2007_1203_Packet - Laserfiche WebLink

Home

Pote�iial Re�ief Packages Whi�e tl�ere a�e a nur��b�r of ��1ief packages that cauld be p�avided to Rya�a Coz�nipanies, pezk�aps the two �nost plausihle are: 1) For�ive the loan 2) Amend �he Agreement and extend the TIF Dis�rict The Ag;z�eezxaeni and T�F District a7re scheduled ta expire an Dee�mber 31, 2007. At that tizxze the �alance of the laan aft�r applying Ryan's portian of the captured i�crement, is projected to be approxirr�ately $95,pd0 — a11 0� which would be i��nnediately due and payable by Rya�, ta the Cxty. T�e Czty co�ld si7mp�y fargive tk�e loaza. By daing sa at wauld in e�'fect declare that tlae $95,000 was �o lo�ger z�eeded to aceorzaplish �he objectives that vvere originally soughi when the Distric� was creaied nr �hen the AgreerrYent was ap�rnved. One could argue however, that in doing so the City would be %rfeiting rr�anies �hat it is legally entitled to. Alter�atively, t�e City cotzld exte��d the duration of the TIF Dis�-ic1: �o a11ow additiona� incremei�t to be cap�ured by Ryan �o repay t�he Ci�y loan. The Council has establzs�ed a pub�zc hea�iz�g �or December 17, 2007 to co��sicier the dis�rict extension, however at t�ais tinae we have anly talked about potential City uses. Public Pnlicy Disc�ss�an It�ms Providing some rel'zef to Ryaz� i� re}�aying the laa�s raises a number a� public-pnlicy questions, including: 1} What are ihe City's coniractual obligatic�ns in providing relief �o Ryan? 2) What are the City's moral or professional obligations in providing relief �o Ryan? 3) Wot�ld �rov�ding :relie� in Cex�tz-e Poin�e set a parecedent for ot�er developers that were siar�ilarly iz�pacted by the changzng legislatian? 4) Wo�ld a reliefpackage pravide benefit io the City? Legal Counsel has consistently stated t1�at the City does nai have a l��al obligatic�n �o �rovide arelie�' to Ryan. I� could a�so be argued that tY�e City does no� have any moral nr �rofessional obligation es�ecially �n consideration that Ryan willi�lgly agreed ta �ear any z�s� s�auld paro�erty tax re�orm take place. Ta date, the City has performed und.e� the Agreement as it s�ated it would. One z�ight alsa rais� a co�c�rn w�et�er any reliei package might raise un�azrz�ess zssues by other develnpers thaf vvere sin�i�arly impacted by changing legislat�o�. During ihe past few years, the City was approac�ed by iwo o�her cievelopers seeking reli�f for �nany nf tihe sarne reasons cited hy Rya�. In bat� instances, the City declined ta pravide any such relze£ On the atl�er hand, the City cr�uld take the �osition that each redevelopment project is u�ique ar�d therefore ought to receive consideration independent of ot�ers. 2