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NOTE 14 — TAX ABATEMENT AGREEMENTS(CONTINUED) • Redevelopment: $36,980 abated for a $218,000 Tax Increment Revenue Note issued in 2019 for a 56,000 square -foot industrial building in Bunker Lake Business Park. Final note payment date is February 2028. • Housing: $87,409 abated for a $681,395 Tax Increment Revenue Note issued in 2020 for a 174-unit senior living facility. Final note payment date is February 2040. • Redevelopment: $1,357 abated for a $972,000 Tax Increment Revenue Note issued in 2021 for a 210,000 square -foot manufacturing building in Bunker Lake Business Park. Final note payment date is February 2030. The outstanding principal balance as of December 31, 2021 for all of these agreements was $4,080,330. This amount is not included in long-tellui debt because of the nature of these notes in that repayment is required only if sufficient tax increments are received. The City's position is that these are obligations to assign future and uncertain revenue sources and these obligations are not actual debt in substance. NOTE 15 — INDUSTRIAL AND LEASE REVENUE BONDS From time to time, the City has issued Industrial Revenue Bonds and Lease Revenue Bonds to provide financial assistance to private sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond issuance. Neither the City, the state of Minnesota, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2021, there was one series of Industrial Revenue Bonds and one Lease Revenue Bond outstanding with aggregate principal amounts payable of $670,000 and $8,175,000 respectively. NOTE 16 — COMMITMENTS AND CONTINGENCIES A. Commitments for Construction At December 31, 2021, the City is committed to various construction contracts for the improvement of city property. The City's remaining commitment under these contracts is $16,241. The City has resources available to cover these commitments. B. Federal and State Revenue Amounts received or receivable from federal and state agencies are subject to agency audit and adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot be deteiniined at this time, although the City expects such amounts, if any, to be immaterial. 94