Title
Public Hearing: Paragon Star Neighborhood Improvement District
Body
Issue/Request:
Public hearing for creation of a neighborhood improvement district as a component of the financing plan for the Paragon Star Sports Complex.
Key Issues:
Public hearing to consider the proposed improvements and proposed assessments for the Paragon Star Neighborhood Improvement District.
Proposed City Council Motion:
Not applicable in the public hearing.
Background:
Paragon Star TIF History
The City approved the original Paragon Star Tax Increment Financing (TIF) Plan through the adoption of Ordinance No. 7833 on March 10, 2016. The City approved the First Amendment to the TIF Plan through the adoption of Ordinance No. 8946 on September 8, 2020. The City and Paragon Star, LLC (the “Developer”) executed the Amended and Restated TIF Contract on September 8, 2020 (the “TIF Contract”).
The TIF Contract provides for the issuance of revenue bonds that are repaid by TIF revenues and certain revenues that are generated by the I-470 & View High Community Improvement District (CID). The decision to issue revenue bonds rests with the City, after a financing plan is mutually developed by the City and Developer.
Financing Plan
The City has worked with the Paragon Star developer team since the execution of the Amended and Restated TIF Contract to develop a financing plan that includes the issuance of tax increment financing revenue bonds to fund the costs to construct the Sports Complex and provide reimbursement to Developer for certain TIF-eligible costs. A summary of the financing plan is as follows:
Total Bond Sizing
$6,000,000 Series A-1 backed by NID
$24,556,733 Series A-2 repaid by TIF revenues only
$30,556,733 Total Bond sizing
Use of Project Fund
$16,500,000 Amount initially released for Sports Complex
$2,500,000 Amount initially released for Developer reimbursement
$19,000,000 Total initial release
$4,050,684 Amount held in reserve for Developer reimbursement
$...
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