Laserfiche WebLink
SE E.. =NTH PLACE,SUITE 100 ATTACHMENT A <br /> SAINT P.AL,MN 55101-2143 <br /> 612-223-3000 FAX:612-223-3002 <br /> 111 SPRINGSTED <br /> Public Finance Advisors <br /> February 28, 1996 <br /> ;,'ts. Kathy Bennett, Community Development Director <br /> City of Mounds View <br /> 2401 Highway 10 <br /> Mounds View, MN 55112-1499 <br /> Re: Financing Options for Mixed-Use Community Center <br /> Dear Ms. Bennett: <br /> You have asked me to discuss financing options that are available to the City for a mixed-use <br /> public facility that would facilitate a community center and possibly a community education <br /> for the Mounds View School District. <br /> I. There are currently a number of viable funding options available for the purchase and <br /> remodeling of this facility. Those are: cash, a vote of the people, a lease/purchase <br /> arrangement through the City's EDA, the use of available TIF funds, or a combination of TIF <br /> and lease. <br /> Cash <br /> ;cal government has frequently used a pay-as-you-go/cash approach to financing public <br /> xilities. This approach involves accumulating funds in advance of construction. Cash <br /> financing has become more difficult to follow in recent years. Government at all levels has <br /> been under pressure to control the cost of services. Normally, cash is available in relatively <br /> small amounts. I understand that TIF cash is available in reserve funds, but we also need to <br /> consider the cost of money today (borrowing) versus investment, as well as future project <br /> demand on your TIF funds. <br /> TIF Financing <br /> The Bel Rae Ballroom is currently in the Development District and existing TIF fund balances <br /> could be utilized to acquire and remodel the facility. <br /> One option would be to use a minimum of 20% of the TIF funds for the project costs, thereby <br /> allowing the City to issue general obligation TIF bonds. This would save approximately 50 to <br /> 75 basis points in interest cost over pure revenue bonds. The City would still annually <br /> 11111 appropriate its lease payment in the operating budget and lease the facility through its EDA. <br /> SAINT PAUL,MN • MINNEAPOLIS,MN • OVERLAND PARK,KS • BROOKFIELD,WI • WASHINGTON,DC • IOWA CITE IA <br />