Fiscal Note
The 2017 Adopted Budget includes $250,000 for a small capital loan program in the Greenbush neighborhood. The proposed resolution authorizes a $600,000 increase for the program to meet additional need. 2017 will be the final year of the program in anticipation of the TID closure at the end of the year.
Title
Amending the City’s adopted 2017 Capital Budget, drawing funds from TID 43 Park/Drake to increase by $600,000 the Economic Development Division’s budget and making available that additional funding for the Greenbush Neighborhood Revitalization Program.
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The proposed resolution amends the Economic Development Division adopted 2017 Capital Budget to increase budget authority by $600,000. The additional $600,000 will be drawn from TID 43 Park/Drake and will be applied to the Greenbush Neighborhood Revitalization program. From there, funds will be used to make loans that support the program’s purpose - acquisition, rehabilitation, and conversion of deteriorating rental housing into renovated owner-occupied housing in the Greenbush Neighborhood. The additional funding will make possible the acquisition, renovation and conversion of approximately seven additional properties.
The Greenbush Neighborhood Revitalization Program is the only remaining project in TID 43 for which additional funding is needed. The City’s 2017 adopted Capital Budget included $250,000 to support the program. Staff estimates that $250,000 will not be enough to support all of the requests for this program this year. With the proposed addition of $600,000, authorization for 2017 will total $850,000. Amending the EDD budget to include these additional funds will maximize their use prior to the TID’s anticipated closure on December 31, 2017.
The 2017 Capital Budget estimates that TID 43 will have a positive cash balance at the end of 2017 of $928,325. As such, increasing the budget by $600,000 will not impact the December 31, 2017 closure of this TID. TID 43 will need to be closed at the end of this year because all existing debts, and the proposed $850,000 used for this program, will be repaid this year. State law requires TIDs to be closed once all debts have been repaid; however, the City could decide to keep the TID open for one additional year to fund affordable housing.
WHEREAS, the Greenbush Neighborhood Revitalization Program was established with the express purpose of making loans to support the acquisition, rehabilitation, and conversion of deteriorated rental housing into renovated owner-occupied housing in the Greenbush Neighborhood ; and
WHEREAS, there demand appears to exist, beyond the $250,000 currently budgeted, for loan funds to support Greenbush Neighborhood Revitalization projects; and
WHEREAS, $600,000 exists in TID 43 to support additional program loans and there are no other approved and needed uses for such funds; and
WHEREAS, an additional $600,000 in support of the Greenbush Neighborhood Revitalization program will not alter the closure of TID 43 at the end of 2017; or, the ability of the City to keep the TID open one additional year for affordable housing.
NOW THEREFORE BE IT RESOLVED, that the City’s adopted 2017 Capital Budget shall be amended, drawing funds from TID 43 Park/Drake, to increase by $600,000 the Economic Development Division’s budget, making that additional funding available for the Greenbush Neighborhood Revitalization Program.