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NOTE 15 — TAX ABATEMENT AGREEMENTS(CONTINUED) For the fiscal year ended December 31, 2022, the City abated property taxes totaling $622,723 related to the following: • Housing Development: $20,700 abated towards a $711,000 Tax Increment Revenue Note issued in 2004 for the construction of a 31-unit townhome project. Final note payment date is February 2025 or sooner if the revenue note is retired. • Redevelopment: $227,722 abated towards a $3,000,000 Tax Increment Revenue Note issued in 2015 for the construction of a 230-unit apartment building. Final note payment date is February 2038. • Redevelopment: $35,007 abated for a $224,000 Tax Increment Revenue Note issued in 2017 for a 48,325 square foot expansion of an office and warehouse building. Final note payment date is February 2033. • Housing: $75,097 abated towards a $500,000 Tax Increment Revenue Note issued in 2017 for the construction of a 121-unit apartment building. Final note payment date is February 2022. • Redevelopment: $39,883 abated for a $218,000 Tax hicrement 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: $158,947 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: $65,367 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, 2022 for all of these agreements was $3,416,206. This amount is not included in long-term 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 16 — 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, 2022, there was one series of Industrial Revenue Bonds and one Lease Revenue Bond outstanding with aggregate principal amounts payable of $340,000 and $41,465,000 respectively. 95