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OLD KINGS ROAD Special Assessment District. Overview History Phased Project Initiating Special Assessment Next Steps.

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Presentation on theme: "OLD KINGS ROAD Special Assessment District. Overview History Phased Project Initiating Special Assessment Next Steps."— Presentation transcript:

1 OLD KINGS ROAD Special Assessment District

2 Overview History Phased Project Initiating Special Assessment Next Steps

3 HISTORY

4 Map of Area

5 History Special Assessment District Established in 2005 Provide funding mechanism through property tax assessments to fund 4-laning improvements from Palm Coast Parkway to SR100 Property owners benefiting pay for improvements Enhance value of properties and provide special benefits Address development order conditions Alleviate transportation concurrency concerns Note: Economic and real estate outlook was positive

6 History Subsequent Amendments to District in 2008 Upgraded hybrid urban section funded through transportation impact fees Allow for interlocal agreement with Town Center CDD to manage construction of improvements Provided for assessment methodology based on developable acres

7 History Change in Market Conditions Real estate market began to weaken in 2008 Bond market weakened subsequently District no longer had to ability to issue bonds based on real estate as collateral

8 PHASED PROJECT

9 Phased Project Property owners approached City in 2008 Several projects (including Wal-Mart) were dependent on Phase 1 improvements to Old Kings Road Issuance of bonds not an available option at time In 2009, City made available utility funds through an interfund loan to Special Assessment District to complete Phase 1 improvements Interfund loan at 5% interest only Paid by certain landowners Interim financing (3-year term) until bonds could be issued

10 Phased Project Map Phase 2 Phase 1 Palm Coast Pkwy. Royal Palms Pkwy. State Road 100

11 Phased Project Costs and Funding Source Project CostsCost Construction$5,284,036 Utility Construction$1,531,728 Engineering & Permitting$2,306,995 Attorney Fees$156,288 Wetland Mitigation$360,000 Real Estate Services$96,359 Miscellaneous$157,822 Total$9,893,228 Funding SourcesAmount Utility Interfund Loan$5,284,036 Transportation Impact Fees$1,405,164 Total District Responsibility$6,689,200 Utility Fund (Utility Line Upgrades/Relocates)$1,531,728 Transportation Impact Fees (20% for Hybrid Urban Upgrade)$1,672,300 Total City Responsibility$3,204,028

12 INITIATING SPECIAL ASSESSMENT

13 Initiating Special Assessment District is established with special assessments pending City Utility has received interest payments of $640,000 in accordance with agreement City must start to assess District for repayment of interfund loan for both legal and practical reasons Interfund loan intended to be interim until such time that issuance of bonds possible Issuance of bonds based on real estate values for the foreseeable future will be a challenge City Council adopted Resolution to allow for special assessment starting in November 2013 City Council adopted Resolution entering into an Interlocal Agreement with property tax collector for collection of special assessments

14 Negotiations with Property Owners From City Perspective Interfund loan must be repaid first and as quickly as possible No desire for City to be property owners/developers Avoid litigation From Property Owners Perspective Should not pay twice for road improvements (special assessments + impact fees/prop-share) Desire to see entire project completed Avoid litigation Solution = Use Impact Fees within District to Accelerate Interfund Loan Repayment and Complete Phase 2 in Future

15 Funding Agreement Special AssessmentImpact Fee First 3 Years5% Interest OnlyPreviously Paid Impact Fees ($326,000) + Future Impact Fees Applied to Principal Next 27 YearsPrincipal + 5% InterestFuture Impact Fees Applied to Special Assessment to Accelerate Repayment of Principal Section 3 – Bond Anticipation Loan (Interfund Loan) Repayment Provides for Repayment of Interfund Loan in Whole - $5,284,036 Special Assessment allocated by developable acres / Hidden Lakes/Toscana lots per prior agreements Allows for Reimbursement Bonds (or financing) to repay Bond Anticipation Loan (Interfund Loan)

16 Funding Agreement Section 4 - Transportation Impact Fees; Phase 2 Future Impact Fees Applied as Follows: Pay Remaining Special Assessments Accelerate Interfund Loan Repayment Credit Previously Paid Special Assessments Property Owners Don’t Pay Twice for Road Improvements

17 Funding Agreement If Impact Fees are Still Remaining... Earmarked for Construction of Phase 2A Earmarked for Construction of Phase 2B (80%) and Restoration of Impact Fee Advance (20%) Once Impact Fee Advance Repaid, 100% Earmarked for Construction of Phase 2B Tri-Party Landowners who Carried Interest Entitled to Impact Fee Credits Other Impact Fee Eligible Projects Citywide

18 NEXT STEPS

19 Next Steps City Council July 16 Meeting Amend Special Assessment Ordinance (1 st Reading) Reflect Changes in Developable Acres Approve Funding Agreement with Landowners City Council August 6 Meeting Amend Special Assessment Ordinance (2 nd Reading) City Council August 20 Meeting Approve Supplemental Assessment Resolution


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