2004 039 Ordinance - Laserfiche WebLink

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September 9, 2004 To: Mayor Rinker Council President Buckho z All Members of Council Law Director Diemert From: Phil Brett Reference: New S.I.B. loan and corresponding T.I.F. revenues on line to service debt amount Please find attached an ordinance authorizing the Mayor to enter into an agreement with the Ohio Department of Transportation's State Infrastructure Bank to borrow $3,990,000. This loan was done in conjunction with the retirement of the $1,437,993.35 remaining balance on the previous S.I.B. loan. The interest rate on the previous S.I.B. loan was 5% with .25% administrative fees charged each payment. The new loan carries interest of 3% and has no administrative fee. The first twelve months of the loan are interest free. The term is 10 years as opposed to 20 years. The interim during which the loan is interest free ties in nicely with the timing of the receipt of additional T.I.F. revenues. I have outlined the corresponding debt service and anticipated debt service on the accompanying page. You will note that the only year that debt service exceeds T.I.F. revenues is 2004. This was due to the fact that the S.I.B. failed to invoice the Village for the second payment of 2003 unti12004. Obviously, this increased the carryover in the General Bond Retirement Fund at the end of last year so that this deficit is a paper deficit only. T.I.F. revenues this year are more than sufficient to cover the debt service on the S.I.B. loan. Please note that I have categorized the T.I.F. revenues three ways. The first category T.I.F.ed properties that are currently in effect: Progressive Casualty Insurance parcels, 831-OS-066 and 831-06-002 (the S.O.M. Center Road campus), Governor's Village parcel, 831-04-004 and Altercare's parcel, 831-04-010. T.I.F. revenues currently generated by these parcels total $608,449. This will be the case this year and in 2005. We have already discussed this year. Next year, debt service will total $556,000 with $608,449 anticipated in debt service. The second category consists of parcels on which improvements are currently being built for which have not been added to the tax rolls yet. This category consists primarily of the improvements currently under construction on the Progressive S.O.M. Center Road site. I expect that these will hit the rolls in 2006. Please note that when these improvements start to generate T.I.F. revenues, total T.I.F. revenues exceed total debt service.