Fiscal Note
The $16,000,000 Edgewater project funding gap is attributable to the construction cost of a public access component, comprised of a plaza structure constructed over the 1970’s addition to the Edgewater overlooking Lake Mendota, a staircase and waterfront amenities. The Common Council has authorized $8,000,000 to partially fund the project in the 2010 Capital Budget. The additional $8,000,000 required to fully fund this $16,000,000 TIF loan would require 2011 Capital Budget authorization. It is anticipated that the $16,000,000 TIF loan for the project would be disbursed in 2011 at the time the Developer closes on private financing and meets other conditions of the TIF loan as outlined in this resolution.
The proposed project is not currently located within TID #32. A boundary and project plan amendment, approved by the Common Council and the Joint Review Board, would be required to provide TIF loan assistance to this project. There is sufficient time to complete the boundary and project plan amendment process in 2010.
In lieu of an Equity Participation Payment required by TIF Policy at some time in the future, the developer would satisfy this obligation by deeding to the City, at closing, a conservation easement that allows public access, with some limitation, to the lakefront in return for a credit of its value, verified by the City, against the Equity Participation Payment. The developer will maintain, repair and operate the public space according to a Public Access Management Agreement at no cost or liability to the City.
Funding authorization for the project requires exceptions to the City's TIF policy. Most notable are Policy 4.1 (8), the “50% Rule” and 4.1 (10), “Self-Supporting Projects.” According to the 50% Rule, the City's contribution to a development project would not constitute more than 50% of the projected increment generated by the project. The incremental value of the proposed development, as estimated by City Assessor’s Office,...
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