EDA Meeting Date: February 24, 2025
To: Members of the Economic Development Authority
From: Ben Martig, City Administrator
David Bennett, Public Works Director
Jake Reilly, Community Development Director
Nate Carlson, Economic Development Coordinator
Title
Update on Debt Financing for New Ice Arena.
Body
Action Requested:
No action. The EDA shall hear an update from city staff regarding the future ice arena financing structure.
Summary Report:
City Staff and legal counsel will provide an update on the pending ice arena project bidding, financing and construction. Attached is the most recent City Council presentation update that will be included. Additionally, there was a question from the public on the City Council roles related to serving on Council and EDA. Attached is a memo from the City Attorney explaining the duties of each and requirement to fully participate as members on each body including taking action on all related actions of the pending arena project and financing.
Staff and legal counsel welcome questions or clarifications as it relates to the upcoming debt issuance and approvals scheduled for the EDA to assist in completing the project.
Financing Background
In September of 2024, the EDA approved commitments to provide the financing of debt for the new arena. The new arena financial and legal framework for the new arena was also approved in 2024 through a jointly planned and financed collaborative project between the City of Northfield, City of Dundas, Northfield School District and Economic Development Authority.
In the State of Minnesota, Economic Development Authorities (EDA) and Housing and Redevelopment Authorities are granted the statutory authority to issue debt in the form of a bond in order to finance construction of any building/real property that has a public purpose.
This tool is known, generally, as a conduit bond and in this specific case the tool is a "lease revenue bond." As described in Minnesota State ...
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