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Case #2: <br /> <br />Accept Proposals on Terms of Bond Sale For Tax Increment Bonds Series <br />2001C and 2001D <br /> <br />Finance Officer Lund stated that at the October 23, 2001 City Council meeting, Tax Increment <br />District #10 was created to incorporate the development of what will be called the Sunfish <br />Business Park. Land acquisition, street, sewer, water, and storm sewer are necessary costs <br />associated with the development of this park. Funding of these projects would be funded from <br />the sale of tax increment bonds. At the October 29, 2001 Council work session, the City's <br />financial consulting firm of Juran and Moody presented preliminary bond numbers and was <br />authorized to sell the bonds through the process known as a negotiated bond sale, and bring the <br />results back to the November 13, 2001 City Council meeting. The issuance of bonds will be as <br />such: $1,220,000 will be sold for the purchase of land. These bonds will be taxable as land <br />acquisition cannot be purchased through tax-exempt bonds. $1,045,000 will be issued for the <br />public improvements of water, sewer, street, and storm sewer. As these are improvements, tax- <br />exempt bonds are allowed to be issued for their funding. Repayment of these bonds will be made <br />with the increment collected in Tax Increment District #10. <br /> <br />A representative from Juran and Moody presented and reviewed the debt service schedules for <br />both the series 2001C and 2001D bonds. <br /> <br />Councilmember Zimmerman inquired as to what would prevent the City of Ramsey from <br />increasing their rating. <br /> <br />The representative from Juran and Moody representative that a breakdown in the overall fund <br />balance or if the overall downfall of the economy hits the Midwest and growth comes to a halt <br />the City could be warned of a possible downgrade. <br /> <br />Motion by Mayor Gamec, seconded by Councilmember Kurak, to recommend that the City <br />Council accept terms of bond sale and adopt a resolution awarding the sale of $1,220,000 <br />General Obligation Taxable Tax Increment Bonds. <br /> <br />Motion carried. Voting Yes: Mayor Gamec, Councilmembers Kurak, Anderson, Hendriksen, <br />and Zimmerman. Voting No: None. <br /> <br />Motion by Mayor Gamec, seconded by Councilmember Kurak, to recommend that the City <br />Council to accept terms of bond sale and adopt a resolution awarding the sale of $1,045,000, <br />General Obligation Tax Increment Bonds, Series 2001C. <br /> <br />Motion carried. Voting Yes: Mayor Gamec, Councilmembers Kurak, Anderson, Hendriksen, <br />and Zimmerman. Voting No: None. <br /> <br />Finance Committee/November 13, 2001 <br /> Page 3 of 6 <br /> <br /> <br />