HomeMy WebLinkAbout2016-02-09 PACKET 04.03.F.
Property and Taxation
Policy #4006
Economic Development Abatements
(Minnesota Statutes 469.1812 –469.1815)
Policy
The County Board has established a goal to increase its support of economic
development efforts within Washington County.The county is committed to investing
staff time and financial resources in a planned, coordinated and strategic manner to
promote economic development that creates new jobs, retains jobs, increases the
county tax base, and enhances the quality of life of the residents of the county.To
meet these goals, the county board is committed to partnering with its local communities
through the utilization of economic development tools that are available.
Economic abatement applications that are submittedunder Minnesota Statutes Chapter
469 will be reviewed and considered as provided in this policy.
Guidelines
Applicants for an economic abatement shall complete an application for economic
development abatement that includes:
1.Name and contact information of the applicant
2.Description of request
3.List ofparcels included in the abatement request
4.Beginning and ending datesofthe abatement
5.The dollar amount or applicable formula of the abatement request
6.Description of the abatement benefits in compliance with M.S. 469.1813 Subd.1
(1)
7.Description of the public interest served by the abatement as defined in M.S.
469.1813 Subd.1(2)
Administrative Requirements
1.The proposal must comply with Minnesota Statutes.
2.The proposal must include property identification numbers or legal descriptions and
the abatement area must be made up of existing parcels of record.Taxparcels
subject to the abatement request must not be in a tax increment financing district.
3.The Property Records and Taxpayer Services Department may impose a fee
commensurate with the complexity of the abatement to cover administrative costs
Implemented: July 24, 1990Page 1of 3
Revised: November 9,2010
Revised: October 6, 2015
Policy #4006
of the program that are anticipated to be incurred over the life of the abatement.
Such fee, as applicable, will be included in the terms of the abatement agreement.
Restrictions on Economic Development Abatements
1.In compliance with M.S. 469.1813 Subd.1 (1), the county board must find that the
expected benefits of the agreement to the county are at least equal the cost.
2.In compliance with M.S. 469.1813 Subd.1 (2), theboard must find that the
abatement action is in the public interest, because the abatement will meet at least
one of the following criteria:
i.Increase or preserve tax base;
ii.Provide employment opportunities in the county;
iii.Provide or help acquire or construct public facilities;
iv.Help redevelop or renew blighted areas;
v.Help provide access to services for county residents;
vi.Finance or provide public infrastructure; or
vii.Phase in a property tax increase of more than 50% not attributable to
improvement of the parcel.
3.By statute, abatements may not exceed ten (10) percent of Washington County’s
net tax capacity.
Economic Development Abatement Considerations
The county board will consider the following as part ofits review and approval of
abatements granted under this section:
1.The consistency of the plan with the principles of the county’s comprehensive
plan for land use and transportation.
2.The extent to which the project has regional impact.
3.The extent to which other taxing jurisdictions participate in the proposed
abatement.
4.The extent to which the project impactscounty costs for road construction, traffic
control, law enforcement, human services and other budgetary items.
5.Whether the abatement includes transit orienteddevelopment along transit
corridors.
6.The extent to which the abatement contributes to the availability of housing,
particularly for persons or families of low and moderate income. Washington
County supports housing strategies that create scattered site low income housing
options, rather than concentrating development of low income housing in
complexes or “projects”, or
7.The extent to which the abatement contributes to economic development. For
this purpose, provision of employment opportunities as required by statute will be
defined as providing benefits and livable wages.
Implemented: July 24, 1990Page 2of 3
Revised: November 9,2010
Revised: October 6, 2015
Policy #4006
Definitions
A.Economic Development Abatement
A reduction of part or all of the county tax on a property as an incentive for
economic development as authorized by Minnesota Statutes 469.1812 to 469.1815.
B.Increase or Preserve Tax Base
The extent to which the proposal adds to the county’s net commercial and industrial
tax base.
Responsibility
County Board
1.Hold public hearing of abatement request prior to approval.
2.Review and approve by resolution or deny any economic development
abatementapplicationand abatement agreement.
County Administration
1.Accept applications for economic development abatements under this policy.
2.Ensure the abatements meet the statutory requirements in Chapter 469.
3.Ensure the abatements meet the requirementsoutlined in this policy.
Property Records and Taxpayer Services Department
1.Provide the necessary tax and value information in order to estimate the impact
of any approved abatement on the county’s tax base and finances. The fiscal
disparities contribution must be deducted from the tax capacity used to compute
the amount available for purposes of the abatement so that there is no adverse
effect on the existing tax base.
2.Provide draft abatement agreement language.
3.Provide for the on-going administration of the abatement as identified in the
authorizing resolution.
Source
1997 and 2001 Minnesota Legislatures, Chapter 469
County Board motion November 9, 2010
County Board motion October 6, 2015
Implemented: July 24, 1990Page 3of 3
Revised: November 9,2010
Revised: October 6, 2015