Agenda - Council - 05/28/1991 - Laserfiche WebLink

Home

CASE #7B DEVELOPMENT AGREEMENTS TAX INCREMENT FINANCING DISTRICT #5 By: Sandra Ashley Helling, Acting City Administrator Background: As you will recall, Case #3, entitled DEVELOPMENT AGREEMENTS - TAX INCREMENT FINANCING DISTRICT #5, on the May 14, 199t Agenda was deleted as the developers had not yet signed the agreements. As of today, May 28, 1991, these agreements have been signed. Duc to the short notice for adding this case to tonight's agenda, Mr. Steve Bubul, the City's Tax Increment Financing Attorney, will not be at this meeting. However, Mayor Gilbertson, Councilmember Hardin and I met with Mr. Bubul on May 24, 1991 to review tax increment financing in general and specifically the Agreements with Developers proposed for Tax Increment Financing District #5. Observations: Early in the year of 1990 various financial projections were made as to the projected tax increment to be generated from the TIF District //5 and the Improvement Bond Debt Service obligations of the City. Due to recent legislation and the simple fact of more than a year passing since the various projections were made, it will be in the best interest of the Developers and the City to update all projections. Recommendation: Staff and Mr. Steve Bubul, the City's Tax Increment Financing Attorney, recommend the following language be added to the Agreements with the Developers for the Cedar Hills, Chestnut Hills and Windemere Woods plats: Amend Section IX ADDITIONAL PROVISIONS to include: 39. Conditions; Terrainatio. n. The City shall have no obligation to construct the Public Improvements or sell the Improvement Bonds to finance the costs thereof unless and until all of the following conditions precedent are satisfied: (a) the City's fiscal consultant provides, and the City Administrator approves: (i) an updated analysis of projected Tax Increments to be generated from the TIF District; and (ii) an analysis of debt service on the Improvement Bonds showing sufficient revenues to pay such Improvement Bonds; (b) the City Engineer has reviewed the estimated costs of the Public Improvements and reported the results of such review to the City Administrator and the City's fiscal consultant; and (c) the City's auditor has reviewed current financial statements submitted by the Developer after which review the City's finance officer has approved such financial statements. If all of the aforementioned conditions are not satisfied within 60 days after the date of this Agreement, either the Developer or the City may terminate this Agreement by giving the other party ten days written notice of intent to terminate. Termination of this Agreement under this Section 39 also serves to terminate the agreements entered the date hereof between the City and the developers of and (insert the plat names of the other two affected plats).