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FREERS
<br />= PUBLIC FINANCE ADVISORS
<br />MEMORANDUM
<br />TO: Sean Sullivan — Economic Development Manager
<br />Diana Lund — Finance Director
<br />FROM: Stacie Kvilvang -Ehlers
<br />DATE: February 24, 2023
<br />SUBJECT: TIF 14 (COR) Status
<br />Background
<br />The above referenced district was established in 2010 via special legislation to designate it as a
<br />redevelopment TIF district, call out eligible expenditures, extend the 5-year rule to 10 years (time by which TIF
<br />needs to be expended) and not allow for pooling outside of the District boundaries. The legislation was
<br />modified in 2011 to expressly state that expenditures for land acquisition and public infrastructure prior to the
<br />establishment of the TIF district could be paid for with TIF and two (2) parcels that had development prior to
<br />the District being established could be included in the District (and TIF captured from them). The legislation
<br />was modified again in 2021 to extend the 5-year rule to November 28, 2023.
<br />You inquired about the status of the District and how much TIF would be available to pay for other project costs
<br />than those noted above. More specifically, road reconstruction of roadways west of Armstrong Boulevard
<br />(Ferret Street etc.) within the COR to spur future development which would cost approximately $1.8 milllion.
<br />Below is a chart that outlines eligible expenditures made by the City to date (does not include any pay-as-you-
<br />go (paygo) obligations), other funding sources and the net cost to the City:
<br />Land Acquisition
<br />Public Improvements (COR 3)
<br />Ramp
<br />Transit Station
<br />Roads
<br />Additional Armstrong Interchange
<br />Residence at the COR
<br />TIF Admin
<br />$ 7,136,4351 $
<br />� $ 422,739 $
<br />$ 11,632,213 $
<br />$ 3,860,483 $
<br />$ 25,432,829 $
<br />$ 6,000,000 $
<br />$ 11, 203, 516 $
<br />$ 457,764 $
<br />(2,095,641) $
<br />(40,482) $
<br />(8,356,186) $
<br />(11,590,036) $
<br />- $
<br />(9,109,465) $
<br />- $
<br />5,040,794
<br />382,257
<br />3,276,027
<br />3,860,483
<br />13, 842, 793
<br />6,000,000
<br />2,094,051
<br />457,764
<br />TOTAL
<br />$ 66,145, 979 $ (31,191,810) $ 34, 954,169
<br />As noted, the City expended approximately $66 million, of which it was anticipated that approximately $35
<br />million would be reimbursed through land sale proceeds and TIF. In addition to the above referenced costs,
<br />the City had an additional $5.1 million in costs for park improvements, admin and marketing that could not be
<br />reimbursed through TIF, but could be reimbursed with land sale proceeds. To date the City has received
<br />approximately $6.2 million in land sale proceeds. If we apply these first to the non TIF reimbursable costs of
<br />$5.1 million, that leaves approximately $1.1 million to go toward repayment of the $35 million in TIF eligible
<br />costs, which would leave approximately $33.8 million to be reimbursed with TIF.
<br />For pay 2023, the District is expected to generate approximately $1.7 million in TIF. Of this $640,502 is going
<br />to the two (2) existing paygo notes, leaving approximately $1.063 million to pay for annual administrative costs
<br />BUILDING COMMUNITIES. IT'S WHAT WE DO.
<br />E info@ehlers-inc.com '. 1 (800) 552-1171
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