Agenda Date: 10/06/2015
Subject:
Title
Resolution approving the Aspen Grove Business Improvement District 2016 Operating Plan and Budget
Body
Presented By:
Michael Penny, City Manager
POLICY QUESTION:
Does city council support approval of the 2016 Operating Plan and Budget for the Aspen Grove Business Improvement District (BID)?
BACKGROUND:
The Aspen Grove BID was formed to finance the public improvements necessary for the development and operation of the Aspen Grove Lifestyle Center. Aspen Grove is owned by DDR Aspen Grove Lifestyle Center Properties, LLC, and managed and operated by DDR Corp.
STAFF ANALYSIS AND FISCAL IMPACTS:
In 2008, city council excluded Lot 2, Block 3, of the Aspen Grove Subdivision from the BID's territorial boundaries so that Lot 2 could be developed into residential apartment units. Even though Lot 2 was excluded from the BID's territorial boundaries, it remains subject to the BID's debt service mill levy for the bonds that were in place at the time of the exclusion. The development that has occurred within Lot 2 has helped to increase the BID's assessed valuation. The 2015 preliminary assessed valuation for the BID is $20,782,757, as compared to a 2014 assessed valuation of $16,551,884. As a result of the increase in assessed valuation, the BID's debt service mill levy will drop from 60 mills to approximately 42 mills.
The BID has no plans to construct any improvements in 2016.
In 2016, the BID's focus will be to service its outstanding bonds and maintain the public improvements it owns. The BID has sufficient funds to make its next debt service payment due December 1, 2015 in the amount of $656,231. Further, based on the BID's estimated 2016 budget, the BID will have sufficient funds to make all scheduled 2016 debt service payments in the aggregate amount of $833,463.
STAFF RECOMMENDATION:
Staff recommends approval of the resolution approving the 2016 Operating Plan and Budget for the Aspen Grove B...
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