Since September, 2010, the City Council received reports on the proposed Empire Parking Garage (Park V) and beginning in April, 2011, has approved  property purchase, lease and option agreements.  In order to finance the proposed garage using tax increment bonds, the Council must designate it as a project in the Expanded N. 27th Street Urban Renewal Area/TID and must do so by ordinance.  The attached resolution announces the Council's intention to adopt an ordinance naming the garage as a TID project and sets a public hearing date of June 27, 2011.  The Council is being asked to take this action after staff consulted with bond counsel and in order to keep the garage's design and construction on schedule for completion in 2012 or early 2013. 

The City Council may:

• Approve the Resolution of Intent and announce a June 27, 2011 public hearing.  If the Council adopts the ordinance at that meeting, staff will be able to proceed with bond financing and parking garage design and construction
• Disapprove the Resolution of Intent.  Without the resolution and subsequent ordinance, the project cannot be financed with tax increment bonds.
• Delay action on the Resolution of Intent.  This action will delay staff proceeding with the bonding, design and construction until the Council takes action at a future Council meeting.

The Resolution of Intent and the subsequent ordinance do not have a financial impact.  However, if Council approves them, it allows staff to work with bond counsel and financial advisor to prepare for a bond sale.  Due to the uncertainty of the bond market and the volatility of construction costs, the bond sale needs to occur simultaneously with awarding a construction contract.  Preparing for that event requires the City to pay architects, engineers, bond counsel and financial advisor, regardless of whether bonds are eventually sold or whether the garage is built. 

Staff recommends that the City Council approves the Resolution of Intent to adopt an ordinance that names the Empire Parking Garage as an Expanded N. 27th Street Urban Renewal Area project to be financed with tax increment bonds.