ACTION REQUESTED:
Title
Communication from the City Manager with a Request to Approve the FIRST AMENDMENT to EARLY WORK AGREEMENT for the LOUISVILLE SLUGGER SPORTS COMPLEX PROJECT. (5th District)
Body
BACKGROUND: On November 25, 2014, the City Council approved Item 14-469, an Early Work Agreement with Twenty Four Corp, LLC, the developer of the Louisville Slugger Sports Complex in north Peoria. That Agreement clarified a number of items in the original agreement with the developer (First Amendment to Annexation Agreement) and provided the developer with a short-term loan of $3 million. The Early Work Agreement further provided that the loan would be repaid once the developer secured all private financing, the City issued the $9.6 million in bonds outlined in the Annexation Agreement, and the City established the Special Service Areas and taxes. The developer has secured all necessary financing and the City recently sold its bonds. The October 24, 2014 Council agenda includes the establishment of the six Special Service Areas and levying of taxes in those Areas.
The attached First Amendment to the Early Work Agreement clarifies that the City may levy a Special Service property tax upfront for the full amount of the debt obligation associated with the project's bonds. This property tax levy is then abated annually by Special Service Area sales and hotel taxes collected.
FINANCIAL IMPACT: None directly. The Amendment further clarifies the method by which the City's debt obligation is completely covered by the proceeds of the Special Service Area taxes.
NEIGHBORHOOD CONCERNS: Not applicable.
IMPACT IF APPROVED: The Amendment will be signed.
IMPACT IF DENIED: The Amendment will not be signed. The project would proceed under the terms of the original Early Work Agreement and First Amendment to the Annexation Agreement.
ALTERNATIVES: None.
EEO CERTIFICATION NUMBER: Not applicable.
WHICH OF THE GOALS IDENTIFIED IN THE COUN...
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