16 - Laserfiche WebLink

16 THE CITY OF _ { y� ILL CITY COUNCIL AGENDAREPORT pLEA SANTONo January 16, 2018 Finance Community Development TITLE: PRESENTATION AND DISCUSSION OF A PROPOSED JOHNSON DRIVE ECONOMIC DEVELOPMENT ZONE (JDEDZ) TRANPSORTATION FEE SUMMARY During the presentations of the JDEDZ transportation projects financing plan in August and September of 2017, City Council directed staff to develop a methodology for a JDEDZ Transportation Fee that the City would asses on new development within the JDEDZ (excluding Costco) to recoup the transportation infrastructure costs borne by the City. City staff have developed a proposed JDEDZ Transportation Fee methodology for Council's consideration. RECOMMENDATION Receive and discuss staffs presentation on the a proposed JDEDZ Transportation Fee methodology and provide direction to staff to finalize a JDEDZ Transportation Fee for Council's consideration at a future Council meeting. FINANCIAL STATEMENT The City is covering approximately $6.8 million of the JDEDZ transportation improvements' through a 25-year sales tax sharing agreement with Costco at a 1.5% interest rate. The proposed JDEDZ Fee, if assessed on all future (non-Costco) development, would result in $8.4 million2 in revenues that would reduce the amount the City would be required to reimburse Costco through the sales tax sharing agreement. If the JDEDZ fee revenues are received after the City fully reimbursed Costco through the sales tax sharing agreement, then those amounts will be used to reimburse the City's General Fund. ' Excluding right of way acquisition costs the amount of which will be determined during the design phase of which 50%would be funded directly by the City and 50%would be covered by Costco and added to the amount to be reimbursed through the sales tax sharing agreement. 2 Including 56%of ROW costs estimated at$1.5 million.As noted above,ROW costs will be determined during the design phase.