Title
RESOLUTION RELATING TO A TAX ABATEMENT; GRANTING THE ABATEMENT FOR THE Enger PARK Golf Course PROJECT.
Body
CITY PROPOSAL:
BE IT RESOLVED, by the City Council (the “City Council”) of the city of Duluth, St. Louis County, Minnesota (the “City”), as follows:
Section 1. Purpose and Authorization.
1.01 The City, pursuant to the provisions of Minnesota Statutes, Sections 469.1812 to 469.1815, as amended (the “Act”), is authorized to grant an abatement of the property taxes imposed by the City on a parcel of property, if certain conditions are met, through the adoption of a resolution specifying the terms of the abatement.
1.02 The City owns Enger Park Golf Course which is a public golf course and the City proposes to undertake improvements to such public facility including a new irrigation system (the “Project”).
1.03 Pursuant to the Act, on the date hereof, the City Council conducted a public hearing on the desirability of granting an abatement of property taxes on certain properties expected to be benefitted by the proposed Project, which properties are identified on the list attached hereto Exhibit A (the “Properties”). Notice of the public hearing was duly published as required by law in the Duluth News Tribune, the official newspaper of the City, on October 2, 2024, which date is no fewer than 10 and no more than 30 days prior to the date hereof.
Section 2. Findings. On the basis of the information compiled by the City and elicited at the public hearing referred to in Section 1.03, it is hereby found, determined and declared:
2.01 The Project is in the public interest because it will provide funds to construct improvements to Enger Park Golf Course, a public facility.
2.02 The City expects that the benefits of the proposed abatement are not less than the costs of the proposed abatement. The public benefits that the City expects to result from the abatement are the improvements to Enger Park Golf Course which are required to maintain and improve a public facility.
2.03 The Properties are not located in a tax increment financing district.
2.04 The granting of the proposed abatement will not cause the aggregate amount of abatements granted by the City under the Act in any year to exceed the greater of (i) 10% of the City’s net tax capacity for the taxes payable in the years to which the abatement applies, or (ii) $200,000.
2.05 It is in the best interests of the City to grant the tax abatement authorized in this Resolution.
2.06 Under Section 469.1813, subdivision 9 of the Act, it is not necessary for the City to obtain the consent of any owner of any of the Properties to grant an abatement.
Section 3. Granting of Tax Abatement.
3.01 A property tax abatement (the “Abatement”) is hereby granted in respect of property taxes levied by the City on the Properties for 15 years, commencing with taxes payable in 2025 and concluding with taxes payable in 2039. The Abatement will reduce all of the City’s portion of the taxes for each of the Properties, and the Abatement will not exceed $140,000 per year and a total aggregate amount of $2,100,000.
3.02 The City shall retain the Abatement and apply it to payment of a portion of the costs of constructing the Project and/or to the payment of bonds of the City issued to finance costs of constructing the Project.
3.03 The Abatement may be modified or terminated any time by the Council in accordance with the Act.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the abatement of taxes for the purpose of providing for a portion of the costs of the Enger Park Golf Course Project. The plan of finance calls for the City to issue general obligation tax abatement bonds the proceeds of which will provide funds to construct a new irrigation system at Enger Park Golf Course. Tax abatement bonds provide a statutory means to issue tax-exempt bonds for a project, with tax abatement revenues pledged for repayment of the tax abatement bonds. The City intends to utilize golf revenues to make these payments instead of relying on tax abatement revenues.
04431\000310\ROL\1DA994002.DOC
EXHIBIT A
|
Parcel Identification Number |
Address |
Business Type |
|
010-2710-03540 |
3901 E. Superior Street |
Private Country Club |
|
010-2710-03563 |
3901 E. Superior Street |
Private Country Club |
|
010-3275-00032 |
3901 E. Superior Street |
Private Country Club |
|
010-2710-03550 |
3901 E. Superior Street |
Private Country Club |
|
010-2710-03500 |
3901 E. Superior Street |
Private Country Club |
|
010-2680-00500 |
3901 E. Superior Street |
Private Country Club |
|
010-2680-00480 |
3901 E. Superior Street |
Private Country Club |
|
010-2680-00470 |
3901 E. Superior Street |
Private Country Club |
|
010-0760-02660 |
3901 E. Superior Street |
Private Country Club |
|
010-2710-03430 |
3901 E. Superior Street |
Private Country Club |
|
010-2710-00520 |
700 W. Redwing Street |
Private Country Club |
|
010-2710-00510 |
700 W. Redwing Street |
Private Country Club |
|
010-2710-00530 |
700 W. Redwing Street |
Private Country Club |
|
010-0670-00310 |
700 W. Redwing Street |
Private Country Club |
|
010-2710-04646 |
1902 Miller Trunk Highway |
Retail |
|
15 TOTAL PARCELS |
|
|