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HomeMy WebLinkAbout1998-11-30 TIF Commission MinutesMINUTES TAX INCREMENT FINANCING COMMISSION NOVEMBER 30, 1998 The Tax Increment Financing Commission met in regular session at 5:00 p.m. on November 30, 1998, at the City Hall Annex, 4712 NW Gateway, Riverside, MO. Those present were: Ron Super, Bill Bright, Jim Davis, Al Tunis, Diza Eskridge, Philip Krause, Kent Jackson, Tim Weeks, and Michael Short. Absent: Jimmy Karr and David Brenner. Also present: Steve Crystal, Deborah Polk, John Stacey, and Ann Daniels. A motion was made by Bill Bright, seconded by Al Tunis, to approve the minutes of the meeting of October 21, 1998. Motion carried unanimously. A review of the minutes from the non-quorum meeting of November 4, 1998, was conducted. Steve Crystal and John Stacey led a discussion of the following documents: 1) Executive Summary prepared by John Stacey, 2) Rates of Absorption 3) Market Assumptions 4) A draft Resolution recommending that the Board of Aldermen Authorize Negotiations with Trillium Corporation and 5) 1999 Real Estate and Construction Outlook. John Stacey reviewed the original market assumptions prepared for Trillium by Kent Crippen, updating them to include the actual acreage of 525 acres Trillium would have available and the current market data. Steve Crystal reviewed the remaining documents and answered questions from commission members. A major concern was where the project might be if Trillium did not contribute their $4.7 million. Crystal stated the projects currently approved in Redevelopment District I would generate enough funds to pick up the difference, as well as the fact that the state tax credits committed by the Missouri Development Finance Board could be sold to other local firms and would go towards the project as well. He stated that only private firms could purchase the tax credits; that cities nor the TIF Commission could do so. A thorough review of the proposed Resolution to the Board of Aldermen recommending that negotiations be started with Trillium was conducted. Steve Crystal stated that much of the success of the project would be based upon on the effective and careful use of the land with regard to a Planned District and the Master Plan prepared for the levee area. A major portion of the ensuing discussion concerned Exhibit A attached to the Resolution which covered Development Points in connection with Trillium's participating in financing the levee project. The order of priority proposed by this Resolution is as follows: I. Order of Priority for Payments of TIF Revenues 1. Pay TIF Bonds 2. Fund the City's administrative costa and other TIF related costs 3. Reduce annual assessments with respect to assessment bonds 4. Repay the NIDFB Loan 5. Proposed distribution of the then remaining TIF revenues after payment of the above items 6. To be applied pursuant to the Plan II. Redevelopment Project II 1. The approval of Redevelopment Project II 2. Items to be included in the Amended Plan for Redevelopment Project II which included: construction of a full diamond interchange at I-635 and Van de Populier Road, improvement of Van de Populier Road to arterial street standards, new water and sewer trunk lines along Van de Populier Road, construction of an internal storm d r a i n a g e system for the land behind the Levee and construction of an access road from the I-635 interchange; the designation of property owned by Trillium as Redevelopment Project I/II Area(s); classifying certain Redevelopment Project Costs for Redevelopment Project II to be reimbursed or paid from TIF Revenues as Reimbursable Project Costs and a formula for that reimbursement; agreement for Trillium to finance the construction of Redevelopment Project II with the provision that any and all reimbursable project costs would be reimbursed only out of available TIF revenue pursuant to Reimbursement Agreement; Trillium will exhaust all state and federal funding sources for Redevelopment Project II before TIF monies would be used; and that Trillium would, upon approval of Redevelopment Project II, enter into a Redevelopment Contract as developer of Redevelopment Project II. 3. Trillium would be allowed to file a rezoning application with the City which would rezone its property to a planned district which contemplates industrial, commercial, and retail uses; and with proper compliance with all applicable laws, a gaming development on the Trillium property. 4. Trillium's Obligations would be as follows: Contribute property for the Levee Project and be repaid the value of such property from TIF funds Contribute, in cash, a new amount of $2,800,000. Support bond issues as follows: (1) reasonably support the marketing of TIF bonds (2) cause to be provided, as credit enhancement for the bonds, a stand-by letter of credit in the amount of $4,000,000 with terms mutually agreeable to Trillium and the issue of the bonds and provides for repayment eligibility of credit enhancement costs Execute the L-[385 Neighborhood Improvement District petition should it be determined that NID bonds would be utilized for financing the Levee Develop a Master Plan which, to the greatest extent reasonably possible, promotes retail development on Trillium property. Acknowledges that they may be required to construct drainage accommodations on the Trillium Property and agrees to undertake such actions. **NOTE For a complete description of these documents see the attached copies. Comments concerning the percentage of TIF monies to be returned to taxing bodies and the cost for infrastructure in the proposed Redevelopment Project Area II evoked the most discussion. Jim Davis stated he felt we needed to offer something to Trillium but he did not believe it should be more than 50 o reimbursement for the infrastructure costs. Ron Super stated he believed Trillium needed to make an investment in the project before they could expect to see funds returned to them. Al Tunis stated he felt the taxing bodies were already making contributions because of the projects already approved which are collecting Payments In Lieu of Taxes to the project rather than to the jurisdictions. He stated he really did not like to offer up to the 50% but understood why it might be necessary to do so. Bill Bright again stated his concern about the designation of a "blighted area" being legitimate for this project. Steve Crystal responded that an area can be declared "blighted" without declaring every parcel in the area as "blighted". Following lengthy discussion on these issues the following consensus was arrived upon: 1. Trillium could expect reimbursement for no more than 50~ of the Interchange at I-635 and Van de Populier. 2. No reimbursement would be made for internal infrastructure which would normally be the responsibility of any developer to provide to his project. 3. The ratio of TIF funds to be returned to the other taxing jurisdictions, assuming there are additional funds at any time, would be as follows: Taxing jurisdictions 25~ City of Riverside 400 Trillium 350 4. Not more than 90% of such reimbursement shall be paid from PILOTS. *NOTE See attached Resolution for complete details. With no further business to come before the Commission, the meeting adjourned at 7:50 p.m.. Ann Daniels, Secretary Tax Increment Financing Commission