Revitalization Commission Agenda and Packet 2014 06 09

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SUBJECT: CORE PROJECT AREA AGREEMENT DATE: JUNE 9, 2014 PAGE3OF4 The Application for LRC assistance states: “Assistance is generally provided to projects for public infrastructure improvements needed to facilitate the revitalization of property within the Urban Renewal Area. Typical public infrastructure investments may include but are not limited to unifying streetscape elements, improving access and circulation, improving streets and parks, providing for railroad corridor improvements and grade separation, providing for parking, completing utilities.” For the Core Area Infrastructure Bonding to fulfill this requirement, staff has been using the following rationale to decide if improvements are eligible for the LRC bonds; does the improvement serve more than just one development? The Comcast improvements themselves are not eligible for tax-exempt financing because they are for private use. However, certain ‘private use thresholds’ exist in tax- exempt rules, and may not create an issue for a non-taxable issuance if they are a small percentage of the total issuance. There are concerns with further complicating the bonds with tax-exempt and taxable components. Also, these improvements are on private property, only serve that property, and Comcast hasn’t agreed to those improvements. These improvements are a cost to assemble land for DELO’s redevelopment plan. The LRC has stated improvements relating to the private streets are not to be included in the Bonds. The utility infrastructure under the private streets only serves the DELO development. Not including these improvements coincides with previous decisions of the LRC not to include infrastructure serving only one development. The City developing a regional detention facility large enough to alleviate flooding concerns for the downtown area and also serve water detention requirements within the Core Project Area is a benefit for the entire area. DELO wants the LRC Bonds to fund the DELO, Tebo, and Boom payment obligations for the regional detention facility. The other properties within the Core Project Area will have to pay with their own funds to utilize the facility if are required to provide storm water detention to redevelop their properties. Staff believes the regional detention facility should be an allowable improvement. These bonds are being serviced through TIF generated from all properties within the Core Project Area, and that includes more than just DELO, Tebo, and Boom. The LRC bonds for regional detention should then benefit all properties. It should be noted City Council has not directed staff on the concept of regional detention for remediating downtown floodplain issues and serving the Core Project Area. That discussion is scheduled for the City Council meeting on July 1, 2014. Bond Modeling Attached is a revised bond repayment model for the Core Project Area. It was prepared by Alan Matlosz for RMCS. The key assumptions of the model are: 1) Delo development consisting of: LOUISVILLE REVITALIZATION COMMISSION 8