HomeMy WebLinkAboutItem 7City of Lakeville
Finance Department
Memorandum
To: Mayor and City Council
From: Jerilyn Erickson, Finance Director
Copy: Justin Miller, City Administrator
Date: October 26, 2020
Subject: Lakeville Arenas – Debt Issuance for APEX Improvements
Construction associated with the APEX energy savings improvement project began in September
2020 following the approval of a Joint Powers Agreement with Independent School District #194
(ISD#194) and authorization of the notice to proceed on August 17, 2020.
To fund the APEX energy savings improvement project, City staff has been working with
Northland Securities Inc. and Dorsey & Whitney LLC on the establishment of a tax abatement
district and the issuance of debt.
Attached to this agenda report are the Preliminary Finance Plan and the public hearing notice
regarding proposed property tax abatements and issuance of general obligation tax abatement
bonds which will be held on November 16, 2020.
Key dates coming up:
November 16, 2020 Council holds public hearing for TEFRA and tax abatement district.
Council adopts resolution authorizing the issuance of tax
abatements bonds.
Council adopts resolution setting the sale of bonds.
January 19, 2021 Bond Sale – 11:00 a.m.
Council adopts resolution approving the bond sale.
February 16, 2021 Closing on Bonds.
In September 2020, the City Council approved a preliminary 2021 tax levy which appropriated
$270,000 for the repayment of this debt. ISD#194 also adopted a levy of $270,000.
The City will be carrying approximately $900,000 of the costs until the bonds are closed in
February 2021. Because these costs will be incurred and paid prior to the end of the fiscal year,
staff anticipates bringing forth a resolution to authorize an interfund loan.
Attachment: 1) Preliminary Finance Plan
2) Notice of Public Hearing
Finance Plan
City of Lakeville, Minnesota
$8,055,000
General Obligation Tax Abatement Bonds,
Series 2021A
October 26, 2020
150 South 5th Street, Suite 3300
Minneapolis, MN 55402
612-851-5900 800-851-2920
www.northlandsecurities.com
Member FINRA and SIPC | Registered MSRB and SEC
Northland Securities, Inc. Page 2
Contents
Executive Summary ........................................................................................................................................................... 2
Issue Overview .................................................................................................................................................................... 3
Purpose ................................................................................................................................................................ 3
Authority ............................................................................................................................................................. 3
Structure .............................................................................................................................................................. 3
Security and Source of Repayment ........................................................................................................ 4
Plan Rationale ................................................................................................................................................... 4
Issuing Process ................................................................................................................................................. 4
Attachment 1 – Preliminary Debt Service Schedule .......................................................................................... 5
Attachment 2 – Estimated Levy Schedule ............................................................................................................... 6
Attachment 3 – Related Considerations .................................................................................................................. 7
Not Bank Qualified ................................................................................................................................ 7
Arbitrage Compliance ........................................................................................................................... 7
Continuing Disclosure .......................................................................................................................... 7
Premiums .................................................................................................................................................... 7
Rating ............................................................................................................................................................ 8
Attachment 4 – Calendar of Events ............................................................................................................................ 9
Attachment 5 - Risk Factors ......................................................................................................................................... 11
Attachment 6 – Map of Tax Abatement Project Area ...................................................................................... 12
Attachment 7 – Market Conditions .......................................................................................................................... 13
Northland Securities, Inc. Page 2
Executive Summary
The following is a summary of the terms for the planned issuance of $8,055,000 General
Obligation Tax Abatement Bonds, Series 2021A (the “Bonds”). Additional information on the
proposed finance plan and issuing process can be found after the Executive Summary, in the Issue
Overview and Attachment 3 – Related Considerations.
Purpose Proceeds from the Bonds will be used to finance various
improvements to the Lakeville Arenas, and to pay the costs
associated with the issuance of the Bonds.
Security The Bonds will be a general obligation of the City. The City will
pledge abatement levies for payment of the Bonds. In addition,
the Bonds will be secured by ad valorem taxes.
Repayment Term The Bonds will mature annually each February 1 in the years
2022 through 2041. Interest on the Bonds will be payable on
August 1, 2021 and semiannually thereafter on each February 1
and August 1.
Estimated Interest Rate Average coupon: 2.12%
True interest cost (TIC): 2.18%
Prepayment Option Bonds maturing on and after February 1, 2030 will be subject to
redemption on February 1, 2029 and any day thereafter at a
price of par plus accrued interest.
Rating A rating will be requested from Moody’s. The City’s general
obligation debt is currently rated "Aa1”by Moody’s.
Tax Status The Bonds will be tax-exempt, non-bank qualified obligations.
Risk Factors There are certain risks associated with all debt. Risk factors
related to the Bonds are discussed in Attachment 5.
Type of Bond Sale Public Sale – Competitive Bids
Proposals Received Tuesday, January 19, 2021 @ 11:00 A.M.
Council Consideration Tuesday, January 19, 2021 @ 6:30 P.M.
Northland Securities, Inc. Page 3
Issue Overview
Purpose
Proceeds from the Bonds will be used to finance various improvements to the Lakeville Arenas
and to pay costs associated with issuing the Bonds. The Bonds have been sized based on estimates
provided by City staff. The table below contains the sources and uses of funds for the bond issue.
Authority
The Bonds will be issued pursuant to the authority of Minnesota Statutes, Sections 469.1812
through 469.1815 and Chapter 475.
Sections 469.1812 through 469.1815 does not authorize the actual “abatement of taxes.” Instead,
the City will have the authority to levy a property tax (an abatement levy) that is equivalent to
taxes that could be abated. At time of issuance, the City will certify abatement levies to pay the
principal on the Bonds and debt service levies to pay interest (together “the tax levies”). The City
plans to annually cancel a portion of the tax levies and use revenue collected from Independent
School District No. 194 (the “District”) to pay a portion of the debt service payments. Under terms
of the Joint Powers Agreement between the City and Independent School District No. 194 (the
“District”), the District and the City each agreed to pay 50% of the principal and interest payments
on the Bonds.
A public hearing will be held on November 16, 2020 and following the hearing the City Council
will consider adoption of a resolution approving the property tax abatements and issuance of
the Bonds. Attachment 6 includes a map of the parcels to be included within the tax abatement
project area.
The maximum annual abatement levy to be certified for the Bonds is estimated to be
approximately $485,000, which, when combined with the maximum amount of abated taxes for
the Abatement Portion of the Series 2020A Bonds ($75,000), is less than the total amount of
abatement levies the City may approve pursuant to State Law. Based on the City’s 2020 net tax
capacity, the City has authority to approve total maximum annual abated levies in the amount of
$9,227,665. The City has an internal financing outstanding in connection with a tax abatement for
MOM Brands Company, LLC (Post). The abatement for the Bonds and the Series 2020A Bonds,
combined with the tax abatement assistance for Post, is within the maximum allowed.
Structure
The Bonds have been structured over 20 years, with relatively level annual debt service payments
beginning on February 1, 2022.
The proposed structure for the bond issue and preliminary debt service projections for the issue
is illustrated in Attachment 1 and the estimated levy is illustrated in Attachment 2.
Sources Of Funds
Par Amount of Bonds $8,055,000.00
Total Sources $8,055,000.00 Uses Of Funds
Deposit to Project Construction Fund 7,933,285.00
Total Underwriter's Discount (0.800%)64,440.00
Costs of Issuance 55,249.30
Rounding Amount 2,025.70
Total Uses $8,055,000.00
Northland Securities, Inc. Page 4
Security and Source of Repayment
The Bonds will be general obligations of the City. The finance plan relies on the following
assumptions for the revenues used to pay debt service, as provided by City staff:
• Abatement Levy. The City will pledge abatement levies for payment of the Bonds. As
required by statute for issuance of Tax Abatement Bonds, the annual City taxes on the
parcels to be included within the abatement project area are estimated, at a minimum, to
equal the annual principal over the 20-year term of the Bonds.
The City plans to annually cancel a portion of the abatement levy and use revenue collected
from the District to pay a portion (50%) of the principal payments. When levied, the
abatement levy is spread over the City’s entire general tax base (net tax capacity) the same
as the City’s general tax levies.
Properties within the abatement project area will pay the same amount (rate) for City taxes
as property outside of the abatement project area. Inclusion within the abatement project
area has no tax implications for these properties. There is no different impact on individual
property tax statements for properties within the tax abatement project area as compared
to other properties within the City as a whole.
• Debt Service Levy. The remaining revenues needed to pay interest on the Bonds will come
from a debt service levy. The initial projections show an annual debt service levy ranging
from $37,491 to $162,558 as needed to produce the statutory requirement of 105% of debt
service, after accounting for the abatement levy. The City plans to annually cancel a portion
of the debt service levy and use revenue collected from the District to pay a portion (50%)
of the interest payment.
Plan Rationale
The Finance Plan recommended in this report is based on a variety of factors and information
provided by the City related to the financed project and City objectives, Northland’s knowledge
of the City and our experience in working with similar cities and projects. The issuance of General
Obligation Tax Abatement Bonds provides the best means of achieving the City’s objectives and
cost-effective financing. The City has successfully issued and managed this type of debt for
previous projects.
Issuing Process
Northland will receive bids to purchase the Bonds on Tuesday, January 19, 2020 at 11:00 AM.
Market conditions and the marketability of the Bonds support issuance through a competitive
sale. This process has been chosen as it is intended to produce the lowest combination of interest
expense and underwriting expense on the date and time set to receive bids. The calendar of events
for the issuing process can be found in Attachment 4.
Municipal Advisor: Northland Securities, Inc., Minneapolis, Minnesota
Bond Counsel: Dorsey & Whitney LLC, Minneapolis, Minnesota
Paying Agent: US Bank, National Association, St. Paul, Minnesota
Northland Securities, Inc. Page 5
Attachment 1 – Preliminary Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
02/16/2021 -----
08/01/2021 --65,844.17 65,844.17 -
02/01/2022 360,000.00 0.700%71,830.00 431,830.00 497,674.17
08/01/2022 --70,570.00 70,570.00 -
02/01/2023 355,000.00 0.750%70,570.00 425,570.00 496,140.00
08/01/2023 --69,238.75 69,238.75 -
02/01/2024 360,000.00 0.800%69,238.75 429,238.75 498,477.50
08/01/2024 --67,798.75 67,798.75 -
02/01/2025 360,000.00 0.900%67,798.75 427,798.75 495,597.50
08/01/2025 --66,178.75 66,178.75 -
02/01/2026 365,000.00 1.000%66,178.75 431,178.75 497,357.50
08/01/2026 --64,353.75 64,353.75 -
02/01/2027 370,000.00 1.150%64,353.75 434,353.75 498,707.50
08/01/2027 --62,226.25 62,226.25 -
02/01/2028 370,000.00 1.300%62,226.25 432,226.25 494,452.50
08/01/2028 --59,821.25 59,821.25 -
02/01/2029 375,000.00 1.450%59,821.25 434,821.25 494,642.50
08/01/2029 --57,102.50 57,102.50 -
02/01/2030 385,000.00 1.600%57,102.50 442,102.50 499,205.00
08/01/2030 --54,022.50 54,022.50 -
02/01/2031 390,000.00 1.800%54,022.50 444,022.50 498,045.00
08/01/2031 --50,512.50 50,512.50 -
02/01/2032 395,000.00 1.900%50,512.50 445,512.50 496,025.00
08/01/2032 --46,760.00 46,760.00 -
02/01/2033 405,000.00 2.000%46,760.00 451,760.00 498,520.00
08/01/2033 --42,710.00 42,710.00 -
02/01/2034 410,000.00 2.100%42,710.00 452,710.00 495,420.00
08/01/2034 --38,405.00 38,405.00 -
02/01/2035 420,000.00 2.200%38,405.00 458,405.00 496,810.00
08/01/2035 --33,785.00 33,785.00 -
02/01/2036 430,000.00 2.300%33,785.00 463,785.00 497,570.00
08/01/2036 --28,840.00 28,840.00 -
02/01/2037 440,000.00 2.400%28,840.00 468,840.00 497,680.00
08/01/2037 --23,560.00 23,560.00 -
02/01/2038 450,000.00 2.450%23,560.00 473,560.00 497,120.00
08/01/2038 --18,047.50 18,047.50 -
02/01/2039 460,000.00 2.500%18,047.50 478,047.50 496,095.00
08/01/2039 --12,297.50 12,297.50 -
02/01/2040 470,000.00 2.550%12,297.50 482,297.50 494,595.00
08/01/2040 --6,305.00 6,305.00 -
02/01/2041 485,000.00 2.600%6,305.00 491,305.00 497,610.00
Total $8,055,000.00 -$1,882,744.17 $9,937,744.17 -
Date And Term Structure
Dated 2/16/2021
Delivery Date 2/16/2021
First available call date 2/01/2029
Call Price 100.000% Yield Statistics
Bond Year Dollars $88,719.38
Average Life 11.014 Years
Average Coupon 2.1221342%
Net Interest Cost (NIC)2.1947677%
True Interest Cost (TIC)2.1825142%
All Inclusive Cost (AIC)2.2550395%
Northland Securities, Inc. Page 6
Attachment 2 – Estimated Levy Schedule
Date Total P+I 105% Levy
Less:
Abatement
Levy
Debt Service
Levy (Net
Levy)Levy Year
Collection
Year
02/01/2022 497,674.17 522,557.88 360,000.00 162,557.88 2020 2021
02/01/2023 496,140.00 520,947.00 355,000.00 165,947.00 2021 2022
02/01/2024 498,477.50 523,401.38 360,000.00 163,401.38 2022 2023
02/01/2025 495,597.50 520,377.38 360,000.00 160,377.38 2023 2024
02/01/2026 497,357.50 522,225.38 365,000.00 157,225.38 2024 2025
02/01/2027 498,707.50 523,642.88 370,000.00 153,642.88 2025 2026
02/01/2028 494,452.50 519,175.13 370,000.00 149,175.13 2026 2027
02/01/2029 494,642.50 519,374.63 375,000.00 144,374.63 2027 2028
02/01/2030 499,205.00 524,165.25 385,000.00 139,165.25 2028 2029
02/01/2031 498,045.00 522,947.25 390,000.00 132,947.25 2029 2030
02/01/2032 496,025.00 520,826.25 395,000.00 125,826.25 2030 2031
02/01/2033 498,520.00 523,446.00 405,000.00 118,446.00 2031 2032
02/01/2034 495,420.00 520,191.00 410,000.00 110,191.00 2032 2033
02/01/2035 496,810.00 521,650.50 420,000.00 101,650.50 2033 2034
02/01/2036 497,570.00 522,448.50 430,000.00 92,448.50 2034 2035
02/01/2037 497,680.00 522,564.00 440,000.00 82,564.00 2035 2036
02/01/2038 497,120.00 521,976.00 450,000.00 71,976.00 2036 2037
02/01/2039 496,095.00 520,899.75 460,000.00 60,899.75 2037 2038
02/01/2040 494,595.00 519,324.75 470,000.00 49,324.75 2038 2039
02/01/2041 497,610.00 522,490.50 485,000.00 37,490.50 2039 2040
Total $9,937,744.17 $10,434,631.38 $8,055,000.00 $2,379,631.38
Northland Securities, Inc. Page 7
Attachment 3 – Related Considerations
Not Bank Qualified
We understand the City (in combination with any subordinate taxing jurisdictions or debt issued
in the City’s name by 501(c)3 corporations) anticipates issuing more than $10,000,000 in tax-
exempt debt during the 2021 calendar year. Therefore, the Bonds will not be designated as “bank
qualified” obligations pursuant to Federal Tax Law.
Arbitrage Compliance
Project/Construction Fund. All tax-exempt bond issues are subject to federal rebate requirements
which require all arbitrage earned to be rebated to the U.S. Treasury. A rebate exemption the
City expects to qualify for is the “24-month exemption.”
Debt Service Fund. The City must maintain a bona fide debt service fund for the Bonds or be
subject to yield restriction in the debt service fund. A bona fide debt service fund involves an
equal matching of revenues to debt service expense with a balance forward permitted equal to
the greater of the investment earnings in the fund during that year or 1/12 of the debt service of
that year.
The City should become familiar with the various Arbitrage Compliance requirements for this
bond issue. The Resolution for the Bonds prepared by Bond Counsel explains the requirements
in greater detail.
Continuing Disclosure
Type: Full
Dissemination Agent: Northland Securities
The requirements for continuing disclosure are governed by SEC Rule 15c2-12. The primary
requirements of Rule 15c2-12 actually fall on underwriters. The Rule sets forth due diligence
needed prior to the underwriter’s purchase of municipal securities. Part of this requirement is
obtaining commitment from the issuer to provide continuing disclosure. The document
describing the continuing disclosure commitments (the “Undertaking”) is contained in the
Official Statement that will be prepared to offer the Bonds to investors.
The City has more than $10,000,000 of outstanding debt and is required to undertake “full”
continuing disclosure. Full disclosure requires annual posting of the audit and a separate
continuing disclosure report, as well as the reporting of certain “material events.” Material events
set forth in the Rule, including, but not limited to, bond rating changes, call notices, and issuance
of “financial obligations” (such as USDA loans, Public Finance Authority loans and lease
agreements) must be reported within ten days of occurrence. Northland currently serves as
dissemination agent for the City. We will assist with getting your annual report filed in
compliance with full continuing disclosure regulations.
Premiums
In the current market environment, it is likely that bids received from underwriters will include
premiums. A premium bid occurs when the purchaser pays the City an amount in excess of the
par amount of a maturity in exchange for a higher coupon (interest rate). The use of premiums
reflects the bidder’s view on future market conditions, tax considerations for investors and other
factors. Ultimately, the true interest cost (“TIC”) calculation will determine the lowest bid,
regardless of premium.
Northland Securities, Inc. Page 8
A premium bid produces additional funds that can be used in several ways:
• The premium means that the City needs less bond proceeds and can reduce the size of the
issue by the amount of the premium.
• The premium can be deposited in the Construction Fund and used to pay additional
project costs, rather than used to reduce the size of the issue.
• The premium can be deposited in the Debt Service Fund and used to pay principal and
interest.
Northland will work with City staff prior to the sale day to determine use of premium (if any). A
consideration for use of premium is the bank qualification of the Bonds.
Rating
A rating will be requested from Moody’s. The City’s general obligation debt is currently rated
"Aa1" by Moody’s. The rating process will include a conference call with the rating analyst from
Moody’s. Northland will assist City staff in preparing for and conducting the rating calls.
Northland Securities, Inc. Page 9
Attachment 4 – Calendar of Events
The following checklist of items denotes each milestone activity as well as the members of the
finance team who will have the responsibility to complete it. Please note this proposed timetable
assumes regularly scheduled City Council meetings.
Date Action Responsible Party
July 15, 2020 Lakeville Arenas Board approved Joint Powers
Agreement
Lakeville Arenas
Board Action
August 11, 2020 Lakeville School District approved Joint Powers
Agreement
* Agreement to include language that the Lakeville
School District declines to participate in the Tax
Abatement (to meet requirements of MS 469.1813,
Subd. 6) allowing the City to issue Bonds for term of 20
years
School District Action
August 17, 2020 City approved Joint Powers Agreement City Council Action
October 15, 2020 City confirmed parcels to be included in the Tax
Abatement Area
City Staff
October 26, 2020 City Council workshop to review Finance Plan for the
Bonds
City Council – No
Action
October 27, 2020
(noon)
Notice of Tax Abatement Hearing and TEFRA Hearing
submitted to local paper no later than this date to be
published no later than November 2
City Staff
November 5, 2020 Final project costs provided to Northland City Staff
November 2020 December 2020
Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6 7 1 2 3 4 5
8 9 10 11 12 13 14 6 7 8 9 10 11 12
15 16 17 18 19 20 21 13 14 15 16 17 18 19
22 23 24 25 26 27 28 20 21 22 23 24 25 26
29 30 27 28 29 30 31
January 2021 February 2021
Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat
1 2 1 2 3 4 5 6
3 4 5 6 7 8 9 7 8 9 10 11 12 13
10 11 12 13 14 15 16 14 15 16 17 18 19 20
17 18 19 20 21 22 23 21 22 23 24 25 26 27
24 25 26 27 28 29 30 28
31
Northland Securities, Inc. Page 10
Date Action Responsible Party
November 10, 2020 Resolution Authorizing the Issuance of Tax Abatement
Bonds sent to City for meeting packets
Dorsey & Whitney,
Northland
November 16, 2020 City holds Public Hearing for TEFRA and relating to
the Arena Energy Savings Improvements Abatement
Project and adopts Resolution Authorizing the
Issuance of Tax Abatement Bonds.
City adopts Set Sale Resolution
City Council Action,
Northland, Dorsey &
Whitney
November 20, 2020 Preliminary Official Statement sent to City for sign off,
sent to Rating Agency to initiate rating processes, and
sent to Dorsey & Whitney for review
Northland
Week of November
23 or November 30,
2020
Meeting to prepare for rating call City Staff, Northland
Early – Mid
December
Rating call with Moody’s City Staff, Northland,
Rating Agency
December 18, 2020 City comments and sign off on Preliminary Official
Statement due to Northland
City Staff
December 22, 2020 Rating Received no later than this date City Staff, Northland,
Rating Agency
January 4, 2021 Distribution of Offering Document Northland
January 12, 2021 Authorizing Resolution sent to City Dorsey & Whitney,
Northland
January 19, 2021 Bond Sale – 11:00 a.m.
Bond Purchase Agreement Signed -6:30 p.m.
Authorizing Resolution Adopted
City Council Action,
Northland, Dorsey &
Whitney
January 26, 2020 Closing Documents Distributed
Dorsey & Whitney
February 16, 2021 Closing on the Bonds (Proceeds Available) Northland, City Staff,
Dorsey & Whitney
Northland Securities, Inc. Page 11
Attachment 5 - Risk Factors
Property Taxes: Property tax levies shown in this Finance Plan are based on projected debt service
and other revenues. Final levies will be set based on the results of sale. Levies should be reviewed
annually and adjusted as needed. The debt service levy must be included in the preliminary levy
for annual Truth in Taxation hearings. Future Legislative changes in the property tax system,
including the imposition of levy limits and changes in calculation of property values, would affect
plans for payment of debt service. Delinquent payment of property taxes would reduce revenues
available to pay debt service.
Tax Abatement: The tax abatement levy needs to be calculated annually in accordance with the
abatement resolution. The abatement levy must be included in the preliminary levy used for
annual Truth in Taxation hearings. A tax abatement levy was authorized as a special levy (not
subject to levy limits) under the most recent legislation. Levy limits are not currently enacted. The
status of a tax abatement levy under future levy limitations (if any) cannot be predicted.
General: In addition to the risks described above, there are certain general risks associated with
the issuance of bonds. These risks include, but are not limited to:
• Failure to comply with covenants in bond resolution.
• Failure to comply with Undertaking for continuing disclosure.
• Failure to comply with IRS regulations, including regulations related to use of the proceeds
and arbitrage/rebate. The IRS regulations govern the ability of the City to issue its bonds as
tax-exempt securities and failure to comply with the IRS regulations may lead to loss of tax-
exemption.
Northland Securities, Inc. Page 12
Attachment 6 – Map of Tax Abatement Project Area
APEX Energy Savings Improvement Project Tax Abatement District
Northland Securities, Inc. Page 13
Attachment 7 – Market Conditions
Bond Buyer Index Trends (BBI) as of October 15, 2020 (2.35%)
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%JanuaryJuneDecember20-Year/G.O./AA-RatedBond Buyer's Index Trends
2020
2019
2018
2017
2016
Source: Data compiled by Northland Securities from published Bond Buyer's Index
Chart for illustration only. This is not an offer to buy or sell securities .
Based on sources believed to be reliable, but not warranted or guaranteed by Northland Securities, Inc. (RC 19 -14A/Muni 19-_10A)
150 South 5th Street, Suite 3300, Minneapolis, MN 55402
Main 612-851-5900 / www.northlandsecurities.com
Member FINRA and SIPC, Registered with SEC and MSRB
4830-5641-4668\2
NOTICE OF PUBLIC HEARING
REGARDING PROPOSED PROPERTY TAX ABATEMENTS AND ISSUANCE OF GENERAL
OBLIGATION TAX ABATEMENT BONDS
NOTICE IS HEREBY GIVEN that the City Council of the City of Lakeville, Minnesota (the
“City”), will hold a public hearing of the City Council at City Hall located at 20195 Holyoke Avenue in
the City and by teleconference beginning at 6:30 p.m., on November 16, 2020, on the proposal that the
City abate property taxes levied by the City on property with the parcel identification numbers listed on
Exhibit A hereto.
The total amount of the taxes proposed to be abated by the City on the property for up to a 20-
year period is estimated to be approximately $8,100,000. The City Council will consider the property tax
abatement in connection with financing certain energy savings improvements (the “Improvements”) to the
Ames ice arena located at 19900 Ipava Avenue in the City and the Hasse ice arena located at 8525 215th
Street West in the City (together, the “Facilities”) and a proposal that the City issue its general obligation
tax abatement bonds (the “Bonds”) in an aggregate principal amount not to exceed $8,100,000 (the
“Bonds”), under Sections 469.1813 and Chapter 475, as amended, for the purpose of financing the
Improvements.
The Facilities are used for the benefit of qualified 501(c)(3) organizations, including but not
limited to the Lakeville Hockey Association, other hockey and figure skating associations, the general
public, the City, and Independent School District No. 194.
Members of the public can participate in the November 16, 2020 public hearing to present their
views to the Council orally or in writing either in person at Lakeville City Hall, 20195 Holyoke Avenue,
or via telephone at 1-267-866-0999; Meeting PIN: 9213 62 2092. The Mayor will allow for public
comments and questions at the appropriate time.
BY ORDER OF THE CITY COUNCIL OF
THE CITY OF LAKEVILLE, MINNESOTA
/s/ Charlene Friedges
City Clerk
4830-5641-4668\2
EXHIBIT A
Tax Parcel Identification Numbers
2201900
05010
2221195
02040
2221195
05010
2221195
07030
2221197
03210
2242600
01130
2256200
02090
2221197
03170
2242600
02030
2201900
06010
2221195
02050
2221195
05020
2221195
07040
2221197
04010
2242600
01140
2256200
02100
2242600
01030
2242600
04010
2201900
10012
2221195
02070
2221195
05030
2221195
07060
2221197
04020
2242600
01150
2256200
03010
2221195
01020
2256200
01030
2201900
11010
2221195
02080
2221195
05040
2221195
07070
2221197
04030
2242600
01160
2256200
03020
2242600
02010
2221195
03090
2201900
13010
2221195
02090
2221195
05050
2221195
07080
2221197
04040
2242600
02040
2256200
03030
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