Explanation
Background: Council, by its Ordinance No. 1704-96 passed on July 22, 1996, approved the creation of a tax increment financing to provide funding for public improvements in the Easton area. Council, by its Ordinance No. 0709-03 passed May 19, 2003, expanded the area covered by the original Easton TIF by adding approximately 91 acres to the Easton TIF area. Finally, Council, by its Ordinance No. 0180-2004 passed January 26, 2004, approved the future issuance of up to $15,000,000 in new bonds to fund public improvements in the Easton area pursuant to an Amended and Restated Tax Increment Financing Agreement dated as of November 1, 2004.
The attached ordinance authorizes the Director of Development to enter into a Reimbursement Agreement with MORSO Holding Co. to finance the construction of future public improvements necessary for the continued development of the Easton area. In lieu of the City issuing $15,000,000 of additional bonds, MORSO's up front investment in TIF-eligible public improvements will be reimbursed over time from the service payments in lieu of taxes received from the Easton TIF that are available after paying debt service on the City's outstanding $36,430,000 Tax Increment Financing Bonds, Series 2004A.
Emergency Action is requested to allow the reimbursement agreement to be entered into in a timely manner.
Fiscal Impact: The City has foregone the real property tax revenue that it would have received from development within the Easton area. Instead, that revenue has been diverted to the Easton Project Municipal Public Improvement Tax Increment Equivalent Fund held by the City. That revenue has been and will continue to be used to support outstanding bonds and to pay for future public improvements benefiting the Easton area.
Title
To authorize the Director of Development to enter into a Reimbursement Agreement with MORSO Holding Co. to provide for the construction and reimbursement of public improvements ben...
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