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Shakopee Economic Development Authority
September 17, 2019
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| | | | | | | | | FROM: | Darin Nelson, Finance Director | | TO: | President and Commission Members |
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| | | | | | | | Subject:
Tax Increment Pledge Agreement for TIF District No. 18 |
| | | | | | | | Policy/Action Requested:
Adopt Resolution No. E2019-016, authorizing execution of a tax increment pledge agreement with the City of Shakopee relating to General Obligation Tax Increment Revenue Bonds, Series 2019A, to be issued in the proposed aggregate principal amount of $4,220,000. |
| | | | | | | | Discussion:
In order for the tax increment generated from TIF District No. 18 (Canterbury Commons Development Project) to be utilized by the City for the principal and interest payments on the G.O. Tax Increment bond, the EDA needs to formally pledge the increment to the city. The pledge agreement stipulates specifically what the city and the EDA mutually agree to, such as the city agreeing to issue and utilize the bonds for a specific purpose and the EDA agreeing to pledge 90 percent on the increment received for principal and interest payments on the G.O. TIF Revenue Bond. |
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