Fiscal Note
In summary, under the cooperation and development agreement outlined in this resolution, the City would invest a total of roughly $8,900,000 to acquire and improve property in the Allied Drive area and transfer that property to the CDA. The CDA would commit to pay the City $384,000 $392,000 for the improved site, and would invest an additional $9,000,000, obtained from a variety of financing sources including City backstop, to accomplish the initial stage of redevelopment. No draft development agreement was available for review prior to the introduction of this resolution and the preparation of this fiscal note.
Under the terms of this proposed resolution, the City would transfer all of the City-owned properties in the Allied Drive area to the CDA. This includes the residential properties formerly known as the "Hauk Properties" (purchased by the City in 2006 for $4,350,000), additional residential properties on Jenewein Drive (purchased in 2005 for $377,000) and an area of public greenway currently recorded as an asset of the Stormwater Utility with a recorded value of $18,000. Prior to transfer of the property to the CDA for redevelopment, the City will continue to incur holding and tenant relocation costs chargeable to TIF District #29. Under the terms of the proposed agreement, the City would be reimbursed by the CDA for tenant relocation costs.
The proposed redevelopment agreement would also require the City to demolish the existing buildings located on the redevelopment property and construct public improvements to benefit the redevelopment. It is estimated that demolition and public improvements will cost $3,900,000. General Obligation borrowing of $2,200,000 is budgeted in the 2008 Planning and Development Capital Budget for these purposes, although specific improvement projects have not been identified. The remaining $1,700,000 of City cost would need to be appropriated in 2009.
In total, the City will have invested approximately $8,900,000 ...
Click here for full text