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<br />Council will consider a resolution establishing an interfund loan as well as a separate resolution <br />approving a TIF agreement with Oppidan. He noted the proposed TIF district would be located <br />north of Bunker Lake Boulevard and west of Armstrong Boulevard. <br /> <br />Mr. Aarsvold stated a TIF plan sets forth policy objectives of the district, its geographical location, <br />and establishes maximum budgeting authority. He added this planning document allows for <br />creation of the district but does not provide assistance to any developer. <br /> <br />Mr. Aarsvold stated the proposed TIF district would have a budget of approximately $3 million, <br />and would project at $36 million, assuming inflation and providing flexibility. He added the actual <br />amount of developer assistance is $1,172,000. He noted the TIF plan anticipates pay as you go <br />payments to the developer from the TIF district. <br /> <br />Mr. Aarsvold stated the TIF plan includes a 10% allowance for City administrative costs, and the <br />retention of 40% of increment for administrative costs and future improvements. <br /> <br />Mr. Aarsvold stated the proposed interfund loan resolution, a requirement of State statute, would <br />allow the City to advance funds now to cover costs for the creation of the proposed TIF district. <br /> <br />Mr. Aarsvold stated the proposed TIF agreement between the City and the developer would allow <br />TIF funding to be directed to the developer, and the agreement controls how and when that would <br />happen. He added the amount being provided will make it financially feasible but will not provide <br />a return on investment for development that is outside the industry standard. He noted the <br />proposed TIF agreement would require Oppidan to construct 3 buildings totaling 405,000 square <br />feet, with a timeline beginning in 2021 and all work completed by September 2023. The City will <br />provide up to $1,172,000 plus interest to offset acquisition costs. <br /> <br />Mr. Aarsvold stated the proposed TIF agreement would require that the buildings will provide at <br />least 100 full-time jobs with an average wage of $17.50 per hour, excluding benefits. The <br />developer will need to include TIF eligible tenants. <br /> <br />Councilmember Specht asked, with regard to the proposed TIF district, whether these funds would <br />normally go to General Fund, but tax captured would have to stay in the district. <br /> <br />Mr. Aarsvold stated, after going through the analysis, a conclusion in the TIF plan is that this <br />would not move forward but for the assistance that is being provided. <br /> <br />Mayor Kuzma requested clarification regarding the timeline for the TIF district. <br /> <br />Mr. Aarsvold stated the first increment would be collected in 2023, followed by 9 years of <br />collection. He added this TIF district is shorter than usual due to green field issues and minimal <br />development issues. <br /> <br />Councilmember Musgrove asked, with regard to the 40% increase for the City, whether the current <br />general tax being generated is property taxes. <br /> <br />City Council / August 24, 2021 <br />Page 5 of 14 <br /> <br />