Explanation
Background: City Council passed Ordinance 3221-2018 on March 11, 2019 to establish fees that supports the administrative and project costs of the Department of Development (the “Department”) associated with administering the programs of the Department. Included in the Economic Development Fee Schedule authorized by and attached to that ordinance is a five thousand dollar tax increment financing (TIF) annual administrative/monitoring fee (the “City TIF Administrative Fee”) to be collected from developers who have executed tax incrementing financing or cooperative agreements (the “TIF Agreements”) with the Department, and those TIF Agreements require payment of the City TIF Administrative Fee. In lieu of the developers of those TIF Agreements providing the Department with a check, ACH, or wire for the required City TIF Administrative Fee, the Department has included provisions in those TIF Agreements - when monies are available in each of the applicable TIF funds associated with those TIF Agreements - to allow for the retention and transfer of the City TIF Administrative Fee from each of the applicable TIF funds associated with the TIF Agreements. The City TIF Administrative Fee is then to be offset as a credit on the Developer’s approved reimbursable costs under certain types of TIF Agreements not involving front end financing through bonds or other lending. The TIF funds are already appropriated pursuant to each of those TIF Agreements and their authorizing ordinances. This legislation will authorize the City Auditor, subject to approval by the Director of the Department, to transfer the City TIF Administrative Fee from the applicable TIF funds of those TIF Agreements described herein to the Business Tax Incentive Fund (2229).
Emergency Justification: Emergency legislation is required to allow for the immediate transfer of the City’s economic development fees for the tax increment financing annual administrative/monitoring fees prior to the payment da...
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