The Contract for Private Development is being modified to now include that the city will construct Unbridled and will use Tax Increment Financing Bonds to pay for that road construction.

Also, the original funding distribution table is being modified to reflect actual project costs and to show how funds are divided amongst various parts of the project.

The developer n the original agreement was going to build and pay for Unbridled.  The city staff has determined that it would be better for the city to construct this road because of its critical importance for access to CH83 since it will serve as the detour route while CH83 is under construction.  The city can also borrow at a much lower rate now than Canterbury, which will accelerate payment for the road.  Ultimately, the city has been borrowing at favorable rates and terms (15 years) which will potentially allow the TIF to be retired earlier.

There is adequate TIF revenue to cover the payments on the bonds.  The values for the development work already completed have come in higher than was originally projected.  Also, there are several other projects that are coming in for permits that will continue to improve the TIF revenues for the project.  The city's bonds are in first position for payment out of any TIF revenues.