Board of Aldermen 09-22-2020 Page 40
segment the captured value and devote that strictly to the TIF District. But prior to that we are spending
our general funds on the TIF District. So it just to me doesn’t seem like the process that we have described
in establishing a TIF District. |am kind of surprised that we’ve had that TIF District for about 3 or 4 years. |
have other questions andl am sorry to all of you, | would have liked to have asked these last night.
Mayor Donchess
Can | answer just part of that? The TIF District | think | can say did not really generate funds until 2019.
And the initial funds really have been used to pay for part of this lighting project and the design. The
design is quite expensive and that is ongoing nowwith the design firm and their whole team, team of
associated entities that have different expertise. So sure the money could be allocated to something else, |
mean that’s always true. But it seems like this would be a big step forward and would really enhance the
river, something we could do right now. And part of the money is already there. It's been fully designed.
This has been fully designed unlike the rest of the project because this was a little bit anead, because we
have been trying to light the river for some time. This has been some years in duration even before the TIF
District this started because we wanted to do this several years ago but as we got into it we discovered that
there needed to be ... the electric infrastructure needed to be improved and added to in order to enable this
lighting to actually take place.
| don’t have the exact dates but going back pre the TIF we were working to, we wanted to do the project
but then we discovered Oh My God the electric infrastructure is not sufficient. So nowwe have to get the
design for electrical work. We had to then go out to bid, we hired an electrical contractor to come in and
make the improvements near the river, extend the lines and all that kind of thing. So that delayed this and
really this started before the TIF District and it has taken much longer than we had hoped in the beginning
because of all the electrical work that was required. And so nowitis sort of nearly half paid for and it
seemed worthwhile to just go ahead and complete.
Alderwoman Lu
Thank you, Mr. Mayor. | thought that when we create a TIF District that we bond and so that excess, not
the excess the captured value which is received in taxrevenues goes to pay a bond. | thought that’s the
way that whole mechanism worked.
Mayor Donchess
Well, excuse me, it does you're right. | mean you're right that’s what is one possibility and probably the way
that we will go but it’s exclusive. | mean you can also and we are proposing it here, if there’s a little bit ofa
gap this year, we can fill it with appropriated funds. But you’re right, with escrow appropriated but
unexpended funds in this case. But you're right yes the basic concept of the TIF District as explained at the
time it was adopted would be to as you said bond the project and then pay for the bonds out of the TIF
District. But you could go a different way, you could make the decision, you the Board of Aldermen of the
City could decide well we are just going to do it incrementally with cash, just pay as we go. Butin the end |
think we’ll recommend that we do the approach you describe. But right nowthis seems like it’s worth
doing. Atleast! proposed it obviously in my judgment and in the judgement of the others involved, you
know, Community Development, Sarah Marchant, Tim Cummings and everybody andthe TIF Board,
there’s an Advisory Board. And in their judgement, its worth doing this.
Alderwoman Lu
Thank you. You know, | just feel the need to ask these questions about these things because | would have
liked to just sit in on the meeting and heard the discussion. | understand this is the process | heard. Butit
seems as though this year, | don’t understand why we don’t hold back on some of —| may just not
understand why you need to spend this money or it goes away.
