Revitalization Commission Agenda and Packet 2014 10 13

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SUBJECT: DATE: RESOLUTION 14 -02 — LRC TIF BOND OCTOBER 13, 2014 PAGE 2 OF 4 improvements being financed through the TIF bonds and outlines the financial commitments from all the parties to complete the infrastructure. Generally, the improvements eligible for reimbursement are: • Construction of new streets • Cannon Street from South to Griffith Short Street from Cannon to Highway 42 South Street from Cannon to Highway 42 • Repaving of Griffith Street from BNSF to Cannon Street • New water, storm water, and sanitary sewer mains within the following streets if needed; Cannon Street South Street • Short Street o Lafayette Street • Additional City drainage with Lafayette Right of Way • Public Plaza east of Cannon Street • Public area west of Cannon Street • Modifying Comcast property to unencumber the public area • $350,000 for Regional Detention • Landscaping and public amenities along streets • Design, Construction Management and bonding costs DISCUSSION: Several documents are needed for the issuance of the bonds. Each agreement will be discussed below. LRC Bond Resolution This document authorizes the ability to sell bonds in a total maximum amount of $4,500,000 at 7% interest for funding infrastructure improvements outlined in the Core Project Area Agreement and for issuance costs associated with the bonds. The resolution also approves the other agreements necessary to facilitate execution and maintenance of the bonds. The bonds will be paid through receipt of Pledged Revenues, which are calculated from the taxes generated from increased property tax values of the Core Project Area above the December 1, 2012 valuations ($1,080,337 assessed value). Pledged Revenues do not include the payment to the County outlined in the 2006 Tri -party Agreement as they are superior to this debt and not an eligible revenue source for repayment. Before paying any debt service on the bonds, Pledged Revenues will first be used to pay the Core Project Area's share of staff costs outlined in the 2011 Amended and Restated LOUISVILLE REVITALIZATION COMMISSION 9