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HRA Regular Meeting Minutes July 25, 2006 Page 2 1 completed by September 1, 2006. This modification would show the increment is being spent to 2 provide the City and HRA maximum flexibility for use of future increment. Ms'. Kvilvang noted 3 that Ehlers & Associates assumed the majority of the increment would be needed to satisfy 4 payment of outstanding bonds for the District. Ms. Kvilvang stated an analysis to determine what 5 will be generated over the term of the District and what would be needed to pay off the bonds 6 will be completed. The District would be decertified in 2023. To the extent there is any 7 increment not needed to pay for obligations in this District, Ms Kvilvang recommended the City 8 pool the f mds to pay for redevelopment costs in TIF District 3-5 or for any redevelopment 9 projects in Project Area No. 3. TIF District 3-5 is the Silver Lake village Redevelopment area. 10 11 Ms. Kvilvang pointed out that since this is a budget modification, the City Council would be 12 required to hold a public hearing. She stated in order to begin the budget modification process, 13 the HRA needs to request the City Council call for a public hearing on August 22, 2006, on the 14 proposed adoption of a modification to the redevelopment plan for Redevelopment Project No. 3 15 and the proposed modification to Tax Increment Financing District No. 3. 16 17 Mayor Faust stated the reason the Housing and Redevelopment Meeting is being called first is 18 because the Council must call for a public hearing on August 22, 2006. If it were not done this 19 way, the time frame would not be met. 20 21 Motion by Councilmember Stille, seconded by Councilmember Thuesen, to approve Resolution 22 HRA 06009 requesting a call for public hearing on a proposed modification to the 23 Redevelopment Plan for Redevelopment Project Area No. 3 and the proposed modification to 24 Tax Increment Financing District No. 3. 25 Motion passed unanimously. -- q .�e�.ru 26 27 28 B. Resolution 06-010; Reimbursement of qualified costs in TIF District No. 3-5 not 29 originally outlined in the Development Contract. 30 31 Ms. Kvilvang reported the City/HRA entered into a contract for private redevelopment in 32 December 19, 2003. As part of that contract the City/HRA agreed to put in various public 33 improvements including roadways, sidewalks, lighting, landscaping, and storm water ponding. 34 It was agreed to by the parties that if these expenditures exceeded available revenue to the 35 City/HRA, the developer would pay for the TIF qualified costs and the City would 36 reimburse the developer through additional tax increment if it were available in the future. 37 38 Ms. Kvilvang stated the developer paid for cost overruns the City did not have the funds to pay 39 for in the amount of $360,777. She stated the developer provided documentation to Ehlers & 40 Associates with regards to the qualified costs. Ms. Kvilvang stated the developer is requesting 41 the City/HRA to reimburse them for the costs as agreed to. Due to the success of the project 42 overall, Ehlers & Associates determined there is sufficient increment available to reimburse the 43 developer for those costs. The reimbursement would be from TIF revenue bond proceeds 44 generated as part of the take out financing being completed for the commercial portion of the 45 project. 46 47