Revitalization Commission Agenda and Packet 2013 08 12

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LOUISVILLE REVITALIZATION COMMISSION LOUISVILLE REVITALIZATION COMMISSION SUBJECT: PROPOSED CHANGES TO LRC APPLICATION FOR ASSISTANCE DATE: AUGUST 12, 2013 PRESENTED BY: AARON M. DEJONG SUMMARY: Staff is proposing changes to the LRC Application for Assistance. The Commission is asked to provide input and direction to the proposed changes. BACKGROUND: The LRC approved the Application for Assistance in late 2012 and has been used by the DELO and Safeway redevelopment projects. The application was reviewed over several LRC meetings and the City Council reviewed it at their November 13, 2012 study session. DISCUSSION: The application asks for financial information seeking financial assistance from the LRC. An applicant must provide a 10–year proforma for the project, a Sources and Uses Budget for the entire project, and assumptions for retail sales and assessed value of the Project for residential and commercial uses by year. The intent asking for the financial information is to identify if a project needs the assistance to successfully complete a private development project. The submitted applications did not include a 10–year proforma for the project or a Sources and Uses Budget. Staff accepted the applications without this information for the following reasons: 1) The Urban Renewal Area was formed to invest in projects which address blighting factors. This requests have been for infrastructure to remove barriers to development as well as property adjacent to the improved infrastructure. Conducting an analysis to show whether projects utilizing the needed infrastructure investment can absorb the costs for the improvements may not be warranted in public infrastructure assistance requests. 2) The request for assistance is not an incentive to attract a development. The applicant is not requesting funding to make the private project profitable. The request is for infrastructure to make the resulting development possible. 3) Multiple properties will utilize the new public infrastructure, including the public. Public infrastructure will not only be used by the applicant, other adjacent property will have the infrastructure barrier removed for their future redevelopment plans. Conducting an analysis whether only the applicant can accommodate the public infrastructure costs may not be warranted because public improvements benefit more than just the applicant’s project. 6