CC_Minutes_2004_0913 - Laserfiche WebLink

Home

City Council Regular Meeting - 09/13/04 Minutes - Page 37 availability of transportation improvement funds and environmental mediation grants. Mr. Casserly's report concluded that, under current City guidelines and directives, the developer - not the City - must advance nearly all of the $65 Million in redevelopment costs. Mr. Casserly noted that the developer risks include cost and timing of land acquisition, resale value of the land, interest rates, market value of the finished product, class rate changes mandated by the State, tax rate changes, environmental costs, inflation rates, underwriting criteria (i.e., debt service reserves, discounts and costs of issuance) and general economic conditions (i.e., housing den1and, mortgage rates, holding period costs and timing of each phase). Mr. Casserly, opined that, based on the City's August 9, 2004 directives, if the il11provements are not constructed there will be no revenues with which to pay the developer's costs. Debt service on tax increment revenue bonds is payable only from tax increment from the project itself and are not general obligations of the City. In fact TI bonds will not be issued unless the bonds have been fully guaranteed by the developer or the improvements have been completed. Mr. Casserly concluded that on the assumptions described, the project was financially feasible. [2.1] Direction on Revised Land Use Concept and Financial Plan Mayor Klausing requested that staff include a definition section or glossary to clearly define various items of reference. Councilmen1ber Ihlan asked, in order to address the larger policy question as to whether public financing tools should be used, that staff include the City's current Tax Increment Financing (TIF) policy. [2.2] Expectations and Direction for Presentation Materials and Information as part of the September 20, 2004 Public Hearing There were no Council comments.