Title
Resolution to Authorize the City Administrator to Negotiate City Participation in the Arbor South Project, Including Potentially Owning, Operating, and Bonding for Parking Decks
Memorandum
This resolution pertains to the Arbor South development project, which proposes 1,000+ units of multi-family housing, including approximately 210 units of affordable housing, and 30 condominium units. The development project also includes a 150-key hotel, and 85,000 square feet of commercial space. The land is privately owned, and zoned TC1. It represents $469M in private investment.
To facilitate the development, the City is being asked to commit to acquire and develop in phases three parking decks which would be funded by issuing, in three separate issuances, limited tax general obligation bonds ($146M est.), and to operate the decks going forward. The development team is also requesting the City and County support a Brownfield Plan to capture tax increment from the site to fund the retirement of the bonds with any excess TIF being used to offset the cost of additional public infrastructure. The TIF is expected to generate approximately $304M over the 30-year payback period, based on the proposed development program. In support of the request for a Brownfield TIF, the development team is also proposing the establishment of one or more Special Assessment Districts, which would encumber the privately owned components of the project, to protect against a potential shortfall in TIF revenue during the lifespan of the project.
The development team will facilitate the construction of the structured parking decks. The developer and the City will negotiate the point in time at which transfer to the City takes place, but ultimately the City would pay the construction costs as part of its purchase of the decks, take ownership of the parking decks, and operate them going forward.
Budget/Fiscal Impact: Participation in the project will result in the City's commitment to issue...
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