City Council Minutes 2003 12 16 - Laserfiche WebLink

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Louisville City Council Meeting December 16, 2003 Page 7 of 18 Mayor Pro Tem Sisk addressed the requested 280 housing units, with a rebate for water permits, and a partial rebate of the sewer permits. Ray Pittman, Development Consultant for StorageTek, explained StorageTek has an existing 6-inch water line and it is their belief that 40% of the raw water, storage and distribution are already in place and a 40% rebate would be equitable. Mayor Pro Tem Sisk stated it appears STK is asking the taxpayers of Louisville subsidize their development. Pittman stated the fiscal analysis projects millions of dollars generated for the benefit of the City of Louisville. Mayor Pro Tem Sisk addressed the tax increment financing and asked why Louisville's citizens should prepay StorageTek for retail establishments. Pittman stated tax increment is postpaid. He addressed the fiscal analysis, which projects $30 Million dollars in capital revenues, and after $20 Million dollars is spent in necessary improvements, there will be a $10 Million dollar surplus. Mayor Pro Tem Sisk asked Finance Director Laus if the financial projects were based upon rebates of water and sewer taxes. Laus stated the financial analysis was not based on any rebates and assumed the City would keep all the revenues generated. Nor did it include rebating any sales tax to any special improvement district. The $30 Million projection, from a mixed-use development, includes $10.5 Million in retail sales tax that is specifically designated for capital improvements. It also includes over $13 Million in surplus operating funds, which are generated on an annual basis throughout the build out. She stated without any successful retail sales tax, the City would be looking at negative impacts. Pittman pointed out the water rebates and revenues are not addressed in the analysis. Mayor Pro Tem Sisk asked Public Works Director Phare what the 40% rebate would cost the City. Phare stated the discussions included tap fees for single-family, multi-family, office, retail and commercial at an approximate cost of $15 Million. A 40% rebate would be $6 Million. Mayor Pro Tem Sisk asked where the money to rebate StorageTek would come from. Phare stated he would come from the water rate payers or other tap buyers. Pittman asked if the existing 6-inch tap already services 40% of the site, where would the $15 Million dollars be spent. Phare stated the money would be used to acquire additional water resources and for modification to the water plant to accommodate the development. Mayor Pro Tem Sisk asked if StorageTek had developed any economic data on the development when it was proposed in March, with respect to tax increment financing, and the water rebates a part of the analysis. Pittman voiced his believe the tax increment financing was not a part of the analysis. Mayor Pro Tem Sisk asked if the Planning Department asked StorageTek to prepare 7