Revitalization Commission Agenda and Packet 2020 12 09

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SUBJECT: APPROVAL OF 2021 BUDGET DATE: DECEMBER 9, 2020 PAGE 3 OF 4 including streetscape and utility improvements. The agreed -to amount is carried forward to 2021 because of slowed project completion. This amount is not paid until the developer has received construction acceptance from the City. Bond Maintenance Fees are charged by the Paying Agent for the 2014 Property Tax Increment Revenue Bonds (2021, $7,150). Investment Fees include fees charged by US Bank to maintain the DELO Construction Account and fees charged by the City of Louisville's Investment Advisor for funds on deposit at the City (2021, $3,500). The Professional Services proposed 2021 budget includes $12,000 for up to two third - party reviews required of proposed direct financial assistance agreements. The cost of these reviews is now split 50/50 between the LRC and applicant based on new policy language adopted in 2020. Please recall that the 2014 Property Tax Increment Revenue Bonds are accretion and cash flow bonds issued in the amount of $4.5 million. Under this bond structure, the URD calculates an annual amount of "pledged revenue" and deposits it with the Paying Agent. The pledged revenue calculation is defined in the Bond Resolution. If the annual calculation does not cover all interest due, the remaining interest is added to the principal as accreted interest. With assistance from Bond Counsel in 2019, City staff reviewed how the pledged revenue was calculated, based on definitions within the Bond Resolution. Last year, that resulted in a greater amount of required pledged revenue. Staff has since incorporated that adjusted calculation into budget projections. The 2021 proposed budget includes $450,000 in principal and $305,664 in interest payments. On of December, 31, 2020, the accreted value of the bonds will be $4,366,631. If the bonds are not fully paid at the end of the URD's life, they dissolve without default. The LRC discussed and agreed -to include several programs in the 2021 budget, which are also reflected as priorities in the Work Plan. • Fagade Improvement Programming for $150,000 • Transportation Master Plan Contribution to City for Sidewalk at Griffith/Pine for $22,000 • Transportation Master Plan Contribution to City for Sidewalk at South Boulder Road for $81,000 • Phase I Wayfinding Signage for $130,000 Based on a City Council question received when the LRC budget was presented in the November 17 agenda materials, it should also be noted that the LRC has a commitment that is not represented in the current or proposed budgets: the TIF Rebate Agreement for 712/722 Main Street (Terraces on Main project). The agreement for this project was approved in late 2019, but it does not appear in the 2020 or 2021 budgets due to the Agenda Packet P. 7