File #: 15-1286    Version: 1 Name: Review and Consideration of the Terms of Development Agreement for Proposed Improvements Related to a Development known as Main Street Lofts within the Boundary of Tax Increment Reinvestment Zone No. 2, Generally Located West of N Main Street and South of
Type: Discussion Item Status: Passed
File created: 4/8/2015 In control: City Council
On agenda: 4/13/2015 Final action: 4/13/2015
Title: Review and Consideration of the Terms of Development Agreement for Proposed Improvements Related to a Development known as Main Street Lofts within the Boundary of Tax Increment Reinvestment Zone No. 2, Generally Located West of N Main Street and South of Newt Patterson Road
Sponsors: Felix Wong
Attachments: 1. Summary of TIRZ Funding Request, 2. Development Agreement Framework 4-13-15
Title
Review and Consideration of the Terms of Development Agreement for Proposed Improvements Related to a Development known as Main Street Lofts within the Boundary of Tax Increment Reinvestment Zone No. 2, Generally Located West of N Main Street and South of Newt Patterson Road
Requested Action
To consider the terms of development agreement
Recommendation
The TIRZ Advisory Board recommended a TIRZ Fund expenditure not to exceed $2,289,801 by a 5-0 vote.
Staff recommends that a planned 16" water line be constructed by this development at an estimated amount of $477,000 from the Utility Fund. The water line is included in the Water Master Plan to serve the community at large. It will be located either within or along the perimeter of this development. An existing 24" water line in Newt Patterson would provide primary service to the development.
Description/History
Please see the terms of the development agreement in the attached Summary of TIRZ Funding Request and Development Agreement Framework.
The development investment is estimated at approximately $60,500,000, which is about 45% of the new development increment needed to meet the projection in the TIRZ Finance Plan. All proposed improvements shown in the attachments are TIRZ-eligible expenditures. The amount recommended by the Advisory Board is about 15% of the total proposed improvement cost in the TIRZ Project Plan.
The developer is requesting reimbursements in lump sums instead of over 15 or 20 years and a delay in collection of impact fees and park fees until certificate of occupancy.
The developer will pay all required permit and inspection fees. Under the provisions of the park fee ordinance, he is requesting credits towards $412,500 of park development fees due to over $1 Million expenditure on private recreational amenities (pools, dog park). The MPFDC is scheduled to consider the request at its April 16th meeting.
The City Attorney will prepare the development agreement based on terms approved by the Council and schedule it for ratification.
Funding Source
See above comments related to Utility Funds.  General Fund will finance the other expenditures until the TIRZ can repay the General Fund.
Prepared By
Felix Wong, Director of Planning
817-276-4228