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42 <br /> Recommendation: <br /> Conceptually, either plan could support the project. However, Council should review the <br /> two funding sources as identified: <br /> 1) Designate funding from the HRA Projects Fund,of$50,000 for each of the years <br /> 2002, 2003 & 2004. <br /> 2) Redirect the funds designated for LGA losses associated with the redevelopment <br /> of Apache Plaza, totaling$150,000. <br /> Special Considerations: <br /> As we are all aware, the City is in the middle of several improvement projects that <br /> require significant resources. Some.of them include: the 100-Year Flood Protection <br /> Project; Harding Street Holding Pond Project; 2000, 2001 and 2002 Road Improvement <br /> Projects, purchase of Custom Liquidators and the $2.3 million Central Park Project. <br /> In addition, for the next two years the State Legislature has imposed levy limits, which <br /> will require prudent management of all operating and capital equipment expenditures. <br /> My concern with designating these funds for use is with the restraints or restrictions that <br /> potentially could be placed on future redevelopment projects within the City. <br /> • To-ease any burden of potential revenue shortfalls created by the Legislative changes, it <br /> is practical to maintain as much funds on hand as possible versus reducing reserves <br /> under our current economic conditions. In addition, the State might implement further <br /> cuts to City governments creating additional burdens on available resources. <br /> Since we don't have a complete picture of what all the Legislative changes mean, <br /> logically it seems prudent that we have a"wait and seethold approach" for at least three <br /> to six months before approving either funding concept. <br /> This would allow the City Council/Staff time to review the financial condition of our TIF <br /> Districts and have a clearer picture if the funds are available to use for renovating the <br /> Community Center or if the resources being considered are best used for redevelopment <br /> within the City. <br /> If Springsted's analysis reveals that we have a shortfall in our Districts or TIF budget, the <br /> funding options discussed could become a funding source for shortfalls or potentially <br /> used in the redevelopment of Apache Plaza. <br /> If it becomes clear that funds are best used in some other fashion, another option would <br /> be to include the Community Center improvements as part of a referendum for a new <br /> Public Works facility or Fire Station. An additional option would be to include the cost <br /> of improvements as part of a financing concept for capital equipment certificates in 2003. <br /> • <br />