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L <br /> . f <br /> r <br /> . �ti ,: , �. <br /> ' y ., k <br /> � �� ' LEGAL DEPARTMENT MEMORANDUM <br /> _ � . . <br /> ' No. 97-9 <br /> March 26, 1997 <br /> TO: Honorable Mayor and City Council Members <br /> FROM: James L. Williams, Jr., City Manager <br /> John W. Couter, Corporation Counsel <br /> RE: Southeast Plaza TIF <br /> Included on the Council agenda for this week is a resolution authorizing a Redevelopment <br /> Agreement with Airport Plaza Joint Venture ("Developer") for the development of a 3 8-acre tract <br /> immediately south of K-Mart Plaza on Route 121. The agreement provides that the Developer <br /> will attempt to build a theater, motel, restaurant and stores on the west half of the property, and <br /> residential development on the east half. For its part, the City will designate the area as a <br /> Redevelopment Area and adopt Tax Increment Financing (TIF) for the project. This means that <br /> the Developer will be able to reimburse itself for some of its costs (eligible costs, as defined by <br /> state law) from the proceeds of the TIF. <br /> Key points of the Agreement are as follows: <br /> - This Agreement is contingent upon the City approving the TIF for this proiect. There <br /> will be a public hearing on that subject on April 14, and Council will consider the necessary <br /> ordinances on April 28. This Agreement does not obligate the City to approve the TIF, and if it <br /> does not do so the Agreement is void. <br /> - The reimbursement obligations of the City are limited to funds generated by the TIF. <br /> This Agreement will not constitute a debt or liability of the City, and no General Fund or other <br /> City funds, apart from TIF proceeds, will be used to reimburse the Developer. <br /> - The TIF will include sales tax generated by the project, minus the .25% approved by the <br /> Council for capital projects, as well as real property taxes as provided by law. <br /> - The Developer is limited to no more than $3 million in reimbursement for expenses <br /> related to Phase I (the west hal�j of the project. There is no limit to reimbursement regarding ' <br /> Phase II (the east hal fl, but (a) all such expenses must be eligible for reimbursement under state <br /> law, and (b) the Developer must have expended at least $400,000 for such Phase within five (S) <br /> years of the date of the Agreement. <br />