JRB 2026 08 26

[music] All right, I have 8 o'clock. I will call the joint review board to order. Uh, let's do roll call. We'll go around the table name and then the group you're representing. >> Vernon Catch County Board. >> Tanny Bowman, Lakesure College. >> Mike Jick, Coler School District. Mark Vilkkey School District. >> Robera Felicki Pineski, member at large city. Caitlyn Krueger, finance director. >> Jeffrey Witty, planning. >> Evan Grossen, deputy finance director. Casey Bradley, city administrator. >> Liz Majera, city attorney. >> Taylor, director of planning and development. >> Well, Lisa Salgado, citizen. >> Yeah, folks could stand for the pledge of allegiance. I aliance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. >> We've got to redo reaffirm the appointments as needed. Uh first is the public member. The public member that has been uh affirmed by the city council is Van Robera Flicky Pineski. Uh can I have a motion to reaffirm? >> Second. Moved and seconded. Under discussion none. All those in favor say I. >> I. Any opposed? >> That's approved. Next is a chairperson who wants to be the chair. >> Nominate the mayor. >> Second. [laughter] >> All right. It's been moved and seconded. Anyone else? Anyone want to nominate Burn? [laughter] >> All right. Seeing none, all those in favor of reaffirming the chairperson state. I >> I opposed. Chair votes I. That is approved. >> All right. M5, review of responsibilities for the joint review board. Who wants to take this one? This is Greg. >> I can take it. Good morning. As most of you have said on this body before, the joint view board is the body required to be convened under state statute for any tiff district creation or tiff district creation uh to formally consider uh action and uh review of these proposed actions for any tiff district. Uh this is an organizational meeting. Um there'll be no action taken at this particular meeting. We'll give you an overview of the proposed amendment to TID 21, the proposed creation of TID 27. Uh the statutory process uh kind of continues. There's a public hearing on both of these actions tonight before the plan commission. Uh plan commission approval is required for uh both of these items. Uh then they would be forwarded on to the common council if approved. If approved at the common council level, be brought back to this body for final consideration. So I'm happy to answer any questions on your roles or responsibilities. >> Any questions from committee members? >> Sounds good. If we got questions along the way, we'll pop them up. >> Thanks, Greg. All right. Item six, review and discuss draft project plan for tax increment district number 21, boundary amendment. Greg, >> I'm going to share kind of a summary presentation. There's no new information in this document. This is just a summary of the full project plans which you received. So, we'll start with uh TID district number 21. Um this is applicable to um the Shabboan School District. Um so just want to make that uh item clear. Uh in terms of uh the proposed purpose of the amendment, uh this is solely a boundary amendment. There's two types of amendments permitted uh for TID districts. One is a territory or boundary amendment where you can add or subtract territory. Uh that can occur up to four times per TIF district. The second type of amendment is a project plan amendment when you're updating uh the allowable project cost. This is only a boundary amendment. there's no changes to the total allowed expenditures um within the district. So this district and this amendment uh will add about 7.4 acres of territory to the district. Uh this was a rehabilitation uh district when it was created. Uh which the requirement is at least 50% of the gross acreage within the district meets the statutory uh criteria of in need of rehabilitation. Uh we've affirmed that that's still uh the the case with this proposed amendment. Uh and there are some parcels within this uh amendment that are presently in uh TID district number 17, but will be overlaid if this amendment is approved and will be incorporated into TID 21 because a parcel can't be located in uh two TID districts. It can only be located in one. As I mentioned, the project costs aren't changing. Uh the total eligible project costs for the district remain the same uh from what was approved in prior uh creations and amendments. uh the total eligible expenditures within the district are about 182 million. uh the butt for analysis uh similar to kind of the original findings uh when the district was uh created and and amended previously uh public infrastructure investment and there's associated uh extraordinary costs associated with demolition of structures uh needed for redevelopment of targeted sites uh which are really necessary to accomplish the objectives of you know redevelopment uh within the district. Then we've included a financial analysis which is just kind of an update based off of information uh presently available but again there's no changes to the total project costs uh through this amendment. So the parcels that are being added um kind of the map up on the screen was included in the project plan um the areas in red are what are being added uh to the proposed district. There is no map. So if you want to scroll on your presentation to the next slide that >> Oh, >> page 10. Yeah, >> page 10, I believe. >> Sure. >> This is three. >> Do you see it now? >> No. >> Just the cover sheet is what we see. >> Interesting. Let me try sharing again. >> There you go. Perfect. Thank you, Greg. >> Sorry about that. Sorry about that. It's >> all good. >> Uh, can you see it up now on the map? >> Yep. >> Oh, okay. Sorry about that. Um, so the parcels being added uh through the district are the parcels that are shown in red. Uh so these are the parcels that are proposed to be added uh through the proposed uh territory amendment. Uh so you'll see parcels um here and then parcels kind of across uh the river. [snorts] Anytime a boundary amendment is undertaken um we have to verify compliance with what's called the 12% valuation limit uh for each tip district. These findings are made separate for each tip district. So even though the uh city is looking at amending TID number 21 and also creating TID number 27 um those actions are considered independent actions. So the 12% test is uh evaluated separately for each uh particular district. Uh so by adding some territory uh into the district for the 12% test for TID 21 we take the incremental value of all existing districts add in the current base value the current value of the parcels being added. Um, so we're at 3.66% of uh value towards the 12% limit. So the city is under that 12% limit and can amend the district. Uh so included in the project plan was a detailed list of all the parcels being added to the proposed district. Uh so when the district was uh created uh and subsequently amended through amendment number one uh the gross acreage of the district was about uh 263 acres. Uh about 136 of those acres uh met the criteria for a need of rehabilitation. Uh we've listed all of the parcels here that are being added to the district. Uh kind of which conditions are applicable for these parcels. uh so largely fall into the category of parcels that are identified for carrying out plans for voluntary or compulsory repair and rehabilitation of buildings or other improvements. As I mentioned, really the primary objective of the district is to kind of continue to promote redevelopment within areas of the district. Um and that's really one of the primary purposes of a rehabilitation district is to identify areas where those types of uh rehabilitation projects can occur. Uh so the district is still in compliance. Uh 53% of the gross acreage uh meets that criteria. So just for um recapping what the eligible project costs were in the project plan. Again there are no proposed changes to this. So this is the list of the current project costs that were identified in the original project plan and then what was added through the first amendment. Um non-project costs uh refer to portions of projects which benefit areas um outside the district um that uh really split between the TID and non-TID sources for funding. Uh so again about 182 million of eligible project costs. Uh as you see it largely consists of specific infrastructure improvements uh and allowances for development incentives uh which all require development agreements to be approved uh by the city council. we forecasted uh with kind of input uh from city staff in terms of kind of development in progress in terms of kind of incremental value increases that are projected. Uh so we've identified kind of some general areas within the district of where that value um is projected to occur. So you'll see it's south lakefront, riverfront, downtown, blue harbor, and north downtown. Um so we've just projected out um existing valuation based on projects um and their estimated construction timeline. So if all that value comes to fruition, this is a 27-year TID district. Uh the district would generate a little over 116 million of tax increment revenue over its 27-year life. And then we've included a cash flow projection um within uh the plan. This is again just based on information that we have available at this point in time. Uh so we have the tax increment coming into the district uh from that estimated incremental value constructed over the next several years. Uh there's existing debt service payments that are outstanding uh for debt that was issued that is eligible to be repaid uh by TID number 21. And then we've illustrated several uh development incentives based off of provisions within development agreements um that estimate payout uh of those incentives. Um most of all these are really what are called pay as you go development incentives uh which means as increment is generated from specific developments uh that goes to pay uh development incentives related for costs incurred for those developments. All the SA's development agreements include you know various uh provisions in terms of completion of the project and other valuation requirements that have to be met for these um incentives to be u awarded. Uh but we've kind of projected those out kind of based off of u the provisions within the development agreements and then we've just included allowance for future development incentives just to kind of illustrate what the district could support if this incremental value is realized. Uh and then we just project out future capital uh expenditures related to the district um you know that the city evaluates as that increment gets generated. Um so kind of if everything you know unfolds you know the district is incurring a lot of costs you know on the front end which is typical of tip districts once they're uh created there's initial investment that occurs and those investments can get recaptured over time. Um, so we just kind of show if all the project costs kind of outline here in the plan based off of current city priorities, um, you know, the district would remain open for its full maximum life, but, uh, projected to have, you know, sufficient funds to cover these costs. Um, that's kind of the overview of of TID 21. I'll pause here uh, see if city staff has any additional comments they would like to make. Robera, you had a >> I had a qu I had a question. Um, way back in the beginning looking at the map, >> you talked about the overlay of 21 and 17. Explain to me how we take 17 out and put 21 over it. So there are parcels kind of down here in kind of the southeast corner of the area that's being added that are largely owned by the city or the CDA that are being that are um you know presently in TID 17. So it's part of uh you can overlay a parcels and incorporate them into a new district. So they'll be you know they'll no longer be in the boundary of TID 17 but still leaves that boundary contiguous. So any value that occurs, development that occurs on this uh on these properties will go to TID 21 instead of TID 17. Uh so it just allows additional time for those uh those parcels to be developed, but it'll be in this district versus TID 17. >> Okay. I wonder where the money went. Thank you. >> Staff have any additional comments that they'd like to add? >> No. Any other questions from committee members? Questions from the public? >> Lisa. >> Okay. Hi, I'm Lisa Salgado. I just have a few questions on 21. Um, last year it showed the issuance of four GO promisary notes which was very debt heavy. The principal was 79.9 million. The interest was 52.6 million for a total debt service of 132.6 6 million. On today's sheet, the debt service is only 47.2 million. So that's a reduction of 85 million in little more than a year. So I just was wondering what changed and why today's cash flow does not show the issuance of the four go commissary notes. >> See the administrator? >> Yeah. Uh so I believe you're referring to general obligation debt, not go bonds. It is the total debt service. >> So the bonds that are issued are issued in all the bonds are issued at once. So those aren't necessarily TID bonds. They're general obligation bonds. So >> it could have been for street projects outside of the TID, not TID debt, >> but it's not listed on the GO bonds aren't listed on this. >> Well, again, they're not GO bonds or general application bonds. So those bonds aren't TID bonds. So what you're looking at is just what's applicable to this TID district. There could have been multiple TID districts that had debt issued to them or there could have been other projects. So you'll have to go to the debt issuance and look at what portion is attributed to each district. >> Are you looking at the cash flow from the project plans? Mhm. >> So there has been um initially when the project plan was generated that was with the consideration that every project will happen and every every project capital-wise would happen with debt proceeds. However, we want to make sure that it is successful and cash flow. So certain of those projects won't occur unless the development occurs. So how the current project plan because the one that's up on the screen today and being considered the the financial piece is actually for illustrative purposes only. It has nothing to do with approvals today. So or when it comes back. So that is just a more updated and reflective version of what we anticipate will happen in the TID. >> Okay. What about the total debt service? How did it go from 132 to 47 million? >> That's exactly what I just mentioned. We are planning to use uh cash flow within the TID to pay for these projects and if the projects do not occur then the project the capital pieces will not happen. >> Okay. So you're going to use the money generated from the TID to pay for the projects and if it doesn't generate the revenue then we're not going to do the project. >> They are all contingent on developments occurring within the TID. >> Okay. So instead of taking out debt we're going to use the cash flow from the TID. That is the hope and plan. And if if you know things have to change, that would be an amendment in the future. However, the financials as they're stated in the original project plan with the 130 million is what is approved and what would be considered as the approved project plan for this. The TID uh 21 amendment that you're looking at is not that wouldn't be a change. It's just for illustrative purposes on what's planned for this current. >> Okay. And if you look at the um estimated project costs, we're missing the two dates spent. So if you look at the original or actually the May 2025 plan, it's showing costs for the pedestrian bridge, the South Point land purchase, and the Commerce Street reconstruction. And then it subtracts those costs. But today's it's missing that. And in the total it's showing the original total without any money spent. So why is that? >> So that's >> this says unchanged. >> So the anything that would have been already spent is in the cash flow as actuals in the project plan because that's >> but it's showing that no money is spent. >> These are estimated project plans. I can we can talk to Greg about a you know this is a draft version so we can look at if that should be updated but in the cash flow table the 2025 year is closed and so we are using actual amounts in that table. >> Well they're not actual because it's showing no money spent. So Greg can you tell us why it's showing no money is spent when it was already spent. >> As I said in my opening comments we're not amending the project plan costs within the district. So that information was just included for information purposes only. It's just to show what was permitted to be expended within the district because we're not amending the list. So that's why the list is showing the original amount that was identified so everyone knows what was originally permitted as a cost. And then as was mentioned the cash flow shows what's actually been expended within the district. So through 2025 there was 7.9 million of total expenditures and then through 2026 we're estimating the total expenditures uh in the district will be for that uh particular year about 1.6 million. So we've included the actuals in the cash flow projection. The project list is just there for reference um so we know what was originally approved but we're not making any changes to it. So the financial analysis is just to give an update on what we know today, but we're not making any changes to what was originally approved because this is just a boundary amendment. >> Okay. But why was the to date spent removed? >> In previous amendments, we were doing project plan amendments. So we're amending the costs. And so again, we're showing the actual costs in the financial analysis. So that shows what was what has been spent uh on capital outlay, what has been spent on development incentives. The project list is just a reference on what was originally in the plan. That's what you're required to put in the plan. >> Is the TID 22 and 24 revenue sharing going to exist? >> It's 24. >> It's an option, but it hasn't been formally approved as of yet. >> Okay. Because I didn't see it listed. It was listed in May, but it wasn't listed in today's. >> No, it's an eligible, but it has to be formally approved, so that's why it's not listed. >> We've discussed it in the past, but it still requires a formal amendment, but since the, as Caitlyn was mentioning, since the district is projected to have some cash to pay for capital projects and other items, it's not projected to be needed at at the time at this time. And then in today's the developer incentives increased by 28.2 million. So why is the apparent debt service decrease reappearing as developers in >> Say that again. >> The developer incentives increased by 28.2 million in this plan. But yet it's showing a decrease um in debt in the debt service on cash flow, but it's showing up as a developer incentive now. 28.2 million. Do >> you have a page reference or a graph reference? >> Uh I wish I had the whole thing. So I think I think the the general answer to the question is we've updated the cash flow model to more accurately reflect the city's current priorities between capital outlay expenditures which several are identified to be potentially funded with cash and then development incentives have increased based off of anticipated development agreements that have been executed. So the overall plan gives the city flexibility to spend money on infrastructure or spend money on development incentives, but to allocate that appropriately based off of priorities. So there's been more money uh initially committed to development incentives based on development agreements and less borrowing anticipated based on current priorities of the district. But say staff can add or correct anything if that's if they have further comments. >> Okay. And why did the professional administration cost increase by 1.4 million? >> We just updated it to kind of reflect in terms of some increased costs for legal review and things of that nature. So that again that's going to get reviewed >> as time as time goes on as well. So it's it's just an estimate, but as time goes on, if there's less development within the district, those costs generally go down. >> Anything else? >> The the project plan is not any spending. It's an estimate. So >> to say that the debt is going to happen is inaccurate. To say that any of these expenses are going to happen is inaccurate. >> Ultimately, it's a vote by the city council if they take on debt. That's completely separate of this. This is a project plan. >> They're approving that amount up to that amount, right? >> At this point, that cash flow is not getting approved. No, >> the original project plan cash flow and financials are what's in place. This is boundary amendment just to change what parcels are included. >> Okay. Any more on item six on the agenda? Okay, we're going to >> Well, I do actually have one thing. It I just had one question. The wording was different. It said in May that this would pay off all project costs, liability, and obligation. Today's report said it will pay off portions of eligible project costs. >> Yeah, I think that's we're kind of getting into semantics. I mean, the what we are >> No, we are. I mean, what we're showing, as we've said multiple times, is the district can pay off what the city is anticipating it's going to expend within the district. So, while the plan allows for 182 million of project costs, the city through a project plan creation or amendment is under no legal obligation to expend those funds. All expenditures have to be approved by the city council. So the total expenditures in this cash flow is only about 146 million. So they're actually projecting to spend less than what the city is legally allowed to spend within the district. So you know what we're projecting is it can recover the cost that the city is anticipating to occur. If more development occurs, the city could expend more money. So I mean those statements are really derived at saying that the cash flow, you know, can support the investment. But as staff has mentioned, you know, dis future decisions will be dependent on development that occurs. I mean there's usually a correlation between development incentives actual development happening infrastructure investment with development happening. If things don't anticipate or develop as we've illustrated in this cash flow model then the city will you know likely have to pair back those expenditures but those aren't commitments that are being made today. >> All right. Thanks Greg. Next we'll do item seven. Review and discuss draft project plan for the creation of tax improvement district number 27. >> So this is located in the Coler school district. Um so this is an industrial district which has a maximum life of 20 years. Um it consists of approximately 36 acres which is located along County Highway A and uh Weeden Creek. Um it's to help uh promote a 72,000qt manufacturing uh facility for Northland Plastics. So the project costs identified in the plan, it's about $3 million and includes water and sewer improvements that are necessary for the development to come to fruition. It includes an allowance for development incentives uh which would require a development agreement between the city council and the developer. uh and then also includes estimated interest expense and administrative costs. And then since this land was recently annexed by the city from the town of Wilson uh under provisions of the TIFF statute, uh the city has to pay to the town of Wilson just their share of taxes on that property for a period of 5 years. Uh but that is a TID eligible expense. In terms of the butt for analysis, um it's really infra primarily infrastructure driven. Um there's water and sewer projects that are you know needed to facilitate the expansion of of Northland Plastics. Um it's will that retention and kind of expansion of that facility uh will allow 36 jobs to be retained with the potential for uh four additional positions. Uh I mentioned the 12% test that gets applied independently for this district. Um so with the base value of this district uh plus the incremental value of existing districts um the city would be at 3.63% uh for this particular TID. So again we're under the 12% limit. >> What Greg what was that? Can you just repeat that one more time? >> Sure. Uh so if we take the base value of the proposed uh territory within uh TID 27 uh that has a value of about 234,000 and then we take the incremental value of all the city's existing TID districts and this is the most recent number available as of January 1st of 2026 that's just under 200 million. Um so those two numbers combined uh if you compare that to 12% of the city's total value it's 3.63%. So uh that number has to be uh under 12%. So it means the city can legally create an additional district. >> Right. Thank you. >> Uh so in terms of the boundary map, this is really >> Well, it's the boundary. >> Okay. >> Keep going. >> Sure. Uh so this boundary kind of consists of an existing parcel uh you know it's a single parcel TID. So, it's an uh industrial uh TID to facilitate again the manufacturing expansion. Was there a question? >> Yes. Um I got out another map and I looked at County Trunk A and Weeden Creek. Is this west of I43? >> Yes. >> Okay. And this was this was the next from >> Wilson. >> Town Wilson. Okay. when Thank you for that because that's where my head thought it was. Um when when we reimburse Town Wilson for taxes, do we reimburse on the developed property as the property gets developed? Because there's nothing there now and there's going to be something there in five years. Caitlyn's shaking her head. It's based off of the existing taxes prior to the TID district being created. So that reimbursement's going to be based off of really the existing land value only. And I'll show that in the cash flow model. >> Perfect. Thank you. >> You're welcome. >> Okay. >> So in terms of the detail of the eligible project costs, um you as I mentioned uh you know water and sewer improvements, there's an allowance for a development incentive that would require a development agreement. Uh the total payment of town taxes over the five years is estimated at $1,575. Uh and then we factored in some interest expense and some planning and administrative costs. So the cash flow analysis for this district uh the estimated increase in value from this development is $10 million. Uh the c cash flow illustrates how the potential project costs could be supported by the development. And then the district is you know projected to remain open for its full maximum life. Uh so with that um development that's expected to you know start this year. Uh we show that value kind of being achieved over a 2-year uh period. Uh if that value is realized based on the current uh TID tax rate for Coler School District it would be about 3.1 million of tax revenue. Uh so this is just an illustration of how the project costs could be funded. Uh so we have the tax increment coming in. Uh the city could either issue debt or just pay for the project with cash from the respective utilities. Um this just shows an illustration of using cash but then repaying the utilities um interest over time uh to kind of recover those costs. Uh the development incentive is just a projection. and there's been no formal uh commitment there uh as of yet. So that's illustrative. And then those town taxes, again, that's based off of the land value of the TID. Uh so that's $315. Uh so that's paid out over a 5-year period. Uh and then the planning and administrative costs more here in the in in the on the front end in terms of just the creation of the district and any uh other costs related to development agreements or any other uh formal approvals. And then going forward, you know, since it's a single parcel TID, um, you know, the cost will be annual DO reporting, um, audit, things of that nature. Um, so if those funds are advanced upfront, they can be repaid with interest over time, uh, and recover those costs, you know, over a 20-year life of the district. But again, this is illustrative. It's not a a binding commitment of, uh, the city to fund the projects in this matter or fund the projects at all. uh anytime a TID project plan is approved, it is not a binding commitment of the city to undertake those costs. All those uh any infrastructure development incentives all require subsequent approval by the city council. Um just approving the TID doesn't commit this city to expend the funds. So that's the overview of uh TID 27. U let's see staff and reject if they have any additional comments, >> questions, comments from staff. Uh yeah, this is uh pretty straightforward project. It's going to be one one development. Uh they're developing about half the site. Um one of the things we are doing uh with the county because ultimately it's county road here. So we we worked with the land owner that will basically continue to maintain the normal profile for county roads. And right now it's at a township level. So it's about 33 feet on either side of the intersection. And I think we're that about 80. It'll be a total of 80 foot rightway through there. So the land owners are good. They'll they'll uh deed that over to the city and then ultimately go to the county. >> Was appreciated where they >> Yes. >> Yeah. That that's a tough area there. Um companies been in the city for >> for 73 years. They currently sit in a residential space. So, as much as they probably love their industrial neighbors and things like that, I think I think the company is excited to move to a more um a like air uh a more alike space additionally have um some more room to grow. >> What will happen to the >> current >> um the company has said that they would like to redevelop into some sort of capacity. They don't know at this time what that is. And just I for information for the committee, the plan is communicated by Northland Plastics was to have the possibility to expand even more down low road in the future as well. >> Correct. And this lot allows allows them to do so. >> Correct. Okay. It's usually Jeff, I guess, a better urban planning practice to move help incentivize industrial land away in in in >> like residential centers. >> Yeah. >> Cool. Other questions from committee members? >> Does this mean we'll be losing the semis and forklifts on 17th Street? >> Unfortunately, yes. [laughter] >> Eventually. >> Yeah. >> Other questions? >> Construction >> from the public. You said >> I do. Um, so did you say that the developer incentive of 2 million is to retain jobs and add four additional positions? >> No, I did not. I just said the the the development has 36 uh employees potent uh presently in their potential for four additional positions, but there's nothing ti there's a development incentive hasn't been approved as of yet, and that's not tied specifically to job creation. >> Okay. And then there's a thin financial margin of only 149,000 as a cushion over the next 20 years. So what if the valuation has a shortfall? What if there's a lower tax rate, construction delays, unexpected expenses, or higher financing costs? It's pretty thin margin. >> So, that would that's all addressed through the development agreement. So, you can find those online if you want to read through those. You'll see the protections in place and each is explained in there. >> The developer agreement isn't posted for this yet. >> Has not been finalized yet. However, the development council has approved a template that we use. the development agreements that are available online are are are all are all with that same template. So all of those shortfall payments and things that you had mentioned are are are all in there and have not changed. So, the TID cash balance is projected to remain negative for almost its entire life, beginning in 2026 and remaining negative through 2045, finally becoming positive in 2046 and reaching the 149,334 balance in 2047. So, what risk does that impose on taxpayers? Again, as was mentioned, there's this is an illustration. So, if uh there's any development incentive that's offered, those agreements typically have provisions, shortfall provisions, other guarantee provisions that if certain valuation targets aren't met, developers are required to make shortfall payments back to the city. Um, this also the cash flow model also assumes a development incentive will be paid out in full. Um, so I mean, this is kind of an all-in model. So, and that you know those types of protections are put in place to kind of help uh you know protect the the taxpayer. Um but you know again there's investment upfront in the tiff district. That's usually when the investment is needed on the onset and you know over time that those costs get uh recovered uh with interest as shown in the and how the model could be illustrated. >> CD administrator, any additional comments that you'd like to add about how our development agreements protect taxpayers? Yeah, this as Greg pointed out, this is just a projection. The actual details come in the development agreement. So, right now, this uh what do we have projected for MRO is $2 million. That's just based off a hypothetical value. They're still designing the building. So, we won't know what an estimated value is until um that is complete. Then they can actually tell us what the cost is. This is a manufacturing facility, so it's ultimately assessed by the state. So, we truly won't know the final value of this until probably two years from now. So, um this is all hypothetical and it'll all be adjusted back to reality once once all the known are put in place and a development agreement. >> Why wasn't more cushion added hypothetical? >> Well, we don't put cushion in. We we use realistic numbers so we don't inflate. So what this is based off of is worst case scenario. So they gave us a range of what they believe their building is going to be worth and that's what we use the upper end of the range. So we're comfortable that the estimates that are in here will be lower. >> So the $2 million developer incentive consumes nearly 2third of all the projected revenue of the 3.1 million. So that's about 63% of every TID dollar is going to the incentive >> in the projection here. Yes. >> And taxpayers are financing 650,000 in water and sewer infrastructure. Approximately 320,000 is financing interest in administration costs and it allows the work to be located outside of TID 27. The report states advance from utilities. So is the water utility lending money to the TID? >> So again, your statement is completely inaccurate. There's actually nothing being financed in here by the public in any way, shape, or form. >> So where is the infrastructure cost? >> Again, this is a >> it says advance from utilities. >> Correct. Utilities are paid by users. So any extensions are paid through that. And what is being projected here is a reimbursement of that. >> So what is the user being >> the utilities? >> So our so our water bills will have the the charge on that for the for to create this infrastructure. It's going to go on our water bill. >> No, they already have that set aside for buildout of their system. So it's part of their capital. >> Okay. The interest part is to pay interest to the utility from the TID so that the so that the utility m is made whole with interest. >> Can you can you explain the process from the beginning? >> So if the utility is paying to in put in infrastructure okay let's say it's the $600,000 the TID is going to pay back that $600,000 with interest. Mhm. >> So that the utility is getting the money back with interest. >> So where does the user fee come from >> or how does that play? >> I'm not sure I'm understanding your question. It's so there's money set money in the fund and it's going to be paying for it, but then it will be refunded. >> This will not be put on to user fees. So the advance from utilities means the utilities paying upfront and we're paying them back with the TID money. The TID is going to be paying it back with interest. >> Okay. That's why I didn't understand the user fee that he was talking about. And then um so the plan says that this can increase or decrease. New project costs can be added and changes in the project cost totals or types do not require the TID plan to be amended. So to the today these are estimates but the amounts can change and those changes may not necessarily come back to joint review board. Right. >> Correct. So long as they're under this there won't be a needed amendment. If they're over then they would come back. >> Okay. All right. Thank you. >> Any other final questions, comments? All right, sounds good. Thanks, Greg, for that. Um, I'm guess we have a date set for the next meeting or >> make sure we send out a poll to make sure we're >> stay tuned for a doodle poll or an email or something. So, next meeting TBD, we've exhausted our agenda for this morning. Is uh there a motion to adjourn? >> So, move. >> Thank you. >> Is there a second? Thanks, Greg. >> All right, move in second. We'll see you later today. >> All those in favor at 8:42. Have a good day. [music] >> [music]