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Shakopee City Council
June 2, 2020
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| | | | | | | | | FROM: | Nate Reinhardt, Finance Director | | TO: | Mayor and Council Members |
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| | | | | | | | Subject:
Sale of General Obligation Tax Increment Revenue Bonds, Series 2020A, in the Original Aggregate Principal Amount of $8,165,000. | | |
| | | | | | | | Policy/Action Requested:
Adopt Resolution No. 2020-072, a resolution awarding the sale of General Obligation Tax Increment Revenue Bonds, Series 2020A, in the original aggregate principal amount of $8,165,000: fixing their form and specifications; directing their execution and delivery; providing for their payment, and authorizing the execution of documents in connection therewidth. | | |
| | | | | | | | Recommendation:
Approve Resolution No. 2020-072 | | |
| | | | | | | | Discussion:
On May 5, 2020, the City Council adopted Resolution No. R2020-065, setting the sale of $8,165,000 of General Obligation Tax Increment Revenue Bonds. Bids will be opened at 10:00am at the offices of BakerTilly. The par amount of the the bonds will be adjusted at the time of the sale to reflect any premium or discount received.
The bond will be used to cover the costs associated with Unbridled Avenue as part of the Canterbury Commons area. The city is completing a portion of the public infrastructure improvements within 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 117% of debt service. | | |
| | | | | | | | Budget Impact:
The additional debt service is anticipated to be fully covered by tax increment revenue from the Canterbury TIF district. | | |
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