AgdaPkt 2002-12-09 - Laserfiche WebLink

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q.P�-� make written offers for the property needed to complete the project Under the terms of the Amended and Restated DDA the developer will contribute $7,500,000 towards the cost of the site assembly. The Agency will pay for the difference or terminate the DDA. Once the entire site is assembled, the developer will be given acxess to the site to begin the demolition of the buildings, the relocation of the creek culvert that crosses the site, and the excavation of the underground parking garage. The Agency will retain ownership of the land and the space occupied by the underground garage, and the developer will have air rights to the surface of the site for the cinema-retail project construction. The developer will construct the parking garage under the terms of a Construction Agreement and the Agency will pay the developer for this construction. The final garage will be publicly-owned and used for public parking. The developer will build the cinema-retail project on top of the public garage. Fiscal Impact Staff has identified five funding mechanisms, some combination of which the Council and/or Agency will need to decide upon at a later date, to finance the construction of the cinema parking facility and land acquisition for the cinema project. The estimated cost for the parking facility is $20 million, the worst case net cost to the Redeve�opment Agency (the "Agency') of the project site acquisition is $3.5 million and both of these costs will be paid by the Agency. 1. Agency Bond Issue Staffs most recent analysis of the Agency's capacity to issue tax increment bonds indicates that a tax-exempt bond issue of $18.5 million could be supported by existing tax increment. This would result in the Agency receiving about $17.8 million of net proceeds after the costs of issuance (bond counsel, financial advisor, underwriter, bond insurance and other fees required to issue bonds) have been deducted. Should circumstances and policy interests dictate that maximum flexibiliry be provided in operating the parking facility, then a taxable bond issue may be more appropriate. (A taxable bond issue, however, would result in substantially lower net proceeds — less than the $17.8 million - being available for the project.) 2. Agency Cash Contribution The Agency presently has $2,000,000 budgeted to downtown parking that may be used for this project, and by the end of fiscal 2002-03 it will have a total of approximately $3,800,000 (inclusive of the $2,000,000) that can be made available without reprogramming funds from existing projects. 3. Loan from the City's Capital Outlay Fund The capital outlay fund has approximately $6 million in unappropriated fund balance that may be loaned to the Agency. Any amounts loaned from the capital outlay fund will commensurately reduce the City Council's ability to finance other contemplated capital projects until tax increment is sufficient to repay amounts loaned. No material repayments would be expected until the Agency's outstanding bonds are paid off in 2011. 5