The city will need to issue bonds to cover the reconstruction of 12th Avenue, Vierling/Eagle Creek Roundabout, payments to Scott County and other surrounding road improvements.

These projects are too large for the city to pay for them out of the normal CIP process or cash flow.  The city would issue bonds in 2019 since 12th Avenue is rapidly deteriorating and work needs to begin in 2019.  Work also needs to be completed on the east side of CH 83 adjacent to Culvers and Super America prior to the County beginning its project.  With or without Canterbury, these improvements will need to be completed.

The bonds would not be issued until the city is assured that the Doran development is underway since it generates the increment for bond repayment. 

The final bond interest rate and term of the bonds will depend on the market at time of issuance. Springsted's preliminary analysis shows a 25 year bond below 4%.  Since no annual increase was included in the  original TIF projections, they will have to work with the Finance Director to build in the potential for an early repayment if TIF revenues exceed initial projects, which may allow the bonds to be retired early.