County presents TIF allocation fund budgets; Alonco redevelopment revenues to cover bond payments and childcare conversion costs

County redevelopment staff presented proposed budgets for two allocation funds tied to local TIF districts and described expenses tied to the Alonco redevelopment project, including utility payments, consulting and a bond payment schedule. The two allocation funds—Allocation Fund #1 for the White Construction TIF and Allocation Fund #2 for the Alonco TIF—show projected revenues and cash balances that redevelopment expects will cover planned expenses next year. Staff said Allocation Fund #1 projects about $275,000 in annual revenues with a cash balance of approximately $459,000 and a $150,000 budget request. Allocation Fund #2 (Alonco) shows a cash balance near $666,000 and projected revenues of roughly $600,000 next year with a budget request of $419,000. Redevelopment staff said the Alonco project’s near-term expenses are primarily utilities and operating costs as the site is being converted for a childcare center and that the bond payment schedule will begin with a $303,000 payment next January and then become semiannual. "The growth of the revenues will match the growth in bond payments," staff said, adding that they expect revenues to exceed bond payments at peak operations. Staff also noted ongoing consulting and architect expenses related to the I-74 TIF district and that the newly created I-74 TIF currently has no revenues to budget. Council members asked about demolition costs for other redevelopment properties (asbestos remediation and environmental work) and whether EPA and other grants were being pursued to offset demolition costs. Redevelopment staff said they are seeking EPA grants and had already obtained some demolition grant funding for targeted properties.