05/05/2008 Council Packet - Laserfiche WebLink

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WS -2 WORK SESSION MEMORANDUM To: City Council From: Al Rolek Date: May 5, 2008 Re: Town Center — Legacy Development Update During its recent goal setting session the City Council set a 2008 goal to complete a risk assessment and a definition of potential options for dealing with emerging issues and conditions affecting the project for the Legacy development. With the economic downturn we are now experiencing, the development has slowed to a near standstill. City projects that are impacted by the development are the installation of streets and utilities, street scaping and street lighting, development of the community green, the 35W /Lake Drive interchange and, to a lesser extent, the YMCA project. All of these projects are funded through the issuance of municipal bonds to be repaid through the receipt of special assessments, tax increment proceeds and tax abatements. Toward accomplishing this goal, staff has had several meetings with our bond counsel, Steve Bubul of Kennedy and Graven, and with our financial advisors, Paul Steinman and Terri Heaton of Springsted, Inc., to review our original documents, agreements, and assumptions for the project. During our various meetings we have discussed the impact of the present economic situation on the projects and asked for updated projections based on what is known today. Attached you will find a memo from Paul Steinman assessing the impact on the various aspects of this project and providing several scenarios that might be considered going forward. The analysis also addresses the impact on City financing of the various projects supported by this development in an attempt to provide the City Council with information to discuss its options, both developmental and financial, for the development going forward. Paul will be in attendance at the work session to review his memo and help sort out the possibilities for the future of this project. Staff will be on hand as well to provide any verbal updates and join in discussions relative to the development. The final objective is to develop a strategy for addressing our future monitoring and actions for the Legacy development. Page 1