section 2. Findings.
2.01. This Council finds and determines that the benefits to the City from the Abatement will be at least equal to the costs to the City and that the Abatement is in the public interest because it will increase or preserve the tax base.
2.02. The Abatement Property will not be located in a tax increment financing district during the term of the Abatement.
2.03. In accordance with Section 469.1813, Subdivision 8 of the Act, in no year shall the Abatement, together with all other abatements approved by the City under the Act and paid in that year, exceed the greater of ten percent of the City’s net tax capacity for the taxes payable year to which the Abatement applies or $200,000.
Section 3. Actions Ratified; Abatement Approved.
3.01. This Council ratifies all actions of the City’s staff and consultants in arranging for approval of this Resolution in accordance with the Act.
3.02. Subject to the provisions of the Act, the Abatement is approved and adopted subject to the following terms and conditions:
- The Abatement shall be up to 10 years commencing with real estate taxes payable in 2016 and continuing through 2026, inclusive.
- The aggregate total Abatement paid by the City shall not exceed $75,000.
- The Abatement shall at all times be subject to the Act.
- In accordance with Section 469.1815 of the Act, the City will add to its levy in each year during the term of the Abatement the total estimated amount of current year Abatement granted under this Resolution.
3.03. The Mayor and Administrator are authorized and directed to execute and deliver any agreements, certificates or other documents that the City determines are necessary to implement this Resolution.
DULY ADOPTED BY THE CITY COUNCIL THIS 7th DAY OF DECEMBER, 2015.
Mayor Gary Skalko