As TIF is collected in the downtown area, this EDIT loan must be repayed in the amount of $3,696,350 for the Parking Garage.
THESE ARE THE FACTS:
The next item of business was the Examination of the TIF (Tax Increment Financing) Financial Report. The director brought attention to the State Street Parking Garage and stated general concerns regarding the Bonds. One concern the Director stated was that the bond payments are accelerating and becoming substantial. The Director explained that there will be a greater implication on EDIT (Economic Development Income Tax)
1. The parking garage finished a year or two prior to the bank building. The TIF proceeds started later than anticipated in the underwriting. From 1998 through 2001 there was an accumulated TIF shortage of $256,000.
2. The bank was originally to have five floors completed and occupied. There are two floors that were left unfinished so that the assessed value of the building is less than what was estimated, resulting in less TIF funds.
3. The orginal assessed value included a bank drive-through, but the site could not accommodate it. The New Albany Redevelopment Commission should add the drive-through to the TIF district to capture additional TIF proceeds.
4. EDIT funds are budgeted to be payable for a particular year. The Director suggested that the city budget the Edit funds and have them available to Redevelopment Commission before the payments are due. This gives the resources available on time without scrambling around for the funds to make payments. In order get on a valid schedule, an appeal has to be made to the Council and the Controller to receive the EDIT funds available now to be current with the payment.
5. A Lease Rental Reserve was required in the bond agreement. This costs around $40,000 a year for five years or $200,000.
The Director noted that in order to be current by the end of this year, there needs to be approximately $580,000 of EDIT funds allocated to the Redevelopment Commission. The Director also stated that by the time the project is paid off, we will pay approximately $3,696,350 of EDIT into the parking garage project. The Director stated that once the bonds are paid off, then TIF funds can be collected to refund the city the EDIT contributed. In return, the city can use those funds for other capital improvement projects.
Freedom Of Speech feels the above information proves that Atty. Fifer & Mayor Garner are not sharing all the facts and figures about TIF & EDIT Funds with the City Council and taxpayers.
Say it isn't so Jimmy!
