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5.6. SR 01-07-2008
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5.6. SR 01-07-2008
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~~ ~ j <br />City of <br />Elk -~ <br />River <br />To <br />City Council <br />Agenda Section <br />Adnunistration <br />Item Descriptio <br />REQUEST FOR ACTION <br />Meeting Date <br />Tanuary 7, 2008 <br />Resolution Authorizing the Call of the Outstanding Taxable <br />General Obligation Tax Increment Refunding Bonds, Series <br />2000D <br />Item Number <br />5.6. <br />Prepared by <br />Tim Simon, Finance Director <br />Reviewed by <br />Lori Tohnson, City Administrator <br />Action Requested <br />Approve a resolution authorizing the call of the outstanding taxable general obligation tax increment <br />refunding bonds, series 2000D <br />Background/Discussion <br />The original bonds dated April 1, 1990, series 1990A were issued to acquire, clear, and prepare the <br />redevelopment site for a new motel facility. On November 16, 2000, the original bonds were refunded <br />with series 2000D. This project is known as Tax Increment District (TIF) #7 (AmericInn). Upon calling <br />the bonds on March 1, 2008 all financial obligations on this TIF district will be completed, and we will <br />have a decertification in March of 2008. The City is required to notify the paying agent (CJS Bank) a <br />minimum of forty-five days before we call the bonds, so they can let the bondholders know of our <br />intentions. The original maturity of the 2000D bonds is February 1, 2010. <br />Financial Impact <br />The source of payment for these bonds has been tax increment. The amount to be called is $75,000 plus <br />some accrued interest. The balance in TIF #7 (AmericInn) is sufficient to call the remaining principal <br />plus accrued interest. <br />Attachments <br />^ Resolution Authorizing The Call Of The Outstanding Taxable General Obligation Tax Increment <br />Refunding Bonds, Series 2000D <br />Action Motion by <br />Follow Up <br />Second by Vote <br />S: \Council\Tim\2000DBondcall. doc <br />
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