Revitalization Commission Agenda and Packet 2014 06 09

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SUBJECT: CORE PROJECT AREA AGREEMENT DATE: JUNE 9, 2014 PAGE2OF4 b. If there are insufficient funds in the Construction Account to pay for change orders, such costs fall to DELO. 5) DELO will hold insurance on the Public Improvements The LRC gave staff direction at the May 12, 2014 meeting to incorporate two changes into the Core Project Area Agreement and the Term Sheet, which is attached to the Core Project Area Agreement. The two changes are; 1) Increase the bond issuance cap to $4,500,000. 2) Extend the no-call provision on the Bonds from 5 years to 7 years. These changes also require approval from the City Council. Scope of Improvements: DELO and Staff have not come to an agreement as to the scope of improvements for the LRC Bonds which are described in Exhibit D. Except for changes to Section 1 of the Core Project Area Agreement and making taxable bonds allowable in the Term Sheet, the agreements are the same. Two versions Exhibit D are attached to this memo to reflect the differences. Since the May 12 LRC meeting, Staff and DELO have agreed to the following additional improvements: 1) Full reconstruction of South Street from Cannon to Highway 42. This reconstruction includes curb and gutter, sidewalks, replacement of water main and sanitary sewer main. This does not include improving the parking spots for Miner’s field. The LRC will be asked to fund that improvement. 2) Inclusion of a regional storm water facility for the Core Project Area. A solid cost estimate has not been finalized for this improvement. DELO submitted additional improvements to be included in the Bonds on June 2, 2014. These additional improvements are: 1) Costs to modify the Comcast property including private parking lot construction, fencing, fiber optic cable relocation, and electrical generator relocation. Estimated cost for these projects are $200,209. Modifying Comcast’s property unencumbers their portion of property proposed by DELO to allow for park construction and the private street along the BNSF railroad. 2) Utility infrastructure in the proposed private streets of North Front Street, Johnson Lane, Leonard Street, the muses (except for the Sanitary connection from west of the tracks to Cannon), Maria Lane, and public utility improvements west of Cannon Street. Estimated extra cost associated with these projects is $296,356. 3) DELO wants the bonds to pay for regional detention up to $250,000 and be used for payment obligations into that regional detention for DELO, Tebo, and Boom properties. Staff has included the cost for regional detention of $600,000, representing the costs to serve all properties in the Core Project Area. Staff’s version of Exhibit D have the differences highlighted in yellow. LOUISVILLE REVITALIZATION COMMISSION 7