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Page 3 of 5 <br />If the City decides to construct a facility on the site, the City would need a financing mechanism <br />to construct the facility. One option that has been previously discussed is using Tax Increment <br />Financing (TIF) on the TCAAP site to fund the construction of the Civic Space. The City <br />Council could give direction for staff to pursue this option in moving forward or could suggest <br />an alternative financing mechanism. If TIF was chosen as an option, the City would only use <br />enough TIF to cover the cost of the construction of the facility, but still provide enough tax <br />revenue to cover on-going operations of the City. <br /> <br />The Council should also consider ongoing ownership and operations of the facility on the Civic <br />Site. If the City owns the facility there will be on-going capital costs over the long-term <br />associated with the building. If the City operates the facility it is likely the facility will not <br />generate sufficient revenue to cover operating costs, and will need to be subsidized by the City. <br />If the City allows the facility to be privately owned and operated, the City would not incur future <br />capital or operating costs. <br /> <br />Larger issue: What does the City Council want to see happen on the Civic Site? Does the City <br />Council want to move forward with an agreement between the County and developer for a Civic <br />use on that site? <br /> <br />Potential direction: <br /> <br />-The City Council should provide direction on whether Alatus’ proposal is acceptable or give <br />alternative direction. <br /> <br />City Planning Cost Recovery <br /> <br />The City has had a long stated goal that the TCAAP development will pay for itself, and current <br />residents will not be responsible for paying for TCAAP. Thru September, the City has incurred <br />$1,160,310 of TCAAP related costs, $846,580 of which is consultant cost and $313,730 of which <br />is administrative cost. It has been previously discussed to recoup these costs thru a planning area <br />charge. <br /> <br />Larger issue: Is the City firm on collecting these costs in their entirety? <br /> <br />Potential direction: <br /> <br />-The City Council could give direction to recover the full cost thru a planning area charge; <br />-The City Council could give direction to collect a portion thru a planning area charge; <br />-The City Council could give direction to collect all or a portion of the costs thru a different <br />financing mechanism. <br /> <br />On-Going Operating Costs <br /> <br />In order to meet the City’s goal of not burdening current residents with the cost of TCAAP, it <br />will be important the City is able to generate sufficient revenue from the development site to <br />cover any increased operating costs, such as, police and fire services, street maintenance, and