Title
An Ordinance approving the Tax Increment Financing Contract and Amended and Restated Community Improvement District Cooperative Agreement for the Discovery Park Project.
(Note: First read by Council on July 11, 2023. Passed by unanimous vote)
Body
Issue/Request:
An Ordinance Approving the Tax Increment Financing Contract and Amended and Restated Community Improvement District Cooperative Agreement for the Discovery Park Project
Key Issues:
The TIF Contract and Amended CID Agreement will implement the Discovery Park TIF Plan and amended CID.
Proposed City Council Motion:
I move for adoption of An Ordinance Approving the Tax Increment Financing Contract and Amended and Restated Community Improvement District Cooperative Agreement for the Discovery Park Project.
Background:
The TIF Contract establishes the rights, duties and obligations of the City and Developer to implement the Discovery Park TIF Plan and amended Blue Parkway and Colbern Road Community Improvement District (CID), which allows for the overall development. As approved, the TIF Plan allows for reimbursement in the maximum principal amount of $211 million from the several incentive revenue sources, compared to total projected project costs of about $951 million. The TIF Plan contained a project budget which itemizes the project costs and lists the items that are reimbursable from public sources (TIF, CID, Hotel Revenues). That same budget is used as an attachment to the TIF Contract.
Impact/Analysis:
Certain key provisions of the contracts are summarized here:
Financing Structure
The Contract allows for bonds to be issued on terms that are acceptable to the City. Developer will be responsible for funding with private funds all costs of the project that are not funded by bonds. It is not anticipated that bonds will be issued for the project. It is expected that Developer will proceed on a “pay as you go” basis for reimbursement.
If Developer requests the City to issue bonds, then ...
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