Agenda - Council - 03/10/2020 - Laserfiche WebLink

Home

44EHLERS LEADERS IN PUBLIC FINANCE Memo To: Sean Sullivan — Economic Development Manager From: Stacie Kvilvang - Ehlers Date: March 3, 2020 Subject: Potential Special Legislation — COR TIF District In 2010 and 2011 the City received special legislation for the above referenced TIF District. The 2010 legislation allowed the City to: 1. Create the TIF district in which it defined the boundaries 2. Stated that the area met the blight test to qualify it as a redevelopment TIF district 3. Allowed the City to use TIF for construction of the Transit Station and related infrastructure, structured parking, pedestrian overpass and roadway improvements in addition to using TIF for typical redevelopment costs (4j clause) 4. Extended the 5-year rule (November 28, 2016) to 10 years (November 28, 2021); and 5. Confined the City to spend all TIF within the District In 2011, the City went back and requested and received: 1. TIF District boundary clarification 2. Removed the requirement that expenditures had to be for redevelopment (4j clause) 3. Allowed the City to use TIF for land it acquired and public improvements completed prior to the establishment of the TIF district; and 4. Allowed two (2) parcels where construction began prior to certification of the TIF district to not be added to the base land value so the City could capture the TIF generated from these parcels The District was certified in late 2011 and the first TIF was received in 2015 (Residence at the COR Apartments). Therefore, the TIF district will expire on December 31, 2040. Since that time development has commenced at a slow, but steady pace over the years, with a lot of the area yet to be developed. To date, the City has three (3) developments where they have pay-as-you-go TIF obligations which include the Residence at the COR Apartments (estimated payoff by end of 2029), PSD Apartments (estimated payoff by end of 2022) and Affinity Apartments (estimated payoff TBD since 1st TIF in 2020). TIF that has not been obligated to developments on a pay-as-you-go basis is being retained by the City to repay itself for its costs related to acquiring the land and paying for existing road and utility improvements (approximately $29 million). The 5-year rule (10-years under the special legislation) requires that all qualified expenditures be made (spent) within 10 years of certification of the TIF district (November 28, 2021). Any expenditures AFTER this date can only be reimbursed through pooling dollars which is limited BUILDIN{a COMMUNITIES. IT'S WHAT WE DO. No@ehlers-anc.cam ° :. 1 (S1X) 552-1171 `^ ,°,, eni s,.i,c c:yr.