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Department Approval Item Description BACKGROUND �:i � � REQUEST FOR COUNCIL ACTION Date: July 13, 2015 Item No.: 15.e City Manager Approval Twin Lakes Infrastructure TIF Bonding Discussion On June 22, 2015, Mikaela Huot of Springsted Inc. provided the City Council a report on all of the existing TIF Districts. One item that Ms. Huot discussed was the fact that the Twin Lakes TIF District (TIF 17) will soon reach a date where expenditures of most of the future TIF revenue will be no longer possible. Under state law, the City has until, September 3, 2015 to spend TIF funds. It is not sufficient to commit TIF funds to future projects. The funds must actually be spent on TIF eligible projects. As staff and consultants are currently finishing up engineering and design of important infrastructure � elements in the Twin Lakes area, the City does not have any projects that can be paid for directly by � TIF funds at this time. The City can, however, issue a bond for these future improvements and use future TIF proceeds to pay back the bond. In order to implement these important infrastructure improvements, staff is proposing that the City issue bonds to pay for Twin Lakes area infrastructure improvements. On July 20, staff will be bringing forward a request for the City Council to set a sale date of the bonds to construct the Twin Lakes area infrastructure improvements. The improvements proposed to be constructed with the bond proceeds have all been previously identified in Twin Lakes plans as well as in environmental review documents (AUAR). The total cost of the improvements are $3.17 million dollars. The improvement locations are shown on Attachment A and the costs of the improvements are as follows: • Twin Lakes Parkway — Phase III $2,300,000 � • Cleveland/35W NB interchange $570,000 • Cleveland/C2 Traffic Signal $150,000 • Terrace Drive Improvements $150,000 Springsted has provided information (Attachment B) showing that the revenues for the existing �� development plus the approved development of the hotels on Cleveland will be sufficient to pay back the TIF bonds. (Please note that the Sherman development is not included in the revenue projections). Staff will be at the meeting to provide additional information and detail about the project and the Page 1 of 2