HomeMy WebLinkAbout12/17/2015 - Council MinutesOFFICIAL PROCEEDINGS OF THE SHAKOPEE
CITY COUNCIL
REGULAR SESSION LOCATION Council Chambers City Hall 129 Holmes Street South
SHAKOPEE MINNESOTA
7:00 p.m.
1. Roll Call
December 17, 2015
Present: Mayor Brad Tabke; Councilmember Matt Lehman; Councilmember Jay Whiting;
Councilmember Kathi Mocol; Councilmember Mike Luce
Staff City Administrator Bill Reynolds; Parks and Recreation Director Jamie Polley; City Clerk Lori
Present: Hensen
2. Pledge of Allegiance
3. Approval of Agenda
Moved by Councilmember Jay Whiting, Seconded by Councilmember Kathi Mocol to approve the
Agenda.
Vote: 5 - 0
4. Public Hearings:
A. Qualified 501(c)(3) Tax Abatement Bonding to Finance Community Center/Ice Arena Project
Mr. Reynolds presented a public hearing on the proposal to designate tax abatement bonds
"qualified 501(c)(3) bonds" pursuant to Section 145 of the Internal Revenue Code and specifically
to identify one or more nonprofit organizations exempt from federal income taxation under Section
501(a) of the Code, as a result of the application of Section 501(c)(3) of the Code as qualified
501(c)(3) users of the project.
Mr. Reynolds explained that on June 30th, 2015 Council directed staff to proceed with the
necessary steps to utilize tax abatement bonds to fund the proposed Community Center Project. On
September 22nd, a public hearing on the proposal to issue tax abatement bonds was conducted with
the subsequent approval of Resolution 7615 authorizing the use of tax abatement bonds. On
November 17th, Council authorized the issuance and sale of general obligation tax abatement
bonds, series 2016A, in the proposed aggregate principal amount of $31,845,000, and set the sale of
the bonds for December 17th, 2015 with a follow-on special council meeting on that date to award
the sale of the bonds.
Julie Eddington, of Kennedy & Graven, explained 501 (c)(3) bonds.
Moved by Councilmember Matt Lehman, Seconded by Councilmember Jay Whiting to open the
Public Hearing.
Vote: 5 - 0
Mayor Tabke asked if anyone in the audience would like to speak at the Public Hearing, No one
responded.
Moved by Councilmember Jay Whiting, Seconded by Councilmember Kathi Mocol to close the
Public Hearing.
Vote: 5 - 0
5. General Business
A. General Administration
1. Sale of Tax Abatement Bonds to Fund the Community Center/Ice Arena Project - Res. No. 7663
Mr. Reynolds addressed the Council regarding the Sale of Tax Abatement Bonds to Fund the
Community Center/Ice Arena Project - Resolution No. 7663. Series 2016A, in the original
aggregate principal amount of $31,845,000; fixing their form and specifications; directing their
execution and delivery; and providing for their payment.
Paul Steinman, Financial Advisor for the City of Shakopee, reviewed the bids that were received
including the lowest bid, and that the contract was awarded to Morgan Stanley. Mr. Steinman also
explained the Premium dollars that were received by the City and how it lowered the amount that
was borrowed.
Cncl. Lehman inquired about certain Statutes that pertain to referendums and Park and Recreational
uses. Ms. Eddington answered that the Abatement Act allows the City to use general obligation
bonds without a referendum for this type of facility.
Cncl. Lehman asked if the disclosure includes the long term operational costs for the Community
Center structure as a City liability. Ms. Eddington responded that the Community Center will be a
part of the City's general audit report.
Moved by Councilmember Jay Whiting, Seconded by Councilmember Kathi Mocol to approve
Resolution No. 7663 awarding the sale of general obligation tax abatement bonds, Series 2016A, in
the original aggregate principal amount of $29,500,000.00; fixing their form and specifications;
directing their execution and delivery; and providing for their payment.
Vote: 5 - 0
Mayor Tabke thanked Staff for all of their hard work on the Community Center project.
Cncl. Whiting discussed working to find a balance in the community in regards to the Community
Center. He asked mayor Elect Mars to consider forming a committee to review the programs, fee's
and advertising opportunities to maximize the best outcome for the new facility.
6. Other Business
There was none.
7. Adjourn to January 5, 2016 at 7:00 p.m.
Moved by Councilmember Matt Lehman, Seconded by Councilmember Jay Whiting to adjourn.
Vote: 5 - 0
' oriHe •
Acting Clerk
Heidi Emerson
Recording Secretary