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Staff has indicated that the City will only consider TIF financing in the form of pay-as-you-go <br />�� assistance and not as a City bond obligation. Additionally, staff has indicated that only 80% of the <br />potential TIF revenue will be pledged to the project in order to help fund other projects within Twin <br />Lakes and for TIF District administrative costs. As a result, the amount of assistance the can be <br />pledged for the project is a TIF note of $2.2 million. <br />The developer has indicated that if TIF funding is secured, they will begin site preparation and <br />construction of the first apartment building in the Spring of 2013. The developer will be present at the <br />City Council meeting to answer any questions about the proposed development. <br />� In regards to the overall status of TIF 17, the Twin Lakes TIF District, staff has been working with <br />, Springsted to characterize the current status of the district. That work is ongoing, but staff is able to <br />share a few observations. Currently, TIF 17 does not have any significant balance of funds. Phase I <br />� and II of the Twin Lakes Parkway utilized the majority of the TIF 17 balance. Both Phase I and II of <br />the Twin Lakes Parlcway have been paid off and there are not further obligations for those projects. <br />Without any other development occurring, TIF 17 is expected to only bring in about $65,000 annually <br />� unti12031. It should be noted that the Wal-Mart project will be bringing in about $170,000 annually in <br />��� � TIF revenue once it open. In addition, the Hagen property will generate an additional $50,000 annually <br />� in TIF revenue for the City until 2031 (this is the 20% that the City is retaining). <br />By allocating TIF dollars to the proposed apartment development, the City will not be undermining the <br />financial integrity of the TIF district. In fact, the constructed apartment development will add TIF <br />funds that can be utilized elsewhere in the district. <br />POLICY OBJECTIVE <br />Redevelopment of Twin Lakes has been a high priority for the City for many years. The proposed <br />multi-family housing development helps the area achieving a mix of uses. <br />FINANCIAL IMPACTS <br />� The TIF assistance proposed for the Hagen property development will be solely paid from the taxes <br />paid by the development property owner. They will receive 80% of the TIF revenue from the taxes <br />paid, while the City will receive 20% of the TIF revenue to utilize within the district. <br />STAFF RECOMMENDATION <br />Staff believes that the proposed apartment development on the Hagen Property is very desirable and <br />�� consistent with the vision of Twin Lakes. Staff proposes that the City provide TIF assistance to the <br />proposed project under the following terms: <br />� ➢ TIF assistance in the amount of up to $2,200,000 as a pay- as-you-go TIF note for <br />reimbursement for TIF eligible costs over a period of 17 years. <br />➢ The developer will only be able to collect 80% of the TIF revenue generated. The remaining <br />20% of TIF revenue generated by this project will be retained by the City for other uses in the <br />.� TIF District and for administrative expenses for maintaining the TIF District. <br />� ➢ TIF eligible costs include Infrastructure (roads, utilities, etc.), environmental remediation and <br />� engineering costs, site prep, demolition, and grading, and underground structured parking. <br />� Staff would recommend that the City Council direct staff to negotiate a TIF development agreement <br />with the developer for approval by the City Council. <br />Page 2 of 3 <br />