TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager
1. SUBJECT
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Agreement with Kosmont & Associates, Inc. for economic development services.
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2. SUMMARY
The proposed Professional Services Agreement with Kosmont & Associates, Inc. would provide for a feasibility analysis for creating an Enhanced Infrastructure Financing District to fund critical infrastructure in the City of Orange.
3. RECOMMENDED ACTION
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Approve the agreement with Kosmont & Associates, Inc. in the amount of $31,000 for economic development services; and authorize the Mayor and City Clerk to execute on behalf of the City.
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4. FISCAL IMPACT
The total expenditure for this agreement is $31,000 and will be funded through NW & SW Merged 2003 Taxable Bonds (FUND 952).
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
e: Create an environment to attract, retain, and expand economic opportunities.
6. DISCUSSION AND BACKGROUND
Enhanced Infrastructure Financing Districts ("EIFD") are an economic development and public finance tool introduced by Senate Bill 628 in 2014. EIFDs are the predominant form of Tax Increment Financing ("TIF") in California following the dissolution of Redevelopment Agencies in 2012.
EIFD and TIF are a form of financing, where a city or a county designates a boundary around parcels positioned for new development or rehabilitation. The assessed property value within the district is "frozen" at the time of formation as the "baseline" of assessed value for the district. Over time, as new development or rehabilitation occurs and new property value is added to properties within the district, participating taxing entities can dedicate all or a portion of the new incremental property tax from values above the baseline ("property tax increment") to the EIFD with a dedicated purpose of funding infrastructure.
Eligible Infrastructure
Current law includes a definition of infrastructure eligible to be funde...
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