LCDC McEuen funds: $11.7M

COEUR d'ALENE - Future revenues inside Lake City Development Corp.'s Lake District have been crunched and the board has a clearer picture how much money it could comfortably borrow to fund future projects inside that district.

The answer: $11.7 million.

"It was kind of in our wheelhouse, the way we modeled things," said Tony Berns, LCDC executive director on the estimates that were presented to the board on Wednesday. "But we needed to bring in a third party to validate it, and I think mainly for the public's benefit that we have our eyes on this."

The company that tallied the numbers, Seattle-Northwest Securities, used a number of conservative factors at the direction of the LCDC finance committee to get to the total.

It assumed the district's $362 million valuation would stay the same over the next 10 years before the district closes in 2021. That means it's not banking on new property tax revenue streams, so about $3.8 million a year inside the Lake District, but dropping some years as existing levies come off the books.

It also used a 1.75 coverage ratio. Essentially, the future revenues could cover debts at a rate of 1.75. Generally, the higher this ratio is, the easier it is to obtain a loan. The higher the number is past one, the more money there is left over.

Eric Heringer, SNW senior vice president in the Boise office, called the ratio "conservative," adding that he has seen urban renewal agencies borrow at a ratio of 1.25, which he didn't recommend for the local agency.

The asset management specializing in debt securities was contracted by LCDC for $11,250 to analyze the district's potential revenues.

"You're in good shape financially," he told the board.

That 1.75 ratio left a principal amount of $16.75 million.

But take away existing debts and operation, and saving 10 percent for reserves, it drops to $11.7 million.

It also estimated the interest rate at 5 percent.

"That's a fairly conservative approach," said Rod Colwell, LCDC finance chair. "But we think it makes sense" to take that approach.

The board analyzed the numbers in anticipation of the McEuen Field redevelopment project.

Wednesday's figure isn't what the board agreed to pay, rather a number it would be comfortable borrowing should that project, along with the education corridor infrastructure project, continue moving forward.

The infrastructure project is estimated around $9 million over two phases.

The board also estimated allocating $4 million from its cash on hand for that project as part of the number estimates. That would leave $1.3 million cash on hand for fiscal year 2011 should it decide to go that route.

For McEuen Field, the park's conceptual design team - Team McEuen - priced the possible project between $23 million to $39 million.

LCDC has been looked at as a partner on the project financially, but not the sole funder.

Urban renewal agencies fund projects inside their districts with increment property tax revenues, and McEuen Field sits inside the Lake District.

City officials have said since the project's unveiling that grants, private donors and other options would be explored to make the project happen should it go.

Next up, now that the board has a lump sum, it will send out letters of interest to "many" banks to determine if they would be willing to lend along those guidelines.

From there, the board would discuss which bank could offer the best deal. If the deal is secured, LCDC would have to decide how much from those figures it would be willing to allocate just to McEuen.

Heringer said should the board agree to borrow, it shouldn't hamper it from future borrowing should revenues exceed expectations.

Also on Wednesday, the board decided to wait one more month for further evaluation before determining how much it would be willing to allocate to Kootenai Youth Recreation Organization for public improvements associated with rebuilding its ice rink off Seltice Way.

COEUR d'ALENE -

An open house for the McEuen Field project will be from 6 to 8 p.m. Thursday, May 5 in the Community Room of the Coeur d'Alene Pubic Library, the first public meeting on the project since its estimated price tag, $23 to $39 million, was announced last week.

The park's conceptual designers and steering committee members who helped craft the plan will be on hand to answer questions or receive feedback from the public.

Drawings outlining the project in its current state and what modifications it underwent along the way will be on display, as well as itemized costs on all the perks.

The open house will not have an open-mic format for public comment.

City Administrator Wendy Gabriel said Tuesday evening the city of Coeur d'Alene will decide after the open house what the next public format for the project will be.

Public comment portions will be a part of the meeting when the topic comes to the City Council, as well as when it goes to the Lake City Development Corp., the urban renewal agency that will likely decide whether to fund a portion of the project should the project be implemented.

Weigh in on McEuen survey

COEUR d'ALENE - Take the other McEuen survey.

Friends of McEuen, a group of 200 or so McEuen Field advocates, has posted an online survey of its own gauging public support for the downtown park's conceptual project.

One of its founders, Rita Sims-Snyder, said the survey was posted because the design team's survey didn't ask critical questions about the project.

Those questions deal directly with the three most polarizing aspects of the park's conceptual design: Replacing the boat launch; removing the ball fields; and altering portions of Tubbs Hill.

So far around 700 people have filled out the 8-question survey, accessible at www.savecda.org.

The goal is to compile up to 1,400 responses to submit to the City Council as public comments on the conceptual plan.

Meanwhile, a group of people who support McEuen Field in its current state are having a picnic in the downtown park from noon to 3 p.m. Saturday as "a celebration for McEuen as it is now," Sims-Snyder said.