05.01 - Req for Tax Abatement-Oppidan, Public Hearing

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EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF PEQUOT LAKES, MINNESOTA HELD: October 6, 2009 Pursuant to due call and notice thereof, a meeting of the City Council of the City of Pequot Lakes, Crow Wing County, Minnesota, was duly called and held at the City Hall in said City on Tuesday, the 6th day of October, 2009, at 6:30 o'clock p.m. The following members were present: and the following were absent: Member adoption: introduced the following resolution and moved its RESOLUTION APPROVING PROPERTY TAX ABATEMENTS AND AUTHORIZING EXECUTION OF A TAX ABATEMENT AGREEMENT BE IT RESOLVED by the City Council (the "Council ") of the City of Pequot Lakes, Minnesota (the "City "), as follows: 1. Recitals. (a) Oppidan, Incorporated, a Minnesota corporation, (the "Developer ") proposes to construct an approximately 33,000 square foot grocery store and commercial facility, potential gas island and associated parking to be located on Highway 371 in the City (the "Project "). The Developer has requested that the City provide financial assistance to the Developer for the Project. The City proposes to use the abatement for the purposes provided for in Minnesota Statutes, Sections 469.1812 through 469.1815 (the "Abatement Law "), including the Project, from a portion of the property taxes to be levied by the City on property currently identified as: Parcel Identification Numbers 29- 015- 140 -OEO -0889, a portion of 29- 015- 140 -ODA -0009, and a portion of 29- 015- 41 -OOA- 00009, to be replatted as described in Exhibit A, in the City of Pequot Lakes, Crow Wing County, Minnesota (the "Tax Abatement Property "). 2410619x2 (b) The proposed term of the abatement will be for up to 13 years in an amount not to exceed $350,000 plus interest at a rate of 6% per annum, with an estimated future value of approximately $592,000. The proposed abatement will apply to a portion of the City's share of real estate taxes which relate to the improvements to the Tax Abatement Property by the Developer and not the real estate taxes on the Tax Abatement Property that relate to the value of the land, as determined by the City (the "Abatement ").