05/16/2000 RA RPT 14 - Laserfiche WebLink

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CITY OF RIVERSIDE COUNCIL/AGENCY MEMORANDUM Honorable Mayor & City Council and Redevelopment Agency Date: May 16, 2000 Item No.: 14 Subject: Authorization to Enter Into a Grant Agreement for the West Side Hangar Project Riverside Municipal Airport--Merged Downtown and Airport Industrial Redevelopment Project Area Background On March 21, 2000, the City Council approved the City's forty-year lease with Public Properties Management, Inc., to build approximately 131 hangars and associated infrastructure (the "Project") on the Riverside Municipal Airport's west side acreage. The City Council furthered authorized a loan in the amount of $479,2117 to the Airport Fund from the Sewer Fund to finance the cost of infrastructure improvements and building permit fees. The Agency Board authorized participation in the Project costs by agreeing to transfer $24,800 annually, for a period of five years, of Downtown/Airport Tax Increment upon receipt of Notice of Completion of the Project. This represents the amount of new net tax increment the Project would generate for the Agency on an annual basis. Current Issue To facilitate the annual fund transfers between the Agency and the City, the Agency Board authorized Agency General Counsel to prepare an agreement with the City outlining the financial obligations and terms of the transaction and return to the Agency in 30 days for ratification. The attached Redevelopment Agency Grant Agreement for the Airport West Side Hangar Project between the Agency and the City grants a portion of the Agency's revenue generated from the Project as reimbursement for a portion of the infrastructure installation costs which are to be incurred by the City in completion of the Project. Fiscal Impact It is estimated that the Agency will receive approximately $62,000 per year in possessory interest tax on the improved property. Of this amount, $24,800 will be available after low and moderate set asides and martdated pass-throughs, which, over five years, will be transferred annually to the City beginning the first day of the next Fiscal Year following receipt of Notice of Completion. Recommendations That the City Council approve the Redevelopment Grant Agreement for the Airport West Side Hangar Project between the City and Agency and authorize the City Manager or his designee to sign the Agreement. That the Redevelopment Agency approve the Redevelopment Grant Agreement between the City and Agency the Airport West Side Hangar Project and authorize the Executive Director or his designee to sign the Agreement. Project Manager Approved by: hn E. Holmes nager 14-1