Redevelopment Commission

MINUTES TIPPECANOE, LAFAYETTE AND WEST LAFAYETTE REDEVELOPMENT COMMISSION MEETING Tippecanoe Room Tippecanoe County Office Building 20 N 3rd Street Lafayette, Indiana December 18, 2018 Present: West Lafayette Redevelopment Commission (WLRDC): Johari Miller-Wilson, Lawrence Oates, Brad Marley, Darrell Clase, Patrick Hein Lafayette Redevelopment Commission (LRDC): Dave Moulton, Don Teder, Shelly Henriott, Jim Terry, Jos Holman, T.J. Thieme Tippecanoe County Redevelopment Cmmission (TRDC): Kris Kessler, Bart Burrell, Tom Murtaugh, Vicki Burch The West Lafayette Redevelopment Commission, Lafayette Redevelopment Commission, and Tippecanoe County Redevelopment Commission all had a quorum. The meeting was called to order at 7:10 p.m. New Business: Presentation of the Tippecanoe County Tax Increment Allocation Area: Jason Semler, Umbaugh, stated that the purpose of this meeting is to satisfy a new requirement passed in the general session on July 1, 2018, requiring that every Redevelopment Commission have an annual meeting discussing their budget and long- term plan for each allocation area. Semler gave a presentation on the Tippecanoe County TIF Allocation areas (attached). Semler explained that there are currently two allocation areas, Southeast Industrial and Heartland. Southeast Industrial will expire in 2030, the expansion area will expire in 2035. The tax increment generated from this area is split with the City of Lafayette. The Heartland TIF district was created in 2014 and has a 25-year life, which will begin once bonds are issued. Semler presented the budget and planned projects for both the Southeast Industrial TIF area and the Heartland TIF area. Presentation of the West Lafayette Tax Increment Allocation Area:  Jim Treat, financial advisor for the West Lafayette Redevelopment Commission from O.W. Krohn and Associates, gave a presentation for the West Lafayette Redevelopment Commission (attached). Treat stated that West Lafayette currently has five TIF Districts; Levee/Village, KCB, Sagamore, 231 North and 231 Purdue. Levee/Village, KCB, Sagamore, and 231 Purdue, all have sunset provisions due to the debt they have. The 231 North and 231 Purdue TIF areas were formed in 2014 due to upcoming projects planned by the City of West Lafayette and Purdue. In 2018, $9.3 million in TIF revenue was expected, the majority of which will be from Levee/Village. Treat reviewed the projects that had been funded by the WLRDC and noted that the majority of projects are focused on transportation, infrastructure, parks, vehicles, public safety equipment, and the State Street project. Treat reviewed the proposed future projects, such as the Indoor Recreation and Aquatic Center and City Hall. Presentation of the Lafayette Tax Increment Allocation Area: Semler gave a presentation on the Lafayette Redevelopment Commission (attached). Lafayette has five TIF allocation areas; Consolidated Creasy/Central, Twyckenham, McCarty Lane, Heartland, and Metro FiberNet. Semler reviewed the types of projects that have been funded in the Consolidated Creasy/Central TIF district, such as public infrastructure, bridges, drainage, sewer improvements. Semler reviewed the Economic Development Subordinate Tax Increment Revenue Bond, which was used to help fund a building that currently houses Matchbox, a co-working studio in Lafayette. Semler stated that without the Redevelopment Commission tool, projects such as this would only be able to be funded through bonds payable through income and property taxes. Semler reviewed the proposed future projects, including streetscape, public art, park improvements, parking facilities, public infrastructure, and work on streets, sidewalks and medians. Semler stated that there are two bonded projects in the Tyckenham TIF area to fund infrastructure improvements. The Twyckenham TIF area has a budget of approximately $1.2 million in 2018 and approximately $1.3 million in 2019. Semler stated that the LRDC funded public infrastructure projects in the McCarty Lane TIF district. Future proposed projects in the McCarty Lane TIF district include projects related to public safety, streets, sidewalks and medians. The Heartland TIF area does not currently generate any revenue. This area was created in 2014 to help fund infrastructure. Public Comment: There was no public comment. Adjournment: Commissioner Burch moved to adjourn for the Tippecanoe Redevelopment Commission. Seconded. Commissioner Burrell seconded. Commissioner Terry moved to adjourn. moved to adjourn for the Lafayette Redevelopment Commission. Commissioner Thieme seconded. Commissioner Miller-Wilson moved to adjourn the West Lafayette Redevelopment Commission. Commisisoner Oates seconded. The meeting adjourned at 7:55 pm. City of West Lafayette, Indiana Tax Increment Allocation Areas December 18, 2018 West Lafayette (Indiana) Redevelopment Commission Estimated Tax Increment All TIF Areas 2018 2019 Levee/Village $ 5,200,000 $ 5,800,000 KCB 3,400,000 3,600,000 Sagamore 400,000 550,000 231 North 330,000 340,000 231 Purdue 35,000 100,000  West Lafayette (Indiana) Redevelopment Commission Budgeted Annual Cash Flow 2018 and 2019 Levee/Village KCB Sagamore 2018 2019 2018 2019 2018 2019 Receipts: Estimated Tax Increment $ 5,200,000 $ 5,800,000 $ 3,400,000 $ 3,600,000 $ 400,000 $ 550,000 Other Receipts - - 127,699 - - - Total Receipts: 5,200,000 5,800,000 3,527,699 3,600,000 400,000 550,000 Less Disbursements: Debt Service Payments 7,140,220 4,902,165 2,654,253 898,870 31,220 30,665 Capital Outlays/Economic Development Projects 1,415,000 2,768,000 2,430,077 4,455,599 579,000 1,159,602 Professional Services 45,000 45,000 30,000 30,000 7,000 7,000 Total Disbursements: 8,600,220 7,715,165 5,114,330 5,384,469 617,220 1,197,267 Beginning Balance $ 5,470,899 $ 2,070,679 $ 4,226,535 $ 2,639,904 $ 1,003,694 $ 786,474 Ending Balance $ 2,070,679 $ 155,514 $ 2,639,904 $ 855,435 $ 786,474 $ 139,207  West Lafayette (Indiana) Redevelopment Commission Budgeted Annual Cash Flow 2018 and 2019 231 Purdue 231 North 2018 2019 2018 2019 Receipts: Estimated Tax Increment $ 35,000 $ 100,000 $ 330,000 $ 340,000 Other Receipts - - - - Total Receipts: 35,000 100,000 330,000 340,000 Less Disbursements: Debt Service Payments - - - - Capital Outlays/Economic Development Projects - - 350,653 620,000 Professional Services 15,500 - 5,000 5,000 Total Disbursements: 15,500 - 355,653 625,000 Beginning Balance $ 434 $ 19,934 $ 313,558 $ 287,905 Ending Balance $ 19,934 $ 119,934 $ 287,905 $ 2,905  West Lafayette (Indiana) Redevelopment Commission Projects Funded with TIF Revenues Bond Funded Projects Name of Bond Project Description Bond Amount TIF Area Redevelopment Lease Rental Wabash Landing Parking $ 7,295,000 L/V Bonds of 2001 Garage Greenway trails & Economic Development Lease Purdue Research Park $ 6,170,000 KCB Rental Bonds of 2002 infrastructure Redevelopment District Tax Ross Enterprise Center $ 4,230,000 KCB Increment Revenue Bonds of 2005 construction Redevelopment District Certificates Fire Station #3 design & $ 2,500,000 KCB of Participation construction Economic Development Revenue Metro Fiber Net project $ 2,500,000 City-wide Bonds of 2012 Redevelopment Authority Lease Williams Street $ 8,360,000 L/V Rental Bonds, Series 2016 improvements State Street Taxable Economic Development L/V & 231 redevelopment & $ 72,585,000 Bonds of 2016 Purdue Western Gateway  West Lafayette (Indiana) Redevelopment Commission Projects Funded with TIF Revenues Cash Funded Projects 2012-2017 Levee/Village KCB Sagamore 231 North Totals Transportation System Projects $ 14,639,823 $ 10,436,773 $ 1,825,981 $ 362,700 $ 27,265,277 (Streets, Traffic Control, Lighting, Walkways, etc.) Park & Trail Projects & Equipment 1,478,322 778,097 126,981 - 2,383,400 Street, Sanitation & Admin Equipment & Vehicles 1,422,227 274,000 - 155,437 1,851,664 Public Safety Equipment 676,245 435,768 - - 1,112,013 State Street (ROW & Preliminary Costs) 1,182,072 - - - 1,182,072 Totals $ 19,398,689 $ 11,924,638 $ 1,952,962 $ 518,137 $ 33,794,426  West Lafayette (Indiana) Redevelopment Commission Proposed Future Projects Levee Village KCB Sagamore Happy Hollow School Indoor Recreation & Aquatic Center Sagamore Parkway Trail Temp City Hall Rent Payments Maintenance Bldg & Trail to Morton Engineering & Construction Match $1,500,000 $34,000,000 $459,000 Morton Center / City Hall Street Improvements/Equipment Strategic renovation & adaptive reuse Various $12,000,000 $924,000 State Street Redevelopment Projects Availability Payments $57,200,000  West Lafayette (Indiana) Redevelopment Commission Proposed Future Projects 231 Purdue 231 North State Street Cherry Lane Indirect Costs & Other Reimbursements Street Improvements $30,000,000 $600,000 State Street Redevelopment Projects Cason Park Availability Payments Planning & Design $62,500,000 $265,000 Discovery Park Infrastructure Projects Transportation Systems & Parking Solutions $106,000,000 Discovery Park Infrastructure Projects: Repaid to the extent that approved project investments are made and excess tax increment revenue is available after all State Street Obligations are satisfied.  West Lafayette (Indiana) Redevelopment Commission West Lafayette Schools Referendum Revenue 2018 2017 2016 2015 2014 Total Certified Levy $ 4,840,876 $ 4,775,125 $ 4,572,847 $ 4,382,531 $ 4,186,838 Portion Generated by Improvements in TIF Areas $ 1,420,141 $ 1,289,332 $ 1,117,061 $ 1,053,391 $ 999,973 Note: WLSC had a $0.37 referendum rate for the past five years which is protected from circuit breaker and is not captured by TIF Areas. All development created in the TIF Areas generated revenue for the school as shown above for the last five years.  West Lafayette (Indiana) Redevelopment Commission Estimate Impact on the Overlapping Taxing Units Assumes the $10,000,000 of assessed value from the Levee/Village Redevelopment Area is added to the tax base of the overlapping taxing units SCENARIO 1: PRESENT SITUATION: Represents 2017 pay 2018 assessed value, tax rates and tax levies. Taxing Unit Net Assessed Value Tax Rate Tax Levy West Lafayette $ 1,144,498,504 $ 0.8603 $ 9,846,121 West Lafayette - Cumulative Fire Fund 1,144,498,504 0.0025 28,612 West Lafayette - Cumulative Capital Development 1,144,498,504 0.0500 572,249 Wabash Township 1,882,468,955 0.0029 54,592 West Lafayette School Corp - Referendum Rate 1,308,344,981 0.3700 4,840,876 West Lafayette School Corp 918,241,624 0.6624 6,082,433 West Lafayette School Corp - Capital Projects 918,241,624 0.2375 2,180,824 West Lafayette Public Library 800,938,858 0.2017 1,615,494 Greater Lafayette Public Transportation 5,429,881,089 0.0292 1,585,525 Greater Lafayette Public Transportation - Cumulative Fund 5,429,881,089 0.0198 1,075,116 Tippecanoe County 7,479,744,082 0.3751 28,056,520 Tippecanoe County - Cumulative Bridge 7,479,744,082 0.0350 2,617,910 Tippecanoe County - Cumulative Capital Development 7,479,744,082 0.0250 1,869,936 Tippecanoe County Solid Waste District 7,479,744,082 0.0031 231,872 $ 2.8745 SCENARIO 2: Rate Difference Levy Difference Assumes the overlapping taxing units cpature $10,000,000 of incremental assessed value From Scenario 1 From Scenario 1 West Lafayette $ 1,154,498,504 $ 0.8528 $ 9,846,121 $ (0.0075) $ - West Lafayette - Cumulative Fire Fund 1,154,498,504 0.0025 28,862 - 250 West Lafayette - Cumulative Capital Development 1,154,498,504 0.0500 577,249 - 5,000 Wabash Township 1,892,468,955 0.0029 54,592 - - West Lafayette School Corp - Referendum Rate 1,318,344,981 0.3672 4,840,876 (0.0028) - West Lafayette School Corp 928,241,624 0.6553 6,082,433 (0.0071) - West Lafayette School Corp - Capital Projects 928,241,624 0.2375 2,204,574 - 23,750 West Lafayette Public Library 810,938,858 0.1992 1,615,494 (0.0025) - Greater Lafayette Public Transportation 5,439,881,089 0.0292 1,585,525 - - Greater Lafayette Public Transportation - Cumulative Fund 5,439,881,089 0.0198 1,077,096 - 1,980 Tippecanoe County 7,489,744,082 0.3746 28,056,520 (0.0005) - Tippecanoe County - Cumulative Bridge 7,489,744,082 0.0350 2,621,410 - 3,500 Tippecanoe County - Cumulative Capital Development 7,489,744,082 0.0250 1,872,436 - 2,500 Tippecanoe County Solid Waste District 7,489,744,082 0.0031 231,872 - - $ 2.8541 $ (0.0204) $ 36,980  PURDUE Punour CITY OF CITY oF TIPPECANOE LAEAYETTE WESTI-AFAYETTE 2018 JOINT REDEVELOPMENT COMMISSION December 18,2018 @ 7:00 PM Please print. 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