Agenda - Economic Development Authority - 10/14/2002

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Fram-CiTY OF COON RAPIDS ENG-PLANINSP +TB37675573 %431 P.03%03 F-gl1 Sep-ll-OZ 11:54~m EHLERS & ASSOCIATES, INC. 3060 Celltre Pointe Ddve, Roseville, Minnesota 55113 651,697,8500 Abatemems are ,mthorized to finance public infrastructure, whether or not the benefitted infrasu'ucturc i5 on or adjacent to the parcel for which the tax is abated. The owner ora parcel for which taxes are abated need not consent. Thus, a political subdivision may approve an abatement for certain parcels and use the retained taxes to finance public improvement projects. The notification requirements include a public hearing with a 10 to 30 day publication notice, The findings required by a council or board include general statements oftax base, preservation, employment, public J;'tcilities, blight, or access to services. n G.O. Abatement Bonds can be issued without affecting )let debt and can be issued without a referendum under certain conditions. tn Abatement does not require a property owners consent. 12 Abatements can,mt be used in concert with lax increment financing, but can be utilized after a TIF district is decertified. Another issue which complicates the abatement program is the specific authority of a governmental body to pledge its abatements to ~he debt of another governmental entity, if the debt is not a G.O. Abatement Bond. Many atlorneys differ on the interpretations of the pledges allowed and what exactl3, constitutes a G.O. Abatement Bond. We recommend that abatement always be utilized in conjunction with a development agreement tha~ clearly spells out the }developer's responsibilities with respect to improvements and job and wage goals. Abatement is a "business subsidy" and ,as such is subject to Minnesota S~atutes § 116J.993 - § I 16J.995. Ehlors & Associates - Abatement