Laserfiche WebLink
85 E.SEVENTH PLACE,SUITE 100 2 <br /> SAINT PAUL,MN 55101-2887 <br /> 651-223-3000 FAX:651-223-3002 <br /> SPRINGSTED <br /> Public Finance Advisors <br /> July 7, 2000 <br /> Mr. Michael Mornson, City Manager Mr. Warren Rolek, Superintendent <br /> St. Anthony City Hall St. Anthony New Brighton School District <br /> 3301 Silver Lake Road NE 3303— 33`d Avenue NE <br /> St. Anthony, MN 55418-1603 St. Anthony, MN 55418-9971 <br /> Re: Central Park Project <br /> Dear Mr. Mornson and Mr. Rolek: <br /> The City of St. Anthony and the St. Anthony School District are exploring ways of improving . <br /> Central Park that will provide enhanced facilities for both entities. The City and District.currently <br /> contribute equal amounts to the maintenance and upkeep of the facility. <br /> This report will explore four financing scenarios for upgrading the Central Park facilities. For the E. <br /> purposes of this report, we are assuming the costs will range from $700,000 to $1,000,000 and i.,. <br /> thus have used those outside parameters as the minimum/maximum of required financing. We <br /> will assume the financing programs will be spread over 10 or 15 years. ':L <br /> a:b <br /> The four scenarios we have examined are as follows: , <br /> 1. Tax Abatement <br /> 2. Referendum <br /> 3. Lease Revenue <br /> 4. Internal Loan <br /> 1. Tax Abatement <br /> A city or school district may abate taxes on certain parcels such that the maximum amount of <br /> abatement does not exceed the greater of $100,000 or 5% of the municipality's tax levy. Since <br /> the City levied $1,885,112 for taxes payable in 2000, 5% would equal $94,255. Thus, the <br /> maximum City abatement would be $100,000. The District's levy of $4,184,635 would limit the <br /> District's abatement to $209,231. <br /> There are two tax increment financing ("TIF") districts that expire in 2000 and 2001. Since the <br /> taxes on the property have been used to pay for qualified tax increment expenses, they have <br /> not been available for general operations of the City or the District. Once the districts are de- <br /> certified, the parcels would be eligible for abatement purposes. Abatement is not permitted for <br /> parcels in a TIF district. Thus, the City and School District taxes levied on the property that <br /> normally would go to the general operating fund now would go to service new debt for the Park <br /> project. <br /> SAINT PAUL,MN • MINNEAPOLIS,MN • BROOKFIELD,WI • OVERLAND PARK,KS • WASHINGTON,DC • DES MOINES,IA <br />