Eagan council approves resolution to pursue tax-abatement bonds for community center improvements

The Eagan City Council on Nov. 19 approved a resolution to move forward with issuing general-obligation "tax abatement" bonds to finance improvements at the Eagan Community Center.

City staff opened a public hearing on the matter and Tammy Amdahl of Northland Public Finance, the city's financial advisor, told the council that the session was a step in a multi-stage process. "Tonight, you are not issuing the bonds," Amdahl said, explaining that "tax abatement" is the statutory term used in Minnesota law and that the council's action authorizes the later issuance process. She said the resolution included a not-to-exceed principal amount of approximately $616,500,000.

Amdahl said the statutory process requires a public hearing, identification of the parcels that would be part of the levy calculation and a finding that the use of the tax levy is in the public interest for the community center improvements. She also told the council property tax statements would not display a separate "tax abatement" line; the levy would be certified and spread across the city's tax base like other debt-service levies.

No members of the public spoke during the hearing. Councilmember Fields moved approval of the resolution; a second was recorded and the council approved the motion by voice vote.

The council's vote authorizes staff to proceed with the steps necessary to issue bonds under the city’s statutory authority; final issuance, financing terms and any certification of levies would occur at later meetings if the council decides to proceed.

What happens next: staff and the city's financial advisor will complete legal and financing steps before any bond issuance is scheduled; the city must meet statutory notice and finding requirements before certifying any levy for debt service.