97-05 HRA Resolution
Resolution 97-5
February 18, 1997
Commissioner Anderson introduced the following resolution and moved its adoption:
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RESOLUTION APPROVING REVISION OF THE REDEVELOPMENT PLAN
FOR THE NORTH WIRTH PARKWAY REDEVELOPMENT PROJECT
BE IT RESOLVED by the Housing and Redevelopment Authority (the "Authority") in
and for the City of Golden Valley, Minnesota (the "City") as follows:
Section 1. Recitals.
1.01. It has been proposed that the Authority modify the Redevelopment Plan (as
last revised through February 16,1988) (the "Plan") by updating actions taken to date to
fulfill the Plan, by outlining actions yet to be taken and by revising the budget for the Project,
pursuant to and in accordance with Minnesota Statutes, Sections 469.001 to 469.047,
inclusive, as amended.
1.02. The Authority has investigated the facts and has caused to be prepared a
proposed revision of the Plan (the "Revised Redevelopment Plan") for the North Wirth
Parkway Redevelopment Project setting forth the information specified in Section 1.01.
1.03. The Authority hereby determines that it is necessary and in the best interest of
the City at this time to adopt the Revised Redevelopment Plan (attached as Exhibit A),
contingent upon the review of the Revised Redevelopment Plan by the Planning
Commission, and to request that the City Council (the "Council") of the City hold a public
hearing relating to the Revised Redevelopment Plan.
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Section 2. Approval of the Revised Redevelopment Plan.
2.01. The Revised Redevelopment Plan presented to the Authority on this date is
hereby approved and adopted.
2.02 The Revised Redevelopment Plan, as approved and adopted by the Authority
on this date, shall be forwarded to the Council with the request that the Council hold a public
hearing relating to the adoption of the Revised Redevelopment Plan, and that said Revised
Redevelopment Plan shall be placed on file in the office of the City Clerk.
Section 3. Filing of revised Redevelopment Plan.
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3.01. The Authority shall cause the Revised Redevelopment Plan, as finally
approved and adopted, to be filed with the Minnesota Department of Revenue.
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C1option of the foregoing resolution was seconded by Commissioner Russell;
and upon a e taken thereon, the following voted in favor thereof: Anderson, Johnson,
LeSuer, Micks and Russell, and the following voted against the same: none, whereupon said
resolution was declared duly passed and adopted, signed by the Chair and her signature
attested by the Director.
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Resolution 97-5 (Con't.)
EXHIBIT A
February 18, 1997
DRAFT NORTH WIRTH PARKWAY
REDEVELOPMENT PLAN UPDATE
Part I: OVERVIEW
Area Location and Boundaries
The North Wirth Parkway redevelopment area (Exhibit A) is considered to be one
of Golden Valley's "gateway" locations. Fronting on the north side of Olson
Memorial Highway (Highway 55) and extending a full mile from the edge of Wirth
Park to Highway 100, it establishes the character of the City in the eyes of many
travelers coming west out of Minneapolis. In contrast to its length, North Wirth is
only about a quarter-mile in width, extending from the highway to the Chicago
Northwestern railroad tracks. The area includes about 108 acres of land.
Evolution of North Wirth Planning
As early as 1973, the triangle of land known today as North Wirth's East Area
(bounded by Wirth Park, Olson Memorial Highway, and the Soo Line Railroad
tracks) was singled out in Golden Valley's comprehensive plan as "an area in
need of renewal". Two of this area's most visible businesses were a 1940's-style
drive-in restaurant that closed in 1971 and a gun/bait shop. Neither met zoning
code requirements. In the mid-1970's, owners of both came to the City for
permission to expand or otherwise alter the use of the properties, which would
have required significant variances to legitimize existing conditions. The Council
confronted the issue of community image head-on. Giving the businesses a new
lease on life appeared contrary to Golden Valley's best interests, but leaving
them to deteriorate in place was no longer an acceptable alternative. The North
Wirth Parkway redevelopment area was created as a solution to the problem.
The original North Wirth Parkway Redevelopment Plan was adopted by a
recently established Golden Valley Housing and Redevelopment Authority (HRA)
on September 18, 1978. At that time, it covered only the triangular area
previously identified as being in need of renewal. In addition to accommodating
expansion of facilities owned by.the railroad company and an existing paper
plant, the plan contemplated construction of a 100,000 square foot office
development and a 21,000 square foot convenience retail center.
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EXHIBIT A: LOGA TION OF
NORTH WIRTH PARKWAY
REDEVELOPMENT AREA
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Resolution 97-5 (Con't)
EXHIBIT A
February 18, 1997
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The first amendment to the plan was adopted on April 9, 1979. The most
significant changes were the elimination of the proposed commercial center and
the near doubling of the proposed office development to 190,000 square feet. A
. proposed Highway 55 traffic signal was also shifted from Indiana Avenue to
Meadow Lane, and other traffic circulation details were modified.
The second plan amendment was adopted on March 9, 1982. With it, the HRA
again increased the amount of office space to be included in the area, this time
to 290,000 square feet. The scope of the increase required that construction of
a parking ramp be added to the plan as well.
The third amendment to the North Wirth Parkway Redevelopment Plan was
adopted on February 16, 1988. It enlarged the redevelopment area to its
present size and established redevelopment concepts for the newly added
territory, which was divided into the Central Area and the West Area of North
Wirth Parkway. The original area was renamed as the East Area. A "basis for
certification" section of the plan was deleted and replaced by a more generic
"finding" statement. The original list of objectives was completely rewritten and
increased from five statements to 18.
.
The plan for the Central Area called for either restaurant/hotel or restaurant/office
redevelopment at Highway 55 and Ottawa Avenue as well as more effective use
. of land occupied by existing businesses and excess railroad right-of-way. For
the West Area, complete redevelopment with medium to high density residential
uses was preferred, though limited convenience-type retail uses were also
contemplated for part of the area. In both areas, extensive highway access and
frontage road improvements were a top priority.
Rather than expanding the railroad facilities, the revised East Area plan
. contemplated complete removal of all railroad uses except for basic trackage,
with replacement by light industrial uses for the most part. A second office
complex was planned along the highway frontage directly west of the first office
development, where previous versions of the plan had called for retention or
expansion of existing industrial or railroad uses. The paper company expansion
was left in the plan, but was reoriented to the north of the existing site rather than
to the east as in earlier plan versions.
The North Wirth Parkway Redevelopment Plan contained in these pages marks
the fourth amendment since the creation of North Wirth back in 1978. It reflects
the HRA's attempt to maximize available and expected tax increments in order to
. best position the North Wirth area for continued improvement through private
. investment after the district is ended.
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Resolution 97-5 (Con't.)
EXHIBIT A
February 18, 1997
Environmental Remediation
One area to be addressed in this amendment is environmental investigation and
remediation which must be done to redevelop the property and comply with
federal and state requirements. In 1991 the railroad property (mostly in the East
Area) purchased for redevelopment was discovered to have significant
contamination. In 1993 a Central Area combined site composed of the former
White House restaurant land and the land platted as the SChaper Natural Area
was placed on the State Superfund Permanent List of Priorities. The
contamination is considered a blight, to be cleaned up to create developable
parcels and to avoid migration to adjoining property through surface or ground
water.
Financing of Activities
North Wirth's East Area is a tax increment financing (TIF) district. That
designation allows Golden Valley's HRA to finance redevelopment activities
throughout the redevelopment area from taxes generated by "captured"
increases in taxable value. The taxable valuation of a TIF district is "frozen"
when the district is created. Taxes on this base valuation continue to be
collected and distributed among the various taxing jurisdictions as usual.
As redevelopment activities generate increased valuation for properties within
the district, taxes on the amount of valuation over and above the base valuation
are distributed directly to the HRA on an annual basis. These moneys, known as
tax increment, are used to finance redevelopment activities throughout the
redevelopment area. When the district expires these moneys will be distributed
to the various taxing jurisdictions.
Of course, this is a much simplified explanation of TIF, but it conveys the general
idea of how the Golden Valley HRA is able to finance the improvement of the
North Wirth area. More detailed financial information is provided in Part III of this
plan. More information on the creation and administration of TIF districts can be
found in Minnesota Statutes 469.174 - 469.179.
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Resolution 97-5 (Con't.)
EXHIBIT A
February 18, 1997
. Findings in Support of Redevelopment
In order to use the redevelopment powers authorized for local HRA's under state
law, a city must first make certain "findings" with regard to the area proposed for
redevelopment. Findings for the original North Wirth Parkway area were
adopted by City Council Resolution #128 on October 16,1978. Findings for the
expanded area were adopted by City Council Resolution #88-15 on February 16,
1988. There are minor variations in wording between the two resolutions, but
they consist of the same basic points, identified as follows:
· The North Wirth Parkway area is found to be a blighted area within the
meaning of applicable state statutes;
· The redevelopment program outlined in the North Wirth Parkway plan
is necessary to eliminate and prevent the spread of blight;
· The affected area is subject to conditions preventing private
development and would not be available for redevelopment without
governmental assistance and financial aid;
.
· The plan for the area maximizes opportunities for redevelopment by
private enterprise. consistent with the needs of the City as a whole;
· The plan is sufficiently' complete to indicate its relationship to the City's
objectives regarding appropriate land uses, and to indicate the general
redevelopment land uses and standards for the area;
· There is a feasible method for the relocation of households that may
be displaced by redevelopment efforts, and adequate replacement
housing and other relocation benefits will be provided to such
households by the HRA in accordance with applicable federal and
state regulations; and
· The objectives and purposes of the North Wirth Parkway plan are
consistent with the general land use proposals and planning objectives
established by the City of Golden Valley in its comprehensive plan.
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Resolution 97-5 (Con't.)
EXHIBIT A
February 18, 1997
. Redevelopment Goals and Objectives
There have been changes in details and wording of statements over the years,
but the basic aims of the North Wirth Redevelopment Plan have remained fairly
constant throughout all of its amended versions. Specific redevelopment uses
and activities are identified in Part 1/ of this plan. Broader goals and objectives
are as follows:
Goal Remediation of blighting conditions to stimulate appropriate private
redevelopment efforts.
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Objectives
· Acquire and demqlish dilapidated, deteriorated, or vacant buildings for
which rehabilitation is deemed unfeasible.
· Acquire and demolish obsolete buildings or buildings with substantial
code deficiencies for which modernization is deemed unfeasible.
· Acquire and demolish facilities with substantial nonconformities in
parking/loading areasj landscaped yard areas, percentage of lot
coverage, or other aspects of zoning or land use.
· Investigate and correct areas of contaminated soil or groundwater.
· Identify and implement strategies as necessary to reduce the
likelihood of future env"ironmental degradation through intentional
dumping or unintentional spills or leaks.
Goal Strengthening of area tax base through coordination of redevelopment
activities.
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Objectives
· Assemble small lots or poorly configured unplatted parcels of land into
new development sites of suitable size and configuration to meet
modern zoning standards and land use demands.
· Promote expansion or redevelopment of uses on currently under-used
parcels that have potential for greater contribution to the economic
welfare of the community.
· Evaluate and facilitate reasonable development of vacant land
encumbered by steep slopes, poor soils, excessive wetness, or other
development-inhibiting natural conditions.
· Identify appropriate uses for targeted redevelopment sites, seek
qualified developers, and ensure successful redevelopment outcomes
via negotiated development agreements.
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Resolution 97-5 (Con't.)
EXHIBIT A
February 18, 1997
Goal Improvement of public infrastructure to encourage more effective use of
available land.
Objectives
· Assist MnDOT as necessary with expedited reconstruction of the
frontage road system for Highways 55 and 100, and with signalization
of improved access points.
· Reconstruct or augment the internal street system as necessary to
provide efficient acce~s and to accommodate large-scale
development.
· Provide and/or upgrade storm water detention, drainage, and filtering
facilities.
Provisions For Plan Amendment
The North Wirth Parkway Redevelopment Plan may be amended from time to
time as required for adjustment to changing conditions. Approval of any such
amendment must be undertaken in accordance with applicable provisions of
state law.
Where the HRA determines that a change in the Plan is necessary, and further
determines that such change does not alter or affect overall redevelopment area
boundaries, nor does it depart substantially from the general land uses
established in the Plan, such change shall not constitute an amendment to the
approved North Wirth Parkway Redevelopmwnt Plan and shall not require City
Council approval.
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Resolution 97-5 (Con't.)
EXHIBIT A
February 18, 1997
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Part II: REDEVELOPMENT PLAN COMPONENTS
As indicated in Part I of this plan,. North Wirth is divided for planning purposes
into three sub-areas: the East Area, the Central Area, and the West Area (Exhibit
B). The following pages present a summary of land use characteristics and
planned and completed redevelopment activities for each sub-area.
East Area
Among the three sub-areas, the East Area displayed the least advantageous
initial land use characteristics. Ten years older than the other two parts of North
Wirth, it has also been the focus of the most extensive redevelopment activity
over the years. Even with time out for remediation of significant soil and
groundwater contamination, most targeted redevelopment projects have been
completed or are well in hand. (Exhibit C)
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Boundaries and Size
Triangular area bounded on east by Wirth Park, on south by Olson Memorial
Highway (Hwy. 55), and on northwest by railroad tracks. Also known as
"original" North Wirth Parkway area.
Approximately 38 acres in size.
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Initial Land Use Characteristics (1978)
· Unplanned intermixing of small scale residential, commercial, and industrial
uses near park and highway, with Hennepin County Animal Humane Society,
a major box manufacturer, and encroaching railroad uses extending
southeasterly from the railroad tracks.
· Most of area platted in small (40 to 50 feet wide) residential lots dating back
to 1915.
· Many vacant lots under widely dispersed ownership.
· Widespread zoning nonconformities, including businesses in residential
structures, inadequate on-site parking, inadequate or nonexistent landscaped
areas, and structures too big for sites.
· Increasing building code violations and structural decline.
· Inadequate and hazardous ~ccess to and from highway.
· No curbs, gutters, or sidewalks on internal streets; pavement nonexistent or
deteriorated; many street and alley segments vacated for railroad yard use.
8
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Resolution 97-5 (Con't.)
EXHIBIT A
February 18, 1997
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Planned Characteristics
Mix of large scale office, office/warehouse, and light industrial uses, with office
development preferred adjacent to highway. Animal Humane Society to remain
in place. Due to prohibitive cost of acquisition, box manufacturer to remain in
place with site improvements as feasible.
.
Activities Completed to Date
· Buyout and removal of all residential uses and all railroad uses except basic
trackage.
· Construction of redesigned internal street system.
· Construction and signalization of redesigned highway access.
· Construction of local storm water ponding facility.
· Remediation of soil and groundwater pollution generated by former uses.
· Development of Wirth Park Center -- 260,000 square foot office complex in
three buildings, with associated parking ramp (can accommodate
approximately 40,000 square feet of additional office space through vertical
expansion of tallest office building and parking ramp).
· Development of Dahlberg, Incorporated -- 87,700 square foot corporate
headquarters and hearing aid manufacturing facility.
· Development of Grow Biz International -- 47,500 square foot office,
warehouse, and training center for company specializing in purchase/resale
of various popular commodities.
Current Action Plan Components
· Development of one remaining site east of Dahlberg Drive, including
necessary soil corrections.
· Development of one remaining site west of Dahlberg Drive, including
necessary soil corrections.
· Development of one remaining site north of Animal Humane Society.
· Potential acquisition and demolition of one remaining older building (Juhl
Brokerage) on highway side of easterly development site, with accompanying
relocation of existing business.
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Resolution 97-5 (Con't.)
EXHIBIT A
February 18, 1997
. Central Area
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Central Area redevelopment plans have been the least ambitious of the three,
with few targeted redevelopment sites. Activities have been slowed by three
factors: the need to wait for MnDOT to complete necessary highway frontage
road and access improvements; the discovery of previously unsuspected soil
and groundwater contamination, and legal problems arising in connection with
one of the proposed redevelopment sites. (Exhibit D)
Boundaries and Size
Area bounded on north and east by railroad tracks, on south by Olson Memorial
Highway (Hwy. 55), and on west by property line between City-owned open
space area and Valley Village Apartments excess land.
Approximately 43 acres in size.
Original land Use Characteristics (1988)
· Mix of industrial, office, showroom, and hospitality/service uses, not always
appropriately zoned.
· Highly visible vacant and deteriorating restaurant building fronting on
highway, on a site partially filled with construction debris, later determined to
include contamination.
· Excess railroad right-of-way sitting vacant in northeasterly angle between
tracks, with difficult topography and no street access to accommodate sale
and development.
· Moderate zoning nonconformities, including inadequate on-site parking and
inadequate or nonexistent landscaped areas.
· Most of area never platted, some parcels with no direct street access, several
parcels of ample size but with poor configuration for optimized site use.
· Poorly located frontage road with hazardous access to and from highway.
· Approximately 15 acres of City-owned permanent open space in westerly half
of area, providing a natural surface water management area at the
westernmost edge, portions of which were filled in with construction debris;
site of illegal dumping over the years.
Planned Characteristics
Same basic mix of industrial, office, and hospitality/service uses, with open
space at west end. Most existing buildings to remain in place, with site
improvements as feasible. Productive re-use of excess railroad right-of-way and
former restaurant property, and augmented use of permanent open space.
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EXHIBIT D:
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Resolution 97-5 (Con't.)
EXHIBIT A
February 18, 1997
. Activities Completed to Date
· Construction of redesigned highway frontage road and signalization of
access.
· Acquisition of excess railroad right-of-way, platting and provision of street
access through linkage to East Area development site.
· City-ordered demolition of d~teriorated former restaurant building.
· Environmental studies and commencement of remediation activities for soil
and groundwater contamination found on City-owned open space and former
restaurant site.
· Commissioning of study for proposed lighted ball fields and related storm
water management improvements on City-owned open space.
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Current Action Plan Components
· Completion of clean-up activities on City-owned property.
· Coordination of platting for relocated frontage road segment and various
parcels of land affected by it, including City-owned property and tax-forfeit
former restaurant property
· Acquisition of former restaurant site, currently a tax-forfeited property, for
completion of environmental clean-up and ultimate redevelopment in
combination with small portion of City-owned property "orphaned" by
construction of new frontage road.
· Establishment of lighted ball fields on City-owned open space, and upgrading
of area to be retained for storm water management.
· Development of former excess railroad right-of-way site which is part of an
East Area lot.
West Area
West Area redevelopment plans have experienced the least progress of the
three. There is some uncertainty about the redevelopment potential of the
westernmost end of the area due to the lack of final design plans for Highway
100 expansion and associated frontage road reconstruction. In the late 1980's,
a proposal for complete area redevelopment with high density luxury apartments
fell through due to poor market conditions, which have only recently begun to
improve again. (Exhibit E)
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Resolution 97-5 (Con't.)
EXHIBIT A
February 18, 1997
. Boundaries and Size
Area bounded on south and west by Highways 55 and 100, on north by railroad
tracks, and on east by property line between Valley Village Apartments excess
land and City-owned open space area.
Approximately 27 acres in size. .
Original Land Use Characteristics (1988)
· Aging, low density apartment development (111 units on 16 acres -- three
unplatted parcels, two of them mostly vacant, wet and low), restaurant,
General Motors employee training facility, and part of an old motel converted
for small office uses (remainder of motel buildings demolished several years
earlier, with bulk of site left vacant).
· Widespread zoning nonconformities, including inadequate on-site parking
and inadequate or nonexistent landscaped areas.
· All parcels except two in apartment site small and/or with difficult to develop
configurations.
· Hazardous access to and from both highways.
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Planned Characteristics
Medium to high density residential use, which may involve more efficient
redevelopment of existing apartment site. Possibility of limited office or
convenience/service facilities along either highway frontage.
Activities Completed to Date
· Construction of redesigned Highway 55 portion of frontage road; closing of
hazardous access points on both highways, with traffic channeled to new
signalized access in Central Area.
Current Action Plan Components
· Support of and assistance with MnDOT efforts in final design and
construction of Highway 100 frontage road.
· Support of and assistance with MnDOT efforts to consolidate and dispose of
any remnant parcels created by additional right-of-way acquisitions for
Highway 100 frontage road.
· Extension of storm water management improvements as identified for Central
Area.
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Resolution 97-5 (Con't.)
EXHIBIT A
February 18, 1997
Part III: FINANCIAL PLAN
Costs incurred by the Golden Valley HRA in its North Wirth redevelopment
activities fall into several categories. These include land acquisition, building
demolition, business and household relocation, environmental remediation,
public improvements such as streets and utilities, and administrative costs.
The HRA is committed to only use tax increment proceeds to finance these
expenditures. The tax increment district comprising all of the East Area is the
source of funding for the whole redevelopment area.
In most cases the proceeds of tax increment bonds will be used to finance these
redevelopment expenditures. The debt service on the bonds will be repaid by
the tax increment generated by the district. Tax increment not needed for debt
service can be used to directly finance redevelopment expenditures.
Exhibit F is an analysis of the projected cash flow in the district based on projects
which are currently being planned for the area as of the date of this amendment.
Other projects are likely to come up in the future, especially in the Central Area.
The district is in excellent financial position and should be able to finance these
projects.
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City of Golden Valley - HRA - Tax Increment EXHIBIT F
District Projections
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North Wirth Tax IncrementEund: CD
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1997 1998 1999 2000 2001 0
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Estimated Tax Increment 1,225,000 1,225,000 1,225,000 1,225,000 1,225,000 -
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Central Area Ballfields (Inc!. Environmental Cleanup & OJ
Wetland Mitigation) (2,730,000) -;
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Debt Service:
1995 Taxable Tax Incr. Ref. Bonds (5.81%) (748,435) (764,360) (752,755) (564,330) (534,820)
Projected Cash Bal. @12/31 $2,246,565 $2,707,205 $3,179,450 $3,840,120 $4,530,300
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Bonds Outstanding @ 12/31 $2,365,000 $1,715,000 $1,040,000 $520,000 $0 CD
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