HomeMy WebLinkAboutInformation Update 0622211
AGENDA
INFORMATION UPDATE
June 22, 2021
5:00 PM,
I.INFORMATION UPDATE
Community Picnic
Historic Preservation Transferable Development Rights Program
II.WORK SESSION FOLLOW UP
0.5% Wheeler RETT – Expanded Uses Financial Discussion
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INFORMATION ONLY MEMORANDUM
TO:Mayor and City Council
FROM:Nancy Lesley,Director of Special Events
THROUGH: Austin Weiss, Parks and Recreation Director
RE:Community Picnic August 19, 2021, Red Brick lawn
REQUEST OF COUNCIL:This is an informational memo only and no request of Council
is being made at this time.
SUMMARY AND BACKGROUND:The focus of the Community Picnic over the last
decade has been on showcasing various City owned facilities. Over the years, the
picnic has been hosted at Paepcke Park, Rio Grande Park, Aspen Golf & Tennis
Club and most recently at the Red Brick Center for the Arts. Historically, the picnic
has been held mid-August to early-September, determined by whatever date shows
the greatest Council availability and the least conflict to other long-standing events.
DISCUSSION: Once COVID restrictions began easing a few weeks ago, staff
began looking at viable dates in August/September for this year’s picnic.
Considerations were made to avoid Monday – Wednesday due to Council and
Board meetings. The Colorado Association of Ski Towns annual meeting the last
week of August as well as the lead-in to Food and Wine set up and Labor Day
weekend were also viewed as less desirable time frames to host this event.
Therefore, staff has circled Thursday, August 19
th to host the Community Picnic.
When discussing location, every venue has pros and cons. Staff seriously considers
any negative impacts a venue choice could create. In future years, staff would like
to look at the new City Hall/Galena Plaza, the Aspen Recreation Center or the
Aspen Golf and Tennis Club as well as other city owned facilities as potential
venues. However, with the chosen date of August 19, staff believes the impacts to
both those facilities would be too great this year. In a year that started out with our
community being in the COVID “Red” zone, and previous fall sports and activities
cancelled or postponed due to local public health restrictions, minimizing additional
disruptions at either facility remains a priority.
Therefore, for this year, staff would like to host the Community Picnic on the lawn at
the Red Brick Center for the Arts, allowing Aspen residents access to the picnic, that
for most, is within walking distance. The lawn area at the Red Brick Center for the
Arts allows for table and chair set up, booths, games and, as in the past, live music.
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It also allows us to showcase the Red Brick Facility, including, the resident artists,
various non-profits, and the City’s own Recreation facilities.
FINANCIAL IMPACTS: The Events Department budgets $19,000 for the Community
Picnic. A few years back Council requested all food be locally sourced, therefore the
spend on the food is $17,500.
ENVIRONMENTAL IMPACTS: This event is completely locally sourced and falls within
all of the ZGreen guidelines created for events by the City’s Environmental Health
Department.
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INFORMATION ONLY
MEMORANDUM
TO:Mayor Torre and City Council
FROM:Amy Simon, Planning Director
THROUGH:Phillip Supino, Community Development Director
DATE:June 14, 2021
RE:Historic Preservation Transferable Development Rights (TDR) Program
SUMMARY and BACKGROUND:This memo is being provided to City Council in response to
questions posed to staff during recent reviews of applications to create Transferable
Development Rights (TDRs). Approval to create TDRs is at the discretion of Council.
The 2012 Aspen Area Community Plan (AACP)describes five
decades of citizen planning contributing to the themes and goals
of the community, including historic preservation.
The City of Aspen first took action to preserve historic properties
when the Main Street Historic District and the Commercial Core
Historic District were established in the early 1970s. A handful of
historic structures were individually designated as landmarks
through the 1970 and ‘80s,before a more comprehensive
approach was taken in the ‘90s when more than 200 historic
properties were landmarked. The experience of living in and
visiting Aspen has been enhanced by the City’s protection of the
now 300 properties that are designated historic, 95% of which are
privately owned.
The pressures of development and the high value of real estate
in Aspen are challenges to achieving some community goals,
including preservation. Historic properties have the same
underlying development rights as other comparable non-historic
properties, but there are unique restrictions imposed on these
sites that the City can help to offset equitably by providing some
flexibility. Historic Preservation Benefits have been a
fundamental component of the program for the last 40 years and
were created to support property owners of historic resources in
their role as the stewards of Aspen’s heritage.
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As part of this approach, the City TDR Program, which was created nearly 20 years ago,allows
owners of landmarks to permanently remove and sell on the free market unused residential
square footage in increments of 250 square feet, so that it may be constructed on another non-
designated property within the city limits. (Please note that a TDR can be landed on another
designated site only for the purposes of adjusting the limits on the square footage caps for
individuals uses within the allowed structure, not to increase the maximum size of the structure).
It is important to recognize that the TDR program is net zero in terms of the overall amount of
floor area permitted for residential development community wide. It simply moves that floor
area from historic resources the community wishes to preserve to sites where the development
can presumably be absorbed without significant community impact. TDRs are not the only
example of this premise being used in local land use planning. Affordable housing mitigation and
credits, stormwater mitigation and pedestrian amenity mitigation are all examples of City policies
that may be addressed through actions on a property that is different than the one generating
development.
Historic resources are a valuable community asset
and their continued protection is the premise
behind the City’s preservation tools. TDR
programs are widely used throughout the nation
to incentivize and preserve community assets
such as historic properties, agricultural lands, and
more. For instance, Pitkin County has a TDR
program, unrelated to the City’s, to relocate
development rights from Rural and Remote
properties. Denver provides landmark properties
with “bonus” floor area to sell to other sites.
Aspen’s TDR program is part of a larger package of
creative preservation strategies that the City has
developed. They are an ideal option for some
resources, but not the right solution for others.
One way they have been used has been by long-time residents who may want to access some of
their equity without selling their property. Selling TDRs can help to provide immediate funding
for some of the costly work that may be involved in maintain or restoring a historic structure.
Several applicants have found that the value of a sold TDR is enough to motivate them to forgo
any construction on a landmarked site, preserving a resource in perpetuity with no addition. This
is an ideal way to maintain the integrity of the structure for the long-term benefit of the
community.
Establishing a TDR:Properties eligible for establishing a TDR(s) are referred to as sending sites.
Sending sites include all properties within the City of Aspen designated as a Historic Landmark,
on which the development of a single-family or duplex home is a permitted use.
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The foundingTDR program Ordinance No. 54, Series of2003 setthefloor areaincrement of each
TDR at 250 square feet. This is approximately the size of a parking space.
A sending site must have unbuilt floor area of 250 square feet or more to request establishment
of a TDR.
Establishment of a TDR requires a recommendation from the Historic Preservation Commission
(HPC) and final approval from the City Council through the adoption of a property-specific
Ordinance.
A deed-restriction is placed on the historic landmark property to prohibit development after a
TDR certificate is issued, further ensuring preservation and commitment to the public goal of
historic preservation. This process is also referred to as “severing development rights from a
property.” This severance removes aggregate unused floor area from a sending site, and is not
specific to certain locations on a property or elements of a building. Final calculations shall be
reviewed by The City prior to the issuance of the TDR certificates.
Extinguishment of a TDR: The location and number of TDRs that can be landed or extinguished
on a given property is restricted by zone district. No zone district allows more than two TDRs, or
500 sq.ft. to be landed on a receiving property, however a Planned Development can allow for a
different limitation on the landing of TDRs if approved by Council. Exhibit Adescribes the number
of TDRs that can be landed on a property according to zone district.
The landing of a TDR shall not permit the creation of a nonconforming use or structure. The
Community Development Director approves the extinguishment of TDR on qualified receiver
sites. Owners of TDRs must obtain zoning approval at time of building permit review to “land” a
TDR on their property.
CURRENT DATA & MAPPING:Data shows that establishing TDRs has been a successful incentive
for property owners to landmark and preserve their historic resource properties, reducing
development on these community assets by a collective 22,500 sq. ft. in established TDRs.
The trend shows that creating or establishing TDRs has generally stayed ahead of landing TDRs,
as shown in Graph 1 (TDRs Created vs. Landed). Of the 22,500 sq.ft. of TDRs established, 12,250
sq.ft. have been landed to date, or 54%. A property owner who receives approval to create TDRs
is not obligated to follow through with the process by filing the deed restriction and severing a
TDR. To date, ten approved TDRs have never been finalized with certificates. Some TDRs have
transferred ownership several times and may continue to be held as an appreciating asset for
some time without being landed.Based on data collected on 37 TDR salessince 2012, the average
value of a TDR is $184,000, with a high sale of $275,000 in 2012 and a low sale of $150,000 in
2019.
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2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
Transferable Development Rights
Created vs Landed 2006 - 2021
# Created # Landed
Graph 1: Since the TDR program began, 90 TDRs have been created (shown in red) and 49 have been landed,
(shown in blue). Note: Though the ordinance was adopted in 2003, the first TDRs were actually created starting
in 2006.
Map 1: Sending and receiving sites are well distributed throughout Aspen. To date there have been 28 sending
sites and 42 receiving sites. There are approximately 238 possible sending sites and approximately 3,300
possible receiving sites.
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CONCLUSIONS: TheTDR program is just one preservation tool used in the City. It has allowed an
organic redistribution of a relatively small amount of development rights across a significant
number of landing sites and provides necessary flexibility and incentives for historic preservation.
Importantly, it also makes the community a partner in the preservation of the 285 historic
resources that are of a high value to the community but the responsibility of private property
owners to maintain.
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EXHIBIT A
TDR Zone Districts:
ZONE DISTRICT TDR LANDING
R-6 1 TDR/RESIDENCE;
2 TDR IF NET LOT AREA OF 9,000 SF OR LARGER FOR A SF HOME
R-15 1 TDR/RESIDENCE;
2 TDR IF NET LOT AREA OF 15,000 SF OR LARGER FOR A SF HOME
R-15A 1 TDR/RESIDENCE;
2 TDR IF NET LOT AREA OF 15,000 SF OR LARGER FOR A SF HOME
R-15B 1 TDR/RESIDENCE
R-30 1 TDR/RESIDENCE;
2 TDR IF NET LOT AREA OF 30,000 SF OR LARGER FOR A SF HOME
RMF NO TDR FLOOR AREA INCREASE FOR SF OR DUPLEX;
TDR = 500 SF OF NET LIVABLE AREA FOR MF UNIT SIZE
RMFA NO TDR FLOOR AREA INCREASE FOR SF OR DUPLEX;
TDR = 500 SF OF NET LIVABLE AREA FOR MF UNIT SIZE
AH/PD LANDING TDR ESTABLISHED IN PD DEVELOPMENT PLAN
R-3 NO TDR
RR (SAME AS R-15)
1 TDR/RESIDENCE;
2 TDR IF NET LOT AREA OF 15,000 SF OR LARGER FOR A SF HOME
CC NO TDR FLOOR AREA INCREASE
TDR = 500 SF OF NET LIVABLE AREA FOR MF*UNIT SIZE
C-1 NO TDR FLOOR AREA INCREASE
TDR = 500 SF OF NET LIVABLE AREA FOR MF UNIT SIZE
S/C/I NO TDR FLOOR AREA INCREASE
TDR = 500 SF OF NET LIVABLE AREA FOR MF UNIT SIZE
NC NO TDR FLOOR AREA INCREASE
TDR = 500 SF OF NET LIVABLE AREA FOR MF UNIT SIZE
MU NO TDR FLOOR AREA INCREASE
TDR = 500 SF OF NET LIVABLE AREA FOR MF UNIT SIZE
L NO TDR FLOOR AREA INCREASE
TDR = 500 SF OF NET LIVABLE AREA FOR MF UNIT SIZE
CL NO TDR FLOOR AREA INCREASE
TDR = 500 SF OF NET LIVABLE AREA FOR MF UNIT SIZE
C (SAME AS R-15)
1 TDR/RESIDENCE;
2 TDR IF NET LOT AREA OF 15,000 SF OR LARGER FOR A SF HOME
A RESIDENTIAL USE NOT ALLOWED
P RESIDENTIAL USE NOT ALLOWED
PUB RESIDENTIAL USE NOT ALLOWED
OS RESIDENTIAL USE NOT ALLOWED
WP RESIDENTIAL USE NOT ALLOWED
T UNDERLYING ZONING
D UNDERLYING ZONING
GCS UNDERLYING ZONING
LO UNDERLYING ZONING
LP UNDERLYING ZONING
SKI ADOPTED PD
EBO NO TDR
*MF MAXIMUM UNIT SIZE DEPENDENT ON ZONE DISTRICT REQUIREMENTS
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INFORMATION ONLY MEMORANDUM
WORK SESSION MEETING DATE:June 7, 2021
FOLLOW-UP MEMO DATE:June 8, 2021
AGENDA TOPIC:0.5% Wheeler RETT – Expanded Uses
Financial Discussion
PRESENTED BY:Pete Strecker
COUNCIL MEMBERS PRESENT:Torre, Richards, Mullins, Hauenstein, Mesirow
_______________________________________________________________________
This information only memo is to help document staff’s understanding of the June 7 work
session discussion. If there are perceptions that deviate significantly to what is noted in
the narrative below, please let staff know.
Topic 1: Staff returned to Council to present greater information around the two options
last supported by the Council at a previous work session on May 3. These options were
in response to Council inquiries around how to best apply the Wheeler Opera House Fund
reserve wisely, without putting the Wheeler’s financial stability in jeopardy; while at the
same time increasing financial support for the arts community and perhaps provide for
resources for other Community programs and benefits. Both presented options would
require voter input through a ballot question:
Option 1 included dedicating the first $2M/yr of new 0.5% RETT collections to the
Wheeler Opera House Fund, and to redirect any collections over that cap for
expanded uses (with previous Council input providing childcare, stormwater, arts
grants, and HHS support as the initial areas of focus). This ballot question would
also include requesting voter approval on the amount of arts grants that can
originate from the 0.5% RETT (currently capped at $100K).
Option 5 included continuing to dedicate the full 0.5% RETT collections into the
Wheeler Opera House Fund, but (like Option 1) would solely request voter
approval to lift the $100K cap on arts grants from the 0.5% RETT.
In tandem with the ballot question, Option 5 would encompass Council powers
(through the annual budget process) to redirect earned income at the Wheeler
Opera House to other City supported functions. This earned income would come
from box office sales, theater rentals, restaurant and art gallery leases, and
concessions.
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Majority consensus. There was no actionable direction around which option to further
pursue at tonight’s meeting. Rather, Council requested time to hear the needs outlined
for each of the previously noted expanded use areas (childcare, healthy community and
arts – with stormwater needs previously presented on) and to have that to help guide their
decision making. With this however, three Council members did note that they felt a ballot
question should not be rushed and that the desired timeframe would be at a regularly
scheduled election, likely in 2022.
Next Steps: Staff has already organized public presentations from the childcare
community (June 7th), the arts community (June 15th or July 6th) and Healthy Community
(June 28th).
Also requested of staff was to update the Option 1 slides in the evening’s presentation to
include two additional scenarios (similar to those presented under Option 5) to show
increased arts grants under this scenario. These changes have been modeled and are
attached to this document. In these three attachments, the Ending Fund Balance in the
Wheeler Opera House Fund remains the same, and all arts grants (either the status quo
of $400K/yr; gradually increasing these grants by $100K/yr until capping out at $1M; or just
increasing to $1M immediately) would just be reduced from the net 0.5% RETT collections
available AFTER the first $2M is deposited into the Wheeler Opera House Fund.
CITY MANAGER NOTES:
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
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Projections: Option 1 Arts Grants from
Expanded Uses -
Baseline
120 - Wheeler Opera House Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029
Request Projection Projection Projection Projection Projection Projection Projection Projection
Year 0 1 2 3 4 5 6 7 8
Opening Balance $33,702,580 $33,214,540 $31,932,450 $30,549,470 $29,202,180 $26,774,560 $25,245,120 $21,892,020 $19,642,750
0.5% RETT (up to $2M)$3,233,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
Investment Income $337,030 $332,150 $319,320 $458,240 $584,040 $535,490 $504,900 $437,840 $392,850
programming & lease rev $774,250 $935,040 $953,730 $972,760 $992,310 $1,012,190 $1,032,400 $1,053,070 $1,074,180
Transfers In (GF & Water) *$1,512,250 $704,440 $704,440 $704,440 $704,440 $704,440 $704,440 $343,760 $0
Total Revenues $5,856,530 $3,971,630 $3,977,490 $4,135,440 $4,280,790 $4,252,120 $4,241,740 $3,834,670 $3,467,030
Operating $2,993,570 $4,011,610 $4,118,030 $4,228,520 $4,343,270 $4,462,580 $4,586,570 $4,715,560 $4,849,760
Arts Grants Funding $400,000 $0 $0 $0 $0 $0 $0 $0 $0
Capital (set $500K floor)$2,286,000 $528,600 $500,000 $500,000 $1,571,800 $500,000 $2,173,720 $500,000 $500,000
Transfers Out (GF, IT, Housing)$665,000 $713,510 $742,440 $754,210 $793,340 $818,980 $834,550 $868,380 $883,750
Total Uses $6,344,570 $5,253,720 $5,360,470 $5,482,730 $6,708,410 $5,781,560 $7,594,840 $6,083,940 $6,233,510
Ending Balance $33,214,540 $31,932,450 $30,549,470 $29,202,180 $26,774,560 $25,245,120 $21,892,020 $19,642,750 $16,876,270
* Updated for partial early repayment by GF
Projected 0.5% RETT in Total N/A $3,935,000 $4,132,000 $4,339,000 $4,556,000 $4,784,000 $5,023,000 $5,274,000 $5,538,000
Less Amt Dedicated to Wheeler Fund N/A ($2,000,000)($2,000,000)($2,000,000)($2,000,000)($2,000,000)($2,000,000)($2,000,000)($2,000,000)
Annual Available N/A $1,935,000 $2,132,000 $2,339,000 $2,556,000 $2,784,000 $3,023,000 $3,274,000 $3,538,000
Set Aside for Arts Grants ($400,000)($400,000)($400,000)($400,000)($400,000)($400,000)($400,000)($400,000)
Net Available for Expanded Uses $1,535,000 $1,732,000 $1,939,000 $2,156,000 $2,384,000 $2,623,000 $2,874,000 $3,138,000
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Projections: Option 1 Arts Grants from
Expanded Uses –
Incremental Incr.
120 - Wheeler Opera House Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029
Request Projection Projection Projection Projection Projection Projection Projection Projection
Year 0 1 2 3 4 5 6 7 8
Opening Balance $33,702,580 $33,214,540 $31,932,450 $30,549,470 $29,202,180 $26,774,560 $25,245,120 $21,892,020 $19,642,750
0.5% RETT (up to $2M)$3,233,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
Investment Income $337,030 $332,150 $319,320 $458,240 $584,040 $535,490 $504,900 $437,840 $392,850
programming & lease rev $774,250 $935,040 $953,730 $972,760 $992,310 $1,012,190 $1,032,400 $1,053,070 $1,074,180
Transfers In (GF & Water) *$1,512,250 $704,440 $704,440 $704,440 $704,440 $704,440 $704,440 $343,760 $0
Total Revenues $5,856,530 $3,971,630 $3,977,490 $4,135,440 $4,280,790 $4,252,120 $4,241,740 $3,834,670 $3,467,030
Operating $2,993,570 $4,011,610 $4,118,030 $4,228,520 $4,343,270 $4,462,580 $4,586,570 $4,715,560 $4,849,760
Arts Grants Funding $400,000 $0 $0 $0 $0 $0 $0 $0 $0
Capital (set $500K floor)$2,286,000 $528,600 $500,000 $500,000 $1,571,800 $500,000 $2,173,720 $500,000 $500,000
Transfers Out (GF, IT, Housing)$665,000 $713,510 $742,440 $754,210 $793,340 $818,980 $834,550 $868,380 $883,750
Total Uses $6,344,570 $5,253,720 $5,360,470 $5,482,730 $6,708,410 $5,781,560 $7,594,840 $6,083,940 $6,233,510
Ending Balance $33,214,540 $31,932,450 $30,549,470 $29,202,180 $26,774,560 $25,245,120 $21,892,020 $19,642,750 $16,876,270
* Updated for partial early repayment by GF
Projected 0.5% RETT in Total N/A $3,935,000 $4,132,000 $4,339,000 $4,556,000 $4,784,000 $5,023,000 $5,274,000 $5,538,000
Less Amt Dedicated to Wheeler Fund N/A ($2,000,000)($2,000,000)($2,000,000)($2,000,000)($2,000,000)($2,000,000)($2,000,000)($2,000,000)
Annual Available N/A $1,935,000 $2,132,000 $2,339,000 $2,556,000 $2,784,000 $3,023,000 $3,274,000 $3,538,000
Set Aside for Arts Grants ($500,000)($600,000)($700,000)($800,000)($900,000)($1,000,000)($1,000,000)($1,000,000)
Net Available for Expanded Uses $1,435,000 $1,532,000 $1,639,000 $1,756,000 $1,884,000 $2,023,000 $2,274,000 $2,538,000
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Projections: Option 1 Arts Grants from
Expanded Uses –
$1M Immediate
120 - Wheeler Opera House Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029
Request Projection Projection Projection Projection Projection Projection Projection Projection
Year 0 1 2 3 4 5 6 7 8
Opening Balance $33,702,580 $33,214,540 $31,932,450 $30,549,470 $29,202,180 $26,774,560 $25,245,120 $21,892,020 $19,642,750
0.5% RETT (up to $2M)$3,233,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
Investment Income $337,030 $332,150 $319,320 $458,240 $584,040 $535,490 $504,900 $437,840 $392,850
programming & lease rev $774,250 $935,040 $953,730 $972,760 $992,310 $1,012,190 $1,032,400 $1,053,070 $1,074,180
Transfers In (GF & Water) *$1,512,250 $704,440 $704,440 $704,440 $704,440 $704,440 $704,440 $343,760 $0
Total Revenues $5,856,530 $3,971,630 $3,977,490 $4,135,440 $4,280,790 $4,252,120 $4,241,740 $3,834,670 $3,467,030
Operating $2,993,570 $4,011,610 $4,118,030 $4,228,520 $4,343,270 $4,462,580 $4,586,570 $4,715,560 $4,849,760
Arts Grants Funding $400,000 $0 $0 $0 $0 $0 $0 $0 $0
Capital (set $500K floor)$2,286,000 $528,600 $500,000 $500,000 $1,571,800 $500,000 $2,173,720 $500,000 $500,000
Transfers Out (GF, IT, Housing)$665,000 $713,510 $742,440 $754,210 $793,340 $818,980 $834,550 $868,380 $883,750
Total Uses $6,344,570 $5,253,720 $5,360,470 $5,482,730 $6,708,410 $5,781,560 $7,594,840 $6,083,940 $6,233,510
Ending Balance $33,214,540 $31,932,450 $30,549,470 $29,202,180 $26,774,560 $25,245,120 $21,892,020 $19,642,750 $16,876,270
* Updated for partial early repayment by GF
Projected 0.5% RETT in Total N/A $3,935,000 $4,132,000 $4,339,000 $4,556,000 $4,784,000 $5,023,000 $5,274,000 $5,538,000
Less Amt Dedicated to Wheeler Fund N/A ($2,000,000)($2,000,000)($2,000,000)($2,000,000)($2,000,000)($2,000,000)($2,000,000)($2,000,000)
Annual Available N/A $1,935,000 $2,132,000 $2,339,000 $2,556,000 $2,784,000 $3,023,000 $3,274,000 $3,538,000
Set Aside for Arts Grants ($1,000,000)($1,000,000)($1,000,000)($1,000,000)($1,000,000)($1,000,000)($1,000,000)($1,000,000)
Net Available for Expanded Uses $935,000 $1,132,000 $1,339,000 $1,556,000 $1,784,000 $2,023,000 $2,274,000 $2,538,000
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