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Finance Director Lund and the City's financial consultant, Ehlers, recommend using tax increment bonds for the <br />approximate $7,000,000 in COR improvements, which includes the HY-10 Ramsey Improvements (excluding <br />municipal utilities) and the COR Infrastructure Improvements. Attached is a 15-year tax increment bond run <br />provided by Ehlers. According to Ehlers, the City will have the annual $640,000 needed to make the necessary <br />debt service payments due to increment generated by various developments within The COR. The 15-year bond <br />term expires before 2040. <br />Issuing a tax increment bond requires increment to be available in the amount of 20% of the bond. The city does <br />not currently have $7M in the TIF 14 district and the issuance of debt allows the city the flexibility to keep the <br />current TIF 14 funds (approximately $2M for other improvements in the future). The issuance of debt is a cleaner <br />process as it avoids the need for the set-up of internal loans from other funding sources, tracking these loans with <br />not only pay back when increment becomes available, but also tracking interest. <br />City staff will inspect construction and assist with construction administration activities, including processing <br />partial and final pay requests. <br />A detailed summary of project funding amounts per funding sources will be presented during the meeting. <br />Recommendation: <br />Staff recommends adopting Resolution #23-176 accepting bids and awarding a contract for construction for <br />Improvement Project #23-20, COR Mass Grading, to Enebak Construction Company in the amount of <br />$4,197,240.34. <br />Attached is a Bid Award Recommendation Memo from BMI. <br />Outcome/Action: <br />Adopt Resolution #23-176 accepting bids and awarding a contract for construction for Improvement Project <br />#23-20, COR Mass Grading, to Enebak Construction Company in the amount of $4,197,240.34. <br />Resolution 23-176 <br />COR Analysis Update <br />COR Infrastructure Design Proposal <br />TIF Bond Run <br />Bid Addendum 1 <br />Final Plans 23-20 <br />Inbox <br />Brian Hagen <br />Bruce Westby (Originator) <br />Form Started By: Bruce Westby <br />Final Approval Date: 08/04/2023 <br />Attachments <br />Form Review <br />Reviewed By <br />Brian Hagen <br />Bruce Westby <br />Date <br />08/03/2023 03:36 PM <br />08/04/2023 12:37 PM <br />Started On: 08/01/2023 07:42 AM <br />