2019 CAFR - Laserfiche WebLink

Home

NOTE 13 — TAX ABATEMENT AGREEMENTS (CONTINUED) • The tax increment financing plan confoinis to the general plan for the development or redevelopment of the municipality as a whole; • The tax increment financing plan will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the development or redevelopment of the project by private enterprise. For the fiscal year ended December 31, 2019, the City abated property taxes totaling $366,691 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: $15,899 abated for a $238,491 Tax Increment Revenue note issued in 2007 for the construction of an office and warehouse building. Final note payment date is December 2028. • Redevelopment: $166,782 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: $48,811 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 is February 2033. • Housing: $114,499 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. The outstanding principal balance as of December 31, 2019 for all of these agreements was $3,431,334. This amount is not included in long-teini 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 14 — 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, 2019, there was one series of Industrial Revenue Bonds and one Lease Revenue Bond outstanding with aggregate principal amounts payable of $1,300,000 and $9,000,000 respectively. 92