City Council Minutes 2012 11 05 - Laserfiche WebLink

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City Council Meeting Minutes November 5, 2012 Page 6 of 14 Mayor Muckle requested a staff presentation. Economic Development Director DeJong explained the Intergovernmental Agreement (IGA) between the City and the Louisville Revitalization Commission (LRC) provides funding assistance for the City to construct the South Street Gateway project. The project will help to catalyze redevelopment of the revitalization area and provide safe connections for residents traveling between the two areas. The LRC is committed to partially funding this project and is proposing an IGA with the following components: The LRC commits to funding 50% of the Project not paid from the City's Stormwater Utility Fund. The funding will be paid over time from tax increment collected within the Urban Renewal Area. The following is the timing and amounts of such payments; • Budget Year 2015 $45,000 • Budget Year 2016 $65,000 • Budget Year 2017 $75,000 • Years 2018 and Beyond 25% of LRC Tax Increment Revenues after the required payments to the County and costs for City Staff Services. • Yearly interest will be applied after construction of the Project to the unpaid balance of the commitment at a rate equal to the average rate of return on the City's deposit accounts. • City will use its best efforts to complete the Project in 2014. • Should costs be greater than or less than $130,000 of the estimated costs of the project ($2,900,000) the LRC shall review the changes to the project which created the cost difference. • The agreement will terminate if the City has not executed a construction contract with the BNSF Railroad by April 1, 2014. The LRC will help fund the South Street Gateway Project, which is in the CIP Budget for 2014. The Finance Department included the LRC contributions for 2015-2017. The LRC completed an analysis of future TIF revenues within the Urban Renewal Area. Staff recommended approval of the Resolution No. 68, Series 2012. COUNCIL COMMENT Mayor Pro Tem Dalton inquired about the IGA language (Page 3, Paragraph 2c (v)) That the LRC may use for any lawful purpose amounts not required for payments under this Agreement". He asked if this was required to stipulate "in accordance with the existing agreement with the LRC". City Attorney Light stated this section was added to signal any party who might want to look at a transaction with the LRC for funds not otherwise encumbered by this agreement, to recognize/review the County agreement or the original cooperation agreement to pay back operating expenses. It was not intended to be an amendment to the original cooperation agreement.