Title
Funding for the Model Block Approach in Fifth Avenue Pleasant Street Redevelopment District (NB)
Explanation
At the December 17, 2001 meeting, the Community Redevelopment Agency heard a report from staff on the steps necessary to move forward the Model Block approach to housing and infrastructure revitalization in the Fifth Avenue Pleasant Street District proposed by Asset Properties Disposition Inc. (APD). The Fifth Avenue Pleasant Street Board received a final report on December 11, 2001.
Initially, the Community Redevelopment Agency was asked to bond 50% of the increment from Fifth Avenue Pleasant Street to provide approximately $640,000 in funding to the project. This committed funding is crucial in the search for other funding sources because it shows the Community Redevelopment Agency's commitment to the project. After several discussions with Finance it has been determined that it would be better to ask the City to include the $640,000 in its upcoming bonding efforts and then have the City lend the money to the Community Redevelopment Agency with an annual payment of approximately $50,000 per year for 20 years, with payments to the City coming from the Fifth Avenue Pleasant Street Trust Fund. Finance views that $640,000 is too small for the Community Redevelopment Agency to bond on its own and that both the Community Redevelopment Agency and City would receive a more favorable rate if the process were handled by the City. The Community Redevelopment Agency has agreed to hire David Cardwell, an attorney who specializes in Community Redevelopment Agencies, to review the public purpose and gentrification issues associated with this project.
Fiscal Note
None at this time.
Recommendation
The Community Redevelopment Agency to the City Commission: 1) recommend that $640,000 be added to the upcoming bond issue for the Model Block program; and 2) that the funds be lent to the Community Redevelopment Agency with payments to be made ...
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