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will handle public financing as they work through the TCAAP business transactions with the . developer of record. 2. The need for public financing is predicated on the fact that this is a major redevelopment project that has major challenges including environmental clean-up, infrastructure improvements, both within and on the periphery of the site, marketing a product that has the "stigma" of a super fund site and providing the level of design detail that can erase this image and create a mixed use development that can serve as an asset to the City's future tax base. A review of other redevelopment projects by the EDC indicates that the City should anticipate that a significant level of public financing should be antieipated to accomplish the TCAAP goals. 3. Public financing will need to be created in a manner that does not have any negative fiscal affect on the existing tax payers of the community. In addition, several policies deal with the issues of how to maintain fiscal responsibility in determining the levels of public financing and the process forreview. 4. TCAAP can serve as a positive catalyst for the City as a whole by assisting future aetivities through the capitalization of funds for redevelopment and recreational needs. . Local Public Service Needs A key concern for the EDC is how the City will pay for local governmental services in the TCAAP area. If it is assumed that the TCAAP area will be a redevelopment tax increment district, none of the new taxes will benefit the City's general operating fund until the distriet is terminated (potentially extending 25 years). The staff did a very quick analysis and based on this very preliminary work, the TCAAP project will be able to pay for needed local services through building permits, escrows, the original captured tax base, etc., for the first fourteen to sixteen years of the districts life. After this, the City will have to devise methods to pay for those services, until the district ends. Policies # IB, 2B and 3B addresses this issue. The EDC recognizes that their role was not to develop specific solutions. This process needs to be solved as part of the overall Master Development Agreement that will lead to the development of the TCAAP site. However, it is essential that this issue be fully addressed, prior to any final agreement being made, to ensure that the existing taxpayers of the City do not have to pay for TCAAP local services. Some of the potential remedies to pay for local public service needs, as discussed by the EDC include: . Page 4 of5 \\Earth\Planning\M-isc Files\EDC\cxccutivc summary.doc