Earlier this year the Council agreed to purchase property on Montana Avenue for constructing a new parking garage. In order to use tax increment finance bonds for the garage, the City's bond counsel advises that the project be specifically named as an urban renewal project and that tax increment finance may be used for the bond debt.  On June 27, the Council opened a public hearing, continued it until 7/11/2011 and closed the public hearing, and postponed action until 8/8/2011. On August 8th, Council passed an ordinance on first reading to declare the Empire Parking Garage and the Northern Hotel as urban renewal projects and that tax increment financing may be used to fund the projects.  At this meeting, the Council will consider adopting the ordinance on second reading.

The City Council may approve or not approve the ordinance on second reading.  Approving the ordinance allows the City's bond counsel and financial advisor to continue working on financing for the project. 

There is no direct financial impact from adopting the ordinance, but it would allow the City to issue $10 million - $15 million of project bonds to finance the project.  Tax increment would be used to repay the bondholders.

Staff recommends that the City Council adopt the ordinance on second reading that names the Empire Parking Garage and Northern Hotel Project as Expanded N. 27th Street Urban Renewal Area projects and authorize tax increment financing to pay for them.