Agenda - Council Work Session - 07/18/2023 - Special

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over the winter months for a 2024 construction. A 2024 construction would align with construction of the private development projects. A second component to the COR infrastructure improvements is the Waterfront Park. The project listed above aids in the plans for the waterfront park, however, the construction expenses related to the park specifically are not TIF eligible expenses. The park has been a plan for a number of years and would act as a community park with amenities associated with water activities. Concept plans include walking trails, touch points around the water features to include educational components, green space, splash pad, and a building with a food establishment and community center features. Funding for these improvements are not available in full, but based on timing priorities previously expressed by Council staff would like to continue to explore these improvements. Timeframe: Funding Source: Throughout the improvement projects for 2023, it has been noted that the City has approximately $2 million of cash to contribute to towards eligible projects. The 2023 projects alone surpass this total, so the planned funding source would be to issue a TIF Bond. Early estimates would require a $7 million bond for 2023 expenses, which would hold an approximate $640,000 annual debt service obligation. Staff is seeking information on what the total bonding capacity for the district is should Council want to maximize that in order to lump multiple year's of projects into one bond issuance. The district does generate enough annual revenue to cover this debt service payment, as explained in the attached Ehlers analysis. The funding question at hand for future projects in the COR will require a review of the reimbursement policy. Depending on the incurred costs, and how successful private development/property values are in the future will dictate whether the district produces the revenue necessary to pay off past and future expenses. In the last paragraph of the Ehlers analysis, it is recommended that the City request legislation that makes it clear that expenditures for land acquisition, Transit Station or public improvements constructed before or after the creation of the district can be reimbursed with TIF without the requirement of an interfund loan resolution. Staff will suggest this be recognized as part of our future legislative priorities. This legislation would allow the city to capitalize on revenue generated towards the end of the collection period and repay those previous expenses. In other words, if the district is more successful than current predictions, we would be able to repay expenses not originally anticipated to be repaid. Responsible Party(ies): Outcome: Provide direction on 2024-2026 infrastructure improvements and next steps on the Waterfront Park planning/implementation. Attachments Ehlers District Financial Analysis TIF #14 Reimbursement Policy TIF #14 Estimated 2023 Bond Run Waterfront Park Community Building Presentation Waterfront Park Rendering DRAFT Waterfront Park Bird's Eye View DRAFT Form Review Inbox Reviewed By Date Brian Hagen Brian Hagen 07/14/2023 12:24 PM Form Started By: Brian Hagen Started On: 07/12/2023 04:58 PM Final Approval Date: 07/14/2023