Federal law stipulates that the city must issue a Declaration of Intent if it intends to reimburse itself for expenditures incurred prior to the issuance of bonds.  This also provides a public record indicating that these projects may be financed in whole or in part through the issuance of tax-exempt bonds.

The Declaration of Intent is not a request to proceed with a specific project or the sale of bonds.  The purpose is intended to specifically address the requirements of the Federal regulations.  Approval of the projects and the approval of the sale of bonds are made by specific and separate Council actions.

The projects associated with the declaration of intent revolve around the Canterbury Commons area.  Previously, the City issued similar Declarations for the costs of reconstructing Shenandoah, Vierling and Baresnscheer. This Declaration of Intent would include remaining public improvements in the Canterbury Commons, specifically CSAH 83, 12th Avenue, Unbridled Avenue and wayfinding. 

Public improvements are described in the "Exhibit C" of the Contract for Private Development, which has been attached to this agenda item.  Previously issued and contemplated future bond issues would apply to the public improvement costs in the columns identified as "City -- TIF", "City -- Other Funds" and "County -- TIF".

These bonds will be repaid with future tax increment received from development within the Canterbury Commons TIF District.