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Shakopee City Council
September 17, 2019
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| | | | | | | | | FROM: | Darin Nelson, Finance Director | | TO: | Mayor and Council Members |
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| | | | | | | | Subject:
Sale of General Obligation Tax Increment Revenue Bonds, Series 2019A, in the Original Aggregate Principal Amount of $4,220,000 | | |
| | | | | | | | Policy/Action Requested:
Adopt Resolution No. R2019-098, awarding the sale of General Obligation Tax Increment Revenue Bonds, Series 2019A, in the original aggregate principal amount of $4,220,000; fixing their form and specifications; directing their execution and delivery; providing for their payment, and authorizing the execution of documents in connection therewidth. | | |
| | | | | | | | Discussion:
On August 20, 2019, the City Council adopted Resolution No. R2019-092, setting the sale of $4,220,000 of General Obligation Tax Increment Revenue Bonds. Bid closing is set for 10:00 A.M., Central Time on Tuesday, September 17.
As you may recall, this bond will be used to cover the costs associated with reconstructing 12th Avenue from County Road 83 to Vierling Drive. The city is leading this phase of the redevelopment district and will use the bond proceeds to reimburse itself for costs incurred to date and future costs to complete construction.
The bonds will be a general obligation of the city, secured by its full faith and credit and taxing power. However, tax increment revenues from the Canterbury TIF district are estimated to cover 100% of debt service. | | |
| | | | | | | | Budget Impact:
No budget impact. Additional debt service is anticipated to be fully covered by tax increment revenue from the Canterbury TIF district. | | |
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