To: Greg Kisela …..
Tuesday night’s CRA Special Meeting on Riverwalk was unbelievable. A one page proposal with 3 drawings and no supporting documentation for an estimated $90,000,000 to $100,000,000 project was provided at the start of the meeting. The developer’s representative then opened the meeting by asking council (who was busily trying to understand what they had just been given) to approve a city subsidy of 50% of Tiff funds for the project and to do so by the end of the meeting.
No specific numbers were provided other than 50% of the Tiff (taxes to be paid on the project over the lifespan of the CRA).
My rough calculations suggest that 50% of the TIFF would involve a taxpayer funded subsidy of between $6,000,000 and $8,000,000 (depending when the project gets off the ground) for Mr. Lacour. My estimate of the value of the project would be about $90,000,000 to 100,000,000. These estimates are based on very limited information and need to be updated by City Staff.
Appreciate if you could you have finance staff verify what the potential cost to the taxpayers for the 50% cut of the Tiff would be. This would also involve estimating the overall value of the project (306 condos @ $300,000 a piece, a restaurant, a diner, a clubhouse, two shops, a marina etc.). It would also involve estimates for Port Orange Taxes, Volusia County Taxes, Hospital District Taxes, which I estimate at somewhere near 12 mille for about 14-15 years.
To provide a sense of the total benefit being provided to the developer, could you also provide a calculation of how much Port Orange is investing in the Park surrounding the developer’s complex which significantly improves the value of the developer’s property? This would include funds now budgeted for the North Park area, as well as estimates of Park costs to the south to Dunlawton.
Since it has been Council policy that the first use of Tiff funds will be pay off the considerable debt that has been accumulated for the Town Center CRA, could you identify
• How much is our current debt for the Town Center CRA.
• How much does the CRA currently owe the City’s General Fund for expenditures that should have been paid for by the CRA?
At the meeting, the Developer’s Engineer noted that there should be no additional utility costs to the City to bring this project on line. Can we have the Public Utilities Department verify in writing that they anticipate no additional costs for utility infrastructure to support this project? Similarly could Public Works also review this proposal and insure that there are no potential costs for the City for drainage or other infrastructure?
Finally, have we ever provided TIFF support to any other projects in the CRA (Eastport and Town Center)?
Appreciate your assistance thank staff for their efforts in addressing these questions. Let’s approach this project correctly with full understanding of the cost and benefits for the residents of Port Orange.
Best, Bob Fod
To: Greg Kisela …..