Adopt Resolution #12-09-XXX Approving the Terms of the Interfund Loan in Connection with TIF District #14.  (Funding for Armstrong/Sunwood Drive Realignment)

The Armstrong/Sunwood Drive Realignment project has an estimated cost of $5,642,000 including construction costs and property acquisitions.  The project is stated to come from several funding sources:  Equipment Revolving Fund (or HRA if funds are loaned to HRA for property acquisition), TIF 2, Utility Funds, EDA and Excess rail funds. 

As this improvement is within the TIF 14 area, and the construction costs were included within the total expenditures budgeted in the adopted TIF 14 plan, the city would like to reimburse itself when increment becomes available for city funds expended. 

Tax Increment laws require that the city adopt a resolution stating that they wish to repay themselves with future increment, the respective loaning fund(s) and interest rate.

The respective loaning funds and estimated amount contributed would be:  Equipment Revolving Fund (or HRA if funds need to be loaned to the HRA for property acquisition) $1,317,000; Storm Drainage Fund:  $365,000;  Water Utility Fund:  $348,000; Sanitary Sewer Fund:  $21,000; EDA:  $600,000 and Street Lighting Utility Fund:  $112,000 for a grand total of $2,763,000.

Staff recommends adoption of the resolution for the Interfund Loan Agreement for TIF District #14.

The respective loaning funds and estimated amount contributed would be: Equipment Revolving Fund (or HRA if funds need to be loaned to the HRA for property acquisition) $1,317,000; Storm Drainage Fund: $365,000; Water Utility Fund: $348,000; Sanitary Sewer Fund: $21,000; EDA: $600,000 and Street Lighting Utility Fund: $112,000 for a grand total of $2,763,000.

Adopt Resolution #12-09-XXX Approving the Terms of $2,763,000 Interfund Loan in Connection with TIF District #14.