bull street development agreement public …...infrastructure and parking ‐funding ‐estimate...

Bull StreetDevelopment AgreementPublic Infrastructure

Obligations and Funding

1

February 16, 2016Columbia City Council Work Session

Development Agreement – City ObligationsFY 2014 FY 2015 FY 2016 FY 2017

Infrastructure Phase1 2 3 4 Total

Bull Street DevelopmentCity Obligation per Development Agreement 5,250,000 7,965,842 2,179,342 15,840,816 31,236,000 Exhibit C

Developer obligation to receive funding in Phase/Year Four:

Developer ‐ taxable improvements City Obligationa) Over $25,000,000 Initial $5,000,000b) Over $50,000,000 Additional $5,000,000

c) Over $75,000,000 Additional $5,000,000d) Over $81,250,000 Additional $ 840,816

Parking Obligationper Development Agreement Section XIX, C, 14 1,600 Spaces

Developer Obligations to receive Parking:

First Parking Facility ‐ 800 spaces Second Parking Facility ‐ 800 spacesUpon developer commitments to: Upon development commitments to:a) 120,000 sq ft of office/retail/6% residential a) Purchase of 90 acres

Or Orb) Rehabilitate Babcock Building b) Commitments to construct $75,000,000 2

Spending EstimatesBull StreetDevelopment Agreement CommitmentsInfrastructure and Parking ‐ Funding ‐ Estimate ‐ Updated 1/27/2016

Phase One Phase Two Phase Three Phase FourFY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19

4,509,690 Baseball Plaza ‐ ‐ 1,000,000 ‐ (remaining) Site Storm Water ‐ ‐ 2,450,000 ‐Relocate Existing Sewer ‐ ‐ 1,120,000 ‐Park Land ‐ ‐ 1,728,900 ‐Sewer Pump Sta. Site ‐ ‐ ‐ ‐Road ROW ‐ ‐ 853,200 ‐Asphalt and C&G ‐ ‐ 1,650,000 ‐Sub Station Property ‐ ‐ 750,000 Electrical ‐ ‐ 1,145,000 ‐San. Sewer ‐ ‐ 1,950,000 ‐Potable Water ‐ ‐ 1,175,000 ‐Demoliton ‐ ‐ 700,000 325,000 Park Design and Construction ‐ 253,348 750,000 1,250,000 Landscaping in Park ‐ ‐ ‐ 480,000 Landscaping on Streets ‐ ‐ 150,000 3,000,000 Amenities (benches, racks) ‐ ‐ 20,000 380,000 Engineering ‐ 45,863 400,000 150,000

Allocation to Retail ‐ ‐ ‐ 5,000,000 ‐‐ 299,211 15,092,100 11,335,000 ‐ 4,509,690

Total Infrastructure Funding 31,236,000 3

Spending EstimatesBull StreetDevelopment Agreement CommitmentsInfrastructure and Parking ‐ Funding ‐ Estimate ‐Updated 1/27/2016

Phase One Phase TwoPhase Three Phase Four

FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19

Parking FundingParking (800 spaces, $20k/space) 16,000,000 Parking (800 spaces, $25k/space) 20,000,000

Total Parking Funding 36,000,000

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Infrastructure and Parking Funding

InfrastructureWater & Sewer Fund ($6 M Budget) 6,000,000 Storm Water Fund ($3M Budget) 3,000,000 Other Source ‐ Infrastructure 22,236,000 Total 31,236,000

ParkingOther Source 36,000,000

Total Funding 67,236,000

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Funding Options

• June 2013: identified 17 possible sources

• Includes1) Bonds payable from taxes (hospitality,

accommodations and capital projects tax) 2) Bonds payable from revenues (water/sewer, parking

and TIF)3) Installment purchase revenue bonds (any available

source)4) General Obligation bonds

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Funding Options

• Council gave direction to utilize installment purchase revenue bonds (8/4/2015)

• Staff has continued to research alternative options

• New proposal to incorporate mix of options

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Funding Options

• Proposal

1) Series of General Obligation Bonds to pay forinfrastructure costs that are in excess of budgetedWater & Sewer, and StormWater expenditures

2) Series of Tax Increment Financing (TIF) Bonds to pay forparking needs and part of Water & Sewer needs of theinfrastructure

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Infrastructure and Parking Funding

InfrastructureWater & Sewer Fund ($6 M Budget) 6,000,000 Storm Water Fund ($3M Budget) 3,000,000 GO Bonds ‐ Infrastructure 18,236,000 TIF Bonds – Infrastructure 4,000,000Total 31,236,000

ParkingTIF Bonds ‐ Parking 36,000,000

Total Funding 67,236,000

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Funding Options

General obligation bonds –

• Secured by full, faith and credit of City

• SC Constitution limits how much can be issued:1) Voter referendum‐approved2) Principal amount less than 8% of assessed value of

taxable property in City limits

• Bond anticipation notes permitted

• Must be issued for ‘public purpose’

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Proposed GO Bond Issue ‐ Series

Series One $9,655,000 (Issued June 2016 to cover FY 2016 infrastructure –Project funds of 9,391,310)

Series Two $6,590,000(Issued June 2017 to cover FY 2017 infrastructure –Project funds of 6,335,000)

Series Three $2,750,000 (Issued June 2018 to cover remaining infrastructure –Project funds of 2,509,690)

Total $18,995,000 (Project funds of 18,236,000)

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- 250,000 500,000 750,000

1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 3,000,000 3,250,000 3,500,000 3,750,000 4,000,000 4,250,000 4,500,000 4,750,000 5,000,000 5,250,000 5,500,000 5,750,000 6,000,000 6,250,000 6,500,000 6,750,000 7,000,000 7,250,000 7,500,000

Ann

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Fiscal Year

Direct GO Debt Service(as of 16feb2016)

2007A 2011A 2011B 2011C 2012 2013 2015

Stifel | Merchant Capital Division (Columbia, SC)

- 250,000 500,000 750,000

1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 3,000,000 3,250,000 3,500,000 3,750,000 4,000,000 4,250,000 4,500,000 4,750,000 5,000,000 5,250,000 5,500,000 5,750,000 6,000,000 6,250,000 6,500,000 6,750,000 7,000,000 7,250,000 7,500,000

Ann

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Fiscal Year

Direct GO Debt Service(Post 2016 Bonds)

2007A 2011A 2011B 2011C 2012 2013 2015 2016

Payment on 2016 Bonds is interest only.

Remaining Debt Capacity of CityPrior to issuance of 2016 Bonds: $15,949,582

After issuance of 2016 Bonds: $6,294,582

Total 2016 Bonds' Debt ServiceTotal principal: $9,655,000Total interest: $4,934,066

Total debt service: $14,589,066


- 250,000 500,000 750,000

1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 3,000,000 3,250,000 3,500,000 3,750,000 4,000,000 4,250,000 4,500,000 4,750,000 5,000,000 5,250,000 5,500,000 5,750,000 6,000,000 6,250,000 6,500,000 6,750,000 7,000,000 7,250,000 7,500,000

Ann

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Fiscal Year


2007A 2011A 2011B 2011C 2012 2013 2015 2016 2017

Payment on 2016 & 2017 Bonds is interest only.






- 250,000 500,000 750,000

1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 3,000,000 3,250,000 3,500,000 3,750,000 4,000,000 4,250,000 4,500,000 4,750,000 5,000,000 5,250,000 5,500,000 5,750,000 6,000,000 6,250,000 6,500,000 6,750,000 7,000,000 7,250,000 7,500,000

Ann

ual D

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ervi

ce ($

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Fiscal Year

Direct GO Debt Service(as of 16feb2016)

2007A 2011A 2011B 2011C 2012 2013 2015


- 250,000 500,000 750,000

1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 3,000,000 3,250,000 3,500,000 3,750,000 4,000,000 4,250,000 4,500,000 4,750,000 5,000,000 5,250,000 5,500,000 5,750,000 6,000,000 6,250,000 6,500,000 6,750,000 7,000,000 7,250,000 7,500,000

Ann

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Fiscal Year

Direct GO Debt Service(Post 2016 BANs)

2007A 2011A 2011B 2011C 2012 2013 2015

Total P&I on 2016 BANs due 6/15/2017: $9,717,7582016 BANs P&I payment to be made from proceeds of 2017 BANs; hence no payment showed here.

Remaining Debt Capacity of CityPrior to issuance of 2016 BANs: $15,949,582

After issuance of 2016BANs: $6,294,582


- 250,000 500,000 750,000

1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 3,000,000 3,250,000 3,500,000 3,750,000 4,000,000 4,250,000 4,500,000 4,750,000 5,000,000 5,250,000 5,500,000 5,750,000 6,000,000 6,250,000 6,500,000 6,750,000 7,000,000 7,250,000 7,500,000

Ann

ual D

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ervi

ce ($

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Fiscal Year

Direct GO Debt Service(Post 2017 BANs)

2007A 2011A 2011B 2011C 2012 2013 2015

Remaining Debt Capacity of CityPrior to issuance of 2017 BANs: $21,264,582

After issuance of 2017 BANs: $4,919,582

Total P&I on 2017 BANs due 6/15/2018: $16,492,1052017 BANs P&I payment to be made from proceeds of 2018 Bonds; hence no payment showed here.


- 250,000 500,000 750,000

1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 3,000,000 3,250,000 3,500,000 3,750,000 4,000,000 4,250,000 4,500,000 4,750,000 5,000,000 5,250,000 5,500,000 5,750,000 6,000,000 6,250,000 6,500,000 6,750,000 7,000,000 7,250,000 7,500,000

Ann

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Fiscal Year


2007A 2011A 2011B 2011C 2012 2013 2015 2018






Funding Options

Tax Increment Financing (TIF) Bonds/History ‐• TIF Bonds are payable from incremental tax revenues generated within a TIF district

• Taxes are levied/collected like normal, but collections are separated:1) Taxes (initial equalized assessed value) are

collected/provided to taxing districts as normal2) Taxes (above initial equalized assessed value) go to Special

Tax Allocation Fund – redevelopment projects or debt service

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Funding Options

Tax Increment Financing (TIF) Bonds/History ‐• TIF‐funded projects must be publicly owned and should either be located in TIF district or, if outside boundaries, benefit the TIF district

• TIF bonds can be combined with or additionally secured by other sources to assist marketability and security of bonds, including but not limited to enterprise revenues if systems are improved with TIF bonds (water and sewer, parking, etc.) or other sources (hospitality/accommodations taxes, franchise fees, assessments from municipal or residential improvement district, fee payments from multi‐county business park, etc.)

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Funding Options

Tax Increment Financing (TIF) Bonds/History ‐• City Council adopted TIF Plan in February 2010 which included Bull Street (Columbia Renaissance Redevelopment District)

• Authorized $40 mm of bonds, of which $20 mm was available for Bull Street projects

• 25 year term (through 2035) – less than 19 years remain• County and School District did not consent to TIF, so only City incremental tax revenues could be used

• 2012, discussions with County/School District – proposed Intergovernmental Agreement to use 75% of increment for 15 consecutive years (within 20 year period)

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Funding Options

Tax Increment Financing (TIF) Bonds/History ‐• Required changes to existing TIF plan:1) Extend term2) Increase borrowing amount for Bull Street projects3) Secure County/School District consent/participation

• Amendment of CRRD vs. Adoption of New Plan• Initial equalized assessed value would be same• Findings of blight• Approval process equivalent• Initial obligations must be issued within 10 years

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Funding Options

Tax Increment Financing (TIF) Bonds/History ‐• Approval process:1) City Council adopts resolution ordering public hearing

and provides for notices2) Notices to Taxing Districts (45 days prior to PH)3) Publish Notice of PH (15‐30 days prior to PH)4) Public Hearing5) Ordinance approving Redevelopment Plans or

amendments6) Ordinance approving Intergovernmental Agreement7) Publication of notice of adoption of Ordinance

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-

250,000

500,000

750,000

1,000,000

1,250,000

1,500,000

1,750,000

2,000,000

2,250,000

2,500,000

2,750,000

3,000,000

3,250,000

3,500,000

3,750,000

4,000,000

4,250,000

4,500,000

4,750,000

5,000,000

Annu

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Fiscal Year

TIF Debt Service for Bull Street Parking

2017 2018

Direction

And

Questions?

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