11-05-92 CCM - Laserfiche WebLink

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SUBMITTED BY COUNCILMA14 WILLIAMS ON NOVEMBER 5, 1992 Proposed Scenario for Developer Funding for utilities for United Properties area. The idea is to avoid any up front costs to the City, to have the Developer eventually pay only his fair share, but for that Developer to carry the excess costs until other property owners hook up. 1. The "Developer", as owner of the property, signs an agreement with the City covering the following points. 2. City floats General obligation bonds to pay for utilities and other needed infrastructure and the feasibility study. 3. The Developer establishes an escrow fund to pay at least the interest on the bonds for three years or until City has actually started to receive taxes on the development. This may require a periodic renewal of the escrow if the development is delayed. The Developer may begin paying off his assessment immediately, if desired, but the escrow must be in place to cover at least the full bond interest until the development begins to generate taxes. 4. In the year after the City has first received taxes from the development, any remainder of the escrow fund is released, and the Developer starts paying off the entire bond (both principal and interest) by paying assessments on a 15 year basis. For the next three years, 50% of the City share of taxes from the development will offset the Developer's assessments. For the following three years, 25% of the City share of taxes from the development will offset the Developer's assessments. No further offset of assessments by taxes will be given. 5. At the time any other property connects to the utilities, the owner of that property will pay a fair share assessment on a 15 year basis, plus interest accrued from the date of bond issue, with this money being rebated to the (United Properties) Developer. 6. For any non-residential development worth $5,000,000 or more on any property served by the utilities, the same "three years - 50%, then three years - 25%, tax -assessment offset" in #4 above will be applied, beginning in the year after the City has actually received taxes from the other development.