3.0. EDSR 02-08-1999 - Laserfiche WebLink

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• Receipt of First Full Year of Tax Increment • — relates to overall cash flow for payment of city TIF bonds and developer pay-as-you-go note As you can see there are numerous activities and events moving forward on this project, all of which relate to one another in some fashion. Staff sees the starting point for most of these activities being the date when the City Council awards the bids for the utility project. This action would trigger a number of activities related to the commercial/industrial development projects. Please see the attached memo from City Engineer Terry Maurer regarding dates and time schedule for completing the utility and street work for the eastern area. As indicated in Mr. Maurer's memo, construction of Tyler Street would likely not begin until late 1999 with a completion date scheduled for summer or fall of the year 2000. This schedule has a significant impact on the timing of construction of the commercial and industrial components of the Hohlen development project. Obviously the commercial and industrial buildings need to have full access provided prior to completion of construction. There may be the possibility of constructing a temporary Tyler Street by this fall, however, this may be unacceptable to the commercial/industrial developers. The developers will be present at this meeting to discuss their needs related • to the timing of street construction. The timing of completion of the first industrial building is crucial to the overall cash flow of TIF District No. 19. The completion of this industrial building triggers the EDA's payment to the developer of$300,000 up front as part of their approximately $2.9 million incentive package. Staff is currently discussing with the developer that completion of the first industrial building would also trigger the start of interest on the pay-as-you-go note in the amount of approximately$2.6 million. $2.9 million developer TIF incentive $300,000 - up front dollars $2.6 million EDA pay-as-you-go note to developer An ideal situation, strictly from a cash flow perspective, would be for the commercial component to be constructed one year prior to completion of the first industrial building. Therefore, the EDA would save potentially one year of interest on the pay-as-you-go note and also delay our provision of the $300,000. Staff is prepared to discuss these issues in more detail at the worksession. If you have any questions or comments regarding this memo prior to the 40 worksession, please feel free to call me at 441-4905.