Fiscal Note
The 1996 TIF agreements associated with parking development occurring on Block 89 gave future credits for virtually all of the TIF increment generated from all development on the block, in both TID 15 and TID 25, for the full expected remaining life of each district (19 years and 23 years, respectively). To date, the City has paid $5,068,568 of TIF increment as a credit to reduce the developer's debt service for this project.
Those original development agreements did not anticipate the situation where one or both of the TIF districts had generated sufficient increment from outside of Block 89 to require closing of the district. This resolution authorizes amendment of the original project lease to provide a clear methodology for determining the present value of future tax increment due under the agreement should one or both of the districts become subject to closure, as is presently the case with TID 15. Based on the amendment language, an additional current year payment of $1,235,000 to the bond trustee will satisfy the City's future TID 15 obligation to the project and allow for the timely closing of TID 15. This will bring the total Block 89 TIF contribution to $6,303,568 through the end of 2006. Additional future TIF credits will continue to be paid from TID 25 until 2018 or the closing of that district.
Sufficient funds to make the additional $1,235,000 current year payment are available in TID 15 from incremental taxes generated within the district and from funds donated from TID 14 as authorized in the TIF donor district plan adopted in 2000. There is no impact on cost controls or the tax levy.
Title
Authorizing the Mayor and City Clerk to execute a Third Amendment to Project Lease with Block 89 Parking Limited Partnership and disburse $1,235,000 to the Bond trustee in full satisfaction of the TID 15 increment credit.
Body
PREAMBLE
In 1996, the Community Development Authority issued Redevelopment Lease Revenue Bonds in the p...
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