030590-Work Session014
MINUTES
City Coinmission, Sanford, Florida
MARCH 5
19 90
The City Commission of the City of Sanford, Florida, met in Work Session in the City
Manager's Conference Room in the City Hall in the City of Sanford, Florida, at 4:00 o'clock P.M.
on March 5, 1990.
Present:
Mayor-Commissioner Bettye D. Smith
Commissioner Whitey Eckstein
Commissioner Robert Thomas
Commissioner Lon Howell
Commissioner A. A. McClanahan
City Attorney William L.Colbert
City Manager Frank A. Faison
City Clerk Janet R. Donahoe
The meeting was called to order by the Chairman.
Jim Willard, Attorney with the firm of Swann and Haddock, Attorney for the Project
Developer, Melvin Simon and Associates, appeared to speak regarding the development of the
Seminole Mall project. Mr. Willard introduced Bill Hammer, Financial Specialist, and Thomas
Schneider, Project Development Director of Simon and Associates, and Myron Louik, Financial
Analyst. He provided the Commission with the Fiscal Impact and Financing Proposal packet for
Seminole Mall, which he reviewed with the Commission. Mr. Willard stated that they are requesting
the City Commission's conceptual approval of Tax Increment Financing/TIF District, under Chapter
163FS, Community Redevelopment Areas, which authorizes the creation of Tax Increment Financing
Districts in areas suffering from inadequate roads. All or part of the taxes from that area over
a specified number of years are used to repay b~nds, the proceeds of which are used to finance
road improvements in the TIF District.
Further, Mr. Willard requested that the City Manager be authorized to officially contact
Seminole County and request Seminole County to delegate to the City the authority to create the
Tax Increment Financing district. Mr. Willard reported the improvements to be constructed with
Tax Increment Financing would open up a large area of the City of Sanford for future development.
Mr. Willard stated that they are requesting Tax Increment Financing Funds in amount of
$6,234,020.00, to be used for construction purposes, and that all road right-of-way is being
contributed at no additional cost. Further, during the years 1991 through 2005, the bonds would
be paid in full, and after the fourteen years the City would collect 100% of the taxes from the
TIF district. Also, during the first two years of construction, the City will realize a small net
renevue; once the Mall opens, the City will realize a considerable net revenue, even after the TIF
payments.
Mr. Willard further reported there would be other new taxes generated by the development
of the Seminole Mall Project, including Real Estate taxes, Utility taxes, License taxes, and taxes
from permit inspection fees. Further, the proposed development would bear the total cost of new
fire facilities, fire equipment, and additional Policemen and Firemen. Mr. Wiltard reported that
the concept requires some off-site capital improvements ~and/or road improvements which will
benefit the mall project, as well as the community.
Further, Mr. Willard stated that the group feels it is appropriate to seek the support
of the Commission for creating a TIF district such as this, to take advantage of the income from
the real estate taxes, and take only a portion of them, to build those improvements.
MINUTES
City Commission, Sanford, Florida
015
MARCH 5
19 90
The City Attorney stated that from a legal stand point, if the City Commission, as a
matter of policy, decides to create a Tax Increment Financing District, it is do-able. Further,
as a request by the developer, this would be tax increment financing which means that any bonds
that are issued would be repayed from the increased tax revenues from the district specified, and
if there is a deficit at the end of the fourteen years, it will not be at the expense of the City
of Sanford's tax revenues. If the debt is payed off sooner, it would be excess money that would
go back to the City.
Mr. Willard reported that as far as the investor is concerned, the bonds would expire
at the end of 14 years, and the City would have no further obligation. The City would control the
expenditures.
The Commission authorized the City Manager to inform Seminole County, by letter, of the
Work Session, and send them the information being reviewed thus far. The Commission authorized
to place Tax Increment Financing for the Seminole Mall Project on the March 12, 1990, Late Agenda.
There being no further business, the meeting was adjourned.
Y CLERK
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