01-51 - 09-19 - Approve Tax Abatement General Mills, One General Mills Blvd Resolution 01-51 September 19, 2001
Member Johnson introduced the following and moved its adoption:
RESOLUTION APPROVING PROPERTY TAX ABATEMENT
FOR CERTAIN PROPERTY IN THE CITY OF GOLDEN VALLEY
GENERAL MILLS, INC.
ONE GENERAL MILLS BOULEVARD
WHEREAS, General Mills, Inc. has proposed two separate expansions of its
corporate world headquarters located at One General Mills Boulevard in Golden Valley
legally described on attached Exhibit A; and
WHEREAS, Phase I of the expansion is expected to commence in 2002 and consist
of a 6-story, 324,000 square foot office building, a 2-story, 138,000 square foot employee
services building, and a 4-level parking facility, with a total estimated market value at
completion of approximately $77,000,000 (the "Phase I Improvements"); and
WHEREAS, certain public improvements are required to support the Phase I
Improvements, including improvements to Betty Crocker Drive, the east and west ramps to
1-394 ramp at General Mills Boulevard, the intersection of Boone Avenue and Highway 55,
and other street, sidewalk and sewer improvements, all including costs of related
engineering, legal and other consultant costs, (the "Public Improvements"); and
WHEREAS, General Mills has requested the City to grant a property tax abatement
pursuant to Minnesota Statutes, Sections 469.1812 to 469.1815, that will be used to pay
the cost of the Public Improvements; and
WHEREAS, the City has published a notice of public hearing on such property tax
abatement request in accordance with Minnesota Statutes, Section 469.1813 and duly held
a public hearing thereon on September 19, 2001; and
WHEREAS, Independent School District No. 270 (Hopkins) has declined to grant an
abatement of its portion of the real estate taxes on the Phase I Improvements after written
request by the City; and
WHEREAS, pursuant to Minnesota Statutes, Section 469.1813, the amount of the
abatements in any year are limited to the greater of (a) $100,000, or (b) five percent of the
City's total current levy, which results in a current limit of approximately $500,000; and
WHEREAS, pursuant to Minnesota Statutes, Section 469.1813, the abatements can
continue for up to 15 years, due to the School District's not granting an abatement; and
WHEREAS, pursuant to the above limits, the proposed abatements on the Phase I
Improvements will equal approximately $250,000 in 2004 and approximately $500,000 to
$735,000 (calculated using a 3% yearly increase factor).in each of the years 2005 through
2018;
Resolution 01-51 - Continued September 19, 2001
NOW, THEREFORE, IT IS HEREBY RESOLVED, that the City shall abate the real
estate taxes payable on the Phase I Improvements, except for the fiscal disparities
contribution, subject to an annual limit equal to the greater of (a) $100,000, or (b) five
percent of the City's total levy in each such year; and
RESOLVED, FURTHER, that the abatements shall begin in 2004 and continue until
the earlier of (a) 15 years through 2018, or (b) until the cost of the Public Improvements
(including principal and interest on any bonds issued by the City) has been paid in full; and
RESOLVED, FURTHER, that it is hereby found and determined that the abatements
are in the public interest because they will finance public improvements related to the
Phase I Improvements, and that the Phase I Improvements will increase the tax base of the
City, provide employment opportunities within the City, and result in development of a site
that is difficult to develop because of poor soil conditions; and
RESOLVED, FURTHER, that payment of the abatements is contingent on the
receipt by General Mills of all approvals required for construction of the Phase I
Improvements, including PUD approval from the City; and
RESOLVED, FURTHER, that the City shall review every two years whether the
abatements shall continue and, if the Council determines, the abatements may be
discontinued.
C� ((�2C^�
Mary E. . derson, Mayor
ATTEST:
r.
Donald G. Taylaf,'_ ty Clerk
The motion for the adoption of the foregoing resolution was seconded by Member LeSuer
and upon a vote being taken thereon, the following voted in favor thereof: Anderson,
Bakken, Johnson and LeSuer; and the following voted against the same: Micks,
whereupon said resolution was declared duly passed and adopted, signed by the Mayor
and her signature attested by the City Clerk.
Resolution 01-51 - Continued September 19, 2001
EXHIBIT A
(Legal Description)
That part of the Southwest Quarter of the Southwest Quarter of Section 31, Township 118
North, Range 21 West of the Fifth Principal Meridian, Hennepin County, Minnesota lying
southerly and easterly of Betty Crocker Drive and Highway No. 169 right-of-ways described in
Document Number 1006455 and Document Number 4570487.
That part of the Southeast Quarter of the Southwest Quarter of Section 31, Township 118
North, Range 21 West of the Fifth Principal Meridian, Hennepin County, Minnesota bounded
on the north by the southerly right-of-way of Betty Crocker Drive described in Document
Number 1006455 and on the east by Minnesota Department of Transportation Right-of-way
Plat No. 27-25.
That part of the Northeast Quarter of the Northwest Quarter and the Southeast Quarter of the
Northwest Quarter, Section 6, Township 117 North, Range 21 West of the Fifth Principal
Meridian, Hennepin County, Minnesota bounded on the south and east by Minnesota
Department of Transportation Right-of-way Plat No. 27-25.
That part of the Northwest Quarter of the Northwest Quarter and the Southwest Quarter of the
Northwest Quarter, Section 6, Township 117 North, Range 21 West of the Fifth Principal
Meridian, Hennepin County, Minnesota lying northerly of Minnesota Department of
Transportation Right-of-way Plat No. 27-25 and easterly of Highway No. 169 described in
Document Number 4570487.