CR 96-184 Excelsior Blvd Improvement ProjectNovember 13, 1996
Proposed Action
EXCELSIOR BOULEVARD IMPROVEMENT PROJECT BOND SALE
Staff recommends adoption of the following motion: Move to approve Resolution 96 -95,
authorizing the sale of $2,240,000 G.O. Tax Increment Bonds, Series 1997A xcel for
Boulevard Improvement Project). With this action, Ehlers and Associates will take the necessary
steps to facilitate this bond sale. The matter would return to the Council some time in December
for the actual approval of the sale.
Overview
Based on previous action by the Council, staff has been working with Hennepin County to
undertake a phased upgrading of the entire Excelsior Boulevard roadway throughout the City.
The majority of funding for this project will be shared between the county and City.
The funding source for the City portion of the improvement project, as detailed in the Capital
Improvement Program, will come from MSA funds, special assessments, and tax increment. The
tax increment portion is proposed to be provided through the subject bond issue paid by
increments generated from TIF District 2 -1 (this is the district that includes the R. L. Johnson
property).
With approval of the subject action, Ehlers and Associates will undertake the necessary steps to
complete the bond sale. Staff would return to the Council (probably in December) for the actual
approval of the sale.
Primary Issues to Consider
Supporting Documents
Resolution 96 -95
Bond sale document
o What are the specifics of this bond issue?
o What are the specific sources of funding for this project?
o What are the specifics of this project?
Jam s . Kerrigan
Planning & Economic D - elopment Director
Council Report 96 -184
HRA Report 96 -184 - Page 2
Primary Issues to Consider
o What are the specifics of this bond issue?
The total amount of the bond issue would be $2,240,000. This issue would be repaid from
available tax increment generated from Tax Increment District 2 -1 over a 15 -year period.
o What are the specific sources of funding for this project?
The entire City cost of the first phase of Excelsior Boulevard improvements will be funded
with this $2,240,000 G.O. Tax Increment Bond. Bond payments will be from tax increment
generated by TIF District 2 -1. Sufficient municipal state aid funds will be available to fund
future phases of Excelsior Boulevard improvements and Shady Oak Road improvements.
o What are the specifics of this project?
Specific Excelsior Boulevard Phase One project elements and estimated costs are shown
below.
Estimated
Project Element City Cost
Road construction $ 260,000
Storm sewer construction 385,000
1 lth Avenue improvements 270,000
Right -of -way acquisition 270,000
Excelsior Boulevard lighting 328,000
Landscaping 400,000
Relocate overhead electricity to underground 100,000
Sidewalk 90,000
Contingency 137.000
TOTAL: $2,240,000
Alternatives
The City Council has the following alternatives regarding this matter:
1. Approve the action as recommended by staff. With this action, Ehlers and Associates will
undertake the necessary steps for selling the subject bonds. The Council will need to provide
final approval of the actual sale.
2. Continue for additional information. With this action, the Council needs to detail the specific
information that they need to make a decision on this matter.
3. Do not approve sale of the bond. With this action, the Council will need to provide direction
to staff on how to address funding for this improvement project.
•
ATTEST:
Terry Obermaier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 96 -95
RESOLUTION PROVIDING FOR THE SALE OF $2,240,000
G.O. TAX INCREMENT BONDS, SERIES 1997A
WHEREAS, the City Council of the City of Hopkins, Minnesota, has heretofore
determined that it is necessary and expedient to issue the City's $2,240,000 G.O. Tax Increment
Bonds, Series 1997A (the "Bonds "), to finance the construction of improvements to Excelsior
Boulevard; and
WHEREAS, the City has retained Ehlers and Associates, Inc., in Minneapolis, Minnesota
( "Ehlers "), as its independent financial advisor for the Bonds and is therefore authorized to solicit
proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9).
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hopkins,
Minnesota, as follows:
1. Authorization: Findings. The City Council hereby authorizes Ehlers to solicit proposals
for the sale of the Bonds.
2. Meeting: Proposal Opening. The City Council shall meet at the time and place specified in
the Bond Sale Report for the Bonds dated November 12, 1996, for the purpose of
considering sealed proposals for, and awarding the sale of, the Bonds. The City Clerk, or
designee, shall open proposals at the time and place specified hi such Terms of Proposal.
3. Terms of Proposal. The terms and conditions of the Bond and the sale thereof as fully set
forth in the Bond Sale Report are hereby approved.
4. Official Statement. In connection with said sale, the officers or employees of the City are
hereby authorized to cooperate with Ehlers and participate in the preparation of an official
statement for the Bonds and to execute and deliver it on behalf of the City upon its
completion.
Adopted by the City Council of the City of Hopkins this 19th day of November, 1996.
By:
Charles D. Redepenning, Mayor