I wish to thank the person who contributed this valuable information.
"Minutes from New Albany Redevelopment Commission, dated November 12, 2001 (page 2) states, IN PART.
The Director (Carl Malysz) brought attention to the State Street Parking Garage and stated general concerns regarding the Bonds. One concern the Director stated was that the bond payments are accelerating and becoming substantial. The Director explained that there will be a greater implication on EDIT funds. The Director also stated certain complications with TIF and EDIT revenues, as follows:
- The Parking Garage finished a year or two prior to the bank building. The TIF proceeds started later than anticipated in the underwriting. From '98 thru '01 there was an accumulated TIF shortage of $256,000.
- The bank was originally to have five floors completed and occupied. There are two floors that were left unfinished so that the assessed value (av) of the building is less than what was estimated, resulting in less TIF funds. (BTW, sure looks as if they finished those two top floors now; as they being taxed now?)
- The original assessed value included a bank drive-through, but the site could not accommodate it. The New Albany Redevelopment Commission should add the drive-through to the TIF district to capture additional TIF proceeds.
- EDIT funds are budgeted to be payable for a particular year. The Director suggested that the city budget the EDIT funds and have them available to Redevelopment Commission before the payments are due. This gives the resources available on time without scrambling around for the funds to make the payments. In order to get on a valid schedule, an appeal has to be made to the Council and the Controller to receive the EDIT funds available not to be current with the payment.
- A lease Rental Reserve was required in the bond agreement. This costs around $40,000 a year for five years or $200,000.
The Director noted that in order to be current by the end of this year, there needs to be approximately $580,000 or EDIT funds allocated to the Redevelopment Commission. The Director also stated that by the time the project is paid off, WE WILL PAY APPROXIMATELY $3,696,350 OF EDIT INTO THE PARKING GARAGE PROJECT. The Director stated that once the bonds were paid off, THEN TIF FUNDS CAN BE COLLECTED TO REFUND THE CITY THE EDIT CONTRIBUTED, IN RETURN, "THE CITY CAN USE THOSE FUNDS FOR OTHER CAPITAL IMPROVEMENT PROJECTS".
Other documentation includes a document dated 8/21/07 from Cyndi Kraus, Financial/Compliance Manager and John Rosenbarger, Director of NARC to the CITY COUNCIL stating IN PART:
Per your request received August 17, 2007 I'm providing the following State Street Garage Operating and TIF information.
1. State Street Parking Garage Operating Fund
Year 2005 Receipts $82,874.65 Expenses $69,118.24
Year 2006 Receipts $76,772.71 Expenses $54,306.52
Year 2007 (thru 7/07) Receipts $32,828.40 Expenses $22,651.74
2. Total TIF captured between 1999 and 2006 is $1,004,949.31
3. Total Debt Service paid with EDIT is $3,613,698.46
Please pay the monies back of England can have some money to work with Redevelopment. PLEASE?"
I must add an additional "PLEASE" to this request. There are so many important projects in the works and the $3M+ is desperately needed.