03-21-05 - Laserfiche WebLink

Home Browse Search

. . . ~ ~HILLS MEMORANDUM DATE: March 16, 2005 Agenda Item 2.D and 2.E TO: Mayor and City Council Michelle Wolfe, City Administrator FROM: Scott Clark, Community Development Director /!(./ SUBJECT: Phase N PlanninglTCAAP/ Framework Vision Based on a question from a Councilmember, part of the purpose ofthis memorandum is to explain how Phase IV plalll1ing relates to the overall TCAAP process. The question and concern is, what happens in Phase IV ifthe costs associated with the project raise the need for public financing to an unacceptablc or economically infeasible level? The second purpose of this memorandum is detail out how the TCAAP process will unfold, attached is a flow chart that illustrates the same. As the attached flow chart illustrates, the overall concept is to go through a series of Council approved actions that continuously redefines the TCAAP process and the project into more specific terms. The TCAAP Framework Vision is the first key step and is intended to be the foundation for all other actions. The purpose of the Vision was outlined in the resolution presented at the February 28,2005 Council Meeting and the same is attached. The TCAAP Vision allows the City (and the City's development partner, CRR, Inc.) to perform the following: ~ Develop an extensive analysis regarding the construction costs of implementing the TCAAP Framework Vision. From this analysis, an estimate of needed public financing will be arrived at and then analyzed by the City's third party financial consultant. If public financing is needed, the estimation will give us the ability to judge how "price sensitive" the Plan is. As an example, if the amount of public financing needed is $60,000,000 and the projection for tax increment is $70,000, the City will need to look at the reasons, inherent within the Plan, that is driving the cost and recognize that little room is available for density reduction discussions since it's the value ofreal estate that determines the amount oftax increment. On the other hand, if the projected need for tax increment is $30,000,000, there would be a great deal of flexibility since projected tax increment is double this amount. The key issue is that no realistic estimate can be obtained until there is a consensus to the City's goal; which is the TCAAP Framework Vision. ~ It is important to recognize that the TCAAP Framework Plan is not the developer's plan, but is the community's plan that has been developed over a whole series of different processes. In many redevelopment scenarios, the developer brings a concept to the City and asks for public financing to assist in the costs of redevelopment. In this