Fiscal Note
In its present form, this resolution anticipates two separate financing transactions to facilitate a mixed use development in the 800 block of East Washington Avenue. First, it would authorize a $2,200,000 TIF loan to the developer, Gorman & Co., Inc. to be used for Phase I land acquisition and construction. Based on staff analysis, this loan would fill the $2,200,000 financing gap needed to complete Phase I of the proposed development and would be repaid through incremental taxes. This loan represents approximately 29% of the present value of all incremental taxes anticipated from the project through the maximum 27 year life of the TIF district, well within the 50% policy established by the Common Council. This $2,200,000 loan is a TIF eligible expenditure and would be funded with a portion of the $5,000,000 of taxable general obligation debt authorized in the 2006 Planning and Development Capital Budget, project #24, for unspecified TIF projects. Depending on the timing of this payment to the developer, authorization to internally borrow from other City resources until the next general obligation debt issue may also be required.
This resolution also directs staff to negotiate an additional $2,000,000 financing transaction related to the proposed development by March 31, 2006. Because the purpose, structure, source of funding and terms of any such additional transaction are undetermined, it is impossible to evaluate the budgetary and fiscal implications at this time.
Title
Authorizing the Mayor and City Clerk to execute a development agreement to fund a $2,200,000 Tax Incremental Financing to the Gorman & Co, Inc. and its assigns plus a $2,000,000 additional financing instrument to assist in the development of the first phase of a mixed-use redevelopment project located in the 800 Block of East Washington Avenue in TID #36 (Capital Gateway).
Body
WHEREAS, said Project Plan, among other things, provides for planned economic, ...
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