There is a need for a loan of up to $1.5 million from the General Fund to the N 27th TIF Fund needed to start the Empire Garage project prior to closing on bonds. The loan will be used for utilities relocation, abatement/demolition and pre-design for the Empire Garage. Advancing the Empire Garage project will reduce the duration of valet parking for the Northern Hotel paid for by the N 27th TIF revenue and reduce the duration of pile driving for the garage foundation after the Northern Hotel is open.

There may be a need for an additional loan of up to $1.7 million from the General Fund to the N 27th TIF Fund to finish the Empire Garage project prior to receiving proceeds from the sale of retail space and parking stalls. The loan will ensure the entire Empire Garage project is completed.

The Council may: Approve the loans or not approve the loans.

The $1.5 million loan will be paid for with bond proceeds or N 27th Tax Increment revenue.

The $1.7 million loan will be paid for with proceeds from the sale of retail space and parking spaces or N 27th Tax Increment revenue. 

Interest on the loans will accrue based on the City’s average investment rate plus a half of one percent.

Staff recommends approval of the resolution authorizing two loans from the General Fund to the N 27th Tax Increment Fund not to exceed $3.2 Million.