Eden Prairie experienced “aggressive bidding” on its sale of capital-improvement bonds to finance city hall remodeling, awarding the sale Tuesday to Minneapolis-based Piper Sandler & Co., one of 15 bidders.
The bids were numerous and close, which Bruce Kimmel, senior municipal advisor for Ehlers, the city’s financial advisor on the bond sale, called a “feel-good story.”
“I don’t think I’ve ever seen a combination of so many bids and such aggressive bidding,” said Kimmel, who has 25 years of experience in the field. “Usually, you have a few people who just throw in a bid, trying to get lucky. But they all really, really wanted to buy these bonds. I think that’s illustrative of the credit rating, but deeper than that, they know just what a vibrant, economically diverse, and well-managed city the city is.”
The city received $2 million from Piper Sandler & Co. for what’s called a premium bid. Eden Prairie will use most of that to reduce the bond issue size while still netting the $26.5 million needed to complete the remodeling project.
As a result of favorable financing terms, the city issued $24.76 million in bonds. The debt will be repaid through local property taxes at an interest rate of 3.7038%, with an annual debt service of approximately $1.9 million for 19 years. That is below the $2.3 million per year in remodeling debt projected earlier by city staff.
After reviewing the bond issue, Moody’s Investors Service and S&P Global Ratings affirmed the city’s top credit ratings – Aaa from Moody’s and AAA from S&P.
Work on the remodeling is expected to begin in March or April at Eden Prairie City Center, 8080 Mitchell Road. It’s the largest renovation since the former CPT Corp. headquarters was purchased in 1993 and converted into city hall.
Most of the work will take place in the building’s vacant west end, which will house the police department, including indoor parking for squad cars.
Construction is expected to wrap up in May 2026, with move-in during July and August of that year.
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