City Council Minutes 2014 10 07 - Laserfiche WebLink

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City Council Meeting Minutes October 7, 2014 Page 13 of 27 Construction Fund Agreement: Outlines sources of funds into the Fund (TIF Bond Proceeds, City Drainage Line and Developer Funds) and describes the approval process for drawing down the funds for project costs. City Resolution: Determines the City's interests in connection with the issuance of the Bonds by the LRC are adequately protected; states the bonds do not constitute a debt or indebtedness of the City and the City concurrence to compounding unpaid interest. Financial Proforma: Estimates on TIF Revenue from several projects: DELO Project — 60 Townhomes, 108 Apartments and 24,000 SF commercial; TEBO Project — 23,400 SF Commercial /Retail and Boom Property — 24 Apartments and 27,000 SF Commercial. The first projects are estimated to be completed by December 1, 2016. Under these assumptions, the bonds can be paid back within the timeframe of TIF collections. City Fiscal Impact: No City repayment obligation as this is solely an obligation of the LRC (a separate legal entity). The City will contribute funding for City Drainage Line, which is included in the 2014 Storm Water Utility Fund. Staff Recommendation: Staff recommended approval of Resolution No. 61, Series 2014, making certain findings that the City's interests in connection with the issuance of the Bonds are adequately protected. The next step in the bond process will be for the LRC to approve the Bond Resolution at their October 13, 2014 meeting. Economic Development Director DeJong introduced Bond Counsel Dee Wisor, who would be available to respond to Council's questions. PUBLIC COMMENTS Rob Lathrop, 601 Johnson Street, Louisville, CO stated he is the Vice -Chair of the Louisville Revitalization Commission (LRC). He explained the LRC was formed in 2004 and although they felt the urban renewal area would be redeveloped in a couple of years, this is the first real project to come out of the LRC efforts. He stated the LRC fully supports the proposal, the assumptions and the Proforma. He urged Council to support the resolution. Joel Hayes, 187 Harper Street, Louisville, CO voiced his opposition to the proposal. He asked the Council to look at the problems of traffic, the railroad crossing and those associated with multi - family developments. He stated he did not understand why the City would want to subsidize this project. Rick Brew, Takoda Properties /DELO, 21 South Sunset Street, Longmont, CO voiced his appreciation for Council's consideration of the proposal. He explained they worked with the LRC and City staff on this proposal using the principals the LRC is a separate entity so there would be no risk to the City. He asked for City Council's support.