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EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113 651.697.8500 <br /> <br />Abatements are authorized to finance public infrastructure, whether or not the benefitted infrastructure is on or adjacent <br />to the parcel for which the tax is abated. The owner of a parcel for which taxes are abated need not consent. Thus, a <br />political subdivision may approve an abatement for certain parcels and use the retained taxes to finance public <br />improvement projects. <br /> <br />[] The notification requirements include a public hearing with a 10 to 30 day publication notice. <br /> <br />The findings required by a council or board include general statements of tax base, preservation, employment, public <br />facilities, blight, or access to services. <br /> <br />G.O. Abatement Bonds can be issued without affecting net debt and can be issued without a referendum under certain <br />conditions. <br /> <br />Abatement does not require a property owners consent. <br /> <br />Abatements cannot be used in concert with tax increment financing, but can be utilized after a TIF district is <br />decertified. <br /> <br />Another issue which complicates the abatement program is the specific authority of a governmental body to pledge its <br />abatements to the debt of another governmental entity, if the debt is not a G.O. Abatement Bond. Many attorneys differ on <br />the interpretations of the pledges allowed and what exactly constitutes a G.O. Abatement Bond. <br /> <br />We recommend that abatement always be utilized in conjunction with a development agreement that clearly spells out the <br />developer's responsibilities with respect to improvements and job and wage goals. <br /> <br />Abatement is a "business subsidy" and as such is subject to Minnesota Statutes § 116J.993 - § 116J.995. <br /> <br />Ehlers & Associates - Abatement <br /> <br /> <br />