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• "' ' C( N A rE 41TEN C4\ER SHEET <br /> .tOJECT TITLE: <br /> An Ordinance Creating the Consent COUNCIL BILL# LD7 ^o�f� <br /> Everett Riverfront Revenue Action Originating Department Engineering <br /> Development Area pursuant to 5/30/07 First Reading Contact Person Brian Jones <br /> Chapter 39.102 RCW(Local 6/6/07 Second Reading Phone Number 257-8922 <br /> Infrastructure Financing Tool 6/13/07 Third Reading FOR AGENDA OF 5/30/07 <br /> Program). 6/13/07 Public Hearing <br /> Initialed by: <br /> Depai huent Head <br /> CAA Ir a <br /> Mr" <br /> Council President <br /> Location Preceding Action Attachments Department(s)Approval <br /> East of I-5, south of Pacific • Proposed RDA Map • Legal <br /> Avenue,north of Rotary • RDA/LJFI Summary • Administration <br /> Park • Draft RDA Formation • Finance <br /> Ordinance and • Engineering <br /> Attachments • Planning <br /> Amount Budgeted $0 <br /> Expenditure Required $0 Account Number(s): <br /> j Budget Remaining $0 <br /> Additional Required $0 <br /> DETAILED SUMMARY STATEMENT: <br /> In 2006,the State passed legislation creating the Local Infrastructure Financing Tool (LIFT),a new form of tax- <br /> increment financing. The LIFT legislation authorizes a local government to pass an ordinance creating a Revenue <br /> Development Area(RDA). Once the RDA is formed,the City can then competitively apply for a portion of the State's <br /> annual share of property and sales taxes generated within the RDA as the result of increased economic development. If <br /> the City's application for LIFT taxing authority is successful,the City can use these funds,along with local matching <br /> funds,to repay bonds issued to finance eligible public improvements within the RDA that help support and encourage <br /> increased private development. We propose to take advantage of this financial opportunity by forming an RDA in the <br /> Riverfront area. Staff would then apply for a State LIFT contribution of$500,000 per year for 25 years to be used for <br /> repayment of bonds issued to help finance the eligible public improvements within the Riverfront RDA for which the <br /> Everett is responsible,per the City's February 2007 agreement with OliverMcMillan. (The proposed Riverfront RDA <br /> boundaries are described in the attached map.) The total cost of the City-funded public improvements within the <br /> proposed Riverfront RDA is estimated at approximately$36 million. Approximately$14 million of this total,including <br /> State and the City's matching contributions,would be borne by LIFT-related funding. Other resources available to <br /> finance the eligible public improvements within the Riverfront RDA include general funds,land-sale proceeds,solid- <br /> waste funds,and possible state and federal grant funds. The proposed LEFT financing period would commence on July <br /> 1,2010, and conclude in 2035. <br /> As required by statute, the City Council conducted a public hearing on Wednesday,May 9, 2007,to take <br /> testimony from staff and the public regarding the proposed formation of the Riverfront RDA. The public <br /> Baring and adoption of the Riverfront RDA formation ordinance are both preparatory to the City's submittal of <br /> application for the LIFT taxing authority. 3 9 <br /> RECOMMENDATION(Exact action requested of Council): <br /> Adopt an Ordinance creating the Everett Riverfront Revenue Development Area pursuant to Chapter 39.102 <br /> RCW(Local Infrastructure Financing Tool Program). <br />