06-23-2025 Workshop Packet - Laserfiche WebLink

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• There is no impact on the City’s credit rating or general obligation bonding capacity. • The City would receive a one-time issuer’s fee equal to 0.5% of the total bond amount. • Preliminary approval strengthens the project’s position in future bond rounds and enables reimbursement of eligible pre-issuance costs. LUPE has requested that the City adopt a resolution of support by June 30 to meet the Minnesota Management and Budget (MMB) bond application deadline. To assist with this timeline, a special meeting of the City Council would need to be scheduled for June 27. However, the request does not inherently necessitate a special meeting. The Council may choose to wait and consider the resolution at a future regular meeting instead. Whether to proceed with a special meeting is entirely at the Council’s discretion based on availability, timing, and comfort with the request. The City’s bond counsel, Catherine Courtney of Taft, has provided a memorandum outlining the bond request and associated procedures. The City’s TIF consultant, Baker Tilly, has submitted a financial analysis of the revised TIF request and outlined options for Council consideration. RECOMMENDATION City staff recommends that the City Council review the updated TIF request from LUPE Development. Based on current assumptions, staff and the City’s TIF consultant believe the Council can maintain its previously stated offer of $200,000 or a five-year term, whichever is less. If the developer does not receive the full LCDA grant amount, the Council may choose to revisit the TIF request at that time; however, any revision should be supported by further financial analysis and a clearly demonstrated need. Staff is supportive of adopting a preliminary resolution of support for the conduit revenue bond request. As outlined by the City’s bond counsel, the issuance presents no financial risk to the City, does not impact bonding capacity or credit rating, and may help the developer secure favorable financing. The developer will cover all legal and application costs, and the City will collect a one-time issuer’s fee if the bonds move forward. The developer has requested adoption of the resolution by June 30 to meet the Minnesota Management and Budget (MMB) bond application deadline. While staff can facilitate a special meeting if directed, we are not providing a recommendation on whether such a meeting should be held. That decision rests solely with the City Council based on interest, availability, and comfort with the timeline. The Council has two options for considering the bond resolution: 1. Hold a special meeting on June 27 to consider and potentially adopt the preliminary resolution of support; or 2. Defer action to a future regular Council meeting on a date certain, with the option to approve or deny the request at that time. ATTACHMENTS • ATTACHMENT A: Baker Tilly TIF Analysis Memo • ATTACHMENT B: Taft Conduit Revenue Bonds Analysis Memo • ATTACHMENT C: Draft Bond Documents