Agenda Packets - 2008/03/03 - Laserfiche WebLink

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Corridor Improvement Program. Significantly impacted were the landscape elements (aesthetics) of the plan. The original costs for the elements associated with the County Road 10 Program are attached as Exhibit A. These costs were updated in January of 2008 and are attached as Exhibit B. The City’s Capital Improvement Program (CIP) was recently updated (see Exhibit C). It now includes the updated costs associated with the County Road 10 Corridor Improvement Program. It was also expanded to ten years instead of the typical five year period to include the entire reconstruction phase of the Street and Utility Improvement Program. Tax Increment Finance Fund Review There are two programs identified in the CIP that impact the funds in the City’s Tax Increment Finance Fund (TIF Fund): the County Road 10 Corridor Improvement Program and the Street and Utility Improvement Program. The 2006 CIP had a total TIF Fund obligation of $7,441,000. With new cost estimates for County Road 10 Corridor Improvement Program, this increased to $9,288,000. However, the CIP was revised to exclude selected projects that rely on TIF by moving them to a time frame beyond the CIP. These projects included: trailway segments 7&8, median landscaping, and entrance monuments. This reduced the estimated total TIF Fund obligations by $1,182,000 to a total of $8,106.000. Attached as Exhibit D is the CIP for the County Road 10 projects. On October 22, 2007, The City Council approved the Street and Utility Improvement Plan. This plan called for the allocation of approximately $9,000,000 in TIF to be allocated to this program. Based on this, in December of 2007, Ehlers and Associates, Inc. performed an evaluation of the City’s TIF Funds (see Exhibit E). This document shows that, after considering current obligations and those recently added due to the Street and Utility Improvement Program, there remains only $3,400,000 in available TIF funds. It should also be pointed out that, in addition to the County Road 10 Corridor Improvement Program and the Street and Utility Improvement Program there are economic development needs that the City may want to consider in terms of allocating TIF Funds. With an estimated TIF Fund need of $8,106.000 to complete items associated with the County Road 10 Corridor Improvement Program, and considering other economic development opportunities, the question is: How should unallocated TIF funds be spent? – What are the City Council’s priorities in terms of County Road 10 improvements? How much should TIF should be kept in reserve for economic development opportunities? As a starting point, Staff would like to introduce an option to keep $1,000,000 in reserve for economic development and keep the remaining amount of $2,400,000 to be used on higher priority items associated with the County Road 10 Corridor Improvement Program as set by the City Council.