Sponsor: Community & Economic Development
Title
title
Termination of Abatement Agreement for the Land O’ Lakes Expansion Project
end
Recommendation
recommendation
1. Terminate the property tax abatement agreement for the Land O’ Lakes expansion project.
2. Authorize the County Manager to execute necessary documents to finalize the termination.
end
Background and Rationale
body
In 2016, Land O' Lakes requested an abatement of new property taxes generated the expansion of its headquarters campus in Arden Hills.
On April 12, 2016, Land O’ Lakes, the city of Arden Hills and Ramsey County entered into an abatement agreement for the tax increment on the new Land O’Lakes headquarters. The agreement was later amended on March 28, 2017 due to a numerical error.
Land O’ Lakes is now requesting termination of the abatement agreement. Land O’ Lakes indicated circumstances have changed for the company and the pandemic in particular had an impact on the level and pace of job creation. Job creation is a required metric for which the company was allowed to seek financial benefits under the abatement agreement. As a result, Land O’ Lakes is no longer seeking the past or future benefits of the abatement agreement.
The abatement agreement was approved by Ramsey County Board resolution, then, absent some specific direction, agreement, delegation, or statutory exception, a board resolution is necessary to unwind or dissolve the agreement.
The Arden Hills City Council plans to take up a similar action at their October 25, 2021 meeting.
end
County Goals (Check those advanced by Action)
☐ Well-being ☐ Prosperity ☐ Opportunity ☒ Accountability
Racial Equity Impact
There is no direct racial equity impact linked to the dissolution of the abatement agreement.
Community Participation Level and Impact
The community is informed of this action through Ramsey County Board action, which is published on the County’s website. <https://www.ramseycounty.us/your-government/leadership/board-commissioners/board-meetings-information>
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
With the dissolution of the abatement agreement collected taxes on the new value of the Land O’ Lakes headquarters campus expansion by all taxing jurisdictions shall be retained.
The administrative oversight of the abatement was handled by the city of Arden Hills, which collected an up-front fee for legal documentation and other administrative activities. Ramsey County was not required to oversee the annual administrative work associated with the abatement as a result.
County Manager Comments
No additional comments.
Last Previous Action
On April 12, 2016, the County Board approved the property tax abatement resolution and contract for the Land O’Lakes expansion project (Resolution B2016-153).
On April 5, 2016, the County Board held a public hearing on the requested property tax abatement
for the Land O’Lakes expansion project.
On March 15, 2016, the County Board voted to call for the public hearing for a tax abatement at the
request of Land O’Lakes (Resolution B2016-073).
On January 12, 2016, the County Board approved the Job and Tax Base Financial Incentives Policy
(Resolution B2016-018).
Attachments
1. Land O' Lakes Termination Notice