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<br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Economic Development Authority 7.2 <br />Agenda Section Meeting Date Prepared by <br />General Business September 18, 2023 Brent O’Neil, Economic Development Director <br />Item Description Reviewed by <br />Resolution Establishing the 2023 Referendum Tax Cal Portner, City Administrator <br />Levy for the YMCA Facility <br />Reviewed by <br /> <br /> <br />Action Requested <br />Approve, by motion, a resolution establishing the 2024 referendum tax levy of $518,096 for the debt service on <br />YMCA facility. <br /> <br />Background/Discussion <br />In 2007, the EDA issued $12 million in bonds for the construction of a recreational facility to be leased to the <br />YMCA. In 2013, the EDA issued $9,685,000 crossover refunding bonds to redeem the Series 2007 bonds on <br />February 1, 2017. The refunding created interest savings and set the maturity of the bonds in 2033. <br /> <br />Under the lease agreement with the YMCA, the EDA pays two-thirds of the debt service and the YMCA the <br />remaining one-third. The EDA portion of the scheduled bond payment for 2024 is $493,425. Per the terms of the <br />bond issuance, the EDA is required to demonstrate funding for bond payments at 105% of the bond payment <br />amount. Therefore, the required levy for the 2024 bond payment is $518,096. <br /> <br />Financial Impact <br />The levy for taxes payable in 2024 is $518,096. <br /> <br />Mission/Policy/Goal <br />Support Elk River’s existing businesses through relationship building, programmatic offerings, and high-quality <br />city services. Attract new business development to Elk River to build the city’s economic vibrancy, job offerings <br />and tax base. <br /> <br />Attachments <br /> 2024 YMCA Levy Resolution <br /> <br /> <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br /> <br />service, and community engagement that encourages and inspires prosperity. <br />Updated: January 2023 <br /> <br />