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City Attorney:
<br /> The City Attorney will work with staff and the developers to draft the
<br />Development Agreement and the Condo Agreement and any other legal documents required for
<br />the project.
<br />
<br /> 1% for Art:
<br /> The City must contribute 1% for art on this project.
<br />
<br />Environmental Assessment:
<br /> For the land swap transaction, the City will have to provide
<br />an environmental assessment of its property.
<br />
<br />Upgrade and/or Relocation of Utilities:
<br /> The alleys on the development site contain a
<br />storm water line and a steam line. These utilities will need to be either upgraded or relocated in
<br />order to complete the development project. The costs for the utilities will be shared between the
<br />City and the developer. The amount shown in the chart represents the City’s share of the costs.
<br />
<br /> Debt Issuance Costs:
<br /> There are costs to the Urban Renewal Agency for entering into
<br />debt, which could include items such as offering documents, rating agency fees, bond counsel
<br />fees, financial advisor fees, loan fees, and so on.
<br />
<br /> Miscellaneous/Contingency:
<br /> This is a small amount (less than 1% of the City’s total
<br />costs) to allow for potential changes in the project or for City costs that have not yet been
<br />identified. The developer included a separate contingency in the overall project budget.
<br />
<br />Debt Service Reserve Fund:
<br /> The Urban Renewal Agency’s lender will probably require
<br />funds to be held in reserve to protect bondholders during the time the debt is outstanding. That
<br />amount is normally equal to 10% of the amount of the borrowing, or one year of debt service.
<br />
<br />Funding Sources
<br />To the extent possible, staff recommends that the Riverfront Urban Renewal Agency should pay
<br />for as much of the garage as it can afford. That includes both a cash contribution of available
<br />funds at the time of purchase and issuance of urban renewal revenue bonds. The proposed
<br />financing strategies for the options are set out in the chart below.
<br />
<br />Option 2 – Option 4 –
<br />Option 1 – 186 spaces Option 3 – 260 spaces
<br /> 192 spaces with retail 266 spaces with retail
<br />Urban Renewal Contribution
<br /> -Urban Renewal Revenue Bonds $3,870,000 $4,000,000 $4,000,000 $4,000,000
<br /> -Reprogram of Funds to Purchase Riparian Area 400,000 400,000 400,000 400,000
<br /> -Cash Available in FY06 & FY07 1,110,000 1,110,000 1,110,000 1,110,000
<br /> Total Urban Renewal Contribution 5,380,000 5,510,000 5,510,000 5,510,000
<br />
<br />City Contribution
<br /> -Stormwater Funds (for upgrading storm line) 250,000 250,000 250,000 250,000
<br /> -Library Debt Service Fund – Debt Service Reserve 475,000 475,000 475,000 475,000
<br /> -Facility Reserve 0 250,000 1,410,000 1,800,000
<br /> Total City Contribution 725,000 975,000 2,135,000 2,525,000
<br /> Totals $6,105,000 $6,485,000 $7,645,000 $8,035,000
<br />
<br />Descriptions of the specific funding sources suggested for inclusion in the financing plan are
<br />described below.
<br />
<br />L:\CMO\2006 Council Agendas\M060208\S060208B.doc
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