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Home My WebLink About1998-02-04 PACKET 04.Y.REQUES� bF CI°P'Y COl1NCIL P,CTIOt� COUiNCIL AGE�DA MEETIN� iTEM # � D�TE 2(4/98 � PREPAF2ED �Y ,4dministratiorr Rvan schroeder OE21GI(VATING DEPAF3TMEh1T STP.FF AUTHOR .<««,��.��....�.��..��a.�.�.«�»��d.�.k��«�� COUNCIL ACTION REQUEST Receive Legislative updates. SUPPORTING DOCUMEtdI'S: � MEMO/LElTER: F2yan R. Schroeder, 1l30/98 ❑ RESOLUTIOfV: ❑ ORDBNANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECONiMENDATIOM: ❑ OTHER: ADMINISTRATORS COMMENTS: / /a7C7 City Administrator Date �.�...�.....ffi.«.�«x..¢,.<Q.ffi��.�.>�.��.«..��R> COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER • • To: Mayor and City Councii From: Ryan R. Schroeder, City Administrator Date: January 30, 1998 Re: Receive �egislative Updates On January 7, 1998, Council directed the City Attomey to submit a bill to area iegisiators regarding the impad of Green Acres upon developnerrt poterrtial of the CoBage Grove industrial park. On January 21, 1998, staff provided a very brief update ofthe iegislative effort noting that the original bili had been reworcled and had added to it a provision regarding the waste tfeatment plant. On January 27, 1998, the latter provision was introduced in the House Local Govemment and Metro Affairs Committee, although it did �ot receive a fuil hearing. On that same day an fteration of the staff presentation to the House was forwarcled to Counci�. These bills have sparked a fair amount of interest. We have received the verbal suppoA of a number of cities. At the same time, however, the Met Counal and aligned groups have e�cpressed concems. As a result of the various discussions, the Mayor, Representative Marko, and i have been able to schedule a meeting with the Metropolitan Council and House Research to discuss our concems regarding both issues (1. impact of Green Acres in industrial pa�ics and 2) concem that seven cities are hosting treatment fadlities for a total of 104 aties witho�t any particular unique benefrt to the host community). These meetings wiil take p�ace on February 3,1998. The purpose of this memorae2dutn is 4o update. The biiis as they now ebst are attached for your review. Given the shor[ session it is not expeded that either bill wili go very far. It is expected, however, that enough atterrtion will be generated to place Cottage Grove in a better position to further fts issues and concems regarding the industrial paAc, issues related, a�d the treatmerrt plant •.•- O1/15/96 (REVISOR J XR/Mp 98-5049 1 A bill for an act 2 relating to taxationt authorizing the inclusion of 3 certnin propezty in tax increment districtsi extending 4 payment of deferred taxes if certain property is 5 zemoved foz green acres treatment; amending Minnesota 6 Statutes 1996, sections 273.111, eubdivision 9J and 7 969.176, subdiviaion 7. 8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 9 Section 1. Minnesota Statutea 1996, eection 273.111, 10 subdivision 9, is amended to read: 1S Subd. 9. When zeal property which is being, or has been 12 valued and assesaed under this section no langez qualifies under 13 subdiviaions 3 and 6, the portion no longer qualifying ahali be 19 anbject to additional taxes, in the amount equal to the 15 difference between the taxea determined in accordance aith 16 subdiviaion 4,'and the amount determined under subdivision 5, 17 provided, however, that the amount 6etermined under eubdivieion 18 5 ahall not be greatez than it would have been had the actual 19 bona fide sale price of the real property at an azms length 20 transaction been used in lieu of the market value determined 21 under aubdiviaion 5. Such additional taxea ahall be extended 22 against the property on the tax list for the current year, 23 pzovided, however, that no interest or penalties ahaii be levied 24 on euch additional taxes if timely paid, and provided fuxther, 25 that such additional taxes shall only be levied with respect to 26 the last three yeara that the said psoperty has been valued and Section 1 1 O1/15/98 (REVISOR j XX/MP 98-5049 1 2 3 4 5 6 7 8 9 10 11 12 13 14 aesessed under this section. Notwithstandina the urecedinq aentence, taxes owed mav be paid over a period of 30 years (1) if the propertY has been zoned industrial property at least ten vears prior to the date the property no lon er qualifies under aubdivisions 3 and 6 and, CZ) if the propertY ie in the metropolitan area as defined in section 473.121, subdivision 2, all of the oarcels in the district are within the urban service area as defined bv the metropolitan council, and �) the property is developed as commercial oz industzial property within three vears after it no lon er qualifiea under subdivisiona 3 aad 6. Sec. 2. Minnesota Statutes 1996, section 469.176, subdivision 7, is amended to read: 15 Subd. 7. [PARCELS NOT SNCLUDABLE IN DISTRICTS.] The 16 authority may request inclusion in a tax increment financing 17 district and the county auditor may certify the original tax 18 capacity of a parcel or a part of a parcel that qualified under 19 the provisions of section 273.111 or 273.112 or chapter 473H for 20 taxes payable in any of the five calendar years before the 21 filing of the requeat for ceztification only foz 22 (1) a district in whieh 85 pezcent or more of the planned 23 bnildings and Pacilities (determined on the baeis of equare 24 footage) ere Poz manufacturing or production of tangible � 33 peraona3 property, including proceasing resulting in the change 26 in condition of the property; er 27 (2) a qualified houaing district as defined in section 28 273.1399, subdivision ls; or 29 S3) a district in which all of the parcels ineluded within 30 the dietrict at the time of certification of the district or 31 added to the diatzict have been zoned industrial propertv at 32 least ten vears prior to the date of the reauest foz 33 certification and in the metzopolitan area as defined in section 34 473.121, subdivision 2, all of the narcels in the district are 35 within the urban service area as defined bv the metropolitan 36 council. 2 O1/16/98 (REVZSOR j RJS/KS 98-5050 V� 0 1 � A bill for an act 2 relating to metropol3tan wastewater treatment wozks; 3 providing compensatlon to political subdivisiona for 4. certain lost revenue; amending Minnesota Statutes . 5 1996, section 473.545. 6 BE IT ENACTED SY TAE LEGISLA2URE OF THE STATE OF MSNNESOTA: 7 � Section 1. Minnesota Statutes 1996, seetion 973.545, is 8 amended to read: 9 973.545 (PROPEBTY EXEMPT FROM TAXAT:ON.j 10 Subdivision 1. (EXEMPTION; ASSESSMENTS.J Any properties,�� . 11 zeal oz personal, owned, leased, controlled, used, or occupied 12 by the council for any purpose referred to in Minnesota Statutes 13 1984, section 473.502, are declared to be acquized, owned, 14 leased, controlled, used and occupied for public, governmental, , 15 and municipal purposes, and shall be exempt fsom taxation by :he 16 state or any political subdivision of the state, provided that 17 such properties shall be subject to special assessments levied 18 by a political subdivision for a local improvement in amounts 19 proportionate to and not exceeding the special benefit received 20 by the properties from such improvement. No possible use of any 21 such properties in any mannez different from their use as part 22 of the metropolitan disposal system at the time shall be 23 considered in determining the special benefit received by such 24 propezties. All such assessments shall be subject to final 25 confirmation by the metropolitan council, whose determination of Section 1 1 Ol/16/96 [REVISOR J RJS/KS 98-5050 �1 the benefits shall be conclusive upon the political subdivision 2 levying the assessment. 3 Subd. 2. (COMPENSATION FOR EXEMPTION.j A political 4 subdivision within the metzoaolitan area that loses tax revenues 5 as a result of the tax exemption for reaional wastewater 6 treatment facilities nndes subdivision 1 must be compensated an 7 an annual basis bv the metropolitan eouncfl out of revenues 8 zeceived from sewer availabilitv chazaes in an amount eaual to 9 the loss of cropertv tax revenue to the oolitical subdivision 10 under subdivision l. 7