At the July 23, 2012 meeting, the City Council approved an ordinance on first reading that names the Park 2 expansion project as an urban renewal project in the Expanded N. 27t Street district. This action is necessary in order to expend tax increment funds on the Park 2 refinancing debt. At its August 13, 2012 meeting, the City Council tabled the second reading of the ordinance.  Councilmember Cimmino requested changes to Section 1.03 to state the estimated amount of proceeds from the Park 4 sale that will be used to retire a portion of the Park 2 expansion debt and a time limit on transfering $100,000/yr of tax increment to the Parking Fund to help pay the remaining debt on that project.  Staff consulted with bond counsel and made the requested changes.  In addition, the ordinance now states that the transfer is subject to the Council's annual approval and the same statements were added to Section 3.

The City Council may approve or disapprove the ordinance.  If Council does not approve it, the City may not use tax increment funds for the project and those funds will have to come from the Parking Fund revenues, which will probably require downtown parking rate increases. 

There are no immediate financial impacts to the City.  The FY 13 budget calls for reducing the Park 2 debt and using tax increment for a portion of the remaining debt.  If the Council approves the ordinance, staff will proceed with refinancing and make the transfer sometime during the fiscal year. 

Staff recommends that the City Council approve the revised ordinance on second reading.