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Council approves hearing findings, moves ahead with taxable bonds to fund Viaduct Park phase 2
Summary
After a public hearing, the Faribault City Council approved resolutions authorizing issuance of taxable general obligation tax abatement bonds (preliminary par ~$3.71M) to finance phase two of Viaduct Park and authorized Northland Securities as municipal advisor.
Faribault City Council on April 28 closed a public hearing and approved resolutions advancing issuance of a taxable general obligation tax-abatement bond for the second phase of Viaduct Park, with an estimated par amount of about $3.71 million.
Finance staff (Jessica Kzer) and Tammy Amdawa of Northland Securities explained that the bonds are proposed as taxable — rather than tax-exempt — to preserve the city’s ability to grant naming rights and allow potential private use of the financed facilities. Tammy said the preliminary interest estimate was about 4.8 percent and that bids will be taken on June 9 with results to be returned to council at the regular meeting that evening.
Council sought clarity on the levy and debt-service mechanics. Staff explained the bonds will be repaid on a predetermined debt-service schedule (preliminary estimate about $350,000 a year, with a 105% levy requirement producing an annual levy in the $370,000–$375,000 range). Staff said that if the tax base grows, the levy burden per property declines; callable features were noted for future refunding if market conditions change.
After public testimony (residents expressed opposition to large projects and urged environmental review and guarantees), council voted to approve resolution 2026-124 and related approvals; the motion carried by roll-call/voice votes. Council also approved the municipal advisory services agreement with Northland Securities to support the sale process.
Next steps: Northland will take bids on June 9 and return results to council; the formal sale and final pricing will determine the final par amount and interest rate.
