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CONSENT ITEM MEMORANDUM DATE: May 28, 2013 TO: Honorable Mayor and City Councilmembers Patrick Klaers, City Administrator FROM: Sue Iverson, Director of Finance and Administrative Services SUBJECT: Request to Authorize Interfund Transfer and Establish Interfund Loan for TCAAP Expenditures Budgeted Amount: Actual Amount: Funding Source: N/A N/A PIR Fund Background/Discussion As part of the Joint Powers Agreement (JPA) with the County to develop the TCAAP property, the City is responsible for certain expenses, one of those being the TCAAP AUAR, Master Plan and Regulations & Policies. The City plans to recapture these planning expenditures through the collection of SAC fees that will be charged to development, but City does not have to pay the Metropolitan Council due to credits based on the former development on the property. The pace and type of redevelopment is not yet known, but it could be 10 years before the loan is repaid back. The City may also want to recapture other expenditures associated with the redevelopment such as engineering, attorney fees (some of these are associated with the JPA document), and possibly financial consultant fees. Staff proposes that an interfund loan be established from the PIR Fund to the General Fund at an interest rate of 3%. The initial transfer would be for $500,000 to cover the Kimley-Horn and Associates, Inc. contract of $426,004 and legal expenses for the JPA document. As future amounts are needed, staff will come back to get authorization for additional transfers. Requested Action Motion to authorize an interfund loan from the PIR Fund to the General Fund in the amount of $500,000 for TCAAP expenditures at an interest rate of 3% to be repaid from future SAC fees as collected on the development. 11 Page of