On February 7, 2018, the Council adopted Resolution No. R2018-012, authorizing an interfund loan with the EDA to finance qualified costs related to the public improvements within the Canterbury Commons Redevelopment Project. The original interfund loan was capped at $300,000, and is intended to be repaid with future tax increment.

The City Council and the Authority approved the contract for private redevelopment at the August 8th meeting. The contract provides specifics on which public improvement projects the developer and the city are each responsible for constructing. The city intendeds to issue TIF bonds to cover the costs associated with the city's share of the public improvements. Until the bonds are issued, the city will need to be borrow funds to the EDA to cover the additional capital costs. 

To ensure sufficient capacity on the interfund loan, staff has estimated on the high side that the engineering and construction costs over the next year will not exceed $6 million. The amended resolution adds this $6 million to the original $300,000 for a total available interfund loan of $6.3 million.