Title
Loan Agreements Between the City and the CRA (B)
Explanation
Certain capital projects within the Downtown Tax Increment District and the Fifth Avenue/Pleasant Street Tax Increment District have been included in the City's upcoming Series 2002 bond issue. Loan agreements have been prepared between the City and CRA which commit Fifth Avenue Pleasant Street (FAPS) and Downtown Redevelopment Advisory Board (DRAB) funds as the revenue stream for repayment of the portion of the Series 2002 debt service associated with these projects within the respective tax increment districts. The FAPS portion of the bond will be $661,056 and will be used for the implementation of the Model Block approach (housing and infrastructure). The DRAB portion of the bond will be $1,424,424 and will be used for the parking garage and related projects.
The City Finance Department has prepared two notes for the CRA to review. A representative of Finance will attend the meeting to answer questions.
Fiscal Note
Both redevelopment districts have adequate increment to fund their portion of the bond issue. The increment for FAPS was $109,517 for 2001-02. The estimated debt service on the FAPS portion of the bond is $52,616 annually. The increment for DRAB was $473,561 for 2001-02. The estimated debt service for the DRAB portion of the bond is $113,364 annually. Final debt service amounts will not be available until the bond had been secured.
Recommendation
The City Commission approve the notes and authorize the Mayor to execute and Clerk of the Commission to attest on behalf of the City.