HomeMy WebLinkAboutMarch 6, 1996
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CITY of ANDOVER
~_J 1685 CROSSTOWN BOULEVARD NW. . ANDOVER, MINNESOTA 55304 . (612) 755-5100
ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
MARCH 6, 1996 - MINUTES
A Meeting of the Andover Economic Development Authority was called to
order by Mayor Jack McKelvey on March 6, 1996, 10:10 p.m. , at the
Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota.
Present: Councilmembers Dehn, Jacobson, Knight, Kunza
Absent: None
Also present: City Attorney, William G. Hawkins
City Engineer, Scott Erickson
'City Planning Director, Dave Carlberg
City Administrator, Richard Fursman
Others
AUTHORIZE JURAN AND MOODY/1996 TIF BOND
MOTION by Knight, Seconded by Dehn, to approve the request as presented
(to authorize City Staff to proceed with the 1996 Tax Increment
Financing Bond for the further redevelopment of the salvage yard area)
DISCUSSION: Councilmember Jacobson noted almost $1.9 million of the $2
/ '\ million bond would be for the ball field parking lot lights at the Field
I of Dreams site and the purchase of Anoka Auto Wrecking. He
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concerned with the consequences of not spending that money next year.
Mr. Fursman explained the City has 24 months to use the money. It can
also invest it. If the money is not spent within that two-year period,
any interest earned above the cost of the bond must be given to theIRS.
The bond market is now at a 29-year low for interest rates. The worse
case scenario is the City will make some money over the two years; and
if the bond is not spent, the difference in interest will be given to
the IRS and the proceeds would be used, to make the ,bond payments. The
City's exposure is very little. Motion carried unanimously.
Mr. Fursman felt the City's bond rating is below its potential. He is
preparing a presentation in an effort to raise the City's bond rating,
which would greatly impact the City's cost of bonding.
MOTION by Knight, Seconded by Dehn, to adjourn. Motion carried
unanimously.
The meeting was adjourned at 10:20 p.m.
Respectfully: submitted,
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Mar ell a A. Peach
Recording Secretary