Minutes 04-04-2017 - Laserfiche WebLink

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29 Commissioner Marcoplos referred to the development funds line item, and asked if the value of these funds could be clarified, and what would be the ramifications if these funds were not allocated. Danny Rogers said about $130 million is associated with the joint development opportunity, which is an opportunity that the FTA has put into the process as something with which it will participate in funding. He said this could result in affordable housing, joint development near stations, etc. He said if this investment is not obtained and spent, then the cost of the project would go down. Commissioner Marcoplos asked if there is any debt cost associated with this line item. Mindy Taylor said the financing for the project is based on the total cash flow need, which includes the joint development costs. She said if those costs were not in the project cost, then the finance needs would reduce. Commissioner Marcoplos asked if it is in the project, and there are financing costs associated with it, would those financial costs need to be calculated against whatever gain is received from the government with that money. He said a closer look at that may reveal how valuable it is to keep it in to begin with. Mindy Taylor said this could be looked into, and a 50% federal match and 10% state match is anticipated. Commissioner Marcoplos said some examples of how others have utilized it would be helpful. Commissioner Jacobs asked if Davenport could do more analysis in the next few weeks, or is their involvement complete. Ted Cole said Davenport can continue to work with the County. Commissioner Jacobs said an analysis that he would like to see is what happens if the project is delayed. He said he would like to understand this better: the pros and cons, the fiscal impact, etc. Commissioner Jacobs referred to the sales tax, and said both counties use the article 39 history, Moody's base line sales tax. He said Orange County bleeds sales tax to its neighbors, and Durham has a much larger commercial, retail, industrial tax base, as compared to Orange County's primarily residential one. He asked if there is a reason not to run the pessimistic view for Orange County, and let Durham run the view it so chooses. Commissioner Jacobs said it looks like when the LRT is funded that there is no room for buses. He asked if this is correct. Ted Cole said what is in there now is the dollar value for expanded bus service that was consistent with the 2012 BRIP. Commissioner Jacobs asked if this runs through 2062. He asked if there are annual funds, or if it is one lump spent down over time. Mindy Taylor said it is an annual amount of expenditures. Ted Cole said it is accounted for up top as an expense. Commissioner Jacobs clarified that there is bus money all the way through scenario. Ted Cole said that is his understanding. Mindy Taylor said there is funding for bus service and bus capital all the way through the cash flow. She said the amount that is programmed in the plan is consistent with the investments that were in the original adopted Orange Transit Plan. She said that plan also identified funded and unfunded needs. She said there is also increased funding from the tax district for capital investments, for bus facilities, bus shelters, maintenance, etc. She said there is limited capacity to expand bus service beyond what was originally promised, but if revenues are higher than expected, they can be reallocated. Commissioner Jacobs asked if this could be quantified by saying how many bus hours are projected.