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H L RS
<br /> PUBLIC FINANCE ADVISORS
<br /> MEMORANDUM
<br /> TO: Brian Hagen — City Manager
<br /> Diana Lund — Finance Director
<br /> FROM: Stacie Kvilvang - Ehlers
<br /> DATE: December 7, 2023
<br /> SUBJECT: TIF 14 (COR) Status
<br /> You inquired if the District could repay an additional $4 million in costs related to new street work to be
<br /> completed within the COR. Below is a chart that outlines eligible expenditures made by the City to date (does
<br /> not include any pay-as-you-go (paygo) obligations), other funding sources and the net cost to the City:
<br /> Category • OtherFunds
<br /> city
<br /> Land Acquisition $ 12,987,632 $ (51776;632) $ 7,211,000
<br /> Public Improvements (COR 3) $ 4005361490 $ (40,482) $ 41P4961008
<br /> Ramp $ 11,754,485 $ (8;356;186) $ 31 398,299
<br /> Transit Station $ 4,106,872 $ - $ 4,106,872
<br /> Roads $ 25,432,829 $ (10,265,539) $ 15,167,290
<br /> Roads- 2023A Bonds $ 7,000,270 $ - $ 7,000,270
<br /> Residence at the COR $ 11,552,465 $ (91109,465) $ 21443,000
<br /> TIF Ad m i n $ 425,846 $ - $ 425,846
<br /> TOTAL $ 77,796,889 $ (33.#548,p3O3) $ 44,248,586
<br /> As noted, the City expended approximately $78 million, received approximately $33.5 million from other
<br /> sources, leaving a net amount of cost still owed to the City of approximately $44.2 million. In addition to the
<br /> above referenced costs, the City had an additional $5.1 million in costs for park improvements, admin and
<br /> marketing that cannot be reimbursed through TIF, but could be reimbursed with land sale proceeds.
<br /> For pay 2024, the District is expected to generate approximately $2.12 million in TIF. Of this $1.285 million is
<br /> going towards payment on the two (2) existing paygo notes and debt service on the 2023A bonds that were
<br /> issued for road improvements within the COR this year. This leaves approximately$837,000 for the City to
<br /> pay for administrative costs, any of the $37.248 million in costs noted above (this nets out the $7 million in
<br /> roads financed with the 2023A bonds since we are required to repay those) or to use it to pay for future
<br /> improvements within the District.
<br /> If we assume no future development (TIF stays at $2.12M/year), the City would have approximately $22.8
<br /> million available for uses as previously noted at the end of the District. However, staff is of the opinion that
<br /> more development will occur over the remaining term of the District that will increase the amount of annual TIF
<br /> to approximately $4.2 million by 2034. If development happens as staff has preliminarily laid out, that would
<br /> mean at the end of the District, the City would have approximately$45 million available for eligible costs.
<br /> BUILDING COMMUNITIES. IT'S WHAT WE DO. F� info@ehlers-inc.com � 1 (800)552-1171 ® www.ehiers-inc.com
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