Laserfiche WebLink
To: Mike Morrison — City Manager <br />Prom: Stacie Kvilvang -- Ehlers & Associates <br />UJ Date: October 14, 2008 <br />Subject: Emerald Park Financing <br />LLADI: RS IN PUBLIC I'[NANCE <br />The City will be issuing up to $1.5 million in tax abatement bonds to pay for the cost of <br />improvements to Emerald Park As previously discussed, the City has the authority <br />under Minnesota Statute 469 to issue Abatement Bonds for the improvements. In order <br />to grant tax abatement for a public improvement, the City is required to hold a public <br />hearing on the amount of the abatement to be granted, identify the properties from which <br />they will abate the City's portion of the taxes and describe the public purpose for <br />granting the abatement. <br />The City will be issuing these bonds in early 2009, along with its annual road <br />reconstruction bonds, in order to realize cost savings by issuing the debt at the same <br />time. To meet the City's financing parameters, the City will issue the abatement bonds <br />with a 20 -year term. The City can grant tax abatement for this term if the School <br />District or County declines to participate in the abatement, which is typical of these <br />entities for park improvement projects. The County will be considering approval of a <br />resolution declining to participate in the abatement project at their October 21st <br />meeting. <br />Abating the taxes from these parcels to pay the debt service will have no impact on St. <br />Anthony property owners (no change in their taxes paid). Even though the annual <br />abatement is levied against the property owners in the City, the impact will have no <br />changes in taxes because the City has increased levy ability due to paying off two (2) <br />bond issues in 2008 and will have increased property valuation and tax capacity due to <br />the Chandler TIP District decertification at the end of 2010. <br />Please contact me at 651-697-8506 if you have any questions. <br />LEADERS IN PUBLIC FINANCE <br />306o Centre Pointe Drive <br />Roseville, MN 55113-1105 <br />Phone: 65i-697-8506 Fax: 651-697-8555 <br />skvilvang@el)lers-inc.com <br />29 <br />