Title
Approval of an Interlocal Agreement with the City of Gainesville (B)
Explanation
At the December 2004 CRA meeting, the Board authorized the Executive Director to negotiate a price for the purchase of the Tackle Box property. At that time the CRA was considering using a conventional mortgage to acquire the property and make payments from the Eastside District tax increment.
After staff discussions it was recommended that the City include $300,000 in its most recent bond offering that could be lent to the CRA for this project. The CRA has done this on two other occasions with the Downtown parking garage and the FAPS Model Block program. The repayment is set at the terms of the bond over a 20 year period. The source of the repayment is all Eastside District Redevelopment Trust Fund revenues.
Both the CRA and the City must approve this loan and enter into an Interlocal agreement that covers the terms of the loan. The City Commission will be asked to appropriate the loan at the next regular meeting on Monday, May 23, 2005.
Fiscal Note
The current annual increment in the Eastside district is $160,000. The Eastside has no debt currently.
Recommendation
The CRA to the City Commission: 1) Approve borrowing $300,000 from the City of Gainesville for the Tackle Box project and 2) authorize the Interim City Manager to sign any and all necessary documents.