3i. Set Bond Sale Date, 1993 Bonds 3 N
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C ITYOF --
CHANHASSEN
'390 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
1 (612) 937 -1900 • FAX (612) 937 -5739
1 MEMORANDUM
TO: Mayor and City Council
FROM: Don Ashworth, City Manager DWh I-k,
1 DATE: January 11, 1993
SUBJ: Set Bond Sale Date, 1993 Bonds
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At the end of 1992, the City Council acted to approve various modifications to the Tax Increment
1 Plan, including various acquisitions (see attached sheet). A portion of these acquisitions have
been completed, i.e. Burdick property, Taco Shop. Others on the list are imminent, i.e. Apple
Valley Red -E -Mix and James property. Although some of the acquisitions may not occur for
' several months, Springsted and this office would recommend that we bond for the entire listing
rather than re- entering the market several times during 1993. Given the fact that some of the
acquisitions have been consummated, it is vitally important, from a cash flow standpoint, that this
sale occur as soon as possible.
1 Approval of setting the 1993 Tax Increment Bond Sale date for February 8, 1993, 7:30 p.m. is
recommended.
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%Sr PRINTED ON RECYCLED PAPER
Properties assessed at a rate of $30,000 per acre or more qualify for a
reduction equal to 12 percent of the added value.
the reduction for which a property owner is eligible is 1
The amount of parcel (as determine
equal to the tax increment from the pa d by the auditor and
�,r period following
adjusted for fiscal disparities c� h b the year whhchthe HRA receives the
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construction and commencing
first full year's increment, or such other three y ear pe riod as may be agreed
to by the HRA and owner. However, the maximum reduction maaynottexceed
the total special assessments levied and outstanding agains ar e must '
qualifying public improvement projects. Owners wishing participate parcel
enter into a special assessment reduction agreement with the HRA.
In addition to project costs outlined in previous modifications, the I
following are costs anticipated for upcoming projects:
Land Acquisition 313,000
Taco Shop 1,000,000 I
2, 90
Apple Valley Redimix 000,000
James Property ,000
Burdick Property 850,000
Bowling Center 1,200,000 1
Bloomberg Property
Subtotal 6,589,000
Administration 300,000
TOTAL $ 6,889,000
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The HRA is committed to certain additional expenditures will > a of
mutual benefit to the HRA, Carver County and I.S.D. No. The
I intends to expend $500,000 per year during the period 1996 through 2000 on
county highway projects within the Project Area. During the same period the
HRA is committed to redistributing a similar amount through a voluntary
agreement with I.S.D. No. 112 regarding increment produced as a result of
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school referenda adopted after the date of certification of the tax increment
financing district. 1
Under current state law, the HRA's activities within. the Project Area
will be substantially curtailed beginning on April 1, 2001. The HRA intends
to seek adjustment of those restrictions from the Minnesota legislature and will
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seek the support of Carver County and I.S.D. No. 112 in its efforts to secure
special legislation for this purpose. If the HRA is successful in these efforts,
the HRA will ring increment discussion
the period following April 1, 2001 istrict
regarding sha g 1
Q. ORIGINAL TAX CAPACITY
The Tax Increment Financing District has been highly successful ,
meeting the goals and objectives outlined in this Plan. With the completion of
all projects
industrial currently anticipated, nr cthree onstructed. s The ccurren commercial
a total tax
and pa 1
10265511 10 1
01130 -5
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