City Abatement definition

City Abatement means the property taxes (i) generated in any tax-payable year by extending the City’s total tax rate for that year against the tax capacity of the Development Property in accordance with this Agreement, excluding the portion of the tax capacity attributable to the areawide tax under Minnesota Statutes, Chapter 473F, all as of January 2 in the prior year, and (ii) paid to the City by the County.

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City Abatement means the personal property taxes (i) generated in any tax-payable year by extending the City’s total tax rate for that year against the tax capacity of the Development Property in accordance with this Agreement, excluding the portion of the tax capacity attributable to the areawide tax under Minnesota Statutes, Chapter 473F, all as of January 2 in the prior year, and (ii) paid to the City by the County.

City Abatement means the amount equal to that which is calculated in each tax-payable year as follows: the Net Tax Capacity of the Development Property as improved by the Minimum Improvements, as of January 2 in the prior year, less the Net Tax Capacity of the value of the land and existing improvements on the Development Property, as established by the County Assessor on January 2, 2016 for taxes payable in 2017 and less any portion of the Net Tax Capacity attributable to the areawide tax under Minnesota Statutes, Chapter 473F, then multiplied by the City’s Local Tax Rate for the Development Property for the subject tax-payable year, to the extent actually paid to the County and transmitted to the City as its share of property taxes.

Examples of City Abatement in a sentence

• The pledge of City Available Abatements is subject to all the terms and conditions of the City Abatement Resolution.

• The City does not warrant or represent that the City Abatement in the amounts pledged under this Agreement will be within the City’s Abatement Volume Cap.

• The County has not granted any other abatement under the Tax Abatement Act as of the date of this Agreement, and agrees that if the County grants any additional abatements under the Tax Abatement Act during the term of this Agreement, the County’s Abatement Volume Cap will be allocated first to the abatements granted prior to the date of this Agreement and to the City Abatement pledged pursuant to this Agreement.

• The City Abatement will reimburse the Developer for a portion of the costs of completing the Project upon the following scale: (i) years 1-5: 100% City Abatement, (ii) years 6-10: 66% City Abatement; and (iii) years 11-15: 33% City Abatement, such that the average blended percentage of the City Abatement is 66% over 15 years.

• The City has not granted any other abatement under the Tax Abatement Act as of the date of this Agreement, and agrees that if the City grants any additional abatements under the Tax Abatement Act during the term of this Agreement, the City’s Abatement Volume Cap will be allocated first to the abatements granted prior to the date of this Agreement and to the City Abatement pledged pursuant to this Agreement.

• In order to make the Project economically feasible, the City will grant the City Abatement for a period of up to fifteen (15) years to the Developer commencing August 1, 2027 and continuing through February 1, 2042.

• The Developer understands that the City Abatement, the ISD No. 721 Abatement, and the County Abatement pledged pursuant to this Agreement are derived from real property taxes on the Development Property, which taxes must be promptly and timely paid.

• Further, in no event shall the City Abatement, the amount of the County Abatement and the amount of the ISD No. 721 Abatement provided to Developer from August 1, 2027 through February 1, 2042, exceed $809,943.00.

• In no event shall the City Abatement exceed a cumulative total of $316,965.00 over the term of the City Abatement.

• Further, in no event shall the cumulative City Abatement, ISD No. 721 Abatement and County Abatement paid to the Developer during the term of this Agreement exceed an amount of $809,943.00.