City Council Minutes 2013 05 21 - Laserfiche WebLink

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City Council Meeting Minutes May 21, 2013 Page 16 of 19 MOTION: Mayor Pro Tem Dalton moved to continue Resolution No. 3, Series 2013, to July 16, 2013, seconded by Council member Keany. All were in favor. DISCUSSION /DIRECTION /ACTION FOR THE CORE PROJECT AREA INFRASTRUCTURE PROJECT TERM SHEET Mayor Muckle requested a staff presentation. Economic Development Director DeJong reported the Louisville Revitalization Commission (LRC) developed a Term Sheet to describe the general conditions under which the LRC would issue Tax Increment Financing (TIF) revenue bonds to fund public infrastructure in the Urban Renewal Area. The City Council must give approval to any financial obligation of the LRC as specified in the Cooperation Agreement between City Council and the Louisville Revitalization Commission dated April 5, 2011. He introduced Michael Menaker, a member of the Louisville Revitalization Commission, who would make the presentation. Michael Menaker, 1827 Choke Cherry Drive, Louisville, CO stated the LRC is the City's Urban Renewal Authority charged with the responsibility of implementing the Highway 42 Revitalization Area Urban Renewal Plan. An interior street network east of the railroad tracks and west of Highway 42 is necessary for any meaningful redevelopment of the area as well as to help facilitate potential additional revenue for businesses and the City. The increased property tax revenue generated from these projects is conservatively estimated to support a $3,800,000 bond issuance. The bonds will pay for public improvements within the Highway 42 Core Project, which is the actual public infrastructure needed in the area. The amount of the bonds is not to exceed $4,000,000. The actual amount of the bonds issued will be determined by a third -party financial consultant, who will identify the revenue stream anticipated by the redevelopment within the Highway 42 Core Project Area. Karl Becker, Louisville Revitalization Commission (LRC) Chairperson, stated it has taken a long time for this project to move forward. He felt this mechanism provides zero risks to the City and to the LRC. The money to fund the infrastructure will be generated by TIF revenue. He felt the Term Sheet is a very clear mechanism to move forward. COUNCIL COMMENTS Mayor Muckle supported the LRC Term Sheet for redevelopment in the Highway 42 Area. He stated a resolution will come forward when a development partner is found. City Attorney Light stated staff recommends the Council concur with the LRC Term Sheet as a basis for the LRC proceeding further with a potential future bond issue for the Core Area Infrastructure Project within the Highway 42 Revitalization Area. At a later point in time, staff will return with a resolution of a finding.