Heartland Corner Redevelopment Project August 1, 2017

Direction Staff is seeking direction from Council on the negotiations with the developer: Continue with the negotiations and bring an agreement back for consideration by Council Identify and implement the HIP Streets infrastructure plan where feasible

agenda Project and Project Status Proposed Deal Points Public Improvements Parking HIP Streets Infrastructure Plan Scope of the improvements Timing Questions/Council Direction

Project

Project

Proposed Deal Points City Would… LURA would… Provide up to $1,650,000 to the Loveland Urban Renewal Authority for public improvements in support of the project Waive materials use tax Invest the funds in public improvements including the streetscape, alley, utility and other public improvements Repay the City with 3 percent interest from the tax increment finance and sales tax generated by the project

Proposed deal points Developer would… Complete the project Provide a corporate guarantee (not through the LLC) for the repayment of the City’s investment Agree to share in the sales proceeds if the property sells within 10 years of completion

Proposed Repayment schedule/Guarantee The table is an estimate; the guarantee will reflect the final negotiated contribution The Developer will not agree to a guarantee to the additional work related to the HIP Streets Plan infrastructure

HIP Streets Infrastructure Plan Approved in 2009 but it is being updated, it is expected to be brought before Council in November 2017, however the proposed parking configuration is not expected to change For that block, the sidewalks are extended and the angled parking becomes parallel Caveat: Seeking direction, but we do not have cost estimates at this time for the additional proposed streetscape improvements There is a question of timing the HIP Streets Plan infrastructure improvements with the redevelopment project

Hip Streets infrastructure plan Option Pro’s Con’s Completed by #1 Complete the minimal streetscape work required for the project Initial cost to the project is reduced Any improvements will be throw away when the HIP Streets Plan is implemented Developer #2 Complete north side of 4th Street only Opportunity to complete a portion of the HIP Streets plan The improvements will cost more and there will be additional disruption to the property owners when the south side is completed City #3 Complete both north and south sides of 4th Street Opportunity to complete a block from the HIP Streets plan and improve the streetscape The cost will be higher and there will be disruption to the adjacent properties

Questions/Council Direction