CRA staff to explore up to $40M in bonds to fund Avenue E streetscape, parks and acquisitions

CRA staff asked the board for direction to analyze the feasibility of issuing redevelopment bonds backed by tax-increment financing to accelerate infrastructure work. Director Mercius said bond counsel and underwriters estimate the CRA's bonding capacity could be roughly $40 million and recommended staff return with options and a phased plan for projects such as an Avenue E streetscape, Lake View Park drainage improvements and targeted property acquisition.

"Our bond capacity, as suggested through our bond counsel, ... we're at about $40,000,000 approximately for our bonding capacity," the director said during the presentation. Staff cautioned that an upcoming statewide homestead-exemption referendum and previously proposed legislation (House Bill 991 and Senate Bill 1242) could reduce or eliminate TIF revenue streams and thereby affect the CRA’s ability to rely on future incremental revenues for debt service.

Commissioners expressed support for using debt to finance one or two legacy projects (rather than many small projects), asked staff to estimate impacts on annual TIF operating funds and requested a follow-up with scenarios showing debt service, coverage ratios and effects on the CRA operating budget. The board gave staff direction to return with bond-capacity modeling and project priorities.