A-2. Discuss TIF District #4CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone- 952.227.1100
Fax- 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax- 952.227.1190
Engineering
Phone- 952.227.1160
Fax- 952.227.1170
Finance
Phone: 952.227.1140
Fax- 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax- 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone- 952.227.1130
Fax- 952.227.1110
MEMORANDUM
TO: Mayor & City Council
FROM: Greg Sticha, Finance Director
DATE: August 10, 2015
SUBJ: Resolution Authorizing Early Redemption of 2004C TIF Bonds
PROPOSED MOTION:
"The City Council approves a resolution authorizing early redemption of the
2004C Tax Increment Financing Bonds."
Approval of this item requires a simple majority vote of the City Council.
BACKGROUND
The 2004C Tax Increment Financing bonds were issued in order to assist with
redevelopment costs associated with Tax Increment District #4 (TIF #4). TIF #4 was
created to assist with the redevelopment of the Chanhassen Cinema, Frontier
Building/Event Center, uniform parking, storm water management and sewer and
water extension.
In 2004, approximately $1.2 million in TIF bonds were issued for the costs listed
above and future increment was pledged as repayment. Currently, just over $560,000
in debt principal remains on the issuance. The city has collected increment over the
years that has exceeded the bond principal and interest payments and now has
approximately $750,000 in cash available for an early retirement of the remaining
bonds issued.
Public Works
The attached resolution authorizes the city to give the current bond holders a 30 -day
7901 Park Place
notice that the city will be repaying all of the remaining principal. At that point in
Phone: 952.227.1300
time, a final principal and interest calculation will be done and final payment will be
Fax: 952.227.1310
remitted to the bond holding company most likely in late September.
Senior Center
In October, staff will request that the council decertify TIF district #4 and the county
Phone- 952.227.1125
Fax: 952.227.1110
will be notified as such. In early 2016, after all remaining transactions have occurred
and the audit is performed, staff will remit the excess increment (estimated to be
Website
around $200,000) to Carver County. After Carver County reviews the TIF#4
www.ci.chanhassen.mn.us
documentation, they will then forward the share of the increment to each of the
participating jurisdictions (school, county, city, etc.). It is estimated the City's
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Mayor & City Council
August 10, 2015
Page 2
portion of excess increment should be around $40,000 and the city should receive
those funds in the summer of 2016.
RECOMMENDATION
Staff recommends that the City Council approve the attached resolution authorizing
early redemption of the 2004C Tax Increment Financing Bonds.
ATTACHMENTS
1. Resolution
f.\gregs\council\2015\8-10-15 memo for early redelntion of 2004c.docx
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA
HELD: August 10, 2015
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Chanhassen, Carver and Hennepin Counties, Minnesota, was held at the City Hall in said City
on the 10t" day of August, 2015, at 7:00 o'clock P.M.
The following members were present:
and the following were absent:
Member
adoption:
introduced the following resolution and moved its
RESOLUTION CALLING FOR REDEMPTION
OF CERTAIN OUTSTANDING BONDS
A. WHEREAS, the City Council of the City of Chanhassen, Minnesota (the "City")
issued its $1,170,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2004C,
dated August 10, 2004 (the "Bonds"), of which $560,000 remains outstanding; and
B. WHEREAS, the Bonds maturing in the years 2014 and thereafter, are subject to
redemption and prepayment at the option of the City on Februaary 1, 2013, and on any date
thereafter, at price of par plus accrued interest, all as provided in the resolution of the City Council,
dated July 12, 2004, authorizing the issuance of the Bonds (the "Prior Resolution"); and
C. WHEREAS, the City Council deems it desirable and in the best interests of the City
to call the 2016 through 2021 maturities of the Bond, inclusive, totaling $560,000 in principal
amount, on September 15, 2015, in accordance with the Prior Resolution.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chanhassen,
Minnesota, as follows:
1. Bonds to be Redeemed. All of the Bonds maturing, or subject to mandatory
redemption, in the years 2016 through 2021, inclusive, shall be redeemed and prepaid on
September 15, 2015 at par and accrued interest for each such Bond called.
2. Mailing of Notice of Call. The City Manager shall cause the Notice of Call for
Redemption attached hereto as Exhibit A to be mailed prior to September 15, 2015, the date for
call, to the paying agent where the Bonds are payable and to all registered holders of the Bonds.
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3. Deposit of Sufficient Funds. The City Manager is hereby authorized and directed
to deposit with the paying agent where the Bonds are payable prior to said call date sufficient funds
to pay the principal and interest due on the Bonds called for redemption as of the call date.
thereof:
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon a vote being taken thereon, the following voted in favor
and the following voted against the same:
Whereupon said resolution was declared duly passed and adopted.
Manager
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Mayor
STATE OF MINNESOTA
COUNTIES OF CARVER AND HENNEPIN
CITY OF CHANHASSEN
I, the undersigned, being the duly qualified and acting City Manager of the City of
Chanhassen, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and
foregoing extract of minutes of the City Council of the City of Chanhassen held on the date therein
indicated, with the original thereof on file in my office, and the same is a full, true and complete
transcript therefrom insofar as the same relates to preparation and mailing of notice of call and
calling for the redemption of Bonds.
WITNESS my hand as such City Manager this day of August, 2015.
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City Manager
Exhibit A
NOTICE OF CALL FOR REDEMPTION
TAXABLE GENERAL OBLIGATION TAX INCREMENT
REFUNDING BONDS, SERIES 2004C
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES
MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Chanhassen, Carver
and Hennepin Counties, Minnesota, there have been called for redemption, or are subject to
mandatory redemption, and prepayment on:
September 15, 2015
those outstanding bonds of the City designated as Taxable General Obligation Tax Increment
Refunding Bonds, Series 2004C, dated August 10, 2004, having stated maturity dates in they ears
2017 through 2021, inclusive, and totaling $560,000 in principal amount.
Year CUSIP Number*
2017
159105 4F9
2019
159105 4H5
2021
159105 4K8
The bonds are being called at a price of par plus accrued interest to September 15, 2015 on which
date all interest on the bonds will cease to accrue. Holders of the bonds hereby called for
redemption are requested to present their bonds for payment, at Bond T rust Services Corporation,
3 060 � '
Centre Pointe Drive, Roseville, Minnesota, 55113, on or before September 15, 2015.
Dated: August 10, 2015
BY ORDER OF THE CITY COUNCIL
/s/ Todd Gerhardt
Manager
*The City shall not be responsible for the selection of or use of the CUSIP numbers, nor is any
representation made as to their correctness indicated in the notice. They are included solely for
the convenience of the holders.
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