Mike Bubany, David Drown Associates, Inc., reported at the city council’s June 26 meeting that S & P Global Ratings assigned its “AA” long-term rating to Chatfield’s $2.3 million series 2023A GO bonds.
Four bids had been received this day for the bond sale. The lowest bidder was Robert W. Baird & Co., Inc. The average coupon rate is 4% with a net affective rate of 3.3%. The total project costs are estimated to be just over $2.2 million. The bonds will have a 12-year term to be paid off in February 2036.
A public hearing was held on the tax abatement. Bubany explained enough parcels were selected around Grand and Prospect Streets for the abatement. He said nothing different will be happening with the owners of these parcels. There were no comments from the public. A resolution was adopted authorizing the Tax Abatement. There are three portions making up the bond total, including the tax abatement portion, disposal system portion, and the water portion involving three revenue streams.
A second resolution was adopted unanimously authorizing the bond sale to the lowest bidder to finance the 2023 Street Improvement Project.
Special legislation
Chris Giesen, EDA coordinator, reported that the Minnesota legislature approved a special law for the city of Chatfield. The law will allow the city to use tax increment financing for a project where it would normally be ineligible. The special law allows for an economic development TIF on a commercial project where the entire building size is greater than 15,000 square feet (however, the first floor must be no larger than 15,000 square feet). The law is for a multi-level hotel development project in the specific location within the vicinity of Highway 30, Mill Creek Rd., and Division St.
Senator Carla Nelson and Rep. Greg Davids worked to get the special law approved.
If a city receives special legislation an authorizing resolution must be approved by the city council and the authorization must be filed with the Minnesota Secretary of State before the next regular session begins. A resolution was adopted approving the special law and authorizing the filing of the papers as recommended by the EDA.
Other business in brief
•A special city council meeting was held on June 15 to select finalists to interview for the city administrator position. Eighteen applications were received which had been narrowed down to 10. Three of the 10 have opted out of the process. All city council members submitted their top three choices out of the remaining seven semifinalists. The top four candidates will be asked to interview on July 12. The names of the finalists will be released on July 13.
•An update was given regarding an improvement to the disc golf course. Kelly Printing & Signs can create a welcome sign, update 9-hole plaques, and provide a map of the course at the disc golf course for a total cost of $1,600. Brian Burkholder noted that a grant has been applied for to pay for all of it. He hopes to have the new signs up by Western Days.
•Approval was granted to authorize work on Saturdays, if needed, for the 2023 Street Project.
•A $30,000 donation from the Chatfield Firefighters Activities Association was accepted.
•Approval was granted for Chatfield Education Foundation raffles to be held on August 5.
•Trevor Schmidt was hired as a part-time patrol officer.
•It was noted that Olmsted County has announced a change in the schedule for outdoor warning siren tests, effective July 1. More information is on the city’s website.
•Mayor John McBroom reported on a Committee of the Whole meeting held prior to the city council meeting. The status of both the 2022 Water Improvement Project and the 2023 Street Improvement Project were reviewed. The street project should begin about July 10. Future improvements planned over the next 10 years were previewed.
•The city council will meet next on July 10.
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