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City Council Regular
Consider Resolution 19-120, Approving Property Tax Abatements and Providing for the Sale of General Obligation Abatement Refunding Bonds, Series 2019B
Francine Hanson, Finance Director
Staff recommends approval of a property tax abatement and the sale of aprroximately $10,895,000 General Obligation Abatement Refunding Bonds, Series 2019B.
Minnesota Statutes, Sections 469.1812 through 469.1815 authorizes the City, upon satisfaction of certain conditions, to grant an abatement of all or part of the taxes levied by the City on certain property.
The City has determined it is in the best interest of the City to acquire the Coon Rapids Ice Center from the Coon Rapids Economic Development Authority (EDA) by issuing tax abatement bonds to refund the EDA's Lease Revenue Bonds, Series 2010B, which previously financed the acquisition, construction, and equipping of the Ice Center. As part of issuing the tax abatement bonds, the City must authorize a property tax abatement with respect to various parcels of land that benefit from the City's Ice Center. The abatement does not increase the taxes of these properties, instead it is an allocation of these tax revenues toward the repayment of the bonds. The proposed term of the abatement will be for up to 16 years in an estimated amount not to exceed $15,084,057.
The City expects to realize substanital interest cost savings through the issuance of General Obligation Tax Abatement Refunding Bonds to acquire the Ice Center. This requires the City to hold a public hearing prior to the adoption of a resolution granting any property tax abatements. In addition, Sections 147(f) of the Internal Revenue Code requires that prior to the issuance of the Bonds, the City Council approve the Bonds after conducting the public hearing.
The City has retained Ehlers & Associates, Inc. as its independent municipal advisor for the approximately $10,895,000 General Obligation Abatement Refunding Bonds, Series 2019B in accordance with Minnesota Statutes, Sections 475.60, Subdivision 2(9).
(1) Conduct a public hearing regarding the proposed property tax abatement.
(2) Adopt Resolution 19-120 approving property tax abatements and providing for the sale of General Obligation Abatement Refunding Bonds, Series 2019B.
19-120 Resolution Approving Property Tax Abatement and Providing for the Sale of General Obligation Abatement Bonds
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