05/22/2006 Council Packet - Laserfiche WebLink

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• • • City of Lino Lakes, Minnesota May 16, 2006 13. Attachments The Abatement Bonds Springsted currently provides continuing disclosure services for the City under a separate contract. An amendment to that contract adding these Issues has been provided to City staff. The Abatement Bonds • Sources and Uses • Debt Service Schedules The Utility Bonds • Sources and Uses • Debt Services Schedules • Assessment Income Terms of Proposals DISCUSSION The proceeds of the Abatement Bonds will be used to finance a joint project between the City and the YMCA of Greater St. Paul ( "YMCA "), as per a Development Agreement dated March 1, 2006. The project consists of construction of YMCA facility within the City (the "Project "). The YMCA facility will be approximately 50,000 square feet and includes a teen center, gym, indoor pool, cardiovascular /strength training area, aerobic studio, family program space and Kids Stuff. The sources and uses for the Bonds are shown on page 8. Principal of the Abatement Bonds will only be repaid from the City levy portion of tax abatements derived from specified properties within the Tax Abatement District in Legacy at Woods Edge as stated in the Resolution approving the property tax abatements (the "Tax Abatement Parcels ") for the Project. Taxes may be abated within the Tax Abatement Parcels for a period of 15 years, commencing in levy year 2007 payable 2008. The projected tax abatement revenue has been prepared by Springsted and City staff. Excess abatement revenues, not used to pay principal, will be used to pay interest on the Bonds. We have included in the par amount of the Abatement Bonds, capitalized interest in the amount necessary to make the interest payments due February 1, 2007 through February 1, 2009. Beginning with the 2007 levy and 2008 collection of tax abatement revenue, each years collection of tax abatement revenues will be used to make the interest payment due on August 1 in the year of collection and the principal and interest payment due on February 1 of the following year. - 6 0 - Page 5