by Alan McArthur
The Platte Valley Plaza Transportation Development District (TDD) provided an update to the Platte City Public Works subcommittee on Monday.
The update from David Bushek, an attorney working on the city’s behalf in this matter, writes in the report that the city may have to appropriate as much as $67,000 annually to potentially cover shortfalls in revenue for bond repayments.
The standard annual appropriation amount will be around $54,500 a year, writes Bushek. The projected sales tax amount for 2008 is $862,000, which is 54 percent of the original number given of $1,585,000 projected.
When the original agreement was signed in May, the city was told the amount to be appropriated was $39,000. Annually, the city appropriates an amount to possibly be used to cover any shortfall in tax revenue to pay for bonds for improvements in the district.
The annual payment for bonds for the city backed portion of project 2 will be around $69,000 beginning in 2011.
In the report to the city, Bushek writes, “for the purpose of evaluating the risk involved with this project, the City should assume that the TDD may be short by all or a significant portion of the previously estimated retail sales in the TDD area, and an annual appropriation by the City will be necessary to pay for the project 2 improvements.”
If the city is required to pay for part of the bond payments and the TDD takes in more tax revenue than projected, the city may be paid back for its contribution.
The improvements in the Platte Valley Plaza include traffic signals at the intersections of Highway 92 and Kentucky and Running Horse Road and Platte Falls Road.
The projects are currently on hold for the winter and construction is expected to begin again in the spring.
Any increased appropriation on the part of the city would have to be approved by the board of aldermen at a future meeting.
In other business, the public works committee also okayed an idea to raise the rate for picking up bulky items with Freon in them, such as refrigerators and air conditioners.
The original rate was $35 to pick up and dispose of the items, charged through public works. However, Leonard Hendricks, public works director, told the board that because of having to rebid the removal of Freon contract, the price to have the chemical removed is now $35.
After discussion about ways to offset the increased cost, the committee decided to make a recommendation to the board of aldermen to charge an extra $13 for the pickup of any appliance with Freon inside.
The matter may be on the board of aldermen agenda for Tuesday, Dec. 9.