Agenda - Council - 05/14/1991 - Laserfiche WebLink

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I I CASE #4 CITY ACQUISITION OF PROPERTY TAX INCREMENT FINANCING DISTRICT NO. 5 By: Sandra Ashley Helling, Finance Officer Background: I'o tneet statutory requirements for TIFD#5, at least one of the following must be completed by June 1, 1991' Development Agreements for plats located within TIFD//5 must be fully executed. Bonds for project costs must be sold. The City must acquire property for public improvements within TIFD#5. Observations: Staff has been working with the developers regarding the Agreements for Cedar Hills, Chestnut Hills and Windemere Woods. In the event of a last minute complication which could result in delaying the execution of these Agreements, City acquisition for Right-of-way easements for public improvements would also meet the requirements. The developers will work closely with staff to identify and provide ROW easement at a nominal cost to the City. Hakanson Anderson Associates, Inc. has estimated the cost for necessary legal descriptions for the ROW to be Five Hundred and No/100 Dollars ($500.00). The City Attorney has stated that with these descriptions, the acquisition(s) could be completed quickly and involve no more than a few hours of legal work. It should be noted that in the fall of 1990, Hakanson Anderson Associates, Inc. was authorized to proceed with trunk plans in anticipation of Agreement execution with the developers. The City has therefore incurred a cost of approximately Forty Thousand Dollars ($40,000.00) on behalf of TIFD#5. These costs will become a City general expense if the Tax Increment statutory requirements are not met. Discussion: Mr. Steve Bubul of Holmes & Graven is here with us this evening. Mr. Bubul has worked with our former City Administrator in establishing TIF District #5 and has also assisted staff during this time of transition. Mr. Bubul will review the specific statutory requirements with the Council this evening. Recommendation: To assure the viability of TIFD#5, it is recommended that the City move as expeditiously as possible to acquire ROW easement in Tax Increment Financing District No. 5. Council Action: Motion to authorize/not authorize the Mayor and City Administrator to acquire ROW easement in TIFD#5 before June 1, 1991 at a nominal cost.