Funding Bonds in Chaska?

8/23/13

One reader has questioned Shorewood possibly funding a retirement facility in Chaska, citing having "read" about it.

Well, there is an item on the council meeting agenda for Monday the 26th that refers to this. The reader must be reading the agenda packet on the City's website. You can read it too and look for item 10B on the regular meeting agenda. See: http://weblink.ci.shorewood.mn.us/weblink8/0/doc/165898/Page1.aspx

So, staff wants to know if there should be a formal policy about using the City's bonding authority to issue revenue bonds where the project is a not a City one. The practice of a city using its bonding authority to loan money to a project is common. Deephaven recently did just this for the construction of the St Therese retirement housing project. St Therese promised to pay back the bonds and Deephaven taxpayers have no obligation if the bonds are not repaid.

Should/will Shorewood do this? According to the staff memo, it has done so at least once before. Of  course a major reason for doing this would be that Shorewood would be paid a large chunk of money from the bond sales proceeds. So it may come down to how money hungry the Shorewood Council feels. The Insider notes from the staff memo that Chanhassen and Greenwood are considering selling bonds for this project too.

The reader also commented on potential changes in Badger park. Again, these were discussed recently in a council meeting that is on TV and the web. Of note is that the cost of the changes would use all the parks capital funds leaving nothing for other improvements unless the council finds more money. Maybe use all the money from the sale of the City-owned house? Council has not yet decided.

Standby for more on this.

Happy Reading!
The Insider