10-25-1995 Council Agenda - Laserfiche WebLink

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OCT 18 '95 09:23AM EHLERS & ASSOCIATES 40 VE4RANNIVERSARY Ehlers and Assaclates,Inc. LEADERS IN PUBLIC FINANCE MEMO To: City ofLittle Canada From: Rusty Fifield Subject: Initiating Bond Sale Process G.O. Taxable Tax Increment Bonds, Series I995B Date: October 18, 1995 P.2/2 At the October 25th meeting, the City Council will be asked to adopt a resolution calling for the sale of the above issue. This issue will be used for the rehabilitation of the Market Place shopping center pursuant to the City's Statement of Understanding with Robert Grootwassink. 1 am in the process of preparing the pre -sale report on this bond issue. 1 will present the report at the Council meeting. Some preliminary elements of the finance plan include: ▪ The issue size is currently estimated to be between $1,950,000 and $2,000,000. The proceeds of the issue will be used to fmance the acquisition and rehabilitation of the Market Place. • The length of the debt will be determined by the amount of tax increment revenue that would be available. The City must expect to receive tax increment revenue equal to 20% of the principal amount of the bonds. • We are recommending that the bond sale occur during the week of November 27. Since the Council does not have a regular meeting this week, a special meeting will be necessary. We recommend scheduling the sale for Tuesday, November 28. • The bonds will not be sold unless the City and the Developer have executed a development agreement and other related legal documents. These documents will spell out the terms and conditions under which the City will participate in this project. The pre -sale report will discuss these matter in greater detail. OFFICES IN MINNEAPOLIS, MN AND BROOKFIELD, WI 2950 Norwest Center. 90 South Seventh Street, Minneapolis, MN 55402-4100 Telephone 612- 339 -8291 . FAX 612.339 -0854 Page 36