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<br />e <br /> <br />can play an important role in determining how this Main Street <br />corridor is shaped. <br /> <br />Other Options <br /> <br />A. Revolving Loan - This option received some debate at the <br />EDA meeting on July 12, and again at the City Council <br />meeting on July 19. This option will not work. <br />Typically, the EDA provides this supplemental financing <br />tool to end users. As security for repayment, the EDA <br />files a mortgage against the respective properties. <br />Because Mr. Chuba is a land developer (that is, he is <br />acquiring property, making it ready for construction, and <br />then disposing of it), an EDA loan to Mr. Chuba is not <br />practical. The writer of this memo would not recommend an <br />unsecured loan. <br /> <br />B. <br /> <br />New TIF District - On the surface, one could suggest that <br />a TIF District could be created. This is suggested <br />despite the new restrictions as of the last legislative <br />session. Upon further analysis, the City, EDA, or HRA <br />would face the prospect of creating a "TIF Redevelopment <br />District". This type of District, however, requires <br />another finding over and above the But/For Test. The <br />additional finding is that of blight. The statutory <br />definition of blight is extremely limited. The writer of <br />this memo would not recommend the creation of a TIF <br />Redevelopment District because of the limited definition. <br />The properties at Main Street and Freeport Avenue do not <br />meet the definition of blight. <br /> <br />e <br /> <br />Funds Available <br /> <br />Found in Exhibit A of the proposed modification to TIF Plans <br />No. 1 and No. 3 is a cash flow analysis. The analysis finds <br />that after funding $177,000 to supplement the library <br />expansion, and, after providing up to $60,000 for the Main <br />Street and Freeport Avenue redevelopment project, sufficient <br />funds are still available for debt service and other, undefined <br />projects. Staff's best estimate of those funds is <br />approximately $400,000. <br /> <br />Clearly, the City Council is wise to prioritize how this finite <br />pool of TIF funds are allocated. While other projects loom on <br />the horizon (proposed business park, etc.), Mr. Chuba <br />successfully demonstrated with his 1992 project, the ability to <br />undertake a redevelopment project from concept to completion. <br />The 1993 project is expected to build on the momentum of the <br />previous project. <br /> <br />e <br /> <br />The writer of this memo supports prioritizing projects. <br />Council, however, must remember that the statutory list of <br />eligible expenditures is very narrow. Clearly, the proposed <br />modification to TIF Plans No. 1 and No. 3 to support the Main <br />