Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Service to modify a Construction Guaranteed Maximum Reimbursement Agreement with Campus Partners for Community Urban Redevelopment, Inc. (the “Developer”) relative to the Arterial Street Rehabilitation - 15th and High Phase 2 project (the “Project”), which is being constructed in conjunction with the Developer’s 15th+High development (“15th+High”). As part of a public-private partnership (3P) between the City and the Developer, the City is supporting the Project with funding from the Capital Improvement Budget and from Tax Increment Financing (“TIF”). The Director of the Department of Public Service and the Developer entered into a Construction Guaranteed Maximum Reimbursement Agreement effective September 14, 2021 (the “Agreement”) in the amount of $1 million under the authority of Ordinance No. 1033-2021. The Agreement contemplated that the Department of Development would request funding through the 2022 Capital Improvement Budget to contribute an additional $1 million to the Project (the “Phase 2 Additional Contribution”).
The City established the “University TIF” pursuant to Ordinance No. 2888-2014 and entered into a Tax Increment Financing Agreement with the Developer on September 15, 2016 (the “TIF Agreement”) under the authority of Ordinance No. 0644-2016 to provide revenue generated from service payments in lieu of taxes (the Service Payments”) collected from parcels within the University TIF area to pay for certain public infrastructure improvements associated with 15th+High including the Project. In 2015, City Council approved Ordinance No. 0643-2015 to expand the Weinland Park Community Reinvestment Area (the “CRA”), the boundaries of which initially overlapped with the University TIF area but were subsequently adjusted to remove the University TIF area from the CRA pursuant to Ordinance No. 2196-2018. During the period in which the CRA and University TIF boundaries overla...
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