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HomeMy WebLinkAbout5.A. Tax Abatement Bonding to Finance Community Center.Ice Arena Project, Res. No. 7615 111111/ 11 General Business 5. A. SHAKOPEE TO: Mayor and City Council FROM: Kris Wilson, Assistant City Administrator DATE: 09/22/2015 SUBJECT: Tax Abatement Bonding to Finance Community Center/ Ice Arena Project, Res. No. 7615 (F) Action Sought The Council is asked to conduct a public hearing on the proposal to issue tax abatement bonds in the amount of$32,225,000 to finance the construction of a new two-sheet ice arena and proposed enhancements to the Community Center facility. Following the public hearing, the Council is asked to consider Resolution No. 7615, a resolution approving property tax abatement related to Community Center expansion and public infrastructure improvements in the City of Shakopee. Background Over the past year, as the Council has considered building a second sheet of ice and expanding the Community Center's offerings, several potential funding mechanisms have been reviewed. At its June 30 meeting, the Council directed staff to proceed with the necessary steps to utilize tax abatement bonds to fund the proposed project. Conducting a public hearing is one of those necessary steps. At the public hearing, staff will provide an overview of tax abatement financing and the estimated impacts of the proposed bonding on taxpayers. For a preview of this information, please see the attached FAQ document. Additionally, Paul Steinman, the City's financial consultant from Springsted, and Julie Eddington, the City's attorney from Kennedy & Graven, will be present to answer questions. The amount of bonds to be issued totals $32,225,000. Of this amount $30,500,000 would be for direct project costs and the remainder would pay for the cost of issuance. Over the 20 year life of the bonds, the City would make principal and interest payments totaling approximately $50 million. Requested Action The Council is asked to conduct a public hearing on the proposal to issue tax abatement bonds in the amount of$32,225,000 to finance the construction of a new two-sheet ice arena and proposed enhancements to the Community Center facility. Following the public hearing, the Council is asked to consider Resolution No. 7615, a resolution approving property tax abatement related to Community Center expansion and public infrastructure improvements in the City of Shakopee. Attachments: Resolution No. 7615 FAQs on Tax Abatement CITY OF SHAKOPEE,MINNESOTA RESOLUTION NO. 7615 RESOLUTION APPROVING PROPERTY TAX ABATEMENT RELATED TO COMMUNITY CENTER EXPANSION AND PUBLIC INFRASTRUCTURE IMPROVEMENTS IN THE CITY OF SHAKOPEE BE IT RESOLVED By the City Council (the "Council") of the City of Shakopee, Minnesota(the "City"), as follows: Section 1. Recitals. 1.01. The City has contemplated granting a property tax abatement in order to aid in the construction and equipping of an expansion of the Community Center in the City,including an expansion of the Shakopee Ice Arena, an aquatics center and related public infrastructure (the "Project"), which will benefit certain property in the City,all pursuant to Minnesota Statutes,Sections 469.1812 through 469.1815,as amended(the"Act"). 1.02. Pursuant to Section 469.1813, subdivision 1 of the Act,the City may grant an abatement of all or a portion of the taxes imposed by the City on one or more parcels of property to pay for all or a portion of the cost of acquisition or construction of public facilities and to finance or provide public infrastructure, whether or not located on or adjacent to the parcel for which the property tax is abated. 1.03. The City has identified certain property in the City generally described in EXHIBIT A attached hereto and identified by property identification numbers in EXHIBIT B attached hereto (the "Abatement Property")which will be benefitted by the Project and from which the City proposes to abate a portion of the City's share of taxes to help finance the Project,subject to all the terms and conditions of this resolution(the"Abatement"). The Abatement Property is not located in a tax increment financing district. 1.04. The City intends to issue its general obligation bonds in the approximate aggregate principal amount of$32,225,000(the"Abatement Bonds"),which will be issued to pay the costs of the Project pursuant to the Act. The Abatement Bonds are expected to be paid through the collection of Abatement revenues. 1.05. On the date hereof,the Council conducted a duly noticed public hearing on the Abatement at which the views of all interested persons were heard. Section 2. Findings. 2.01. It is hereby found and determined that the benefits to the City from the Abatement will be at least equal to the costs to the City of the Abatement for the following reasons: (a) The Abatement will help finance the Project, which will provide access to expanded recreational services to the residents of the City. (b) The Project will provide a high quality of life for residents of the City. 4474-744,61315992 JAE SH155-391 (c) The Project will help preserve and increase the value of the Abatement Property, thereby helping to generate additional City tax revenues over the long term after the expiration of the Abatement. 2.02. It is hereby found and determined that the Abatement is in the public interest for the following reasons: (a) The Abatement will help finance the Project, which will help maintain or increase values of the Abatement Property, as set forth above. (b) The Project may stimulate further development and increase tax base. (c) The Abatement will help finance public facilities and public infrastructure. (d) The Project will provide expanded recreational services to citizens of the City and will positively impact the quality of life in the City. Section 3. Actions Ratified;Abatement Approved. 3.01. The Council hereby ratifies all actions of the City's staff and consultants in arranging for approval of this resolution in accordance with the Act. 3.02. Subject to the provisions of the Act,the Abatement is hereby approved and adopted subject to the following terms and conditions: (a) The term "Abatement" means the City's share of the real property taxes generated from the land and improvements on the Abatement Property,in the amounts described in this Section: (i) The aggregate Abatement paid by the City during the term of this resolution will not exceed the amount necessary to pay one hundred five percent(105%)of the principal of and the interest on the Abatement Bonds,up to a maximum of$50,000,000. (ii) Notwithstanding anything to the contrary herein,the Abatement payable on any August 1 and subsequent February 1,combined,will not exceed the amount produced by extending the City's total tax rate for the applicable year against the tax capacity of the Abatement Property,as of January 2 in the prior year. (iii) In accordance with Section 469.1813, subdivision 8 of the Act, in no year shall the Abatement,together with all other abatements approved by the City under the Act and paid in that year,exceed the greater often percent(10%)of the City's levynet tax capacity for that year or $200,000 (the "Abatement Volume Cap"). The City may grant any other abatements permitted under the Act after the date of this resolution, provided that to the extent the total abatements in any year exceed the Abatement Cap, the allocation of Abatement Cap to such other abatements is subordinate to the Abatements under this resolution. (b) The Abatement will be for a term of twenty (20)years, and the City will pay the Abatement in semiannual installments each August 1 and February 1,commencing August 1,2016, and continuing through August 1,2036. The City will use the Abatement solely to finance the cost of the Project, through application of Abatement amounts toward debt service payments on the Abatement Bonds(including bonds issued to refund the initial Abatement Bonds,if any). Granting 167170468259v2 JAE SH155-391 2 the Abatement for a twenty(20)year term is contingent on either Scott County or the school district in which the Abatement Property is located declining to participate in the Abatement. Either the county or the school district may decline in writing or if there is no written response within 90 days of the written request from the City to participate in the Abatement,the county or the school district will be deemed to have declined to participate. (c) This resolution may be modified only with the prior written approval of the City, and cannot be modified once the Abatement Bonds are issued. (d) In accordance with Section 469.1815 of the Act, the City will add to its levy in each year during the term of the Abatement the total estimated amount of current year Abatement granted under this resolution. (e) The City Council may terminate the grant of Abatement anytime prior to the offering for sale of the Abatement Bonds. 3.03. The Mayor and City Administrator are authorized and directed to execute and deliver any agreements, certificates or other documents that the City determines are necessary to implement this resolution. Approved by the City Council of the City of Shakopee,Minnesota,this 22nd day of September,2015. Mayor Attest: City Clerk 4-6;4 1468259v2 JAE SH155-391 3 EXHIBIT A ABATEMENT PROPERTY GENERAL DESCRIPTION 1. All residential parcels east of Adams St,north of Highway 169,west of Marschall Rd and south of 10th Ave;and 2. All residential parcels west of Adams St.,north of 12th Ave.,east of Van Buren St., and south of 6th Ave; and 3. All residential parcels east of Marystown Rd., north of 17th Ave., west of Countryside Drive and south of Highway 169; and 4. All residential parcels east of Adams St, north of 10th Ave., west of Spencer St. and south of 6th Ave; and 5. All residential parcels east of Spencer St., north of 10th Ave., west of Dakota St, and south of 7th Ave;and 6. All residential parcels east of Spencer St.,north of 7th Ave., west of Main St. and south of 6th Ave; and 7. All residential parcels east of Marystown Rd., south of 17th Ave., west of Townline Rd., north of the City boundary; and 8. All lots in Westchester Estates except lots 1-14 of Blk 5, 1-8 of Blk 8, 4-8 of Blk 6; and 9. The following lots of Providence Point Pt Addtn; lots 1-32 of Blk 5, lots 1-10 of Blk 4;and 10. The following lots of South Parkview 1 at Addtn;lots 1-6 of Blk 1, lots 1-7 of Blk 2,lots 1-7 of Blk 3, lots 1-5 of Blk 4; and 11. The following lots of South Parkview 2nd Addtn; lots 1-8 of Blk 1, lots 1-4 of Blk 2; and 12. The following lots of South Parkview 3rd Addtn CIC 1064; lots 1-24 of Blk 1; and 13. The following lots of South Parkview 4th Addtn; lots 1-4 of Blk 1; and 14. The following lots of South Parkview 5th Addtn; lots 13-15 of Blk 1; and 15. The following lots of Minnesota Valley 8th Addtn; lots 1-4 of Blk 2;and 16. The following properties identified by parcel identification numbers: 2709201212709202112709204302700807502709201302709202202709204402700900602709201312709 202212709204502700900802709201402709202302709204602700900502709201412709202402 709204702700900402709201502709202502709202312709203002709201512709202602700900 302709203102709201602709202702700900202709203502709201612709202802700900102709 203202709201702709202902700806802709203302709201712709204002700806902709203402 709201812709204012700807002709203602709201902709204102700807202709201802709201 912709204112700807102709201202709202002709204202700807302716700102709202102709 20421270080740270740180270740170270630230270630240270630250 46-7-4-76468259v2 JAE SH 155-391 A-1 EXHIBIT B ABATEMENT PROPERTY—PROPERTY IDENTIFICATION NUMBERS Parcel Number List 273402710 273290290 273290300 270016890 273371010 273403040 273290520 273290480 273400310 273371050 273403041 273290860 273290630 273401410 273371290 273403081 270017580 273402740 273370030 270020070 270016070 270920181 273402580 273370370 270017910 270016600 270017210 273402260 273370480 270017030 270017100 272100040 273402660 273370660 270017840 270016160 273370680 273402090 273370700 273290620 279010310 273370780 273400400 273370740 273401820 274330140 273402620 273400630 273370980 273401690 270016590 273370350 273400870 273371020 273401880 272660120 273370430 273402060 273371060 273401940 270920131 273370870 272240230 273371200 273401560 273400940 273371000 272240290 273371270 273401660 273401150 273371310 273402880 273371280 273400350 273402870 272240500 279070370 273403050 273401470 273402690 272240620 272440020 273403360 270015930 270920400 270920221 273402700 273400760 270080200 273402070 273290760 273402560 273370810 272340330 272660190 273290800 273402400 272100071 272340340 273402460 273402470 273402860 272340070 272100051 273402630 273402480 273402240 273401250 272440200 273402570 273402590 273402280 273402040 272100050 273402650 273402530 273402640 273370050 273401960 273400590 273402430 273402160 273370040 273370530 273400970 273401170 273400580 273370910 273370960 272660150 273402270 273400820 273371090 273370970 272660160 273402140 273402730 273371160 273403410 273402910 273402080 273402750 273371220 272100010 270017700 273290260 273401340 273371250 272040080 272240250 273290530 273402420 270080320 272440140 272240300 273290640 273400560 273290280 273290310 272240320 273290820 273402370 272040120 270016720 272100180 273290840 273401380 272100171 273402050 273370020 273290870 273401370 273370060 273290580 273370690 273370460 273403060 273370320 273290590 273370730 270016110 273401990 273370330 273290770 273370890 272660220 273401890 273370410 273290830 273371190 272240330 273401640 273370500 272340280 272240360 272240540 270018120 273370610 272100070 272240470 272240550 270017280 273370620 273401330 272240490 273402540 272340220 273370630 273401800 272240600 273400860 270080050 273370820 273401770 272240640 273400950 272100020 273370830 273401720 273290880 273290240 273401730 273370990 273401980 167170168259v2 JAE SH155-391 B-1 273402000 273403630 270210130 271600170 271840080 273401930 270016430 270016250 271690420 273900940 273401600 273402970 272250010 271430050 271800560 273400320 273403160 270240890 270210190 271960040 273400670 272340050 270170420 272200260 272070430 273400800 270120400 270240850 273291050 271740040 273401460 279061000 270241260 272070310 273900750 273400780 270170380 272930030 272470050 272070300 273290610 270080450 270210120 272300170 273903690 273290200 272340200 270240090 271690260 273902400 273290460 270020380 270920470 273291030 271980090 273290500 270130010 270330040 272470200 270240190 273403550 270016280 271580020 272200160 273904200 270016130 279070380 273480140 273291080 273900780 270120680 270220170 270920320 273903100 271840170 273403480 270120310 271250030 271920280 273904090 273403620 270160090 272200090 270830140 273904080 273403200 270130020 272070030 272200120 271690180 270920300 272340180 272930130 271500260 273900600 272440120 272340150 279120400 271430230 272090420 270100150 279061060 271690230 272420420 273900090 270015870 270160040 270240040 271730350 273901190 270017490 272340170 270016691 272430520 273900120 273290230 270018000 270410010 271800250 273591360 273290250 270020120 270220010 270210210 273900070 273290350 270120900 271690460 271800590 273590370 273290650 270180130 271580050 273410040 273903250 273403500 272340100 273590160 272070360 273591520 273290740 270190130 271730410 271920020 273903800 272340030 270130100 272200060 270120250 273903600 273401850 279060700 272040180 273480190 273903590 273401860 270016060 270017320 273480200 273901170 273401950 270920200 272040230 271210020 279120401 273401540 279010240 271580150 270240120 273900240 273400340 270210530 272070450 271920300 272930220 273400770 270130130 270018030 271920410 273901350 273403000 279060790 273901120 273902190 273901990 273403450 270241040 270120180 272040070 274330010 273403490 270120390 272300050 271920620 273901410 273403290 270240950 271360230 272070350 273591400 273403600 270016320 272660390 273590210 273590580 273402960 270240340 279010200 271960080 272090070 273402950 270120470 271730070 271470010 273590600 273403210 270020490 272040010 273903090 273900640 270100070 270220120 270210340 271800050 273591690 270241380 270020170 272660290 273903190 273380050 270017590 270410080 271580030 271800520 273901530 270100130 270120640 270580120 271730120 273901360 273400480 271360500 271430120 273130160 273902410 273400690 270241180 271730080 273902810 273903900 273403350 270080460 273904060 273903450 273901540 167170468259v2 JAE SH155-391 B-2 270017720 273400610 272660240 270920230 272100021 270020420 273400650 272660250 270016580 270020090 273403230 273400890 270070060 272100131 270017800 270017760 273400910 272660070 279060810 279060910 273403470 272660030 272240240 270016870 270080380 270015940 272660080 270017390 270016270 270017830 270018130 272660100 270017530 272240270 270121030 273380010 272660130 279060780 272240280 270016710 270017150 272660040 270017170 272100081 272340230 272660110 273402130 273290670 279060890 272340260 272660140 273402110 272100041 272240340 270016760 270920420 272660010 273370720 272240460 273402760 270920130 272660060 273370850 272240510 273402780 270920120 272240560 270070030 272240530 273402500 272660260 272240570 273400880 272240630 273402350 270920121 272240590 273370390 273402450 273402300 270017001 272660050 273370400 273400420 273402680 272660170 270016920 273370840 273402840 273402220 270016090 270016180 273371100 273400640 273402180 270015980 270017820 272240480 273402340 270015950 270070070 270830060 272040090 273402670 273402820 270015990 273370950 273290190 273402200 270170120 270920421 270920180 273290790 273401230 273402320 270017690 270830061 270017200 273401220 273402610 272660090 270920191 272040100 273400930 273402520 270920410 270016490 272040330 270016990 273402150 272660200 272240210 273402720 272100100 273402210 270017090 270017561 273402800 273290220 273400540 273402770 279060900 273402810 273290320 273400550 273402850 270016140 273402830 273290420 273402390 273402550 273370920 273402330 273290470 270016880 273402250 273371070 273402490 273290490 270017850 273402510 273371180 273402600 273290700 279060640 273402310 273371230 273402440 273290850 272100151 273402190 273371240 273401180 270016030 270017310 273401200 273371320 273401160 272100060 273402120 279060650 272660020 273401210 273400410 273402100 270920401 270016260 273400920 273400570 270016440 270920411 270920210 273402380 273400620 270080290 279070330 272240520 273290380 273400840 270080540 270016370 272240580 270920231 273402900 273402890 270017680 272240610 272240350 270016550 270080720 273403420 270017290 270110040 272440290 270020260 273402790 273290180 272440180 272240220 270016980 273402290 273290690 272440160 270016520 270016310 273402360 270920211 272440240 273370800 270080030 273402410 270920190 272240260 279060880 272100030 273402170 270920220 270016630 270017860 273401290 273402230 272660180 270017300 272440340 273401780 273400390 272660210 270016780 270020500 273401840 273400530 272660230 270017050 272100091 273401700 4-6;.4--7.0. 2$259v2 JAE SH155-391 B-3 273403100 273371170 270017510 273370300 273290810 273403090 273403310 272100031 273370420 272100140 273403460 273403240 272100101 273370470 270017970 273403570 273400450 272100150 273370520 272440210 273403510 270016230 272100181 273370590 270100030 273403520 270017190 270110050 273370770 272100110 273403530 272100161 273370310 273371260 270170080 273403650 272100190 273370340 270017014 272340190 273401550 270017040 273370380 279070310 272340310 273401520 279010250 273370440 270017650 272340320 273401590 270100060 273370450 273403330 272340350 273400360 279060720 273370490 273403280 279060980 273400460 270120380 273370510 273403580 270120620 273400680 272440230 273370540 273403610 270080430 273400790 272100191 273370550 270016360 272040151 270016450 272040150 273370560 272040130 273401350 270170180 270170400 273370570 272040131 273401300 272340240 272340250 273370930 272040140 270170540 270017230 272340270 273371120 273403180 273401740 270170090 272040141 273371330 273403150 270016010 279060680 279060630 270120980 273403190 270080010 270017660 273403430 270080230 270080490 273401970 279070270 273401420 272040091 270016480 273402030 270017012 272100011 270017011 273290550 273401610 272440090 273370010 270017220 272440170 273400440 279070290 273370360 272100061 272440190 273400710 270016930 273370650 272100111 272440220 273401400 279010170 273370710 272100160 272440280 270120960 270080070 273370750 273401790 272440320 270017610 270080310 273370860 273401920 270080350 270017470 270016610 273370900 273401870 272100130 270016080 270016300 273371040 273401510 279061130 270100120 270017670 273371080 273401650 272040110 272040321 270017920 273371150 273400490 270080270 273401710 270015920 273371210 273400720 272100080 273403340 279070350 273371300 272340300 272100121 273403390 273401260 270015850 272040101 270110020 273403540 273401830 270120190 272040331 272440250 273403670 273402020 270170150 270120870 272440260 273400300 273400750 279061040 273401320 272440310 273400470 273400850 270016560 273403010 272440330 273400660 273401480 270100290 273403030 270017410 273400740 270160080 270080250 273403400 272340160 270170130 273370580 270016050 273403590 272340210 270016330 273370640 272040121 273402010 270080700 273290270 273370670 270018160 273402920 270130050 273290430 273370880 270016700 273401630 272100090 273290660 273370940 272040111 273401670 270080410 273402990 273371110 270018180 272100120 273290600 273402940 273371130 273400500 273400370 273290680 272100141 273371140 273401430 273403140 273290720 270170290 4-6?-e1-7.1446825992 JAE SH155-391 B_4 273403380 272240310 273401580 273401570 270020450 273403370 279060970 273400330 273400730 270130240 273403320 279070280 273400510 270160130 270170750 273403560 279061010 273400700 270016390 270200020 273403660 270016790 273401440 279061140 270110030 279070360 270080370 273401490 270080360 270130140 270016830 279060920 270017790 272040081 270170390 270070080 270016730 270015960 270241310 270120650 273290780 272340140 272340040 270016660 270080020 270080680 272440010 270080330 270080690 270170020 270130190 270100140 273400810 270180110 270170550 270120270 270080400 270120930 270016570 270100100 272340090 270017260 270160110 270018140 270170520 272440110 270016120 278010020 273403440 279070390 272440100 279061030 273403020 273403250 270017710 270080340 270080480 273403110 273402980 270120880 270018090 270230030 273403300 270020370 270017180 270015910 279060690 273403220 270016540 270016100 272340290 273290570 273403640 270080560 270017950 270016460 270220150 273401450 279010260 270016170 270017810 273290170 273403120 270080550 270017890 272440130 273290210 273403170 270016670 270170740 272440150 273290360 270016380 272340130 270017640 272440270 273290510 270016400 270020330 270220070 272440300 272440030 270170210 279010190 270017460 270016680 272040320 270080210 270080500 270241090 270170110 279060930 270017002 271360420 270170320 270110060 270170050 270080730 270017350 270017780 270017380 270170160 270160030 270170350 270080390 273290730 272340060 270241340 270170780 270190010 270020340 270130200 270120850 270020230 270280030 273290330 270130030 270080080 270120120 270020160 273290340 270020060 279060860 270016740 270020270 273290370 270016850 270018190 272340080 270241400 273290390 270080260 270017250 270170340 270120340 273290400 279060670 270170480 279061120 270080300 273290410 270018070 270120220 270120730 270121020 273290540 270170280 270080530 270017013 279060850 273290710 270120090 270120360 270017500 270180120 273290750 270170500 272340120 270170200 270170260 272440050 270016900 270015970 270016800 270016000 272440060 273401270 270015890 270017600 270120140 272440070 273401240 270130070 270017550 270016860 272440080 273401310 279060990 270170060 270017450 270160100 273401810 270017980 270120950 270017520 273403070 273401760 273401360 270016770 270120150 273403260 273401750 273401280 270080420 270170530 279060830 279061110 270120280 270170230 270170410 273402930 273401910 273401680 270020350 270120920 273401500 273401900 279060940 270017400 270920240 270120410 273401620 273401530 270170370 270241030 467170168259v2 JAE SH155-391 B-5 279060960 270120590 270020100 270017140 270120970 279061070 270241070 270016350 270240560 270120260 270080040 270240880 270120990 270020040 270120660 272100170 270017110 270017870 270016040 270330020 270170190 270240720 270017120 270210420 272930120 270230020 273910010 270016190 272250070 271950060 270130220 279010180 270017060 270018150 270016340 270020570 270018110 279010320 271950100 270190110 270016510 270120600 270120130 279070300 271250010 270080060 270180170 270170100 270018220 270180070 270070050 270080520 270330170 270630250 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271380280 271660130 270170440 270410540 271380220 270170690 270410560 271660020 270170450 270410680 270410800 46717016825992 TAE SH155-391 B-14 FAQs about proposed tax abatement SHAKOPEE financing for Community Center improvements The City Council will hold a public hearing Tuesday,Sept.22 regarding financing for proposed improvements to the Shakopee Community Center.The proposal will be discussed in more detail during Tuesday's hearing;however,here is a preview of the proposed action: What is the City of Shakopee proposing? The City is proposing using tax abatement to issue bonds to finance the$30.5 million proposed Community Center improvements.These improvements include a new two-sheet ice facility,expanded fitness center, new pool and indoor aquatic center,dedicated senior center, indoor playground,and child care space. What are tax abatement bonds? The Minnesota Legislature allows cities to abate all or a portion of property taxes levied by the City for a given purpose, such as public infrastructure improvements,economic incentives or redevelopment. In the case of public infrastructure improvements,such as what is being proposed here,cities can use tax abatement to issue bonds in order to finance a project upfront. To use tax abatement,the City must identify parcels whose value demonstrates the City's ability to pay off its debt.The City also set a timeframe for bond repayment, in this case, 20 years.These parcels are identified on the attached map. How were the identified parcels selected? The parcels were selected based on their location near the Community Center. However,the selection is also random in that it has no unique impact on the properties.All taxpayers will be impacted equally. How does this affect me as a taxpayer? If the Community Center project moves forward with this financing mechanism,the City will have to levy annually for debt on the bonds.All Shakopee taxpayers will pay an equal percentage, based on their property value,toward the project. It makes no difference whether your property is included or not included on the attached map. Why is the City abating a value of$50 million when the project is estimated at $30.5 million? Just like a mortgage, bonds require government entities to pay interest over the life of the bond.The Community Center project is currently estimated to cost$30.5 million with an additional$19.5 million in interest over the 20-year loan for a total of$50 million. Have other cities used tax abatement bonds for recreation facilities? Yes,several cities across the metro area have used tax abatement bonds for similar park and recreation-type projects. For example: • The City of Eden Prairie recently issued $17.2 million in tax abatement bonds to finance expansion of its aquatics center. •The City of Woodbury used $16.8 million in tax abatement bonds to expand the Bielenberg Sports Center in 2013. • In 2012,the City of Savage financed construction of its indoor sports facility with$4.9 million in tax abatement bonds. •The City of St.Cloud expanded its existing civic center with$22.4 million in tax abatement bonds in 2010. • In 2008,the City of Burnsville issued$17.8 million in tax abatement bonds to fund construction of its public performing arts center.