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MEMORANDUM DATE: December 1, 2010 TO: City Council FROM: Mike Morrison, City Manager Roger Larson, Finance Director ITEM: APACHE TIF DISTRICT #3-5 (246) Apache TIF District #3-5 was established for the redevelopment of Apache Plaza (now known as Silver Lake Village). As part of the development agreement, in 2006, the City issued take out financing for the commercial portion of the project. The bonds issued were Tax Exempt TIF Revenue Bonds in the amount of $4,975,000 (Series 2006). In addition, in 2007, the city issued take out financing for the first two condominium buildings (Phase IA — Housing). These bonds were also issued as Tax Exempt TIP Revenue Bonds in the amount of $4,640,000 (Series 2007). The City makes annual principal and interest payments on these bonds and is repaid by the annual transfer of TIF Revenue generated from the parcels that located in Apache TIF District #3-5. The payments made in 2010 include: Series 2006 — Principal $ 90,000.00 Interest $261,175.00 Agent Fees $ 2,000.00 $353,175.00 Series 2007 — Principal $ 90,000.00 Interest $221,758.76 Agent Fees $ 650.00 $312,408.76 Ehlers annually reviews the taxes paid and TIF generated by all developments within the Apache TIF District #3-5. They have completed their review and confirmed that both developments generated adequate TIF to make the required 2010 bond payments. On behalf of the City, Ehlers recommends payment is made on all obligations within the District for the 2010 TIP Revenue Bonds Series 2006 and Series 2007 bond payments. The payment is done by transferring TIF Revenue to the Bond Funds. Recommendation: To repay the City for the amount of 2010 debt service payments made, Council approves HRA resolution #10-007 authorizing the transfer of TIF Revenue from the Apache TIF District #3-5 to Series 2006 Bond Fund #335 in the amount of $353,175.00 and to Series 2007 Bond Fetid #336 in the amount of $312,408.76.