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Use of Special Assessments The use of special assessments to fund infrastructure costs, have always been a consideration within the project area. The City's current assessment policy ca11s for the development to pay for 100% of the applicable infrastructure costs. Consideration should be given whether the added infrastructure, including Twin Lakes Parkway, should be included in that calculation in part or in whole. This will necessitate a discussion on whether the infrastructure serves a need outside of the project area, and depending on the outcome, would certainly have a financial impact on the overall costs that are attributableto the project. Reducing Contingencies As was noted above, reducing monies set aside for contingency purposes is ill-advised under circumstances that are at great risk for cost fluctuations. Take for example, the current construction of the expanded City Hall and Public Works buildings. A contingency level was determined with great confidence because there were relatively few unknowns about the site, and there was an abundance of similar projects from which to draw experience from. In contrast, within the Twin Lakes area, there are challenges in obtaining site control, environmental concerns, etc. A redevelopmentproject is far more unique, with greater unknownsthan a typical City Hall construction project. Therefore it warrants higher contingency amounts, although it should be commensuratewith the size of the project. Debt Issuance Concerns The current profoma assumes that the City will issue at least $35 million in tax increment bonds. This would tri�le the City's current debt load, and will significantly restrict the City's ability to issue debt for other purposes. Even if the additional debt excludes the City's "general obligation to pay", the new debt nonetheless gets included for purposes of determining the City's credit rating and overall financial strength, and would arguably translate into a"moral" and "professional" obligation to pay the bonds. Issuing debt of this kind will require a change in policy. Fiscal Disparities With respect to creating a TIF District, the City has traditionally paid the fiscal disparities within the district itsel£ Transferring this obligation outside the district does indeed free up more money for the project, but it would increase property taxes for all other properties. The impact would vary depending on the size of the project. Taking Fiscal Disparities outside of the district would require a change in policy. Condemnation/Eminent Domain Certainly site control will play an important role with any development in Twin Lakes. However, like TIF, the use of condemnation and eminent domain has received heightened scrutiny in the past few years. The Council is advised to proceed cautiously in determining the "public purpose" and assess the risks of becoming a landowner, however temporary that may be. �