Mike Bubany, David Drown and Associates, reviewed the plan to finance the Industrial Drive Improvement project during a public hearing at the August 28 meeting of the Chatfield City Council.
The total project cost including associated financing expenses is $908,440. Three sources of funding will be used including a $457,000 general obligation tax abatement note (series 2017A), a $300,000 general obligation taxable utility revenue note (series 2017B), and a Business Development Public Infrastructure DEED grant in the amount of $151,440 for roadway improvement.
Bubany explained that the property tax abatement information shows the number of parcels along Industrial Drive on paper to pay for the principal of the abatements bonds. This is needed for the legal authority for the issuance of the bonds.
During the abatement hearing there were no questions from the public or the council. The council adopted the Tax Abatement Resolution which sets up the tax abatement district for funding public improvements associated with Industrial Drive. These improvements will serve multiple commercial and industrial properties. The abatement will contribute to the financing of the project by providing public infrastructure within the development area. New and expanding businesses are expected to bring additional employment opportunities.
A resolution was adopted for the sale of 2017A bonds in the amount of $457,000. The council accepted the offer of F & M Community Bank to purchase the note which will be paid back over 10 years with a net interest rate of 2.85%. This note is through the Minnesota Rural Water Association Loan program.
A resolution was adopted for the sale of 2017B bonds in the amount of $300,000. The council accepted the offer from MiEnergy to purchase the note to be paid back over 10 years at a 0% interest rate.
City Clerk Joel Young said work on the Industrial Drive project is expected to start on September 5. He apologized to the public for any inconvenience.
Other business in brief
• The city owns two parcels outside of the corporate city limits. Hunting will continue to be allowed on the parcel located at the corner of Olmsted County Road 10 and 155th Avenue which consists of tillable and forested land.
Hunting will be prohibited on the second parcel which is located at the intersection of Fillmore County Road 2 and Mind Drive. This is the city’s brush and leaf dump. The Public Works committee recommended the parcel be posted to prohibit all hunting.
• Brian Burkholder was appointed to the People’s Energy Cooperative Advisory Commission.
• Councilor John McBroom reported that there are four new fire fighter applicants. The hire of Jill Harstad, James Danielson, Pat Anderson, and Nick Greenwood was approved.
McBroom reporting for the Park and Recreation committee said they are working to put a committee together to fundraise for a new swimming pool.
• Councilor Paul Novotny said that there is a fair amount of interest within the school district for a swim team. This is a consideration if a new swimming pool is constructed.