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Option#2• <br /> The original purchase of the Tires Plus property totaled$725,000. As of 12/31/02,the <br /> annual lease payments have repaid the City $416,500. In addition, lease payments and <br /> interests earning on the $416;500 could provide an additional $83,500, making the total <br /> available= $500,000. <br /> If necessary,to complete the funding of either option,we could fund the additional <br /> $50,000 internally. <br /> Recommendation: <br /> Both options are viable alternatives for the purchase of the Sroga Property. However,my <br /> recommendation is that Council considers Option#1 as the better of the two. <br /> The primary use of Tax Increment is directed towards redevelopment. Because Culver's <br /> purchased Exhaust Pro's and freed up this funding, revising our TIF budget to include the <br /> redevelopment of the Sroga ProperV is a reputable use to Tax Increment without placing <br /> any burden on the taxpayer. <br /> Option#2 is less attractive. As we are all aware; resolving the State budgeting crisis will <br /> involve a reduction or potential elimination of Local Government Aid. <br /> Currently, we have a contingency plan that totals $194,100. Because, the potential loss in <br /> Local Government Aid could be higher than our contingency plan, the Tires Plus Funds <br /> could be redirected to support shortages in the General Fund or make capital equipment <br /> purchases. Funds from Chandler TIF could not be used for budget shortfalls. <br />