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Conduit Debt Policy <br />General <br />The City of Bloomington is granted the power to issue conduit revenue bonds and other conduit <br />revenue obligations under Minnesota Statutes, Section 469.152-469.165, as amended, and Minnesota <br />Statutes, Chapter 462C, as amended (the “Conduit Bonds Acts”). The Bloomington City Council, being <br />aware that such financing may prevent the emergence of blighted land, excessive unemployment and <br />the need for redevelopment financing from the State and Federal governments, has expressed its <br />support for the use of such financing but has reserved the right to approve or reject projects on a case- <br />by-case basis. The following criteria have, therefore, been developed as a guide for review of <br />applications: <br />Criteria <br />a.The project is to be compatible with the overall development plans and objectives of the City and of <br />the neighborhood in which the project is located. <br />b.New businesses locating in Bloomington must show relatively substantial new employment and tax <br />base being generated by the project. <br />c.Locating in areas of the City that the City wishes to develop, redevelop, or which in any way <br />complements any development plans or policy of the City, will constitute a prime purpose under <br />these guidelines. It is also the City’s intent to assist in business expansions or relocations within the <br />City where it can be shown that such would have a substantial, favorable impact on employment or <br />tax base, or both. <br />d.It is the City’s intent to assist new or existing businesses in the acquisition of existing facilities, where <br />such acquisition will maintain the stability of the tax base, or of employment, or both, and provided <br />that not less than 15% of the portion of the cost of acquiring the existing facility financed with the <br />net proceeds of the conduit bonds is to be used for rehabilitation of the existing facility. <br />e.The project must not put a burden on existing City services or utilities beyond that which can be <br />reasonably and economically accommodated. <br />f.The applicant (and/or the lessee in the case of property to be leased) must have a good financial <br />standing, show a substantial net worth, or equity in the project, or both, and have an acceptable <br />earnings history or pro forma. Projects are to show in the application for financing an owner equity <br />or other collateral (such as a bank Letter of Credit, a Bankers Acceptance, Pledge of a Certificate of <br />Deposit, insurance company guarantee, or similar security) which will be satisfactory to the end- <br />lender or rating agency, all determined with reference to total project costs, and applicant is to file <br />FINANCIAL MANAGEMENT POLICIES City of Bloomington