Financial Information

Financial Analysis and Impact on Tax Rate

The staff report in the Referendum Ordinance includes a snapshot of the project background and fiscal impact.

The "white paper" report gives an in-depth summary of the funding plan, the fiscal impact, and underlying assumptions of the school cost and commercial development. The range of tax impacts with and without the land sale/lease reflecting future potential tax yields is expected to be between 4 cents to 15.5 cents on the Real Estate Tax Rate. The impact on the Real Estate Tax Rate is heavily dependent upon the successful marketing and sale of the ten acres of existing campus land and the potential tax yields from commercial development on the school campus site.

Davenport & Company, the City’s financial advisor, analyzed the risks to the City of implementing the Capital Improvement Plan (CIP), including the once-in-a generation high school replacement project. This memo identifies risks and shares possible strategies to minimize those risks.

Economic Development Possibilities

The feasibility study by Alvarez & Marsal concluded that the 10 acre commercial site supports approximately $43-45 million in value, based on a few assumptions. The assumptions (page 9) include the developer providing $10 million in up-front payment and $3 million in proffers.

Alvarez & Marsal also conducted detail a proposed strategic roadmap that the City would take to market the 10 acres for commercial development (if the referendum is approved). The summary timeline is as follows:

  • December 2017 through February 2019: Final planning, zoning, and marketing of 10 acres of campus property for commercial development
  • February 2019: City enters into master development agreement for the lease or sale of 10 acres of campus property, prior to the issuance of bonds to finance the construction of the school
  • Spring 2019 through Summer 2021: City considers land approvals and site plan approvals for commercial development
  • September 2021: Developer takes possession of 10 acres of campus land for commercial development and the existing high school is demolished

Planning for Economic Development on the Site


The City's Planning division manages the Small Area Plan, which provides a framework for economic development on the high school campus. Some work toward this goal has already been done through an Urban Land Institute Technical Assistance Panel (ULI TAP) and joint City government and public school committees.

Timelines


This document shows the anticipated schedule for the projects if the November 2017 referendum passes:

School Construction Timeline
  • December 2017 through March 2019: High school design and permitting
  • March 2019: City issues first half of construction bonds, with remainder of bonds sold in 2020
  • Spring 2019 – Summer 2021: Construction of the high school
  • September 2021: New high school opens

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