Item B: West Broadway Project - Laserfiche WebLink

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General Fund will receive increased revenues starting in FY11 of about $0.9 million. Those funds could be dedicated to downtown redevelopment projects. General Obligation Bonds: The City could ask voters to approve a G.O. bond measure to fund certain kinds of redevelopment projects. The projects must be owned by the City if they are funded with this source (i.e., infrastructure improvements, City-owned buildings). The project would also have to be weighed against other high priority City project needs to determine whether this project along with other projects will fit within the City’s debt capacity (1% of real market value of property). Facility Reserve : The City has been saving funds for replacement of City Hall and a Police Patrol Facility. A portion of these funds could be redirected towards downtown redevelopment. This is not a new source of funds, however, but is a shift of funding from one project to another. In this case, the City would have to ask voters for additional G.O. bond authorization for the City Hall/Police Patrol Facility project. Other City Assets: The City owns a number of properties that could be sold to help finance down- town revitalization projects, such as the Atrium building. Based on past history with the sale of City assets, however, the amount received for such sales is usually less than anticipated, and the timing of the receipt of sale proceeds can take several years. For instance, the Library financing included proceeds from the sale of the Sears site, and that site still has not been sold more than seven years after development of the Library financing plan. The result was the Library financing plan had to be adjusted to find equivalent funds from another source (in this case, urban renewal tax increment funds.) Property Tax Exemptions In addition to City funding sources, the City is also able to offer developers incentives in the form of property tax exemptions for certain types of projects. Three types are available: the Multi-Unit Property Tax Exemption, the Vertical Housing Development Zone, and the Low Income Rental Housing Exemption. A project would qualify for one of these (not multiple) exemptions, for a period of 10 or 20 years, depending on the project and the exemption. This is not money that the City has in the bank to use to write a check to pay for development costs. It is foregone tax revenues that are only available if there is a project developed and placed on the tax rolls.