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Memo To: Mark Casey – City Manager From: Stacie Kvilvang Date: April 12, 2016 Subject: Tax Abatement Bonds Series 2016A The City is moving forward with the process to make necessary water quality and flood improvements to Mirror Pond, the City’s regional storm water pond and complete nearly 1.5 miles of new sidewalk construction and ADA upgrades at eight intersections to improve pedestrian safety within the City. These improvements are expected to cost approximately $2,975,000. The City will be receiving a grant from the Rice Creek Watershed in the amount of $1,142,000 and the City will be contributing $400,000 from other City funds for the project as well. The remaining costs need to be financed with a general obligation tax abatement bond. To meet the City’s financing parameters, it is anticipated that the City will issue these bonds in an amount not to exceed $1.6 million, with a 10-year term (anticipated bond amount is $1,495,000). As previously discussed, the City has the authority under Minnesota Statute 469 to issue abatement bonds for these projects. In order to grant tax abatement, the City is required to hold a public hearing on the amount of the abatement to be granted, identify the properties from which they will abate the City’s portion of the taxes and describe the public purpose for granting the abatement. The City will be abating its portion of the taxes from the following properties surrounding Mirror Lake (see attached map): The public purpose in granting the abatement is that the City expects the benefits to the City of the abatement to at least equal to or exceed the costs to the City and that granting the abatement is in the public interest (see attached resolution for public interest findings). Please contact me at 651-697-8506 if you have any questions. 17