Industrial Park Land SalesMEMORANDUM
November 29, 2001
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Industrial Park Land Sales
As promised, attached is the information related to land sale revenues and Tax
Increment Financing at Dubuque Industrial Center West.
This information has been previously provided to Bud Isenhart.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Pauline Joyce, Administrative Services Manager
Mr. Bud lsenhart
MEMORANDUM
November 27, 2001
TO:
FROM:
SUBJECT:
Michael C. Van Milligen, City Manager
Pauline Joyce, Administrative Services Manager
Industrial Park Land Sales
The purpose of this memorandum is to provide background information regarding the
use of land sales revenue in the industrial parks in response to a question raised by Bud
Isenhart at the last City Council meeting
RecordS on industrial park development costs have been maintained on the basis of on-
site (eligible for TIF reimbursement) and off-site (ineligible for TIF funding) costs. This
breakdown has been used in the TIF filings on the expense side. Deducts have been
taken for any grant funds and sales tax refunds.
The policy we have been following regarding the use of land sales revenue, is that land
sales revenue will first be used to recover all off-site costs, and then will be applied to
on-site costs, At some future date, when all off site development costs have been
recovered from land sales revenue, the amount of TIF district expense that is still
outstanding will be reduced by new land sales receipts. This will then reduce the
balance that needs to be recovered from future tax increment receipts. Attached is a
copy of the guidelines we have been following in preparation of our TIF filings and
recording of land sales revenues.
November 28, 2001
INDUSTRIAL PARK COST RECOVERY USING TIF FILINGS
All on-site costs will be included in the TIF filings for recovery. On-site water and
sewer expense will be carried by the General Fund. The General Fund will be
reimbursed through TIF filings and/or land sales. To the extent the General Fund
wes used for off site water and sewer expense, this has been treated as an
internal loan from the General Fund and a repayment schedule has been
prepared by Finance.
Grant revenues will be deducted as project revenue through the TIF filing
process.
Bond Counsel has determined that it is appropriate for a portion of the off site
sewer costs for Dubuque Industrial Center West to be included in the TIF filings
for recovery.
Land sale revenues will not be claimed as a revenue associated with the project
for TIF filing purposes and will not be deducted from the TIF filings until such
time as all of the following funds have been reimbursed for off site project related
costs. For Tech Park (Site F) and Dubuque Industrial Center West (Site B) they
will be reimbursed in the following order:
RUTF for off-site road work,
Water Construction Fund for off-site water lines,
Sewer Construction Fund for off-site sewer lines,
On site development expense related to Kerper Industrial Park will be reimbursed
from land sales and TIF revenue in the following order:
UDAG
Water Construction
Sewer Construction
Road Use Tax Fund
General Fund
To the extent land sales revenue exceeds the cost of the off-site improvements,
the on-site and TIF eligible off-site costs will then be recovered from land sales.
They will be deducted from the TIF filed project expense.
The only exception is the first land sale to Cartegraph wes pre-budgeted through
the FY 99-03 CIP process for $140,000 in the General Fund land sales account
and therefore will not be pant of this formula.
TIF revenues generated by Tech Park and Dubuque Industrial Center West
districts will be used to repay all on site and eligible off site expenses in the
following order:
Land contract expense
UDAG funds
General Fund
Sales Tax Fund
Road Use Tax
Connection fees will be included in the cost of the lot rather than having a
separate charge for each utility service.
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