City Council Study Session Agenda and Packet 2013 04 23

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CITY COUNCIL COMMUNICATION CITY COUNCIL COMMUNICATION AGENDA ITEM IV SUBJECT: TERM SHEET FOR HIGHWAY 42 CORE PROJECT AREA IMPROVEMENTS DATE: APRIL 23, 2013 PRESENTED BY: AARON DEJONG, ECONOMIC DEVELOPMENT SUMMARY: 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 December 6, 2006. BACKGROUND: The LRC is the City’s Urban Renewal Authority and is charged with implementing the Highway 42 Revitalization Area Urban Renewal Plan approved in December 2006. The LRC has the authority to collect TIF revenue from improvements made within the Urban Renewal Area that increases property taxes over a base valuation (generally the valuation of property as of January 1, 2007). The increased property taxes above the base valuation accrue to the LRC to invest in projects that remove blight and encourage reinvestment within the Urban Renewal Area. The City and the LRC have previously committed to funding the pedestrian gateway at the intersection of South Street and the BNSF railroad. This investment creates the potential for the core area of the Highway 42 Revitalization area to be redeveloped by providing better connectivity for all citizens and visitors to interact with areas within the Urban Renewal Area. 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. DISCUSSION: DELO, LLC, a development entity controlled by RMCS, LLC, is planning to redevelop approximately 10 acres of property they own (previously the site of the Aggregate Industries concrete plant) between Griffith and South Streets along the BNSF railway. The attached concept map shows the general plan for the redevelopment project. It should be noted DELO has submitted preliminary PUD documents to the Planning Department. The private bond issue being contemplated in this term sheet is for the public infrastructure, it is not an endorsement of the private development plans, which may benefit from the new public infrastructure. 15