Minutes 11-11-2014 - Laserfiche WebLink

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Commissioner porosin said Ken Pennoyer referred to another format this funding path could have taken. He said he feels like this has come to the Board much later than it should have, and that is the one troubling aspect. He asked for clarification on this timing. Ken Pennoyer said the financing of this public project lagged behind some of the other elements, and by the time staff began trying to figure out financing, there were not a lot of options. He said they finally arrived at the tax increment financing (TIF) with the statutory method. He said until the flood at Town Hall last year, there was no project to be combined to provide collateral. He said the formal TIF has a lot more formal requirements, including a vote from the Board, so staff held out on this and did not get the ball rolling until later when they realized the town hall could be used as collateral. He said staff also had to get through several other loopholes before spending time on financing. He said, in hindsight, this should have been done sooner. Commissioner Price said this project is exciting; however she wants to consider the worst case scenario. She said years from now there will be a different Board in place, and she wonders what plan B will be if that Board did not want to fund this project. Ken Pennoyer said the Town is committed to the project, and the backup plan would be to use future debt capacity to fill in the gaps. He said the numbers used to determine the revenue numbers are very conservative, so he feels there is a greater upside to the project. Commissioner Price asked who would be renting these properties. She asked if this would put any new pressure or weight on social services or the health department if there is an influx of new people. Ken Pennoyer said the town did get information from the developer on the targeted market for these units. He said this information can be provided to the Board. Commissioner Rich asked for more information on other economic development in this area. Dwight Bassett said this process was started back in the spring, and the projections were very conservative based on what he sees happening now. Commissioner Rich asked if the future projections include more retail, office and commercial space. Dwight Bassett said yes. He said staff knew there would be an initial wave of housing, which is a traditional growth pattern in supporting retail. He said Village Plaza's announcement to proceed with their project has sent a signal to other developers to begin exploring office and retail. He said there is a much broader mix of development being discussed now that there was in the spring. Chair Jacobs said the opportunity to have annual reports is an improvement. He said County staff may want to request that specific information be built into these reports. Chair Jacobs said the Town is requesting that the Board address the entire infrastructure, but Orange County can choose whatever portion of the project they would like to support. Ken Pennoyer said that is correct, although the town would like for the County to participate to the greatest extent that is comfortable for them. Chair Jacobs said the Board will likely have a conversation about this at the work session on January 27th. He said Orange County has never been in the business of funding