Revitalization Commission Agenda and Packet 2014 10 13

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L City at - Louisville COLORADO • SINCE 1878 LOUISVILLE REVITALIZATION COMMISSION SUBJECT: RESOLUTION 14 -02 - RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE LOUISVILLE REVITALIZATION COMMISSION AUTHORIZING, APPROVING AND DIRECTING THE EXECUTION AND DELIVERY OF THE LOUISVILLE REVITALIZATION COMMISSION PROPERTY TAX INCREMENT REVENUE BOND (DELO PROJECT), SERIES 2014, IN THE MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF $4,500,000, FOR THE PURPOSE OF FINANCING THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF AN URBAN RENEWAL PROJECT IN THE HIGHWAY 42 REVITALIZATION AREA. DATE: OCTOBER 13, 2014 PRESENTED BY: AARON M. DEJONG, ECONOMIC DEVELOPMENT SUMMARY: This memorandum summarizes the documents necessary to issue a maximum amount of $4,500,000 in Tax Increment Financing (TIF) bonds to provide a portion of the funding needed to construct new streets, utilities and other public infrastructure improvements within the core area of the Highway 42 Urban Renewal Area. BACKGROUND: The LRC has the authority to collect TIF revenue from improvements made within the Urban Renewal Area that increases property taxes over a base valuation (generally the valuation of property as of January 1, 2007). The increased property taxes above the base valuation accrue to the LRC to invest in projects that remove blight and encourage reinvestment within the Urban Renewal Area. The City and the LRC have previously committed to funding the pedestrian gateway at the intersection of South Street and the BNSF railroad. This investment creates the potential for the core area of the Highway 42 Revitalization area to be redeveloped by providing better connectivity for all citizens and visitors to interact with areas within the Urban Renewal Area. An interior street network east of the railroad tracks and west of Highway 42 is necessary for any meaningful redevelopment of the area as well as to help facilitate potential additional revenue for businesses and the City. A new public area, reconstructed streets, new underground utility infrastructure, and regional storm water detention are other improvements proposed for the area. A term sheet describing the general conditions under which the LRC would issue TIF revenue bonds to fund public infrastructure in the Urban Renewal Area was first approved by City Council on May 21, 2013. A Core Project Area Agreement and amended Term Sheet were approved on July 1, 2014. This agreement outlines the financing and scope of the public infrastructure LOUISVILLE REVITALIZATION COMMISSION 8