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<br />? <br /> <br />Interest cost on debt = $7 million <br />? <br /> <br />Total cost = $26.5 million <br /> <br />#4. Downtown Urban Renewal <br />(Described more fully in Attachment J) <br />Urban renewal is a redistribution of existing tax revenue. Under this funding scenario, council would <br />need to amend the Downtown Urban Renewal Plan to increase the spending limit, which would <br />continue the current collection and redistribution of tax revenue. The City Manager recommended this <br />funding option at the February 10, 2010, work session with the following provisions: <br /> <br />a)the district stop functioning after the projects are complete (estimated for FY2018/2019) <br /> <br />b)a review panel of community members prepare an annual report on spending <br /> <br />c)language in the plan be modified to only allow for a limited number of specific projects <br /> <br />d)boundary expansion for the VA. <br /> <br />Summary points: <br />? <br /> <br />Uses current Downtown District tax increment financing to pay for all project costs <br />? <br /> <br />Lowest overall cost for the projects because it pays debt back over the shortest period of time <br />? <br /> <br />No change in taxes (continues $1.66 bond rate increase) <br />? <br /> <br />Frees up General Fund revenue earlier (13 years earlier than other options) <br />? <br /> <br />No vote required (could be referred) <br />? <br /> <br />Interest cost on new debt = $2.2 million <br />? <br /> <br />Total cost = $21.7 million <br /> <br /> <br />RELATED CITY POLICIES <br />Downtown revitalization and the projects referenced in this material are supported by the Downtown <br />Plan, the council’s 2009 Vision and Goals, and a number of plans and reports related to downtown. <br /> <br /> <br />URA BOARD OPTIONS <br /> <br />1.Adopt the suggested motion to select the Downtown Urban Renewal funding option. <br /> <br />2.Reject the Downtown Urban Renewal funding option and reconvene as the City Council to address <br />other funding options. <br /> <br />3.Take no action. <br /> <br /> <br />AGENCY DIRECTOR’S RECOMMENDATION <br />The Agency Director recommends moving forward on the downtown revitalization projects using the <br />Downtown Urban Renewal funding option because it is: <br />? <br /> <br />Responsive to community desires to improve downtown safety, increase jobs, and support local <br />businesses, education and the economy; <br />? <br /> <br />Limits economic impacts to individuals, projects, and the General Fund by not creating a new <br />tax; by maintaining General Fund flexibility and returning new General Fund revenue earlier; <br />by minimizing interest costs; and by returning tax revenue to other jurisdictions once the <br />projects are done <br />? <br /> <br />Immediate ability to implement and begin improvements this summer <br />? <br /> <br />Accomplishes downtown goals with resources intended for these purposes <br />? <br /> <br />Allows for continuation of the Downtown Revitalization Loan Program to assist with local <br />business and tenant development downtown <br /> Z:\CMO\2010 Council Agendas\M100308\S100308A.doc <br /> <br />