Item B: URA - West Broadway Preliminary Financing Plan

Home Browse Search

The current “maximum indebtedness” of $33 million has nearly been fully spent, with the bulk spent on the library. There is about $4.6 million left under the $33 million limit in the Down- town District. It is currently projected that the district will have collected sufficient tax revenues to meet the $33 million limit in FY09. Adopting a “maximum indebtedness” figure does not authorize or obligate the district to enter into debt. It allows future Agency Boards to have the ability to fund projects over time, either with cash or by issuing debt. If the Downtown District plan is amended, it would be possible for the district to enter into obligations of greater than the $4.6 million allowed under the current “maximum indebtedness” figure. The determination of a maximum indebtedness amount is based on a combination of the projected tax increment revenues in the district and a policy decision about the appropriate level of spending to allow within the district by future city councils. Four options for maximum indebtedness are presented here. The options are: Option 1: Minimal increase for West Broadway Project only = $40 million Conservative assumption about existing tax increment revenues thru 2030 Covers West Broadway Project spending Allows for flexibility to respond to project uncertainties around the amount required and the method of payment for the property acquisition Covers district administration costs through 2030 (no change in staff levels) Option 2: Increase to cover spending of all tax increment thru 2030 = $70 million Conservative assumptions about existing and new tax increment revenues thru 2030 No new development beyond current West Broadway project is included in revenue projection Covers West Broadway project spending and district administration costs Provides room for an additional $30 million of projects thru 2030 Option 3: Increase under Option 2 plus project in expanded boundary = $95 million Conservative assumptions about existing and new tax increment revenues thru 2030 Project in expanded boundary area of $100 million in FY15 Covers West Broadway project spending and district administration costs Covers an additional $25 million of projects thru 2030 Option 4: Increase under Option 3 plus additional future development = $115 million Conservative assumptions about existing and new tax increment revenues (including project in expanded boundary) thru 2030 Additional development project of $200 million in FY20 Covers West Broadway project spending and district administration costs Covers an additional $20 million of projects thru 2030