HomeMy WebLinkAbout1996-05-01 TIF Commission MinutesMINUTES
RIVERSIDE TAX INCREMENT FINANCING COMMISSION
MAY 1, 1996
The Riverside Tax Increment Financing Commission met on May 1,
1996, at the City Hall Annex, 4712 NW Gateway, Riverside.
Members present were: Betty Burch, Jim Davis, Diza Eskridge, Ron
Super, Al Tunis, and Tim Weeks.
Also present were: Steve Crystal, Attorney; and Ann Daniels,
Secretary to the Commission.
The meeting was called to order at 7:15 p.m.
Steve Crystal reviewed the latest financing options and discussed
the presentation to be made to the Under Secretary of the Army for
the Corps of Engineers on May 2.
Under the proposed plans, the Developer, The Trillium Corporation,
would contribute:
$4.3 million in a combination of $2.3 million in cash and the
remainder in state income tax credits which could be sold
to another company.
Letter of credit to back $5 million for Neighborhood
Improvement District Bonds which Platte County would
issue for the project.
Approximately $7 million in Levee District Improvement
Bonds for land they own in the area
Guarantee, either through letter of credit or another
financing instrument, $6 million in Neighborhood
Improvement District Bonds the City would issue
Commit to purchase $2.9 million in TIF bonds
$8 million for infrastructure which would be reimbursed
through recovered TIF funds
Plus a contribution of land for the levee construction
The City of Riverside would be making its $2.3 million cash
contribution, as previously promised, but would also be asked to
guarantee payment of $500,000 a year for a period of five years to
offset bond payments during the early start-up and development
years of the project. These funds would be returned to the City
when TIF revenues began to be generated in sufficiency to make the
bond payments.
With this proposal, the City of Riverside and the TIF Commission
will play an increased role and will have increased control over
what the Developer does with the project and in the area.
Under the new proposal, any future development on the Argosy
property, i.e. hotel, would be included for TIF purposes of
assessment. Al Tunis asked if the hotel could be captured for a
period of, possibly, five years and then be placed back on the tax
rolls. Steve Crystal responded that this was possible and could be
negotiated.
The status of Neighborhood Improvement District Bonds, currently
facing a constitutional challenge in the Supreme Court of Missouri,
was reviewed. Should the NID legislation be found constitutional
as it currently stands, there would be no need for a vote of the
residents in Riverside for the Board of Aldermen to proceed with a
commitment for the NID financing for the project.
However, should the Court rule the NIDs invalid, it is likely that
the City would be required to submit the issue to the voters at an
August election. Plans will be made toward both scenarios.
It was noted that it was not likely that voters would agree to the
option of assessing a property tax in case of default in the bond
payments by the property owners since Riverside has never enacted
a property tax and there is strong sentiment not to do so in the
future. Crystal restated the fact that the payments, should they
become necessary through a default by the property owner, could be
paid from General Revenue funds the City may have available but a
required vote would leave the possibility in place of assessing the
property tax.
It was further noted that a request has been submitted to Sally
Hemenway, Missouri Department of Economic Development, for a grant
of recaptured funds not expended following the 1993 flood. While
no grant has been awarded, it is anticipated that possibly between
$500,000 and $1 million might be available for use in local match
for this project. No definite commitment can be made at this time
but the project will be placed on file for consideration.
Commission members discussed the increased role of each of the
parties involved and expressed satisfaction that a more equitable
financing plan was being developed than the original proposal
reviewed last fall.
Steve Crystal presented a Resolution expressing support for the
project to be continued for further study and to be forwarded to
the Corps of Engineers as part of the financing plan required to
keep this project alive. The Resolution was read and discussed.
A motion was made by Diza Eskridge, seconded by Jim Davis, that the
Resolution of support be adopted and forwarded to the Board of
Aldermen and Corps of Engineers. The motion carried unanimously.
The next meeting was set for May 8, 1996, at 7:00 p.m. at the City
Hall Annex. It is anticipated that the Board of Aldermen will have
heard the presentation and will have stated their support for the
project's continued study.
The meeting adjourned at 9:20 p.m.
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Ann Daniels, Secretary