3.0. EDSR 02-05-2001 - Laserfiche WebLink

Home Browse Search

• EHLERS&ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113 651.697.8500 ❑ Abatements are authorized to finance public infrastructure,whether or not the benefitted infrastructure is on or adjacent to the parcel for which the tax is abated. The owner of a 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 of tax base,preservation,employment,public facilities, blight, or access to services. ❑ G.O.Abatement Bonds can be issued without affecting net debt and can be issued without a referendum under certain conditions. ❑ Abatement does not require a property owners consent. ❑ Abatements cannot be used in concert with tax 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 the debt of another governmental entity, if the debt is not a G.O.Abatement Bond. Many attorneys differ on the interpretations of the pledges allowed and what exactly constitutes a G.O. Abatement Bond. .We recommend that abatement always be utilized in conjunction with a development agreement that 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 Statutes § 116J.993 —§ 116J.995. • Ehlers&Associates-Abatement