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<br /> <br /> <br /> <br />LOUISVILLE REVITALIZ ATION COMMISSION <br />SUBJECT: TIF REBATE AGREEMENT FOR TRACT ONE, LLC <br /> <br />DATE: JULY 8, 2013 PAGE 2 OF 2 <br /> <br /> The financial assistance is for infrastructure improvements including sanitary and <br />storm sewer infrastructure, added water infrastructure, Right-of-Way concrete <br />work, masonry, and street light poles. Tract One, LLC will construct the <br />improvements with their own funds. <br /> The amount of assistance will be paid out of Tax Increment Revenues received <br />from the property above the January 1, 2013 assessed valuation of the property <br />($507,500). Total assistance is capped at $380,000. The maximum amounts to <br />be paid for certain budget years are; <br /> Budget Year Payment <br /> 2015 $125,000 <br /> 2016 $125,000 <br /> 2017 $130,000 <br /> 2018 – 2033 50% of all Pledged Revenue generated <br />from the Property. <br /> The Agreement will terminate if by June 30, 2015, Tract One, LLC has not <br />completed the project. <br /> The LRC’s obligations to this Agreement are subordinate to the 2011 <br />Cooperation Agreement, the Tri-Party Agreement, South Street Gateway <br />Agreement and payment of LRC Operating Expenses. <br /> <br />After full redevelopment of the Property, taxable valuation is estimated to increase <br />$2,300,000 above the January 1, 2013 valuation. This will generate $193,000 of new <br />tax increment revenue at current property tax rates. The Property’s portion payments to <br />previous LRC obligations are an estimated $68,000 leaving $125,000 per year available <br />to rebate under this agreement. <br /> <br />Any LRC financial obligation not approved in the current budget must seek approval by <br />the Louisville City Council in accordance with Section 5 of the Amended and Restated <br />Cooperation Agreement dated April 5, 2011. City Council will review this agreement at <br />a future meeting. <br /> <br />RECOMMENDATION: <br />Staff recommends approval of Resolution 13-03 approving the Property Tax Increment <br />Rebate Agreement for Tract One, LLC. <br /> <br />ACTION STEP: <br />The action step for the LRC is to approve Resolution 13-03. <br /> <br />ATTACHMENT(S): <br />1. Resolution 13-03 <br />2. Property Tax Increment Rebate Agreement for Tract One, LLC. <br />3. Loftus Site Plan <br /> <br />